REG - JTC PLC - Pre-close Full Year Trading Update

JTCAnnouncement

05/02/2025 07:00

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RNS Number : 9138V  JTC PLC  05 February 2025

5 February 2025

JTC PLC

(the "Company" and together with its subsidiaries "JTC" or
the "Group")

  Pre-close Full Year Trading Update

Record new business, strong organic growth and six acquisitions mark a fast
start to the 'Cosmos' era

 

JTC, the global professional services business, today issues the following
trading update in advance of its full year results for the year ended 31
December 2024.

2024 marked the first year of the Company's Cosmos era business plan, during
which it aims to double revenue and underlying EBITDA from that reported in
2023 (revenue £257.4m; underlying EBITDA £85.9m) within a four-year
timeframe. This would represent the third time that the company has doubled in
size since its listing in 2018, with the prior Odyssey era (2018 to 2020) and
Galaxy era (2021 to 2023) plans being delivered successfully through a
combination of organic and inorganic growth and our unique employee Shared
Ownership culture.

The Group's notable achievements in the period include the completion of five
acquisitions (Blackheath, Hanway, FRTC-DE, FFP and Buck UK), noting the
previously announced delay in the FFP completion. In addition, the acquisition
of Citi Trust in the US, announced in H2 2024, cements JTC's position as the
leading independent provider of global trust services. The acquisition is on
track to complete before the end of Q2 2025. While the Group remains highly
focused on the integration of these acquisitions and completion of the Citi
Trust deal, it maintains a well-developed pipeline of further opportunities.

Guidance for net organic revenue growth per annum was raised from a range of
8% - 10% in the Galaxy era to 10%+ for the Cosmos era. This has been achieved
in 2024, supported by a record year for new business wins with year on year
growth of 15.9% to £35.7m (2023: £30.8m). The US was a key driver of this
performance across both Divisions, highlighting its significant growth
potential for the Group.

The Group's underlying EBITDA margin will be within the guidance range of 33%
- 38% and reflects the Group's continued investment in organic growth.
Following the series of acquisitions, leverage at period end, excluding the
Citi Trust transaction, will be at the bottom of the guidance range of 1.5x -
2.0x underlying EBITDA. Cash conversion will be at the top end of the guidance
range of 85% - 90%.

The Board expects the Group to deliver full year results in line with market
expectations 1  (#_ftn1) , after allowing for the impact of the later than
expected FFP completion and FX headwinds.

The Company's award-winning Shared Ownership programme, where 100% of
employees are direct owners, recognised the achievements of the Galaxy era
with an award of c.£50m in JTC shares to eligible employees in July 2024,
with half the award vesting on grant and the second half vesting on the first
anniversary (July 2025), subject to conditions of continuous employment being
met. Awards are satisfied upon vesting by transferring existing Ordinary
Shares warehoused in the JTC PLC Employee Benefit Trust to each participant.
Consequently, the grant of these awards is non-dilutive to the existing
shareholders of the Group.

The annual employee survey, carried out in November 2024, had a participation
rate of 89% and 86% of respondents agreed or strongly agreed that they value
being an employee owner at JTC. Staff retention for 2024 was 96%, which once
again exceeded the Company's key performance indicator of 90%+, and is
industry leading.

Nigel Le Quesne, CEO of JTC PLC, said:

"The Group made a fast start to the Cosmos era in 2024, with our people
energised by the success and momentum of the excellent results achieved in
2023. Having raised our guidance for organic growth for this era we have
delivered on this key metric, which is a strong result in light of a weaker
fundraising environment. The record performance in new business wins,
particularly from the US, helps underscore our confidence in continuing to
deliver against the increased organic growth target. Our ability to source
high quality acquisitions was again demonstrated, with six deals being
completed or announced, including the transformational acquisition of Citi
Trust which, upon completion, will cement our position as the largest
independent provider of private trust services in the high-growth US market.

"We continue to invest in our global platform to support and capture long-term
growth, expanding our service offering and jurisdictional footprint both
organically and inorganically. As owners of the business, we all remain
extremely ambitious for the Group's long-term success and are confident that
we are well on track with our Cosmos era goal to double the size of JTC for
the third time since IPO."

 

Notice of results

The Company will announce its full year results for the year ended 31 December
2024 on Tuesday 8 April 2025. A briefing will be given by Nigel Le Quesne,
Chief Executive Officer, and Martin Fotheringham, Chief Financial Officer, at
09:30 BST via video / audio conference.

 

For further information please contact:

 JTC plc                                       Tel: +44 (0)1534 700 700
 Nigel Le Quesne, Chief Executive Officer
 Martin Fotheringham, Chief Financial Officer
 David Vieira, Chief Communications Officer    Tel: +44 (0) 7797 735 444
 Camarco (Financial PR)
 Geoffry Pelham-Lane                           Tel: +44 (0) 7733 124 226
 Sam Morris                                    Tel: +44 (0) 7796 827 008

 

About JTC

JTC is a publicly listed, global professional services business with deep
expertise in fund, corporate and private client services. Every JTC person is
an owner of the business, and this fundamental part of our culture aligns us
with the best interests of all of our stakeholders. Our purpose is to maximise
potential, and our success is built on service excellence, long-term
relationships and technology capabilities that drive efficiency and add value.

www.jtcgroup.com
(https://d.docs.live.net/d607aac6e4ea8c88/Documents/www.jtcgroup.com)

 

(#_ftnref1) (1) Analyst Consensus | JTC
(https://www.jtcgroup.com/investor-relations/analyst-consensus/)

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