JTC full-year results seen in line with guidance, consensus

JTC said on Monday that full-year results are set to be in line with management guidance and consensus expectations after it continued to perform well in the second half.

In an update ahead of its results for the year to the end of December 2020, the provider of fund, corporate and private client services, said new business was strong despite the pandemic. The annualised value of new business won was up around 20% on a year-on-year basis to £17.9m, with JTC highlighting "good momentum" in the fourth quarter.

The group EBITDA margin remained stable in the second half and within guidance, it said, with the Private Client Services (PCS) division continuing to perform strongly. Planned organisational changes within the fund services practice of the Institutional Client Services (ICS) division were made, although the pace of implementation remains affected by travel restrictions.

JTC said it was "pleased" with the acquisitions made during the year, with both NESF and the Sanne private client business now fully integrated onto its global platform. Meanwhile, the acquisition of the stand-alone RBC Cees business - announced at the end of last year - remains subject to final regulatory approval, but will also represent a straightforward integration.

The company maintained its medium-term guidance metrics of 8%-10% net organic revenue growth; underlying EBITDA margin of 33%-38%; net debt of 1.5x to 2.0x underlying EBITDA and cash conversion in the range 85%-90%.

Chief executive officer Nigel Le Quesne said: "As we have seen in several instances over the last 30 years, JTC is a highly resilient business that is able to adapt and grow on a consistent basis even during periods of challenging external conditions.

"With the integration of NESF and Sanne now completed, we look forward to further developing our global footprint and service offering. We also remain focused on delivering exceptional service and making JTC a better business for our stakeholders every day. Our outlook remains positive and we see good opportunities for organic and inorganic growth in key geographies and service lines."