Pre-close Full Year Trading Update
2 February 2023
(the "Company" and together with its subsidiaries "JTC" or the "Group")
Pre-close Full Year Trading Update
Strong organic growth and record new business wins deliver good momentum into 2023
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 2022.
2022 was a successful year for the Company, which has seen it deliver double-digit net organic revenue growth, above its medium-term guidance range of 8% - 10%. This was driven by record new business wins of £24.6m, a c. 17.7% increase on the 2021 figure of £20.9m.
The Group's inorganic growth efforts focused on completing the integration programmes for the seven acquisitions made in 2021, as well as the acquisition in Q4 of NYPTC, a high quality domestic US Private Client Services business. We are pleased with the contributions that these businesses are now making to the Group and in particular SALI Fund Services in the US and the former RBC cees business.
The Group's underlying EBITDA will be at the top end of the range of market expectations and the EBITDA margin will be, as expected, at the lower end of the medium term guidance range of 33% - 38%.
Cash conversion is at the top of the guidance range of 85% - 90% and following the NYPTC acquisition, leverage remains at the lower end of 1.5 - 2.0 times reported underlying EBITDA.
Nigel Le Quesne, CEO of JTC PLC, said:
"From our IPO in March 2018, we doubled the size of the Group in our first three years as a listed business. We then set ourselves the goal of doubling again - in terms of revenue and underlying EBITDA - in a three to five year timeframe and 2022 was the second year of this latest plan, the 'Galaxy Era'.
Our business is configured in a way that combines resilience and growth, which has enabled us to deliver excellent results during the year, with particularly strong net organic growth and the successful integration of recent acquisitions. We continue to take a long-term view of the business, making necessary investments to allow us to support our growth trajectory. As a result, we believe it will be possible to achieve our Galaxy Era goal by the end of 2023, two years earlier than first anticipated. Looking ahead, we are particularly focused on developing our US footprint across both Divisions, maintaining organic growth momentum in the core business and continuing to secure the right acquisition opportunities in a fragmented and consolidating market."
The Company will announce its full year results for the year ended 31 December 2022 on Tuesday 11 April 2023. An analyst briefing will be given by Nigel Le Quesne, Chief Executive Officer, and Martin Fotheringham, Chief Financial Officer, at 09:30 BST via audio conference.
JTC PLC +44 (0) 1534 700 000
Nigel Le Quesne, Chief Executive Officer
Martin Fotheringham, Chief Financial Officer
David Vieira, Chief Communications Officer
Camarco +44 (0) 20 3757 4985
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.