Pre-close Interim Trading Update
27 July 2020
(the "Company" and together with its subsidiaries "JTC" or the "Group")
Pre-close Interim Trading Update
Resilient performance in line with expectations
JTC, a global provider of fund, corporate and private client services, today issues the following trading update in advance of its interim results for the six months ended 30 June 2020.
The Company's highly resilient business model has allowed JTC to perform well during the first half of the year during what have been difficult circumstances and the Board expects that interim results will be in line with management expectations.
JTC's main medium term guidance metrics remain unchanged at: 8%-10% net organic revenue growth per annum at Group level; underlying EBITDA margin of 33%-38% at Group level (adjusted for IFRS 16); net debt of 1.5x to 2.0x underlying EBITDA and cash conversion in the range 85%-90%.
The performance has been achieved in spite of the challenges created by the coronavirus pandemic, where JTC's response has centred on the safety and security of its employees and the provision of an uninterrupted service to clients.
In addition, the Group continues to focus on successfully integrating the Sanne private client business and NES Financial, a US fund administration business, both of which were acquired in H1 2020. The Board continues to see opportunities for both organic and inorganic growth in the second half of the financial year and longer term.
Nigel Le Quesne, CEO of JTC PLC, said:
"The Coronavirus pandemic brought extreme challenges at very short notice. Our priorities from the beginning have been the safety and wellbeing of our people, uninterrupted service for our clients and the long-term strength of the Group. Our performance in H1 is testament to the highly resilient nature of our business and the outstanding quality of our people.
We acquired two businesses during the period, the Sanne private client business announced in March and NES Financial, announced in April. While it has been more challenging to integrate these businesses in a 'virtual-only' environment, we have made progress and, in particular, we look forward to incrementally bringing the technology capabilities of NES Financial to the rest of the Group.
Our outlook for the remainder of the year is cautiously positive and we will be concentrating in particular on new business inflows, which stood at £6.4m for H1 (H1 2019: £5.9m) and the ongoing integrations of the Sanne and NES Financial acquisitions. Longer term, we continue to see good ongoing opportunities for organic and inorganic growth in key geographies and service lines."
The Company will announce its interim results for the half year ended 30 June 2020 on Tuesday 15 September 2020. An analyst briefing will be given by Nigel Le Quesne, Chief Executive Officer, and Martin Fotheringham, Chief Financial Officer, at 09:30 GMT via audio conference.
Slides and an audio-cast of the presentation will be made available on the JTC website following the presentation. Those analysts wishing to dial into the audio conference are asked to contact Camarco on +44 (0)20 3757 4999 or [email protected]
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 an award-winning provider of fund, corporate and private client services. Founded in 1987, the company employs c.900 people across its global office network and is trusted to administer assets of c.US$130 billion.
JTC is committed to its shared ownership culture and philosophy, with management and staff holding over 20% of the equity in the firm, clearly aligning the interests of clients, employees and other stakeholders.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.