Interim Trading Update and Notice of Results

JTC PLC

25 July 2023

 

PRE-CLOSE INTERIM UPDATE AND NOTICE OF RESULTS

25 July 2023

JTC PLC

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

Pre-close Interim Trading Update and Notice of Results

JTC's growth continues to accelerate

JTC, the global professional services business, today issues the following trading update in advance of its interim results for the period ended 30 June 2023.

The Group continues to trade very strongly. Net organic growth has accelerated from the 12% delivered at full year 2022 and is significantly above the Company's medium-term guidance range of 8% to 10%, with both Divisions performing very well. We have seen record H1 new business wins of £14.6 million, up 15.9% on the same period last year (H1 2022: £12.6 million). Underlying EBITDA margin is at the lower end of the established medium term guidance range of 33% - 38%, as the Group continues to invest in the business to drive further growth. The Board expects the Company to deliver full year 2023 results at least in line with market expectations.[1]

The Group also continues to deliver on its inorganic growth strategy, sourcing high-quality opportunities that fit the Group's acquisition criteria whilst remaining disciplined on price. The Company announced the acquisition of South Dakota Trust Company ("SDTC"), making JTC the leading independent provider of administration services to the US personal trust sector, for a maximum consideration of $270 million on 14 June 2023. This is expected to complete before the end of August 2023 as previously announced. The integration of New York Private Trust Company ("NYPTC"), which completed on 1 November 2022, is progressing well and the business is trading in line with expectations. The Group continues to maintain an active M&A pipeline across both Divisions that is aligned to the Company's strategic priorities, including further opportunities in the high growth US market.

Cash conversion was strong, in line with levels typically seen in the first half of the year, and the Company expects to achieve its guidance range of 85% to 90% for the full year. Leverage at the end of June was below the guidance range of 1.5 to 2.0 times underlying EBITDA as a result of the timing of the SDTC equity fund raise during the period. Following completion of the SDTC deal, leverage is still expected to be below 2.0 times reported underlying EBITDA by the year-end, as previously announced.

The Group will deliver on its Galaxy era business plan to double in size from 2020 by the end of this year, two years' earlier than planned. JTC continues to see significant growth potential in its markets in the short, medium and long term, and will share details of its next multi-year business plan era, Cosmos, at the time of its interim results on 12 September 2023.

Nigel Le Quesne, CEO of JTC PLC, said:

"I am delighted to report that JTC's growth momentum continues to accelerate. Net organic growth is excellent, well ahead of our medium-term guidance, and, as highlighted by our acquisition of SDTC, we continue to realise the significant inorganic growth potential that exists in our global marketplace, particularly in the US. It is a testament to the quality and commitment of our employees, all of whom are owners of the Company, that JTC continues to raise the bar. By 2020 JTC had doubled in size since listing in 2018 and by the end of this year, it will have doubled again. Based on our current strong performance and the very considerable potential for further significant organic growth in our business as well as in our M&A pipeline, we look forward to sharing highlights of our Cosmos era business plan for JTC's next stage of growth at our results in September. I would like to thank our excellent people for what JTC has achieved so far and their ambitions and commitment to continuing to deliver extraordinary growth in future".

Notice of Results

The Company will announce its interim results for the period ended 30 June 2022 on Tuesday 12 September 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.

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 [e-mail].

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Enquiries

JTC PLC		[phone]
Nigel Le Quesne, Chief Executive Officer
Martin Fotheringham, Chief Financial Officer
David Vieira, Chief Communications Officer
Camarco
Geoffrey Pelham-Lane		[phone]
Sam Morris		[phone]

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 our stakeholders. Our purpose is to maximize potential and our success is built on service excellence, long-term relationships and technology capabilities that drive efficiency and add value.

www.jtcgroup.com

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[1] https://www.jtcgroup.com/investor-relations/analyst-consensus/

 

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