JTC PLC (LON:JTC) has announcede its full year results for the year ended 31 December 2024.
A fast start to our “Cosmos” era from both an organic and inorganic perspective proving JTC’s defensive growth capabilities
| As reported | Underlying* | |||||
| 2024 | 2023 | Change | 2024 | 2023 | % +/- | |
| Revenue (£m) | 305.4 | 257.4 | +18.6% | 305.4 | 257.4 | +18.6% |
| EBITDA (£m) | 49.1 | 77.8 | -36.9% | 101.7 | 85.9 | +18.4% |
| EBITDA margin* | 16.1% | 30.2% | -14.1pp | 33.3% | 33.4% | -0.1pp |
| Operating profit/EBIT (£m) | 18.9 | 52.7 | -64.0% | 71.6 | 60.8 | +17.8% |
| Profit before tax (£m) | -7.4 | 24.3 | -130.5% | 47.4 | 40.5 | +17.1% |
| Earnings per share (p)** | -4.44 | 14.20 | -131.3% | 41.80 | 37.30 | +12.1% |
| Cash conversion* | 98% | 106% | -8pp | 98% | 106% | -8pp |
| Net debt (£m) | 206.9 | 135.1 | +71.8 | 182.3 | 123.3 | +59.0 |
| Dividend per share (p) | 12.54 | 11.17 | +12.3% | 12.54 | 11.17 | +12.3% |
* For further information on our alternative performance measures (APM’s) see the appendix to the CFO Review.
** Average number of shares (thousands) for 2024: 163,308 (2023: 153,659)
STRONG FINANCIAL PERFORMANCE
· Revenue +18.6%, driven by net organic growth of 11.3% (2023: 19.9%)
· Underlying EBITDA +18.4% to £101.7m (2023: £85.9m) with consistent underlying EBITDA margin of 33.3% (2023: 33.4%)
· New business wins +15.9% to a record £35.7m (2023: £30.8m)
· Excellent underlying cash conversion of 98% (2023: 106%)
· Leverage of 1.79x underlying EBITDA at period end, comfortably within the guidance range of 1.5x – 2.0x
· Undrawn funds of £125.9m of £400m facility at period end
· Total dividend per share +12.3% to 12.54p (2023: 11.17p)
· Doubling of business in Galaxy era marked by award of c.£50m in JTC shares to all eligible employees in July 2024, reflected in reported earnings
CONTINUED SUCCESSFUL EXECUTION OF GROWTH STRATEGY
· Institutional Client Services Division performed well in the current market environment with net organic growth of +9.9% and revenue of £180.9m
· Private Client Services Division saw outstanding net organic growth of +14.0% and revenue for the first time over the £100m barrier at £124.5m. This was driven by particularly strong growth in the US, Cayman and Jersey
· Six acquisitions announced or completed in the year. FRTC (PCS Division) and Blackheath, Hanway, Buck and FFP (ICS Division) are all integrated. The exciting Citi Trust acquisition (PCS) is due to complete by the end of Q2 2025. ROIC improved to 12.6% (2023: 12.3%) significantly above cost of capital.
STRONG GROWTH OUTLOOK
· Good start to the new year, with strong organic growth trends set to continue, supported by a robust pipeline of new business opportunities across both Divisions that has grown to £55m at end of Q1.
· Active pipeline of M&A opportunities across both Divisions and key target markets, supported by existing balance sheet capacity
· Medium term guidance maintained:
o Net organic revenue growth 10%+ per annum
o Underlying EBITDA margin of 33% – 38%
o Cash conversion of 85% – 90%
o Net debt of between 1.5x – 2.0x underlying EBITDA
· On track to deliver on our Cosmos era strategic objective to double the size of the business again from FY23 by FY27
Nigel Le Quesne, CEO of JTC PLC, said:
“2024 was the first year of our Cosmos era business plan and we have made a fast start towards our goal of doubling the size of the Group for the third time since IPO. We delivered record new business wins, organic growth above our upgraded guidance and a strong margin, even as we continue to invest in growth.
Alongside the strong organic performance, we announced or completed six acquisitions during the period, including Citi Trust, the global trust company business of Citi Bank. This is a significant addition to our PCS Division and cements JTC’s position of the world’s leading independent trust company business.
We have carried strong momentum into 2025, growing our new business enquiry pipeline, a driver of organic growth, to £55m by the end of Q1 and we maintain a healthy pipeline of further M&A opportunities across both Divisions.
Finally, we were delighted to be able to make an award of c. £50m to our global workforce, in recognition of their collective achievement to double the size of the Group in just three years by delivering our Galaxy era plan. Our commitment to ownership for all employees remains our defining characteristic and I thank our employee-owners for their dedication to our clients and for bringing the JTC culture to life.”
