JTC PLC strong organic growth and record new business wins

JTC Group

JTC Plc (LON:JTC), the global professional services business, today issued 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.”

JTC 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.

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