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JTC Plc

JTC PLC Strong performance in its first results as a listed company

JTC PLC (LON:JTC) delivers a strong performance in its first results as a listed company, building on a 30 year record of growth.

 

H1 2018

H1 2017

Variance

Revenue (£)

£35.3m

£28.2m

+25.2%

Underlying EBITDA (£)*

£10.5m

£6.7m

+56.7%

Underlying EBITDA margin (%)*

29.9%

23.6%

+6.3 pp

Underlying profit from operating activities (‘EBIT’)

£8.6m

£5.5m

+56%

Underlying diluted EPS(p)*

7.29p

(1.51p)

n/a

Interim dividend per share(p)

1p

+1p

Enquiry pipeline (£)

£25.8m

£24.5m

+5.3%

 

* Items classified as non-underlying are: IPO costs, EBT capital distribution, acquisition and integration costs and other non-underlying costs. Non-underlying items are defined as specific items that the directors do not believe will recur in future periods. The H1 2018 results reflect the pre listing capital structure up to 14 March 2018 and the subsequent structure post IPO.

In order to assist the reader’s understanding of the financial performance of the Group in this period of significant change, alternative performance measures (“APMs”) have been included to ensure consistency with the IPO prospectus and to better reflect the underlying activities of the Group excluding specific non-recurring items as set out in note 6.

H1 2018 Highlights

Profitable growth momentum

· Revenue up 25.2% to £35.3m (H1 2017: £28.2m), reflecting a combination of good net organic (8%) and FY17 acquisitions (17%) growth

· Underlying EBITDA up 56.7% to £10.5m (H1 2017: £6.7m)

· Underlying EBITDA margin increased materially to 29.9% (H1 2017: 23.6%) in line with expectations

· Underlying EBIT up 56% to £8.6m (H1 2017: £5.5m)

· Strong performance by both Institutional Client Services (ICS) and Private Client Services (PCS) Divisions

Focused growth strategy

· Strong enquiry pipeline of £25.8m, up 5.3% from £24.5m (H1 2017)

· Well positioned to take advantage of consolidation opportunities in the global fund, corporate and trust administration industry

· Post period end, successfully acquired1 Minerva and Van Doorn, broadening our proposition and global network and leveraging our existing and scalable operating platform

· Active deal pipeline under consideration subject to continued disciplined acquisition criteria

Investing for further growth

· Enhancements to senior management team

· 2017 acquisitions successfully integrated

· Continued operational investments including IT systems and office infrastructure

Outlook

· The Group is trading in line with Board expectations

· The industry outlook remains positive for further growth opportunities, both organic and through acquisitions

1 Subject to relevant regulatory approvals

Nigel Le Quesne, Chief Executive Officer of JTC PLC, said:

“We are very pleased with the performance of the Group in the first half of the year and delighted with our successful listing during the period. We continue to see positive organic growth in both our Institutional and Private Client Divisions with a healthy ongoing pipeline from new and existing clients. As well as good progress with integrating the businesses acquired in 2017 we have also made two further acquisitions, post period end, with the recent Van Doorn (Netherlands) and Minerva (Jersey, London, Geneva, Dubai, Mauritius and Singapore) businesses, which are progressing well. In addition to these, we have several other potential targets where we are engaged in negotiations. We have continued to strengthen the senior management team as part of an ongoing drive to improve performance in all our key jurisdictions and service lines and this, coupled with our ongoing investment in improving processes and technologies, makes us confident in the ability of the Group to deliver on the expectations we set ourselves at the time of listing and in meeting the Board’s expectations for the full year.”