25 January 2021
(the "Company" and together with its subsidiaries "JTC" or the "Group")
Pre-close Full Year Trading Update
Continued resilient performance; strong new business growth and trading in line with expectations
JTC, the global provider of fund, corporate and private client services, today issues the following trading update in advance of its full year results for the year ended 31 December 2020.
The Company's highly resilient business model allowed JTC to continue to perform well during the second half of the year and the Board expects that full year results will be in line with management guidance and consensus expectations.
Despite the ongoing global Covid pandemic, new business performance in the year was strong with the annualised value of new business won increasing c. 20% on a YoY basis to an annualised value of £17.9m in the year (£14.9 m at FY 2019), with good momentum in Q4.
The Group EBITDA margin remained stable in H2 and within guidance with the Private Client Services ("PCS") Division continuing to perform strongly. Planned organisational changes within the fund services practice of the Institutional Client Services ("ICS") Division were made, although the pace of implementation continues to be affected by travel restrictions.
The Group is pleased with the acquisitions made during the year and both NESF and the Sanne private client business are now fully integrated onto JTC's global platform. The acquisition of the stand-alone RBC Cees business, which was announced in December 2020 and remains subject to final regulatory approval, will also represent a straightforward integration, with JTC leveraging its extensive experience of bank carve out transactions. The outlook for further inorganic growth remains positive, with a well-developed pipeline of opportunities that support JTC's strategy to strengthen and deepen its global footprint and service offering. JTC remains a disciplined buyer focused on the creation of medium-term shareholder value.
The Company maintains its medium-term guidance metrics of 8%-10% net organic revenue growth; underlying EBITDA margin of 33%-38%; net debt of 1.5x to 2.0x underlying EBITDA and cash conversion in the range 85%-90%.
Nigel Le Quesne, CEO of JTC PLC, said:
"As we have seen in several instances over the last 30 years, JTC is a highly resilient business that is able to adapt and grow on a consistent basis even during periods of challenging external conditions. Our people continue to demonstrate both the spirit and meaning of our shared ownership culture and I would like to thank them for their commitment to our clients and the Group.
With the integration of NESF and Sanne now completed, we look forward to further developing our global footprint and service offering. We also remain focused on delivering exceptional service and making JTC a better business for our stakeholders every day. Our outlook remains positive and we see good opportunities for organic and inorganic growth in key geographies and service lines."
The Company will announce its full year results for the year ended 31 December 2020 on Tuesday 13 April 2021. 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@example.com
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 a global 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.