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Stronger Together

Annual Review 2018

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"We are very pleased with our first full year results since listing and in particular the improvement we delivered in our profit margin. Both Divisions have performed well and we are pleased with the contribution from acquisitions and progress with their integration onto the JTC platform. The fundamental drivers for our sector remain strong and we have a positive outlook for 2019."

Chief Executive Officer Nigel Le Quesne

"We are very pleased with our first full year results since listing and in particular the improvement we delivered in our profit margin. Both Divisions have performed well and we are pleased with the contribution from acquisitions and progress with their integration onto the JTC platform. The fundamental drivers for our sector remain strong and we have a positive outlook for 2019."

CEO Review
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"I am pleased that these results demonstrate that we have achieved the targets we set ourselves. EBITDA margin is above 30% for the full year, organic growth has strengthened in H2 and cash conversion has improved in line with the guidance we gave mid-year. We were ahead of consensus on all key market measures."

Chief Financial Officer Martin Fotheringham

"I am pleased that these results demonstrate that we have achieved the targets we set ourselves. EBITDA margin is above 30% for the full year, organic growth has strengthened in H2 and cash conversion has improved in line with the guidance we gave mid-year. We were ahead of consensus on all key market measures."

CFO Review
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Highlights

Revenue (£) £77.3M 2017 £59.8M
Underlying EBITDA (£)* £23.8M 2017 £14.4M
Adjusted Diluted EPS (P)** £18.4P 2017 £13.8P
Statutory ebitda (£) £5.3m 2017 £9.6m
Diluted eps (p) (3.9P) 2017 (7.0P)
Final Dividend Per Share (P) 2.0P
Net debt (£) (£48.7m) 2017 (42.5m)
Financial
Highlights

Revenue up 29.3% reflecting a good combination of organic growth and growth from acquisitions. Underlying EBITDA margin increased materially to 30.9% (2017: 24.1%) ahead of expectations due to the focus on improving profitability levels across the Group. Strong performance by both Institutional Client Services (ICS) and Private Client Services (PCS) Divisions.

Strategic
Highlights

Net organic growth of 8.7% with £9.7m of new business won from existing and new clients and strong organic new business enquiry pipeline of £32m at 31 December 2018 (2017: £25.6m). Successfully acquired Van Doorn and Minerva in 2018 and post period end acquired Exequtive Partners, a Luxembourg based provider of fund and corporate administration services. Well positioned to take advantage of further consolidation opportunities.

*Items classified as non-underlying are as detailed in Note 10 of the financial statements. Non-underlying items are defined as specific items that the directors do not believe will recur in future periods. The 2018 results reflect the pre listing capital structure up to 14 March 2018 and the subsequent structure post IPO.

**Adjusted diluted EPS is the loss for the year adjusted to remove the impact of non-underlying items within EBITDA, amortisation of customer contacts, other gains, share of profits from equity accounted investees, finance income, loan note interest, amortisation of loan arrangement fees and unwinding of NPV discounts.

CFO Review
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What makes us different

A unique culture based on shared ownership

Our culture is based on the principle of shared ownership and is brought to life through our internal cultural values, which in turn drive our external client facing behaviours. These are supported by three constantly evolving programmes that are available to all employees globally. JTC Academy delivers lifelong learning and development opportunities. JTC Gateway enables and encourages talent mobility between our global network of offices. JTC Wellbeing supports all our people in attaining optimum physical, emotional and mental good health.

Our structure

Our business is organised into two reporting Divisions each of which has a global footprint. Cross-selling opportunities exist between the services we offer and the jurisdictions from which we deliver those services.

institutional client
services (ics) division

Provides fund and corporate administration services to institutional clients, primarily fund managers, listed companies and multinationals.
 
 

Vision

Be acknowledged as a top-tier global provider of fund and corporate services.

Highlights

  • Improved margin through top line growth and continued operational improvement
  • Enhanced business development capability, processes and systems
  • Integration of Van Doorn and continued high growth
  • Excellent new business enquiry pipeline

Revenue

Private client services
(pcs) division

Provides trust and corporate administration services to meet the personal and business needs of private clients, including HNW and UHNW individuals and families, as well as family and private offices, and international wealth management firms.

Vision

Be recognised as the best private client practice in the world.

Highlights

  • Revenue growth, margin improvement and new business pipeline growth
  • Excellent integration of the BAML acquisition and popularity of US proposition
  • Integration of the Minerva acquisition progressing well
  • Global launch of JTC Private Office powered by our proprietary ‘Edge’ client portal

Revenue

Our two reporting divisions provide Client Services across three service lines with, in effect, each of ICS and PCS providing corporate services to their respective client groups.

Fund Revenue

Clients
  • Institutional fund managers
  • Market entrant fund managers
  • Real Estate, Private Equity, Infastructure, Hedge, Debt and FinTech
  • Other alternative assets

Corporate Revenue

Clients
  • Multinationals
  • Listed companies
  • Sovereign wealth funds
  • Fund managers
  • UHNWI and families
  • Pension plans
  • Employee share incentive and other ownership plans

Private Wealth Revenue

Clients
  • UHNWI and families
  • Private and family offices
  • Private client institutions

Our Purpose

Our purpose is to help maximise the potential of every client, colleague and partner we work with. JTC’s culture of shared ownership drives internal values and client facing behaviours that deliver service excellence across our entire business. Our long-term organic and inorganic growth strategies are aligned with well-understood market drivers and by maintaining a well invested and scalable global platform we are able to capture opportunities and grow sustainably.

Our Business Model

Our shared ownership culture drives internal values and client facing behaviours that deliver service excellence across our entire business.

Business Model PDF
Pdf 784kb

Our Business Model

Our Resources and Strengths

We invest in our people

JTC’s highly qualified and multilingual team of more than 700 professionals are our most important asset, bringing our culture to life and delivering client service excellence. Over 70% of our people are professionally qualified or working towards a relevant professional qualification and everyone is supported to maximise their individual potential through the JTC Academy, JTC Gateway and JTC Wellbeing programmes and rewarded through our Shared Ownership culture.

We embrace technology

We believe technology is an enabler for client service excellence and invest accordingly. JTC uses a variety of best-in-class systems to deliver and maintain an impeccable standard of administration and uses technology to innovate in both service delivery and efficiency.

We Put Relationships First

We handpick the best team to look after each client’s needs and aim to work with clients who share our belief in the importance of building strong relationships over time. We provide services to more than 4,800 clients from over 100 different countries and are trusted to administer assets in excess of US$100 billion. As an independent administrator, we are able to form strong commercial relationships with intermediary partners, providing complementary services to clients.

We have global reach

Our network of 20 offices in 18 different jurisdictions provides a global platform that allows us to offer a complete and joined-up range of services, including multijurisdictional solutions for an increasingly international client base.

Our Business Model

Our clients and
what we do

Institutional client services (ics) division

Private Client Services (PCS) Division

Fund
Services

Clients
  • Institutional fund managers
  • Market entrant fund managers
  • Real Estate, Private Equity, Infrastructure, Hedge, Debt and FinTech
  • Other alternative assets

Corporate
Services

Clients
  • Multinationals
  • Listed companies
  • Sovereign wealth funds
  • Fund managers
  • UHNWI and families
  • Pension plans
  • Employee share incentive and other ownership plans

Private Wealth
Services

Clients
  • UHNWI and families
  • Private and family offices
  • Private client institutions

Our Business Model

How we create long term value for our key stakeholders

Shareholders

We seek to grow the value of our shareholders’ investment over time through the successful delivery of our organic and acquisition growth strategies. We share profits through dividends while simultaneously investing the balance in the business on an ongoing basis to support steady and sustainable growth.

Employees

Through our shared ownership culture we ensure that every employee has a direct stake in the business and is able to share in its long-term success. We work to maximise the potential of every employee providing support through the JTC Academy, JTC Gateway and JTC Wellbeing programmes.

Clients

We take an entrepreneurial approach to finding solutions for our clients and build long-term relationships by adopting a can do attitude and providing above and beyond service. We nurture and value client relationships for the long-term with average client relationships of c.10 years.

Intermediary Partners

As an independent administrator, we are able to provide best-in-class solutions to the clients of our intermediary partners and complement their own offering. We develop symbiotic and reciprocal commercial relationships to support mutual growth.

Communities

We value and respect the communities in which we operate around the world and understand the support they provide to our employees, clients and intermediary partners. We seek to create a positive impact wherever we operate, creating opportunities for employment and giving back through charitable donations of time, expertise and money.

Our strategy in action

Institutional Client Services

"Our 3-year business plan vision to 2020 is to be acknowledged as a top-tier global provider of fund and corporate services."

Group head of institutional client services Tony Whitney

Revenue Of

£43.4m

up 20.2% from £36.1m in 2017

Private Client Services

"Our 3-year business plan vision to 2020 is to be recognised as the best Private Client practice in our sector."

Group head of private wealth services Iain Johns

Revenue Of

£33.9m

up 43% from £23.7m in 2017

Acquisitions

"We have a long record of successfully completing and integrating acquisitions using our disciplined, established and proven structure and processes."

Chief Operating Officer Wendy Holley
Our resources and relationships

In order to help our people live our cultural values and deliver our client facing behaviours we provide four constantly evolving programmes to all employees globally.

JTC Academy
Lifelong learning and development
JTC Gateway
Global talent mobility
JTC Wellness
A holistic approach to wellbeing
JTC Supports
Creating a positive impact where we operate
Resources and Relationships
Pdf 1.6mb
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