INVESTMENT CASE

Consistent financial performance with long track record of growth

  • JTC has a 30 year track record of revenue growth: 17% in 2017
  • For the period 2007-2017, revenue CAGR was 23 per cent
  • We have grown through a combination of organic expansion and M&A activity

High quality recurring revenues with cashflow visibility

  • JTC has predictable, non-cyclical recurring revenues from long term client structures
  • 93 per cent. cash conversion

Diversified across clients, services and jurisdictions

  • Our revenue streams are diversified across a broad range of clients, geographies and service lines
  • We are therefore protected against a downturn in trading conditions in any single market
  • No single client accounts for more than 3.2 per cent. of revenue, our top 10 clients contribute just 18 per cent. of revenue

Long term structural market changes driving demand

  • JTC’s market growth is driven by macro-economic factors, including:
    • the increasingly complex regulatory environment, which creates high barriers to entry for new participants
    • the requirement to outsource to ensure compliance and reduce costs
    • continuing globalisation and demand for international structures
  • Our presence in multiple jurisdictions enables us to support existing clients and win new business, leveraging the positive market dynamics

A successful track record of M&A with further consolidation potential

  • We have a successful track record in sourcing, executing and integrating the companies we acquire, having completed 12 acquisitions since 2010
  • We have invested in a technology platform which allows for a quick and efficient integration with minimal disruption
  • The fragmented market we operate in means that further acquisition opportunities exist
  • M&A will continue to be a core part of JTC’s growth strategy

Well invested business with capacity to support future growth

  • JTC has grown rapidly over the last five years and invested in its cost base
  • Headcount has increased from around 180 to over 550
  • The business has the central infrastructure and expertise to support significant further growth for limited additional cost
  • JTC’s current EBITDA margins reflect the level of investment in the business
  • Fixed cost base means that margins have the potential to expand as revenues grow

Strong compliance and risk management culture

  • An emphasis on compliance and risk management is fundamental to the success of the Group within an industry where reputational risk is high
  • JTC has a robust and well-established compliance and risk management framework and relationships with all the relevant regulators

Experienced management team

  • The senior management team has strength and depth, with involvement both in winning new business and maintaining client relationships
  • The Chief Executive Officer, Nigel Le Quesne, has a long-term commitment to the business, having been at JTC for over 25 years

Shared ownership – people are central to JTC

  • A culture of shared ownership ensures continued incentivisation
  • In 1998, we created the JTC Employee Benefit Trust, turning employees into stakeholders
  • In 2014, this developed into the Equity for All Scheme, allowing all permanent members of staff the opportunity to enhance their investment in the future of the business in proportion to their seniority in the business