The Group has enjoyed strong growth in both revenue and profits over its 30 year history. Revenue increased by 23 per cent. per annum between 2007 and 2017, whilst underlying EBITDA increased by 19 per cent. per annum in the same period.
The Board’s objectives are to grow revenues and to improve operating margins by leveraging the Group’s existing scalable operating platform. With this in mind, the Group’s strategy is focussed on both organic growth and acquisition growth through entering new markets and building scale in existing markets.
Organic growth strategy
The key drivers of the Group’s organic growth strategy include:
- Current market share development. This covers expansion of existing client relationships through cross-selling between divisions and geographies and continuing new client wins through direct referrals, intermediary referrals and direct targeting;
- Expansion of core service and product offering. This should provide increased revenue opportunities through the delivery of new and innovative client tools and solutions. Building scale affords the opportunity to achieve further economies of scale; and
- Expansion of global network and platform. By developing JTC’s presence in key jurisdictions, JTC can support its operational growth and revenue stream diversification, capitalising on key high growth markets outside of the Group’s current network.
Traditionally, some of the Group’s competitors have relied mainly on new business referrals from their parent company such as in the case of an affiliated bank or law firm. As an independent group, JTC has a strong track record of establishing and expanding its intermediary network of onshore and offshore advisers, through which new business is often referred. As the Group has grown in scale and reputation, it has increasingly established new client relationships through a direct approach.
Acquisition growth strategy
JTC has a long track record of success in completing and integrating acquisitions. The Group’s acquisition growth strategy is to build upon what has been achieved to date, with the aim of both building scale in its existing markets and entering new markets. The Group has developed a disciplined approach to acquisitions with an established process for the assessment of acquisition opportunities, from initial identification, due diligence and documentation through to the deployment of a dedicated integration team to facilitate a swift transition onto the JTC platform.
The Group continually identifies and assesses potential targets, specifically:
- Smaller, earnings enhancing acquisitions, adding incremental EBITDA or geographic capability; and
- Larger scale, international opportunities, including bank based client books or businesses.
A potential acquisition will be assessed on a number of indicators, including:
- The opportunity to add operational scale in existing and/or complementary jurisdictions;
- The capability to strengthen the Group’s existing service delivery platform;
- The opportunity to acquire a skilled workforce;
- The cost synergy potential (rationalisation of systems and central functions) and cross-selling opportunities for the combined business; and
- The ability to strengthen client relationships where there are common clients.