Global institutional and private client service provider JTC has today announced another exceptional year for the year ended 31 December 2023 and anticipates continued strong organic growth in 2024 and beyond.
JTC, which is headquartered in Jersey and listed as a FTSE 250 company on the London Stock Exchange (“LSE”), reported a 28.7% increase in total revenue to £257.4m as well as an improved underlying EBITDA margin of 33.4%, continuing its exceptional uninterrupted 36 year record of profitable growth.
Client demand for JTC’s services continues to grow, demonstrating its robust business model in the post pandemic environment and its resilience to wider macro volatility. Net organic revenue rose by 19.9% (2022: 12.0%), yet again well ahead of the Group’s 8% – 10% medium term guidance, driven by another record in new business wins of £30.8m (2022: £24.6m). Underlying EBITDA margin increased to 33.4% (2022:33.0%) in line with JTC’s medium term guidance of 33% to 38%.
During the year JTC strengthened its position in the strategically important US market through the acquisition of the South Dakota Trust Company (“SDTC”), which completed on 2 August 2023. This along with previous complementary deals, has created a strong foundation for further growth in the US, which forms an important part of the Group’s latest multi-year business plan, the ‘Cosmos era’. During Cosmos, JTC aims to double the size of the Group, in terms of revenue and profit, from its 2023 position within a three to four year timeframe. This follows the successful delivery of the previous strategic plan, the ‘Galaxy Era’, which saw the business double in size from 2021 to 2023, some two years ahead of original expectations.
Both Divisions of Institutional Clients Services (ICS) and Private Client Services (PCS) continued to perform very strongly with revenues up 19.5% and 48.5% respectively.
Looking ahead, JTC has had a positive start to the year and anticipates that its growth momentum will continue in 2024 and beyond.
The total dividend per share is 11.17 pence, an increase of 11.9%.
Nigel Le Quesne, Chief Executive Officer of JTC, said:
“2023 was another exceptional year for JTC. We delivered further above guidance net organic revenue growth of 19.9%, driven by record net new business wins of £30.8 million, on an improved 33.4% EBITDA margin, supported by continued strong client demand for our services. This result exceeded last year’s outstanding performance and continues our track record of 36 years of uninterrupted profitable growth, demonstrating JTC’s consistent earnings power through the cycle and resilience to wider market volatility.
Having achieved our Galaxy era strategic objective to double the size of the business in 2023, two years earlier than planned, we start 2024 with strong growth momentum towards our new Cosmos era goal to double the size of the business again. I am convinced that one of the key drivers of our success has been, and will continue to be, our employee shared ownership, which means that everyone is aligned in creating long-term value for the Group and all its stakeholders. I have no doubt that this success will continue, and we look forward to delivering further strong profitable growth in 2024 and beyond.”
