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JTC PLC Trading Update

Pre-close Full Year Trading Update

Excellent organic growth and record new business in 2023

JTC, the global professional services business, today issues the following trading update in advance of its full year results for the year ended 31 December 2023.

2023 was another very successful year for the Company and one that saw it complete its Galaxy era goal of doubling the business a full two years earlier than anticipated. Notable achievements in 2023 included the completion of the acquisition of South Dakota Trust Company (”SDTC”) and accompanying equity placing to new and existing shareholders, the growth and contribution from Treasury and Tax Compliance services and the securing of increased debt facilities to support delivery of the Cosmos business plan.

The strong momentum in net organic revenue growth reported at the interim results in September 2023 continued to the year-end, remaining significantly above the medium-term guidance range of 8% – 10% and 2022 performance of 12%. This was driven by record new business wins of £30.8m, representing a 25.2% increase on the prior year figure of £24.6m, with particularly strong growth from existing clients.

The Group’s underlying EBITDA for the full year will be in line with market expectations and as expected the EBITDA margin will be at the lower end of the guidance range of 33% – 38%, reflecting the Group’s continued investment in driving organic growth. Cash conversion was strong and the Company will deliver in excess of 90% for the full year. Leverage will also be towards the lower end of the guidance range of 1.5x to 2.0x underlying EBITDA.

The Group’s inorganic efforts were primarily focused on the acquisition of SDTC, which completed on 3 August 2023. This made JTC the leading independent provider of services to the US personal trust sector. Post acquisition trading for SDTC is in line with expectations and the integration is underway and going well. The Company will evaluate further greenfield expansion opportunities in the US in the PCS market, and more broadly continues to appraise a varied pipeline of attractive acquisition opportunities capable of delivering strong returns for the Group. Post period end, the final earnout payment in relation to the acquisition of SALI Fund Management, LLC and SALI GP Holdings, LLC (together “SALI”) was paid in full from internally generated cash following the attainment of the financial targets set upon acquisition in November 2021. JTC is pleased with the performance of the SALI business and how it has integrated into the Group, with particularly strong cultural alignment, and it continues to provide highly predictable, long-term revenue streams with further growth opportunities.

Nigel Le Quesne, CEO of JTC PLC, said:

“In a little under six years since our IPO in March 2018, we have quadrupled the size of the Group by delivering the goals and strategies set out in our Odyssey and Galaxy era business plans, with the latest, Galaxy, being completed two years ahead of schedule. Whilst growth is important in our rapidly consolidating market it is vital that this growth does not come at the cost of diluting our unique culture. Growth must be sustainable and make our business better. Having made two strategically important acquisitions in the US in the last two years our immediate priority is to deliver on our plans for growth for both the ICS and PCS Divisions in the US. We will continue to supplement organic growth with accretive and value-enhancing M&A.

Our business combines excellent resilience with strong organic and inorganic growth and this was demonstrated in the year with outstanding net organic growth and the further development of our platform in the US market across both Divisions. We remain extremely ambitious for the Group and thank all of our employee owners for their strong contributions in 2023 and in particular the achievement of our Galaxy era plan.”

The Company will announce its full year results for the year ended 31 December 2023 on Tuesday 9 April 2024. An analyst briefing will be given by Nigel Le Quesne, Chief Executive Officer, and Martin Fotheringham, Chief Financial Officer, at 09:30 BST via video / audio conference.

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