Last checked at 22 Jul 2022 07:00
22 July 2022
JTC PLC
(the "Company" and together with its subsidiaries "JTC" or the "Group")
Pre-close Interim Trading Update and Notice of Results
Record new business growth, acquisitions integrating well and strong cash generation
JTC, the global professional services business, today issues the following trading update in advance of its interim results for the period ended 30 June 2022.
The first half of the year has seen a strong performance across the Group, with the Company delivering within all of its well-established guidance metrics, namely, 8% - 10% net organic revenue growth, underlying EBITDA margin of 33% - 38%, with margin progression compared to 2021, demonstrating the Group's ability to manage higher cost inflation. Cash conversion was within the guidance range of 85% - 90% and as a result, leverage reduced by 0.7 times in the period, bringing it well within guidance of 1.5 - 2.0 times underlying EBITDA.
Organic growth was driven by record new business wins of £12.6m (+22% on H1 2021 figure of £10.3m) with a new business pipeline at period end of £52.2m (+15% on the H1 2021 figure of £45.3m). Performance in June was strong, giving good momentum into H2, demonstrating JTC's highly resilient business model and the long-term structural growth drivers of the sector.
In terms of inorganic growth, the seven businesses acquired in 2021 are all integrating well onto the JTC global platform and the M&A pipeline remains active with a number of small to mid-size opportunities well progressed. Targets span both the Institutional Clients Services Division (fund and corporate services) and the Private Client Services Division (trust company and family office services) with a particular focus on the high-growth, US market.
The Board is confident that the Group will deliver full year results in line with market expectations* and maintains its medium-term guidance.
*analyst consensus as published by JTC at: https://www.jtcgroup.com/investor-relations/analyst-consensus/
Nigel Le Quesne, CEO of JTC PLC, said:
"In the first half of 2022 we have built upon the strong performance delivered in 2021. The business continues to demonstrate its resilience and agility during a period of macro uncertainty and our record new business wins reflect our ability to attract new clients and provide additional services to existing clients as they navigate both the threats and opportunities presented by the wider markets. All integration programmes for the businesses we acquired in 2021 are on track and we maintain a healthy pipeline of targets in a consolidating sector. We look forward to capitalising on our momentum in the second half of the year and, as always, my thanks go to the outstanding global team of JTC employee-owners, who continue to deliver service excellence for our clients and drive the Group forwards."
Notice of Results
The Company will announce its interim results for the period ended 30 June 2022 on Tuesday 13 September 2022. An analyst briefing will be given by Nigel Le Quesne, Chief Executive Officer, and Martin Fotheringham, Chief Financial Officer, at 09:30 BST via audio conference.
Slides and an audio-cast of the presentation will be made available on the JTC website following the presentation. Those analysts wishing to dial into the audio conference are asked to contact Camarco on +44 (0)20 3757 4999 or jtc@camarco.co.uk
Enquiries:
JTC PLC +44 (0) 1534 700 000
Nigel Le Quesne, Chief Executive Officer
Martin Fotheringham, Chief Financial Officer
David Vieira, Chief Communications Officer
Camarco +44 (0) 20 3757 4985
Geoffrey Pelham-Lane
Georgia Edmonds
Sam Morris
About JTC
JTC is a publicly listed, global professional services business with deep expertise in fund, corporate and private client services. Every JTC person is an owner of the business and this fundamental part of our culture aligns us with the best interests of all of our stakeholders. Our purpose is to maximise potential and our success is built on service excellence, long-term relationships and technology capabilities that drive efficiency and add value.
www.jtcgroup.com