25 July 2024

JTC PLC

(the "Company" and together with its subsidiaries "JTC" or the "Group")

Pre-close Interim Trading Update

Positive start to the 'Cosmos era' with record H1 new business wins and four announced acquisitions

JTC, the global professional services business, today issues the following trading update in advance of its interim results for the period ended 30 June 2024.

The Group has made a positive start to 2024, the first year of its Cosmos era business plan, during which it aims to once again double revenue and underlying EBITDA from that reported in 2023. The business has quadrupled in size since IPO in 2018 through the successful delivery of its Odyssey era (2018 to 2020) and Galaxy era (2021 to 2023) business plans.

Net organic revenue growth in H1 2024 was ahead of the Company's updated guidance of 10%+ per annum, with record H1 new business wins of £18.8m, up 28.8% on the same period last year (H1 2023: £14.6m). The new business enquiry pipeline going into H2 remains strong across both Divisions, with win rates of c. 50%.

During the period, the Group has delivered against its well-established guidance metrics for underlying EBITDA margin (33% - 38%) and leverage (1.5x - 2.0x underlying EBITDA). Cash conversion was strong, in line with levels typically seen in the first half of the year, and the Company expects to achieve its guidance range of 85% to 90% for the full year.  As a result, the Board expects the Company to deliver full year 2024 results in line with market expectations.[1] 

M&A activity during the period included the completion or announcement of four acquisitions:

·      Blackheath - ICS Division

London, UK, completed in March.

·      First Republic Trust Company - PCS Division

Delaware, USA, announced in April, completion expected within the coming weeks.

·      FFP - ICS Division

Cayman, BVI and Dubai, announced in June, completion expected in Q4. FFP is a strategically important acquisition for the Group as it directly supports the development of its new Governance Services business line, a further innovation from the Group Commercial Office.

·      Hanway - ICS Division

London, UK, completed in July.

These transactions are being funded by a combination of existing cash and JTC's debt facilities, which were increased in 2023 to support delivery of the Cosmos business plan. SDTC, the PCS Division platform business acquired in the USA in 2023, continues to integrate well into the Group and performed strongly in the period. The Company continues to maintain a well-developed pipeline of acquisition opportunities spanning both Divisions and all target growth markets.

In addition, as a result of the successful delivery of its Galaxy era business plan, the Company has today granted a total of 4,748,909 awards over ordinary shares of £0.01 each in the Company, amounting to c.£50m in value, to all eligible current permanent Group employees, excluding the Executive Directors, under the Employee Incentive Plan (the "EIP"). These awards follow the same process as the grants made in 2021 which marked the successful completion of the Odyssey era plan.

Shared ownership has been a cornerstone of JTC's culture, financial success, industry-leading employee retention and attractiveness as an acquiror for the past 26 years, dating back to the establishment of the first JTC Employee Benefit Trust in 1998, making all employees 'owners' of the business. The EIP, following in the footsteps of its predecessor schemes, aims to recognise and reward long-term performance throughout the entire Group. This alignment of employees' and shareholders' interests is closely tied to the Company's multi-year business plans, which it refers to as eras. The Galaxy era EIP Awards will be satisfied by the transfer of existing Ordinary Shares held by JTC PLC Employee Benefit Trust (the "EBT") to each participant. As such, this granting of shares under the EIP is non-dilutive to the existing shareholders of the Group. 

Nigel Le Quesne, CEO of JTC PLC, said:

"The Group has made a very good start to the Cosmos era, building on the momentum of our outstanding results from 2023. Organic growth remains above our updated guidance with record new business wins. We are extremely pleased with the acquisitions made during the period, which support our strategy to increase our footprint in key growth markets and expand our service offering to better meet the needs of our global client base, therefore supporting long-term organic growth.

I am delighted that the hard work and commitment to client service excellence of our people has resulted in a shared ownership award for all our c. 1,800 employee-owners globally, in recognition of their successful delivery of our Galaxy era business plan, in which they doubled the size of the Group in just three years. Our commitment to shared ownership aligns the interests of our people, our wider shareholder base, our clients and other stakeholders and has already energised the business in this first year of our Cosmos era."

The Company will announce its interim results for the period ended 30 June 2024 on Tuesday 17 September 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.

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 4980

Geoffrey Pelham-Lane                                                   

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