JTC plc reports 28.7% increase in revenues in 2023

LONDON, UK: JTC plc has delivered an outstanding financial report for the year ended December 31, 2023, indicating another year of exceptional performance and positive momentum heading into 2024.

The company’s revenue saw a significant increase of 28.7%, driven by a record net organic growth of 19.9%. The underlying EBITDA also grew by 30.1%, reaching £85.9 million, with an improvement in the underlying EBITDA margin to 33.4%.

New business wins climbed by 25.2% to a record £30.8 million, and there was a notable reduction in client attrition to 5.1%, reflecting the longevity of client relationships, particularly those associated with recent acquisitions.

The company’s cash conversion was exceptionally strong at 106%, resulting in a leverage of 1.43x underlying EBITDA at the period’s end, which is below the guidance range. The increased debt facility of £400 million at the period’s end will support the delivery of the Cosmos era business plan. Additionally, the total dividend per share rose by 11.9% to 11.17p.

In terms of growth strategy, the Institutional Client Services Division performed well with a net organic revenue growth of 19.4%, especially in the US. The Private Client Services Division also saw excellent revenue growth of 48.5% and a record net organic revenue growth of 20.9%, driven by strong performance in the Caribbean, US, and Jersey.

The Group Commercial Office delivered strong results with cross-sales value increasing by 32.3%. The strategic acquisition of SDTC is integrating well, and the company’s growth objective of doubling from FY20 was achieved two years ahead of plan.

Looking forward, JTC PLC has a strong growth outlook with good momentum into the new year, supported by robust pipeline of new business and active pipeline of M&A opportunities across both divisions. The net organic revenue growth guidance has been raised to 10%+ per annum for the Cosmos era, with the strategic objective to double the size of the business again from FY23 by FY27.

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.”

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