Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
JTC achieves latest business plan early, ends year in line
(Sharecast News) - Professional services firm JTC described a successful year in a trading update on Thursday, achieving its 'Galaxy' goal of doubling its business two years earlier than originally projected, although its margins were set to be at the lower end of expectations. The FTSE 250 company reported strong momentum in net organic revenue growth throughout 2023, surpassing the medium-term guidance range of 8% to 10%, and the 2022 performance of 12%.
It said the growth was driven by record new business wins totalling £30.8m, representing a substantial 25.2% increase compared to the prior year, with notable contributions from existing clients.
The group's underlying EBITDA for the full year aligned with market expectations, and its EBITDA margin was expected to be at the lower end of the guidance range of 33% to 38%.
That, the board said, reflected the company's ongoing investment in driving organic growth.
JTC also reported robust cash conversion rates, exceeding 90% for the full year, while leverage levels were expected to be towards the lower end of the guidance range of 1.5x to 2.0x underlying EBITDA.
Key highlights of the year included the successful acquisition of South Dakota Trust Company (SDTC) and an accompanying equity placing for new and existing shareholders.
Additionally, significant growth and contributions were seen from treasury and tax compliance services, along with the securing of increased debt facilities to support the 'Cosmos' business plan.
JTC's strategic focus for inorganic growth in 2023 centred on the acquisition of SDTC, which was successfully completed on 3 August.
The acquisition solidified JTC's position as the leading independent provider of services to the US personal trust sector.
Post-acquisition, SDTC's trading performance was in line with expectations, and the integration process was progressing smoothly.
JTC said it intended to explore further greenfield expansion opportunities in the US personal client services (PCS) market, while also actively evaluating various attractive acquisition opportunities with the potential to deliver strong returns for the group.
Since the close of the financial year, JTC completed the final earnout payment related to the acquisition of SALI Fund Management and SALI GP Holdings using internally-generated cash.
JTC said it was satisfied with the performance of the SALI business, highlighting its successful integration into the group and citing strong cultural alignment and the provision of highly predictable, long-term revenue streams, with room for further growth.
"In a little under six years since our initial public offering 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," said chief executive officer Nigel Le Quesne.
"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."
Le Quesne said that, having made two strategically important acquisitions in the US in the last two years, the company's immediate priority was to deliver on its plans for growth for both the ICS and PCS divisions in the country.
"We will continue to supplement organic growth with accretive and value-enhancing mergers and acquisitions.
"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."
JTC said it would announce its full-year results for the year ended 31 December on 9 April.
At 1126 GMT, shares in JTC were down 1.5% at 788.5p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.