JTC reports strong end to 2024

(Sharecast News) - JTC reported a strong 2024 performance in an update on Wednesday, the first year of its four-year 'Cosmos era' business plan, which aimed to double revenue and underlying EBITDA from 2023 levels. The FTSE 250 company said it continued its track record of rapid expansion, marking its third consecutive growth phase since listing in 2018.

It completed five acquisitions during the year, including Blackheath, Hanway, FRTC-DE, FFP, and Buck UK, with the previously-delayed FFP deal now finalised.

Additionally, the acquisition of Citi Trust in the US, announced in the second half, positioned JTC as a leading independent provider of global trust services, the board said.

The Citi Trust acquisition remained on schedule for completion by the end of the second quarter of 2025.

While focused on integrating recent acquisitions, JTC said it was maintaining a strong pipeline for further expansion.

JTC said it delivered net organic revenue growth above 10%, surpassing the 8% to 10% range set in its previous Galaxy era plan.

The firm said it achieved record new business wins of £35.7m, a 15.9% increase from the prior year.

It said the US market was a key driver of this growth across both of JTC's divisions, underscoring its strategic importance.

The company's underlying EBITDA margin remained within the targeted 33% to 38% range, reflecting continued investment in organic growth.

Leverage at year-end, excluding the Citi Trust acquisition, was at the lower end of the 1.5x to 2.0x EBITDA guidance, while cash conversion reached the upper limit of its 85% to 90% target.

The board said it expected full-year results to align with market expectations, accounting for the delayed completion of the FFP deal and foreign exchange headwinds.

JTC's employee shared ownership programme, in which 100% of staff are direct owners, granted £50m in shares to eligible employees in July.

Half vested upon grant, with the remainder set to vest in July 2025, subject to continued employment.

The board said the programme remained non-dilutive to existing shareholders, as awards were being distributed from existing shares held in the company's employee benefit trust.

JTC reported an employee survey participation rate of 89% in November 2024, with 86% of respondents expressing strong support for the ownership model.

Staff retention for the year stood at 96%, exceeding JTC's 90% target and remaining industry-leading.

"The group made a fast start to the Cosmos era in 2024, with our people energised by the success and momentum of the excellent results achieved in 2023," said chief executive officer Nigel Le Quesne.

"Having raised our guidance for organic growth for this era we have delivered on this key metric, which is a strong result in light of a weaker fundraising environment.

"The record performance in new business wins, particularly from the US, helps underscore our confidence in continuing to deliver against the increased organic growth target."

Le Quesne said the company's ability to source high quality acquisitions was demonstrated again, with six deals being completed or announced, including the "transformational acquisition" of Citi Trust which he said would, on completion, "cement" the company's position as "the largest independent provider" of private trust services in the high-growth US market.

"We continue to invest in our global platform to support and capture long-term growth, expanding our service offering and jurisdictional footprint both organically and inorganically.

"As owners of the business, we all remain extremely ambitious for the group's long-term success and are confident that we are well on track with our Cosmos era goal to double the size of JTC for the third time since IPO."

At 0946 GMT, shares in JTC were down 0.41% at 965p.

Reporting by Josh White for Sharecast.com.