JTC announced strong full year results and continued resilience of the business model, achieving the Group’s 34th consecutive year of growth with balanced performances from both the Institutional Client Services (ICS) and Private Client Services (PCS) divisions.
For the year ended 31 December 2021, the Jersey headquartered and London Stock Exchange (“LSE”) listed public company reported a 28.2% increase in total revenue to £147.5m and a 25% rise in underlying EBITDA to £48.4m.
This rise in revenue was achieved from a combination of strong demand for JTC’s services demonstrated by net organic growth and inorganic growth from acquisitions of 9.6% and 18.6% respectively.
The results were in line with the Company’s medium term market guidance of 8% - 10% net organic revenue growth and a 33% - 38% underlying EBITDA margin, which management considers represent appropriate indicators of sustainable high performance in the company’s sector.
The performance was strong across both Divisions of the Group. Institutional Clients Services reported revenue up 43.6% to £92.7m and Private Client Services reported revenue up 8.4% to £54.8m.
JTC’s record new business wins of £20.9m included the largest single mandate the Group has ever won, with a value of c.£2.5m per annum, which the Group expects to start delivering revenue from H2 2022.
The total dividend per share for 2021 is 7.67 pence, an increase of 0.92p compared with the previous year.
Nigel Le Quesne, Chief Executive Officer of JTC, said:
“I would like to thank every member of the team for their commitment and hard work in delivering such a strong performance in 2021.
2021 was a great first year for our current business plan, the Galaxy era, where our aim is to double the size of the Group relative to where we ended 2020. We once again delivered performance in-line with market expectations and medium-term guidance, with revenue growth to £147.5m, achieving £48.4m of underlying EBITDA at a Group margin of 32.8% and 34.4% when acquisitions are excluded. It was particularly pleasing to achieve net organic growth of 9.6% driven by record new business wins of £20.9m alongside inorganic growth of 18.6%, which reflected our busiest year yet for M&A.
2021 saw JTC execute on its inorganic growth strategy with seven high quality acquisitions completed in the year - the most we have ever achieved in a single calendar year. The quality businesses in Segue, SALI and EFS, also supported our strategic push into the US.
A key achievement and probably our proudest moment in 2021, was the e £20m shared-ownership distribution made to our people globally in July. The award reflected the progress made under our Odyssey era business plan, which ran from our IPO in 2018 to the end of 2020. And while it was our first distribution as a listed business and our first in shares, it was the third in our history and brought the total value generated for JTC employee owners since 1998 to over £350m.
Looking ahead, while much of the focus will be on improving and integrating what we have, we also remain of the view that the sector is primed for consolidation and that our proven approach to identifying, securing and integrating high quality acquisitions is a key part of creating long-term value for JTC and our stakeholders.”