JTC today (9 April) reported net new business of £30.8m, on an improved 33.4% EBITDA margin, in its full year results for the year ended 31 December 2023.
Among the highlights, its Private Client Services Division "saw excellent revenue growth" of 48.5% and record net organic revenue growth of 20.9% "driven by strong performance in the Caribbean, US, and Jersey".
Revenue was up 28.7%, driven by record net organic growth of 19.9% (2022: 12.0%), while underlying EBITDA rose 30.1% to £85.9m (2022: £66.0m) with an improvement in underlying EBITDA margin to 33.4% (2022: 33.0%).
New business jumped 25.2% to a record £30.8m (2022: £24.6m) amid a significant reduction in client attrition to 5.1% (2022: 6.4%) "reflecting the longevity of client relationships associated with recent acquisitions".
JTC further highlighted the exceptional underlying cash conversion of 106% (2022: 91%) resulting in leverage of 1.43x underlying EBITDA at period end, below the guidance range of 1.5x - 2.0x.
There was also an increased debt facility of £400m at period end to support delivery of Cosmos era business plan.
Total dividend per share was up 11.9% to 11.17p (2022: 9.98p).
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."
As for its growth figures, JTC cited the following:
• Institutional Client Services Division performed well with net organic revenue growth of +19.4% as the businesses acquired during the Galaxy era continue to perform strongly, especially in the US
• Private Client Services Division saw excellent revenue growth of +48.5% and 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 +32.3%
• Strategically important acquisition of SDTC integrating well
• Galaxy era growth objective of doubling from FY20 achieved two years ahead of plan
Turning to the outlook, JTC said there was "good momentum into the new year, with strong organic growth trends set to continue, supported by robust pipeline of new business".
It further said there was an "Active pipeline of M&A opportunities across both Divisions with four accretive bolt-on deals in exclusivity, supported by existing balance sheet capacity".
