SANNE private client business
What’s new: JTC has agreed to acquire the assets, contracts and employees of SANNE Group’s Jersey based private client business (2019 revenue: c £5.3m) for a maximum of £12m paid in cash on completion. SANNE’s private client business was established in 1988 and has “a strong reputation for the expertise of its staff and the quality of service delivery”. The consideration is variable based on the satisfactory migration of clients to JTC. JTC expects “integration to be relatively swift” post regulatory approvals. Nigel Le Quesne, Founder and CEO of JTC, said: “We are delighted to welcome SANNE’s private client team and clients to JTC. … we look forward to using our extensive acquisition experience to ensure a positive and seamless transition for both clients and new colleagues.”
16 Mar 20
JTC’s trading update confirms that full year results on 1 April will show “revenue was “within the range of analyst expectations, with organic growth within the 8-10% company guidance. Adjusted EBITDA was also in line with consensus expectations with a further year-on-year improvement in EBITDA margin.” In addition the update reveals: -New business increased to £14.9m (FY2018: £9.7m); -Exequtive Partners acquired in March 2019 has integrated well; -Banking facilities have been increased to £150m (previously £100m).
23 Jan 20
8% net organic revenue growth
32.0% rise in revenue to £46.6m (1H18: £35.3m; FY18 29% rise to £77.3m): +23.8% from acquisitions and net organic growth of +8.2%; EBITDA margin of 30.6% (1H18: 29.9%; FY18: 30.8%) with strong performance from both Institutional “ICS” and Private Client Services “PCS” divisions; 35.2% rise in adj underlying EBITDA to £14.3m (1H18: £10.5m; FY18: £23.8m) Cash conversion (underlying) of 101% (1H18: 56%; FY18: 80%); Net debt of £60.9m (June 2018: £23.7m)
17 Sep 19
Quality & delivery
JTC Group (“JTC”) has published results for 2018 which exceed consensus and Zeus Capital’s expectations (see Exhibit 3). 29.3% rise in revenue to £77.3m (1% above Zeus forecast: £76.5m); - 8.7% organic (Zeus forecast 8.0%) and 20.6% inorganic; 65.3% increase in adj EBITDA to £23.8m (Zeus forecast: £23.7m); - Underlying EBITDA margin of 30.9% (Zeus forecast: 31.0%); 69.8% rise in adj operating profit to £21.9m (Zeus forecast: £21.9m); 95.1% rise in adj PBT to £20.1m (Zeus forecast: of £20.0m); 33.1% rise in adj diluted EPS to 18.4p (10% above Zeus forecast: 16.7p); 2.0p final DPS making a total of 3.0p (in line with Zeus forecast: 3.0p) £48.7m net debt (2.6% below Zeus forecast: £50.0m); Work won in 2018 increased 9.0% YoY to £9.7m, while annualised value of the new business pipeline increased 25% to £32.0m.
03 Apr 19
Acquisition of Exequtive Partners
JTC Group (“JTC”) has announced the acquisition of Exequtive Partners SA (“EP”) for an initial consideration of €25m (absolute cap of €34m) from its principals, who will all join JTC with immediate effect. The 28 EP employees will join JTC’s existing Institutional Client Services team in Luxembourg. The consideration will be satisfied by €18.3m cash and the issue of 1.9m new ordinary shares. The earnout, if payable, will be paid 70% cash and 30% shares based on EP’s performance on a sliding scale against revenue and EBITDA targets.
26 Mar 19
Good momentum maintained in H2
JTC Group (“JTC”) has released a trading update for the year to 31 December 2018, which confirms that: “JTC has maintained good momentum through the second half of the year and continues to deliver on the strategic and financial initiatives outlined at IPO. As a result, the Board continues to expect that full year results will be in line with management expectations.”
24 Jan 19
Maiden interims & rise in forecasts
This morning, JTC Group (“JTC”) announces its interim results: Revenue rose 25.2% YoY to £35.3m (1H17: £28.2m); Underlying EBITDA rose 56.7% to £10.5m (1H17: £6.7m); Underlying EBITDA margin improved 6.3pp to 29.9% (1H17: 23.6%); Underlying diluted EPS of 7.29p per share uses an average of 91m shares.
18 Sep 18
Acquisition adds new office & scale
This morning, JTC Group (“JTC”) announced that it has entered into a conditional agreement to acquire Minerva, a Jersey based private client, corporate, fund and treasury services business with a 40-year track record. In summary: The acquired business, adds a new office in Dubai UAE to JTC’s Global Platform and additional scale in Jersey, London, Geneva, Singapore and Mauritius; £28m initial consideration will be payable 60% cash and 40% shares (£30m maximum consideration is based on Minerva’s performance in the 6 months post completion, is subject to revenue target and EBITDA margin of >30%); Minerva’s revenue and underlying EBITDA for the last 12 months was £13m and £3.5m respectively (i.e. initial consideration is 8x LTM EBITDA); JTC expects the acquisition to be immediately earnings enhancing and completion, subject to regulatory approvals, by November 2018.
06 Sep 18
Bolt-on doubles Dutch platform
This morning, JTC Group (“JTC”) announced that it has entered into a conditional agreement to acquire a business from International Capital Group. In summary: The acquired business, Van Doorn, is a fast growing, boutique provider of corporate & related fiduciary services based in Amsterdam, the Netherlands; Initial consideration of €16m is payable 69% in cash and 31% in new JTC shares; any earnout is payable in cash during 2019 based on Van Doorn’s performance in the year ended 31 December 2018; In 2017 Van Doorn made €1.2m of EBITDA and normalised EBITDA for 2018 is expected to be c. €2.4m (i.e. max multiple is just under 9x EBITDA); JTC expects the acquisition to be immediately earnings enhancing and completion, subject to regulatory approvals, by October 2018.
17 Aug 18
On track & progressing well
Ahead of Tuesday 18 September, when JTC Group (“JTC”) reports its maiden interim results to 30 June 2018, it has released a trading update which confirms: JTC has performed well throughout the first half of the year; Steady progress has been made on all strategic initiatives outlined at the IPO; Performance has been in line with the Board’s expectations The Board sees opportunities for both organic and inorganic growth in the second half of the year and beyond.
23 Jul 18