1st Feb 2024 16:04
(Alliance News) - JTC PLC hailed a "very successful" 2023 and analysts at Berenberg believe the early signs suggest another strong year is in the offing.
The fund management company said underlying earnings before interest, tax, depreciation and amortisation for 2023 will be in line with market expectations, while the Ebitda margin will be at the lower end of the guidance range of 33% to 38%, which it said reflected increased investment aimed at driving organic growth.
JTC said net organic revenue growth was significantly above the medium-term guidance range of 8% and 10% and 2022 performance of 12%. It emphasised that this was driven by record new business wins of GBP30.8 million, up 25% from GBP24.6 million a year prior, "with particularly strong growth from existing clients".
Chief Executive Officer Nigel Le Quesne said: "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. Having made two strategically important acquisitions in the US in the last two years our immediate priority is to deliver on our plans for growth for both the Institutional Client Services and Private Client Services divisions in the US. We will continue to supplement organic growth with accretive and value-enhancing M&A."
German bank Berenberg said JTC's 2023 performance was "clearly exceptional", with the firm's outlook implying 20% organic Ebitdda growth.
"Therefore, 2023 was the group's strongest year for growth since its 2017 IPO, and significantly ahead of its 8-10% target organic rate. While we await April for the detail, we think this is the result of higher pricing (matching higher salary costs), significant new contract wins (Amaro and Campari), significant cross-selling successes from recent acquisitions (SALI in particular), and the successful rollout of new service lines, led by the group's new commercial office," Berenberg commented.
"Positively, we then believe that this outperformance (ie double-digit organic growth) can continue in 2024, with positive commentary from management on the further potential for cross selling successes, growth from recent acquisitions, and further product rollouts from the commercial office. JTC continues to be one of the most consistent growth companies that we cover, and we expect 2024 to be another year of impressive double-digit profit growth."
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Related Shares:
Jtc Plc