Amsterdam - 12 February 2021.Intertrust N.V. ("Intertrust" or "Company") [Euronext: INTER], a global leader in providing tech-enabled corporate and fund solutions to clients operating and investing in international business, today publishes its results for the fourth quarter and full year ended 31 December 2020.
FY 2020 Highlights
- Reported revenue increased by 3.9% to EUR 564.5 million (FY 2019: EUR 543.3 million). Underlying revenue was roughly stable at 0.2% growth despite a challenging economic environment.
- Adjusted EBITA margin was 32.8% (FY 2019: 36.4%), due to soft underlying revenue growth, investments in the Centre of Excellence and lower revenue in Corporates and Private Wealth which negatively impacted margin mix.
- Leverage ratio decreased to 3.83x from 3.96x in FY 2019. Net debt reduced by EUR 123 million.
Q4 2020 Highlights
- Underlying revenue decreased by 1.3% to EUR 144.8 million (Q4 2019: EUR 150.7 million) mainly due to a decline in Corporates in the Netherlands and Luxembourg and against a strong comparable last year.
- Adjusted EBITA margin was 34.4% (Q4 2019: 36.9%), largely due to changes in revenue mix, the ongoing automation and migration processes.
- Achieved EUR 7.9 million annualised net run rate savings of the Centre of Excellence at the end of December 2020, exceeding initial guidance of at least EUR 4 million (20% of EUR 20 million).
Capital allocation and guidance
- Dividend to be reinstated for FY 2021 at 20% of adjusted net income, alongside revised capital allocation framework aiming at strengthening the balance sheet, supporting continued growth and optimising shareholder returns.
- For 2020, management proposes not to declare a dividend, in order to prioritise leverage ratio reduction to below 3.4x by the end of 2021.
- Medium-term guidance of 4% to 6% revenue growth in line with our priority of driving top line growth.
Shankar Iyer, CEO of Intertrust, commented:
"In 2020, Covid-19 presented a unique set of challenges and drove significant changes to the way we operate. Despite this highly unusual environment, I am pleased that the Group delivered stable revenue, highlighting the inherent resilience of the business. I am particularly proud of the commitment of our people and their ability to overcome extraordinary challenges in order to maintain the highest standards of client service.
Our Fund Services business delivered a strong performance as clients relied on end-to-end services, and our Capital Markets business also performed well, following increased demand for liquidity in the market. These strong results were offset by revenue declines in Corporates and Private Wealth due to lower transaction and activity levels overall, primarily as a result of Covid-19.
I am confident in the long-term strategic direction of the Company and, as its CEO, I look forward to building on these solid foundations. Whilst the operating environment remains challenging, our strengths are clear: strong demand for our expertise, many high-quality businesses and a deep understanding of our clients. Our focus in 2021 will be on further digitising the business, executing our Centre of Excellence migration plan and progressing on key strategic initiatives such as our ESG agenda, whilst maintaining stringent financial discipline."
Analyst call / webcast
Today, Intertrust's CEO Shankar Iyer and CFO Rogier van Wijk will hold an analyst call at 10:00 CET.
A webcast of the call will be available on the Company's website. The webcast can be accessed here.
The supporting presentation can be downloaded from our website.
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intertrust-q4-2020-results-press-release-f
