Intertrust reports Q4 and FY 2020 results
Amsterdam – 12 February 2021.
Intertrust N.V. (“Intertrust” or “Company”)
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
- 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
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 / webcastToday, 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.