TMF Group reports record financial performance; strong momentum into 2017

TMF Group (the ‘Group’), a global provider of specialised and business critical financial, legal and HR administrative services to multinational businesses, today announces its full year results for the 12 months to 31 December 2016.

The Group reports record financial results, with increased revenues and EBITDA compared to the prior year as it continues to benefit from increasing client demand and favourable market drivers.

Operational highlights

  • Continued strengthening of TMF Group’s market position: now operating from over 120 offices in 83 jurisdictions with over 7,000 professional staff
  • Strong client relationships and retention drive stable and recurring revenues
  • Continued turnaround plan in the Netherlands resulting in increased margins and revenue growth in the Netherlands of 5%
  • Seven bolt-on acquisitions completed during the year, in line with the Group’s M&A strategy
  • Significant growth continues in the Global Business Services (GBS) segment

Financial highlights

The highlights below are on a management basis unless stated otherwise:

  • Like-for-like revenue growth of 8.9%
  • Like-for-like EBITDA growth of 9.9%
  • Revenue reached €529 million (2015: €492 million)
  • Adjusted EBITDA reached €138 million (2015: €130 million)
  • Adjusted EBITDA margin of 26.0% (2015: 26.5%)
  • Adjusted net cash generated from operating activities, on a statutory basis, of €96 million in 2016 (2015: €122 million)
  • Average revenue per FTE of €79,900 (2015: €83,200)
  • Refinancing in Q316 leaves the Group well-positioned for future growth
  • Net debt to adjusted EBITDA ratio: 4.8x (2015: 4.7x)

TMF Group reports that current trading is in line with management’s expectations and the Board remains confident in the Group’s prospects for the remainder of the year.

On 30 March 2017, the Group announced that it had appointed advisers to assist the Board with assessing strategic and financial options, including the possibility of conducting an initial public offering.

Frederik van Tuyll, Chief Executive of TMF Group, commented:

“I am delighted to report another good year for TMF Group. Both segments continue to show strong revenue growth and have performed well across all of our key metrics as the Group continues to leverage its global platform to deliver business critical services to clients worldwide.

“Given the rapidly changing and complex regulatory environments in which multinational companies have to operate in, TMF Group’s global presence and trusted local expertise is proving to be highly sought after.

“Looking forward, we continue to see a number of favourable drivers for our business which, when combined with our ambitious growth plans, gives the Board confidence in our prospects for the current year and beyond.”

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