TMF Group announces 2022 full year results

Strong performance

TMF Group performed strongly in 2022, delivering against targets and its goal of enabling clients to invest and operate safely around the world despite the impact of Covid-19 and the war in Ukraine on world markets.

• Revenue growth of 14%¹ to €744 million (2021: €650 million).
• EBITDA² growth of 18%³, to €235 million (2021: €199 million).
• Investment up by 10% to €32m.
• Employee engagement up by 6% to 69%.
• Client satisfaction (NPS) up to 44.

Revenue growth in 2022 was heavily organic, driven by a focus on serving existing clients and growing business with them, as they consolidated more of their needs with TMF Group.

As in previous years, EBITDA grew faster than revenue. That is partly the effect of operational leverage, with more revenue coming onto a relatively fixed infrastructure. It was also assisted by investing in more robust and efficient ways to deliver client work.

TMF Group won €145m (annual contract value) of new business in 2022, an 11% increase on 2021. New business is now dominated by growing global mandates with existing clients.

TMF Group also completed four acquisitions in 2022 covering Latin America, Europe, the Middle East and Asia. These strengthened the firm’s offering around the world, including bolstering its fund administration capability.

In June 2022 Zafiro Holdings S.à.r.l., an entity owned by CVC Fund VII and majority shareholder of TMF Group, entered into an agreement to transfer TMF Group to an entity owned by CVC Strategic Opportunities Fund II and a wholly owned subsidiary of the Abu Dhabi Investment Authority. All regulatory approvals have been obtained and the transaction is expected to complete in March of 2023.

Investing in clients

TMF Group seeks to be a global compliance partner to its clients, helping them stay ahead of rules and risks they face around the world. In 2022 TMF Group launched TMF Labs to provide data-driven risk insights for its clients. TMF Group also launched ESG reporting services to assist clients with their investor and regulatory requirements.

Investing in people

TMF Group’s performance rests on having talented, engaged employees working as a single, global team to look after clients. Employee engagement rose by 6% in 2022. The firm launched a major initiative focusing on career paths and the more rapid promotion of homegrown talent.

ESG

TMF Group acts as the first line of defence for its clients and for the countries where it operates, ensuring that the right kind of business is done and in the right way. As such ESG, and in particular strong governance, is key to TMF Group’s proposition. TMF Group achieved a silver medal rating by Ecovadis for ESG, coming in the top 2% of legal and accounting firms for ethics. The firm also invested in new tools for regulatory monitoring and for entity risk benchmarking to help improve its governance capabilities for clients.

Resilience

TMF Group provides critical services in locations where the rules are complex, where clients lack scale or where their investment flows are large. As such, TMF Group has 95% recurring and reoccurring revenue.

TMF Group also has highly diversified revenue by country and sector, with no client exceeding 2.1% of group revenue. That creates a very resilient business which allowed the firm to grow through the global pandemic and in countries where macro conditions were adverse.

The situation in Ukraine was a further test of TMF Group resilience. In the build up to the Russia attack on Ukraine in February 2022, TMF Group’s Business Continuity Plan was activated, and the firm has been able to look after its Kyiv team and continue helping clients operating in Ukraine with no disruption to service. In solidarity with its Ukrainian colleagues, TMF Group took the decision in March 2022 to stop serving clients with a Russian UBO. That has been acted on, along with Russia sanctions as they emerged, and the impact absorbed in 2022 results.

2022 was another strong year and our first with double digit revenue growth. We are now growing largely with our existing clients as they consolidate to having a single, trusted partner help keep them safe around the world. While I’m pleased with how we’ve performed, we still have huge opportunity ahead of us in how we can better serve our clients and create exciting careers for our people

We finished the year ahead of budget, marking twelve continuous quarters of revenue and EBITDA growth. We enter 2023 in great shape with a tailwind from increased 2022 new business and revenue retention, higher colleague and client engagement and the operational leverage from putting more revenue onto our global delivery platform.