TMF Group announces 2020 full year results

Strong financial performance

TMF Group delivered strong performance in 2020 as a result of its OneTMF transformation programme and accelerated by its response to Covid-19. Key year-on-year figures for 2020 versus 2019 are:

• Revenue growth of 7% to € 615 million (2019: €572 million)
• Adjusted EBITDA growth of 20% to €179 million (2019 €149 million)
• Operational cash flow up 82% to €145 million (2019 €80 million)
• Investment in digital delivery up 53%
• Client satisfaction (NPS) up 41%
• Employee engagement up 14%
• Voluntary employee attrition down 29%

OneTMF transformation programme

TMF Group’s ambition is to become the safest way for clients to invest and operate around the world. The company’s core administrative services cover legal entity management, compliance, accounting, tax and payroll. TMF Group acts as a partner to its clients across their portfolio of locations, providing them with a joined up team of experts on the ground in each country. The OneTMF programme cements that proposition by ensuring global consistency in how TMF works for its clients in all the countries where it supports them. 

The company started 2020 with a new global structure, purpose and values, focusing on its clients and people. In response to Covid-19, TMF Group ensured continuity of client service and protected its people by moving them to home working. It also helped clients through their own challenges, for example listing and supporting applications to 1,300 government support schemes around the world. Recognising that client service hinges on its people, TMF Group stepped up colleague communication and support, including launching the TMF Academy which allowed over 70% of its people to participate in remote learning and career development courses.

The company also accelerated its investment in digital delivery. In 2020 it automated 57 processes, created 200 new roles in regional delivery centres, moved its funds and entity management practices to single operating platforms and launched TMF KRAIOS, its new digital client interface.

Outlook

TMF Group has started 2021 with a number of acquisitions including IQ Nexus in Netherlands and Selectra in Luxembourg. These are oriented around building a world class private equity and real estate funds capability and follow the purchase of State Street’s  fund administration business in the Channel Islands in 2019.  The funds space is fast-growing and TMF Group’s global footprint gives it a natural advantage over more narrowly based competitors for fund administration, SPV management and portfolio company support.

TMF Group provides critical, recurring services for its clients. As such, it starts each year with around 90% of its revenue in place as a solid base to build on. The company operates in a large, growing and fragmented market that is being fuelled by increasing regulatory complexity and sanctions, whether around employment law, regulatory filings or accounting and tax rules. It is one of the leading players in that market but, with just 5% share, has a lot of room to grow. It also has a great opportunity to grow with its many existing multinational clients whom it currently serves in just a few of their locations.

Mark Weil, TMF Group’s CEO, said:

2020 was a challenging year for many of our team personally and professionally. People remember how you behave in their moment of need. I couldn’t be prouder of how our people responded, looking after each other and looking after our clients, often in very difficult circumstances.

Patrick de Graaf, TMF Group’s CFO, commented:

Our results come from looking after the fundamentals of our business - our people, our clients and how we serve them. Those are key pillars of our plan and are a sustainable basis for solid top and bottom line growth at TMF Group.

Media Contacts

TMF Group:
Antoni van Huissteden, Chief Marketing Officer
antoni.van.huissteden@tmf-group.com 
T: +31 6 15 82 10 03