TMF Group announces 2023 full year results

TMF Group, a global provider of managed services, announces its full year results for the year ending 31 December 2023.

Robust performance

TMF Group performed strongly in 2023, exceeding its budgets for the fourth year in a row, and continuing to report exceptional growth across multiple areas of the business. This includes: 

•    Revenue growth of 15%  to €826 million (2022: €721 million)
•    Revenue including full year impact of acquisitions €840 million
•    EBITDA  growth of 14% , to €257 million (2022: €226 million)
•    EBITDA including full year impact of acquisitions €262 million
•    Technology investment increased to €57m 
•    Employee engagement increased to 71% and employee retention increased to 86%
•    Client satisfaction (NPS) increased to 47 and revenue retention increased to 92%

Revenue growth in 2023 was largely organic, driven by a focus on serving existing clients with a growing share of their administration. 

TMF Group completed seven local ‘bolt-on’ acquisitions in 2023, contributing 2%pt to revenue and EBITDA growth and covering North America, Europe, the Middle East and Asia. These strengthened the firm’s offering around the world, in particular adding to its fund administration reach.

EBITDA grew broadly in line with revenue as the firm continued to invest in high quality, digital delivery creating more productive and more resilient service.

TMF Group won €135m of new business in recurring annual contract value (ACV) in 2023. The majority came from existing clients choosing TMF Group as their trusted global partner. 

Investing in clients

TMF Group acts as a global partner to its clients, helping them to stay ahead of the rules and risks they face as they do business around the world. In 2023, TMF Group launched TMF Labs to provide data-driven risk insights for its clients, and launched ESG reporting services to assist clients with their ESG requirements. 

Investing in people

TMF Group’s performance rests on talented, engaged employees working as a single, global team. In 2023, employee engagement rose to 71%. In 2023, the firm launched a major initiative focusing on career paths and rapid promotion of homegrown talent, itself made possible by our organic growth. As a consequence, the firm saw an increase in employee engagement to 71% and a drop in voluntary attrition to 14%.

Sustainability

TMF Group acts as the first line of defence for its clients and for the countries in which it operates, ensuring that the right kind of business is done, and in the right way. ESG, and in particular, strong governance, is key to TMF Group’s proposition. In 2023, 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 entity risk benchmarking to help improve its governance capabilities for clients.

Resilience

TMF Group provides critical administrative services in locations where the rules are complex, where clients lack scale or where their investment flows are large. That creates strong co-dependence with clients and gives TMF Group 92% recurring revenue. TMF Group also has highly diversified revenue by country, sector and client, with its largest client just 2.3% of group revenue.  Together those create a very resilient business with respect to geo-political, economic, sector and client risk.

Mark Weil, TMF Group’s CEO, said: “2023 was another strong year with double digit organic revenue growth. We are now growing largely with our existing clients as they look to have a single, trusted partner helping 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 make TMF Group work better for our people and our clients. We will continue to invest to make TMF Group the best choice for them.”

Patrick de Graaf, TMF Group’s CFO, commented: “We finished the year ahead of budget, marking sixteen continuous quarters of revenue and EBITDA growth. We enter 2024 in great shape with a tailwind from 2023 new business and revenue retention. Our results rest on expanding with existing clients and operational leverage, giving strong underpinnings to our financial performance.”

Full report available here: https://annualreport.tmf-group.com/downloads

¹At constant currency | organic revenue growth at constant currency 13%

²Adjusted EBITDA

³At constant currency | organic EBITDA gain at constant currency 12%

Media Contacts

Marina Llibre Martin, Global PR Manager
marina.llibremartin@tmf-group.com