TP ICAP
Group (LSE: TCAP), the world’s largest interdealer broker, reported robust
financial results for the first half of 2024 and announced plans for a third
£30 million share buyback program.
TP ICAP Reports Strong H1
2024 Results
The
London-based firm saw its revenue increase by 3% in constant currency to £1.14
billion, driven by strong performances in its Energy & Commodities
(E&C) and Parameta Solutions divisions. Adjusted earnings before interest
and taxes (EBIT) rose 9% to £170 million, marking a record first-half profit
for the company.
"Our
focus on diversification is paying off,” Nicolas Breteau, CEO of TP ICAP,
commented on the results. “Group revenue increased by 3% in constant currency,
building on last year’s strong performance. We delivered record H1 profits with
adjusted EBIT up 9%.”
The
company’s E&C division reported an 8% revenue increase, while Parameta
Solutions, TP ICAP’s market-leading OTC data business, saw a 10% growth in
constant currency. The Global Broking segment maintained its market-leading
position despite flat revenues compared to the previous year.
TP ICAP’s operations also
include Liquidnet, a private trading operator that became part of the Group
following an acquisition over three years ago. For Liquidnet, revenues grew by
8%, thanks to an increasing market share in the US and EMEA.
“Liquidnet’s
enhanced operational gearing, coupled with market share gains, enabled the
division to generate £24 million of EBIT or 14% of Group EBIT."
Last month, the agency execution specialist revealed a new alliance with Boltzbit, an artificial intelligence company, to enhance its operations in the fixed-income primary markets and optimize the handling of new bond transactions.
The first half’s results were primarily boosted by the second quarter, as revenues had declined in the first quarter.
Third £30M Share Buyback
In a separate
move to further enhance shareholder value, TP ICAP announced it would commence
its third £30 million share buyback program following the completion of its
second buyback of the same amount. The company also declared an interim
dividend of 4.8 pence per share, consistent with its dividend policy.
“The Third
Buyback highlights the Board’s continued confidence in the future prospects of
TP ICAP, reflects its strong financial position, and is consistent with its
dynamic capital management strategy, which is a key priority,” the company
commented.
As of
August 6, 2024, TP ICAP had repurchased 13,320,585 ordinary shares for a gross
consideration of £28.9 million under its second buyback program. The third
buyback will be conducted in compliance with relevant financial regulations and
within pre-set parameters.
In mid-March, TP ICAP strengthened its footprint in the Asia-Pacific area by acquiring Aotearoa Energy, a brokerage firm from New Zealand that focuses on gas, power, and carbon markets. This acquisition is in line with TP ICAP’s ambitions to expand in both the regional market and the energy and commodities sectors.
TP ICAP
Group (LSE: TCAP), the world’s largest interdealer broker, reported robust
financial results for the first half of 2024 and announced plans for a third
£30 million share buyback program.
TP ICAP Reports Strong H1
2024 Results
The
London-based firm saw its revenue increase by 3% in constant currency to £1.14
billion, driven by strong performances in its Energy & Commodities
(E&C) and Parameta Solutions divisions. Adjusted earnings before interest
and taxes (EBIT) rose 9% to £170 million, marking a record first-half profit
for the company.
"Our
focus on diversification is paying off,” Nicolas Breteau, CEO of TP ICAP,
commented on the results. “Group revenue increased by 3% in constant currency,
building on last year’s strong performance. We delivered record H1 profits with
adjusted EBIT up 9%.”
The
company’s E&C division reported an 8% revenue increase, while Parameta
Solutions, TP ICAP’s market-leading OTC data business, saw a 10% growth in
constant currency. The Global Broking segment maintained its market-leading
position despite flat revenues compared to the previous year.
TP ICAP’s operations also
include Liquidnet, a private trading operator that became part of the Group
following an acquisition over three years ago. For Liquidnet, revenues grew by
8%, thanks to an increasing market share in the US and EMEA.
“Liquidnet’s
enhanced operational gearing, coupled with market share gains, enabled the
division to generate £24 million of EBIT or 14% of Group EBIT."
Last month, the agency execution specialist revealed a new alliance with Boltzbit, an artificial intelligence company, to enhance its operations in the fixed-income primary markets and optimize the handling of new bond transactions.
The first half’s results were primarily boosted by the second quarter, as revenues had declined in the first quarter.
Third £30M Share Buyback
In a separate
move to further enhance shareholder value, TP ICAP announced it would commence
its third £30 million share buyback program following the completion of its
second buyback of the same amount. The company also declared an interim
dividend of 4.8 pence per share, consistent with its dividend policy.
“The Third
Buyback highlights the Board’s continued confidence in the future prospects of
TP ICAP, reflects its strong financial position, and is consistent with its
dynamic capital management strategy, which is a key priority,” the company
commented.
As of
August 6, 2024, TP ICAP had repurchased 13,320,585 ordinary shares for a gross
consideration of £28.9 million under its second buyback program. The third
buyback will be conducted in compliance with relevant financial regulations and
within pre-set parameters.
In mid-March, TP ICAP strengthened its footprint in the Asia-Pacific area by acquiring Aotearoa Energy, a brokerage firm from New Zealand that focuses on gas, power, and carbon markets. This acquisition is in line with TP ICAP’s ambitions to expand in both the regional market and the energy and commodities sectors.
