TP ICAP benefits from improved Q3 trading environment

Interdealer broker TP ICAP Group plc (LON:TCAP) today announced it will release its Q3 trading statement on November 2, 2021.

The Group says it has benefited from an improved Q3 trading environment. This has helped to narrow the gap in year-to-date revenue versus the prior year and supports TP ICAP’s full year revenue guidance outlined in the Interims.

In the first six months of 2021, TP ICAP delivered revenues of £936 million, down 1% on a constant currency basis (5% lower on a reported basis) against the comparative period, which included an outlying record first quarter.

Against the more normalised conditions of the first half of 2019, the Group’s revenue excluding Liquidnet were up 6% on a constant currency basis and 2% on a reported basis. Excluding Liquidnet’s revenue of £55m, revenue in the Period was 7% lower than the prior year on a constant currency basis (11% lower on a reported basis).

Adjusted operating costs increased 2% on a constant currency basis (or 2% lower on a reported basis). This increase largely reflected the Liquidnet acquisition. Total operating costs decreased 1% on a reported basis.

Excluding the Liquidnet acquisition, the Group’s management and support costs increased by 1% on a constant currency basis (but were 2% lower on a reported basis).

Adjusted EBIT for the half was £117 million, 26% lower than the prior year on a reported basis primarily due to reduced revenues in Global Broking and Energy & Commodities. Adjusted EBIT margin was at 12.5%, down from 16.1% in H2 2020, and we reported an adjusted profit before tax of £88m.

Reported EBIT was £57m, 44% lower than the prior year, with a reported EBIT margin of 6.1% (H1 2020: 10.2%).

Basic adjusted earnings per share (‘EPS’) were 10.2p (H1 2020: 17.8p) and we will pay an interim dividend of 4.0p (H1 2020 reported: 5.6p, H1 2020 pro-forma for the bonus element of the February 2021 rights issue: 4.0p) per share for the half year.