6th Aug 2025 10:34
(Alliance News) - TP ICAP Group PLC on Wednesday reported revenue growth and announced the launch of a new buyback, though shares in the interdealer broker slumped as profit fell short of loftier City forecasts.
Pretax profit in the first half of 2025 edged up 2.5% to GBP123 million from GBP120 million a year prior. Adjusted earnings before interest and tax advanced 8.2% to GBP184 million from GBP170 million, though Shore Capital Markets said the outcome fell short of consensus of GBP189 million.
TP ICAP shares were down 9.5% to 278.00 pence each in London on Wednesday morning, the worst FTSE 250 performer.
Revenue rose 7.0% to GBP1.22 billion from GBP1.14 billion, climbing 9% at constant currency.
"Our market-leading Global Broking and Liquidnet franchises achieved all-time high levels of profitability, with adjusted Ebit up 19% and 38% respectively, as we supported clients in navigating a period of heightened market volatility," Chief Executive Officer Nicolas Breteau said.
TP ICAP raised its interim dividend by 8.3% to 5.2p per share from 4.8p. In addition, it said it will launch a fifth buyback programme of GBP30 million, as a fourth of the same size nears its conclusion.
The CEO added: "Capital discipline remains a key priority. We are launching another GBP30 million buyback, our fifth in 24 months, and increasing our interim dividend by 8% to 5.2p. Furthermore, based on our current outlook, and in line with our capital allocation framework, the Group anticipates it can organically generate in excess of GBP200 million across 2026 and 2027, to be made available for investment in the business and shareholder returns over the same period."
"Turning to Parameta Solutions, as previously announced, our focus is on a listing in the United States with the group maintaining a majority stake. The board is keeping under review appropriate timing for any potential listing and will update shareholders in due course. Were the listing to proceed, the group would expect to return most of the proceeds to shareholders."
Looking ahead, TP ICAP said it is "comfortable" with market forecasts for its 2025 adjusted Ebit. According to company-compiled consensus an adjusted Ebit of GBP347 million is expected for 2025, a rise from GBP324 million in 2024.
"Our outlook is largely subject to macroeconomic events which impact market conditions, and therefore levels of trading in the [over-the-counter] market. Ongoing geopolitical tensions, including uncertainty surrounding global trade policies, inflation, as well as future interest rate movements, should continue to drive volatility that will broadly support our business in the second half for 2025," TP ICAP said.
By Eric Cunha, Alliance News news editor
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