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TP ICAP PLC Good operational progress and results in line with expectations

TP ICAP PLC (LON:TCAP) today announced financial and preliminary management report for the year ended 31 December 2018

TP ICAP plc  reports good operational progress and results in line with expectations for the year ended 31 December 2018.

Financial highlights

Underlying (before acquisition, disposal and integration costs, and exceptional items)

· Revenue of £1,763m (2017: £1,757m)

· Operating profit £276m (2017: £263m)

· Operating margin 15.7% (2017: 15.0%)

· Profit before tax £245m (2017: £233m)

· Basic EPS 34.2p (2017: 33.3p)

Statutory (after acquisition, disposal and integration costs, and exceptional items)

· Operating profit £93m (2017: £102m)

· Operating margin 5.3% (2017: 5.8%)

· Profit before tax £62m (2017: £72m)

· Basic EPS 5.7p (2017: 15.8p)

A table showing Underlying and Statutory figures for each period, detailing the acquisition, disposal and integration costs, and exceptional items is included in the Financial review.

The average number of shares used for the basic EPS calculation for the period is 558.5m.

Operational performance

· A resilient performance in a mixed market environment

· Global Broking revenue increased 3% at constant exchange rates, driven by Rates and Equities

· Strong growth in Institutional Services and Data & Analytics businesses which have grown by 16% and 8% respectively at constant exchange rates

· Energy & Commodities experienced a 1% decline in revenues at constant exchange rates due to challenging market conditions

· Total contribution increased by 4% to £679m (2017: £655m) at constant exchange rates

· Integration programme on track with synergy savings achieved to date of £71m per annum

Strategic highlights

· Focus on enhancing our competitive position

· Increased investment allocated to our Data & Analytics business

· A renewed and strengthened senior management team

· New strategic pillars founded on Technology, Operational Excellence, People and Diversification


The Board declared an interim dividend of 5.6 pence per share paid on 9 November 2018 and is recommending a final dividend of 11.25 pence per share to be paid on 21 May 2019 (with a record date of 5 April 2019).


Commenting on the results, Nicolas Breteau, Chief Executive Officer of TP ICAP plc, said:

“Since I took over as Chief Executive Officer, a key priority has been successfully completing the Tullett Prebon and ICAP Global Broking business integration to secure the enlarged platform from which to grow our business. This combination enables the deepest and broadest pools of liquidity in the OTC market, which is a source of real value to our clients and our business. Whilst there is more work to do, real progress has been made with the integration in the past year. When this is complete, I am confident we will be in a position to enhance that value as we aggregate liquidity and the data it provides across all our brands and regions. At the same time, the business has delivered resilient results, with growth in revenues at constant exchange rates and underlying operating profits in line with expectations.

We have continued to diversify our products and services to meet our clients’ evolving needs, and I expect the pace of this will accelerate as a result of our increased technology investment. We have strengthened our senior management team to ensure we have the right leadership and information flows for a global business serving clients from four divisions across three regions.

The political and economic environment continues to present us with both opportunities and challenges. However, I am confident that with a renewed strategy, founded on our strategic pillars, and renewed sense of purpose we are in a good position to navigate these successfully, and make the most of the many opportunities we have to grow.”

Forward looking statements

This document contains forward looking statements with respect to the financial condition, results and business of the Company. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. The Company’s actual future results may differ materially from the results expressed or implied in these forward looking statements.

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