TP ICap looking to free up more cash, launches share buyback

9th Aug 2023 07:55

(Sharecast News) - TP Icap said that it was looking at ways to free up cash for investment, lower its debt and perhaps also to return to shareholders.

The liquidity and data specialist also announced that it was launching a £30m share buyback programme.

Those announcements came on the back of a 4.8% rise in statutory revenues to £1.13bn, for a 26% jump in profit before tax to £91m or 8.4p per share.

Nicolas Breteau credited the firm's focus on productivity, contribution and "tight" cost management for the improvement.

He also highlighted the "strong" performance in Energy & Commodities as energy markets normalised, together with the rollout of its Fusion electronic platform and said that the £100m of cash targeted for the front half of 2023 from its dynamic capital management had been freed six months of schedule.

Revenues at the Global Broking unit dipped 1%, albeit on the back of strong comparators, but GB revenues per broker rose 6%.

Energy and Commodities revenues jumped 12%, and by 5% at Parameta Solutions, while in Liquidnet they fell 6%.

An annualised £38m of Liquidnet integration cost synergies were achieved, six months ahead of schedule.

According to the company, the £100m of cash freed six months ahead of schedule, thanks to the opportunities thrown up by its decision to redomicile to Jersey would lower future net finance csts and boost its investment grade rating headroom.

On the outlook, the company said it was on track to deliver the full-year targets outlined at its recent Capital Markets Day, but noted the appreciation in Sterling against the US dollar, with roughly 60% of its revenues denominated in the latter.

The interim dividend was raised 7% to 4.8p per share.