TP ICAP Group LON: TCAP reported an 8% increase in first-half revenue in constant currency, citing strong Global Broking performance, cost discipline and progress on its transformation program.
Group CEO Nicolas Breteau said revenue rose to GBP 1.3 billion, while adjusted earnings before interest and tax increased 9% to GBP 196 million. The company’s adjusted EBIT margin reached 15.2%, and basic adjusted earnings per share rose 10% to GBP 0.193.
The company proposed an interim dividend of GBP 0.056 per share, up 8% from a year earlier, and announced a further GBP 30 million share buyback. Breteau said total distributions announced since 2023 now amount to approximately GBP 660 million, including GBP 110 million of buybacks announced this year.
Global Broking Leads First-Half Growth
Global Broking revenue increased 11% in constant currency to GBP 783 million, while adjusted EBIT rose 22% to GBP 159 million. Its margin improved to 20.3% from 18.4% a year earlier.
Breteau said growth was broad-based across equities, rates and credit, with Asia Pacific the strongest region. The group completed its acquisition of Vantage Capital Markets, which it said expanded its Asia-Pacific capabilities.
TP ICAP also launched RealQ, a dealer-to-client credit platform that combines Neptune’s pre-trade bond data with trading interest from Liquidnet Credit’s buy-side clients.
Dan Fields, CEO of Global Broking, said the division benefited from new businesses, new hires and supportive market conditions. He added that technology investments support broker productivity and the business’s profitability, although he said it was difficult to separate the effects of electronic trading infrastructure from broader growth opportunities.
Energy & Commodities Profitability Hit by Second-Quarter Conditions
Energy & Commodities revenue rose 2% to GBP 233 million, but adjusted EBIT declined to GBP 12 million from GBP 26 million. Chief Financial Officer Robin Stewart said the division’s adjusted EBIT margin was around 10% in the first quarter before weaker activity in the second quarter affected results.
Breteau said oil and related products account for more than half of the division’s revenue. While Middle East conflict drove a spike in activity during March, when oil futures volumes rose 134%, activity subsequently weakened. Market futures volumes in June were one-third lower than the prior year, as physical oil flows and related hedging activity were interrupted, according to the company.
The company said power, gas and other energy activities recorded good growth. It has also added capabilities in agricultural products, freight derivatives and nuclear fuel derivatives, while expanding its presence in the United Arab Emirates and Brazil.
Liquidnet Stable; Parameta Expects Second-Half Improvement
Liquidnet revenue was broadly stable at GBP 194 million and adjusted EBIT held at GBP 32 million, producing an adjusted EBIT margin of 16.5%. Cash Equities revenue grew 6%, with adjusted EBIT up 10%.
Within Cash Equities, algorithmic trading revenue increased 25%, cross-border trading rose 13% and Asia-Pacific revenue increased 21%. These gains offset a 5% decline in the multi-asset business, which faced a strong comparison against the prior year, when its revenue grew 29%.
Breteau said block-trading activity was affected during the second quarter by market conditions associated with the Middle East conflict. He pointed to further opportunities from diversification, innovation and increased platform volumes, including the FirstMate sales-trading tool, which uses artificial intelligence to identify trading opportunities and coordinate execution.
Parameta Solutions revenue increased 6% to GBP 102 million. The data and analytics division reported an adjusted EBIT margin of 35.3%, reflecting planned investment. Stewart said the margin trend improved in the second quarter and was expected to continue in the second half.
Silvina Aldeco-Martinez, CEO of Parameta Solutions, said stronger second-quarter performance reflected a sales pipeline built from December through the first quarter. She cited new-product activity, including a real-time oil offering that secured one of its largest customer signings, and increased momentum in the company’s assets-under-management-linked index products.
Transformation Savings Accelerated
TP ICAP said it now expects to exceed its 2027 transformation target a year early, delivering at least GBP 50 million of annualized savings by the end of 2026. The group also identified approximately GBP 15 million of additional savings that it expects to execute in 2027 at a cost of no more than one times the savings.
Stewart said the accelerated plan contributed to significant items before tax of GBP 45 million in the first half, including GBP 18 million of non-cash amortization of intangible assets. The company expects significant items of around GBP 80 million before tax for 2026, excluding legal and regulatory matters, about GBP 10 million above its previous indication because of the accelerated transformation work.
Operating cash flow was an outflow of GBP 77 million, compared with an inflow of GBP 24 million a year earlier. Stewart said roughly 70% of the outflow related to a change in net settlement balances that reversed immediately after the period end. Excluding that effect, underlying cash flow from operations was about GBP 100 million.
Net cash stood at GBP 652 million at the end of June, down from GBP 903 million at year-end, following working-capital movements, GBP 42 million of capital expenditure, the GBP 22 million Vantage acquisition, GBP 88 million of dividends and the near-completion of an earlier GBP 80 million buyback.
For 2026, TP ICAP expects adjusted EBIT in line with current market expectations, subject to foreign exchange movements. It forecast net finance expense of about GBP 35 million and an effective tax rate of approximately 27%.
Looking further ahead, Breteau said the company aims for mid- to high-single-digit revenue growth over the medium term, supported by organic expansion, technology investments, operating leverage and potential value-accretive acquisitions.
About TP ICAP Group (LON:TCAP)
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