Much of management's focus at TP Icap (TCAP) last year was on finalising the takeover of rival Icap's hybrid voice broking business: this was completed just a day before the year-end. Since January, the combined group has operated across four global units - global broking, energy and commodities, data and analytics, and institutional services.
During the period, the broking services provider continued down the path of diversification. Energy and commodities broking revenue accounted for just over a quarter of the group total. Higher activity in oil markets, as well as a full year's contribution from US oil broker Moab, pushed up sales for this business 11 per cent. This acquisition also meant sales generated by the Americas grew by 6 per cent to £280m.
Overall, trading activity around the US election helped to partially offset weaker demand for traditional fixed income and interest rate derivative products during the first half of the year. Sales of the latter instruments were flat on the previous year. Information sales and risk management generated the biggest increase in sales by business line, up more than a fifth to £68m. New datasets have been added and building up its sales team helped grow share in the US and Asia Pacific markets.
Analysts at Peel Hunt expect adjusted pre-tax profit of £135m for the 12 months to December 2017, giving EPS of 43.2p (from £122m and 41.5p in 2016).
TP ICAP (TCAP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 471p | MARKET VALUE: | £2.61bn | |
| TOUCH: | 470.9-471p | 12-MONTH HIGH: | 498p | LOW: 271p |
| DIVIDEND YIELD: | 3.6% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 342p* | NET CASH: | £149m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 851 | -38 | -28.1 | 16.85 |
| 2013 | 804 | 84.4 | 30.1 | 16.85 |
| 2014 | 704 | 33.5 | 11.2 | 16.85 |
| 2015 | 796 | 106 | 34 | 16.85 |
| 2016** | 892 | 56.8 | 17.8 | 16.85 |
| % change | +12 | -46 | -48 | - |
Ex-div:- Payment:- *Includes intangible assets of £1.8bn, or 322p a share **Second half-year dividend paid on 13 Jan | ||||
