With the integration of its voice broking acquisition almost complete, new TP Icap (TCAP) chief executive Nicolas Breteau is turning his attention to capitalising on the combined group’s access to “the deepest pools of liquidity in over-the-counter markets”. That will involve integrating access to liquidity across brands and regions, as it has done through a common portal for its global broking business.
The interdealer broker has achieved £71m of the £75m targeted cost synergies – which was revised down from £100m in July – from the merger. However, the cost of that integration and a £65m goodwill impairment depressed statutory pre-tax profits, which rose 5 per cent to £245m on an underlying basis.
Revenue for the core global broking division grew 3 per cent at constant currencies, with equities trading sales up almost a fifth. That was partially offset by a 1 per cent decline in energy and commodities revenue due to weaker US power markets. The data and analytics business increased the launch rate of new products – which have been developed from data sets gathered in collaboration with the global broking business – with four launches during the second half and a further seven during 2019.
Analysts at Numis expect adjusted pre-tax profits of £226m and EPS of 32.1p this year, from £245m and 34.2p in 2018.
| TP ICAP (TCAP) | ||||
| ORD PRICE: | 323.4p | MARKET VALUE: | £1.82bn | |
| TOUCH: | 323.1-323.9p | 12-MONTH HIGH: | 491p | LOW: 246p |
| DIVIDEND YIELD: | 5.2% | PE RATIO: | 57 | |
| NET ASSET VALUE: | 322p* | NET CASH: | £25m | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 0.70 | 34 | 11.2 | 16.85 |
| 2015 | 0.80 | 106 | 34.0 | 16.85 |
| 2016 | 0.89 | 57 | 17.8 | 16.85 |
| 2017 | 1.76 | 72 | 15.8 | 16.85 |
| 2018 | 1.76 | 62 | 5.7 | 16.85 |
| % change | - | -14 | -64 | - |
| Ex-div: | 4 Apr | |||
| Payment: | 21 May | |||
| *Includes intangible assets of £1.66bn, or 295p a share | ||||
