TP ICAP issues 3Q report, CFO Andrew Baddeley steps down from Board

TP ICAP volumes

Interdealer broker TP ICAP (LON:TCAP) has issued a trading update in relation to the period from 1 July to 30 September 2017.

Revenue in the third quarter to September 2017 of £420m was 3% higher than the £406m pro forma revenue for the same period last year and 2% higher at constant exchange rates. Year to date (January to September) revenue of £1,345m was 9% higher than the £1,234m pro forma revenue for the same period last year and 3% higher at constant exchange rates.

Revenue has shown modest growth in the quarter despite mixed market conditions, marked by ongoing low levels of volatility. Global Broking revenue for the quarter was in line with the prior year, and 1% higher year to date on a constant currency basis. Energy & Commodities revenue is 1% lower than the prior year period, and 1% lower year to date on a constant currency basis, with market conditions remaining particularly challenging for our power and commodities businesses. Our Data & Analytics business grew by 6% in the quarter while our Institutional Services business has continued to see strong growth.

The outlook for the fourth quarter revenue remains challenging reflecting current trading conditions compared with the strong performance in the last quarter of 2016 that was driven by US political and economic developments.

Andrew Baddeley, Chief Financial Officer, is stepping down from the Board with immediate effect. The Board has asked him to stay on with the company until the end of the year to ensure a smooth transition can be made, as a search begins for his replacement. Robin Stewart, Deputy CFO, will take up the role on an interim basis.

John Phizackerley, Chief Executive of TP ICAP plc, said:

Despite mixed market conditions our revenue growth to date demonstrates the value of our diversified portfolio. Looking ahead we expect comparatively subdued market conditions for the fourth quarter of 2017 although we are well-placed to benefit from any interest rate rises in the US and Europe.

Our top priority has been delivering the integration of TP ICAP and we continue to make good progress. Integration is on track and in line with the guidance we gave at the half year. We have also made significant one-off and long term investments in areas such as MiFID II, broker surveillance systems, Cyber security, Belfast and our Institutional Services division. Finally, revenue per broker has increased once more as we continue to improve the efficiency of our workforce.

I’d like to add that we are sad to see Andrew Baddeley go, and wish him the best for the future. He has overseen the finance function at an intense period of change and growth for the group, and was responsible for putting in place the integration process for the two companies, which is now well underway, and on track. He has done this while helping us deliver a good financial performance in challenging market conditions.

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