Market volatility helps TP Icap to 'best ever' quarter

(Sharecast News) - TP Icap Group posted a surge in quarterly revenues Wednesday, as the City stalwart cashed in on recent market volatility. Total revenues jumped 10% in the three months to 31 March, to £629m, the broker's best-ever quarter and ahead of most analyst forecasts.

The firm said it had benefited from a period of "heightened market volatility, which was driven by the uncertainty of US trade policies".

Global broking revenues rose 14%, with strong trading in all asset classes, while its Liquidnet arm saw revenues strengthen 16%.

Energy and commodities revenues, however, were largely unchanged, hit by what TP Icap called a "competitive hiring market" for brokers.

Looking to the rest of the year, it said: "The board remains comfortable with the current market expectations for 2025 adjusted earnings before interest and tax, following a strong first quarter performance and despite the recent weakening of the US dollar."

Around 60% of group revenues and 40% of costs are dollar-denominated.

However, TP Icap also confirmed it had opted to temporarily shelve plans to proceed with a potential minority listing of data and analytics arm Parameta Solutions.

It announced in March that a potential Wall Street debut could happen as soon as the second quarter.

But on Wednesday the firm acknowledged that "following the recent market turbulence, the board will now keep under review the appropriate timing for any potential minority listing".

As at 1215 BST, shares in TP Icap were down 2% at 261.62p.

Vivek Raja, analyst at Shore Capital, said: "Though the statement makes to no reference to trading since the end of the first quarter, we suspect that the second quarter will have started well given tariff histrionics in early April.

"TP Icap's share price has been broadly rangebound over the last six months, having recent recovered ground since the market sell off in early April.

"We think the valuation is still undemanding in view of cash generation and case return prospects. If a potential delay in the timing of Parameta's listing results in share price weakness, we would see this as an opportunity."

Shore Cap has a 'buy' rating on the FTSE 250 stock.