TP ICAP shares slide despite record first half, fresh share buyback

(Sharecast News) - TP ICAP shares were sliding on Wednesday morning, even after the company reported record first-half revenue and announced a further £30m share buyback. Group revenue rose 9% in constant currency to £1.22bn, while adjusted EBIT climbed 10% to £184m.

Both Global Broking and Liquidnet posted all-time high profits, with adjusted EBIT up 19% and 38% respectively.

The group also raised its interim dividend by 8% to 5.2p per share.

"We delivered a strong first half," said chief executive Nicolas Breteau.

"Group revenue increased by 9% to £1.2bn - a record level of growth - while group adjusted EBIT rose by 10% to £184m.

"Our market-leading Global Broking and Liquidnet franchises achieved all-time high levels of profitability, as we supported clients in navigating a period of heightened market volatility."

Breteau added that the group expected to generate over £200m in organic surplus cash across 2026 and 2027 for investment and shareholder returns.

He reaffirmed TP ICAP's focus on "transformation, diversification, and dynamic capital management", noting that the latest buyback marks its fifth in two years.

Statutory profit before tax rose 3% to £123m, while attributable earnings increased 9% to £99m.

Adjusted earnings per share rose 9% to 17.6p, and statutory earnings climbed 12% to 13.4p per share.

The group confirmed it had completed a successful refinancing of a £250m 2026 bond, with 90% of the notes tendered, and issued a new £250m bond maturing in 2032 that was nearly four times oversubscribed.

On strategic initiatives, TP ICAP said it had completed the acquisition of Neptune Networks to help build a full-service credit platform alongside nine major banks, with the new venture aimed at enhancing liquidity and data services in fixed income markets.

Parameta Solutions meanwhile grew revenue by 5% in the half, with 98% of its revenue subscription-based.

The company said a potential minority listing of Parameta in the US remained under review, and that most proceeds from any such listing would be returned to shareholders.

Separately, TP ICAP announced the launch of its fifth share buyback programme, also worth £30m, following the near-completion of a previous £30m buyback.

The company said the move reflected its "strong financial position" and "continued confidence in the future prospects of TP ICAP".

Looking ahead, the FTSE 250 company said it expected volatility linked to global trade uncertainty, inflation, and interest rate movements to support trading volumes in the second half of 2025.

The board said it remained comfortable with current market expectations for adjusted EBIT, subject to currency fluctuations, particularly given that 60% of revenue and 40% of costs are dollar-denominated.

At 1132 BST, shares in TP ICAP Group were down 8.47% at 281p.

Reporting by Josh White for Sharecast.com.