TP ICAP GROUP PLC TP ICAP GROUP PLC Preliminary Results
For the 12 months ended 31 December 2022
14 March 2023
Agenda
1 | 2022 | Highlights | Nicolas Breteau, Group CEO |
2 | 2022 | Financials | Robin Stewart, Group CFO |
3 | Global Broking | Daniel Fields, CEO Global Broking | |
4 | Energy & Commodities | Andrew Polydor, CEO Energy & Commodities | |
5 | Liquidnet | Mark Govoni, CEO Liquidnet | |
6 | Parameta Solutions | Eric Sinclair, CEO Parameta Solutions | |
7 | Summary | Nicolas Breteau, Group CEO | |
8 | Q&A | All speakers |
TP ICAP Group plc Preliminary Results for the 12 months ended 31 December 2022 | 2
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2022 business performance highlights
Strong Group revenue performance | Uplift in profitability | ||
• | Group revenue up 7%1 to £2.1bn | • | Adjusted EBIT increased 8%1 to £275m; Adjusted EBIT margin 13.0% |
• | +13% in reported currency | • | 14.0% excl. Russia impact (2021: 12.9%1) |
Global Broking delivering
- High single digit growth1 across all asset classes
- Revenue/broker +14%1; Contribution/broker +20%1 (excl. Russia impact)
Dynamic capital management
- On track to release c. £100m cash by end 2023 for debt reduction:
- Around £30m freed up in H2 2022
- Identifying and returning potential surplus capital - subject to ongoing assessment of balance sheet/investment requirements
High-margin businesses performing well | Final DPS 7.9 pence | ||
• | Strong Rates performance: +7%1 | • | Up 44% |
• | Parameta Solutions: +8%1 | • | Total 2022 dividend 12.4 pence, up 31% |
Strong year for core franchise. Deep liquidity pools. Well positioned as Central Banks de-risk
1. In constant currency
TP ICAP Group plc Preliminary Results for the 12 months ended 31 December 2022 | 3
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Delivering our strategy
Fusion rollout on track in Global Broking | Liquidnet diversification | ||
• | 40% of in-scope revenue now on Fusion - in line with target | • | Equities: Expanding in cross-border, algo and programme trading |
• | On track to complete rollout (55% of total revenue) by end 2025 | • | Fixed Income: D2C Credit proposition live |
- Dedicated Fusion Sales team driving adoption
2023 Capital Markets Day targets1
- Global Broking expected to be close2 to Contribution Margin; relatively close2 to Adjusted EBIT Margin
- Energy & Commodities expected to be relatively close2 to Contribution and Adjusted EBIT Margins
- Parameta Solutions expected to exceed both targets
Launching spot crypto assets institutional platform
- FCA registration obtained. Planning to launch in 2023
- Well received
Expanding Parameta Solutions
- First IDB FCA authorised as Benchmark Administrator
- Announcing today partnership with Numerix, leading global analytics company
Delivering cost savings
- 2022 Group cost savings target of £25m delivered
- On track to deliver at least £30m Liquidnet integration cost synergies by end 2023
Advancing our strategy to be the world's most trusted, and innovative, liquidity and data solutions specialist
1. | Assuming current market conditions continue until end 2023 | TP ICAP Group plc Preliminary Results for the 12 months ended 31 December 2022 | 4 |
2. | Guidance that refers to being "close" to target is defined as within one percentage point of target; "Relatively close" is defined as being within one to two percentage points of target |
Robin Stewart
Group CFO
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Disclaimer
TP ICAP Group plc published this content on 14 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2023 07:14:01 UTC.
