TP Icap shares soar as broker’s profits climb on commodity spike
- TP Icap shares rose over 12% on Wednesday after firm posted half-year figures
- Cash from equities dwindling but energy and commodity arms faring well
TP Icap shares rose sharply after the group unveiled better than expected first-half figures, as a spike in commodity prices helped offset dwindling equities income.
The broking group’s underlying profit came in at £163million, up 15 per cent year-on-year and ahead of Shore Capital’s £156million estimate.
Its interim dividend rose 7 per cent to 4.8p, higher than the 4.55p expected. Revenue rose 5 per cent year-on-year to £1.13billion, in line with forecasts.
Share rise: TP Icap shares have risen by over 27% in the last 12 months
The FTSE 250-listed broker also announced a £30million share buyback programme today.
TP Icap shares were up 8.99 per cent or 13.88p to 168.38p this afternoon, having risen over 27 per cent in the last year. The share price jumped over 12 per cent this morning.
The company enjoyed a strong performance from its energy and commodities arms, with revenue rising 12 per cent as the markets normalised following Russia’s invasion of Ukraine.
Boss Nicolas Breteau, said: ‘We see continued strong demand for oil and natural gas, key segments for our business.’
The group said it saw trading in its environmental division, which covers carbon credits and battery metals, as a ‘significant diversification opportunity’ as the energy transition ramps up.
Across the group’s equities trading arm, Liquidnet, revenue slipped 6 per cent amid a fall in block market volumes. Foreign exchange and money markets gained in single digits.
Breteau, said: ‘Equity markets were challenging again.
‘Whilst there was some improvement in stock market performances, many institutions maintained a “risk-off” approach.’
Back in May, Fusion Digital Assets, TP ICAP’s digital assets spot trading venue, went live when it completed a bitcoin-to-dollar trade for the first time.
Breteau, said: ‘It has been an eventful period for the emerging digital assets sector, especially given the well-publicised collapses in the retail sector. As we are solely focused on the institutional market and operate a segregated model, we expect to benefit from this trend.
‘We also see opportunities in the tokenisation of various asset classes, particularly bonds,’ he said, adding ‘work was underway in this space.’