TP ICAP Group (TCAP) H1 2025 earnings summary

Executive summary

• Achieved record H1 revenue of £1.2bn, up 9% year-over-year, with adjusted EBIT up 10% to £184m and margin at 15.0%, driven by strong Global Broking and Liquidnet performance.

• Interim dividend per share increased 8% to 5.2p; fifth £30m share buyback announced, totaling £150m in 24 months.

• Strategic execution included the Neptune Networks acquisition, AWS collaboration, and continued investment in technology, operational efficiencies, and new product launches.

• Surplus cash generation targeted at over £200m for 2026-2027, supporting investment and shareholder returns.

• Board continues to review timing for a potential US listing of Parameta Solutions, with most proceeds expected to be returned to shareholders if it proceeds.

Financial highlights

• Group revenue rose 9% year-over-year to £1,224m; adjusted EBITDA up 9% to £220m; adjusted basic EPS up 9% to 17.6p.

• Adjusted profit before tax increased 4% to £167m; attributable earnings up 6% to £130m.

• Net finance cost increased by £7m due to refinancing; new £250m 2032 bond issued; over 90% of 2026 Notes repaid.

• Operating cash flow reduced to £24m, mainly due to working capital outflow from higher receivables; cash balance decreased from £913m to £867m at June end.

• Management and support costs rose 3%, below UK inflation, despite higher National Insurance and ongoing investment.

Outlook and guidance

• Board remains comfortable with 2025 market expectations for adjusted EBIT, subject to FX movements and macroeconomic/geopolitical events.

• Surplus cash of over £200m expected organically for 2026-2027, incremental to normal dividends.

• Operational efficiency program on track for £50m annualized savings by 2027; £25m targeted by year-end.

• Significant items expected at £115m pre-tax (excluding legal/regulatory matters); net finance expense c.£30–35m; effective tax rate c.28%.

• Guidance for full-year 2025 maintained, with surplus cash available for investment and shareholder returns.