TP ICAP Group (TCAP) H2 2024 earnings summary

Executive summary

• Group revenue rose 5% to £2.3bn, with adjusted EBIT up 12% to a record £324m and margin improving to 14.4%.

• Cash conversion remained strong at 144%, and the final dividend increased 13% year-over-year.

• All divisions performed well, with diversification strategy delivering 42% of group adjusted EBIT from Parameta Solutions and Liquidnet.

• Fourth £30m share buyback launched, totaling £120m returned to shareholders over 18 months.

• Strategic tech investments and collaboration with AWS support future growth.

Financial highlights

• Adjusted EBITDA increased 11% to £398m; adjusted EBIT up 12% to £324m.

• Adjusted basic EPS grew 9% to 31.8p; reported basic EPS 22.1p.

• Free cash flow was £346m, with a three-year average cash conversion of 141%.

• Net finance costs fell 25% to £21m; effective tax rate was 26.4%.

• Total dividend per share is 16.1p, up 9% year-over-year.

Outlook and guidance

• Confident in current market expectations for adjusted EBIT in 2025, subject to FX movements.

• Significant items expected to be £115m in 2025, mainly due to efficiency and strategic costs.

• Parameta Solutions revenue growth expected to rise to low/mid-teens by 2027, with EBITDA margin returning to ~40%.

• Strong market fundamentals expected for Energy & Commodities, Global Broking, and Liquidnet.

• Substantial organic cash generation expected over the medium term, with further updates in August.