TP Icap fires CEO, warns of rising costs

Interdealer broker TP ICAP on Tuesday fired chief executive John Phizackerley as it said it would need to cut synergy targets in the face of rising costs.

He will be replaced by Nicolas Breteau, head of global broking. Robin Stewart was appointed as chief financial officer on a permanent basis, having become interim CFO in November.

The move came as TP ICAP warned full year earnings would come in slightly below the bottom end of market expectations, due to an extra £10m of costs from Brexit, Mifid II regulatory changes, legal fees and IT security.

Costs will rise to £25m in the 2019 financial year, it said.

The company, formed from the £1.6bn merger of Tullett Prebon and Icap two years ago, added that the synergy savings target from the deal would be cut to £75m from £100m.

Revenue rose 3% in the six months to June 30 at constant currency, but fell 2% on a reported basis.

Chairman Rupert Robson said: "The evolving landscape is driving up costs across our industry. The acquisition of ICAP has given us greater scale to withstand this pressure.”

“The potential for these combined businesses remains extremely compelling and this will be evidenced in the coming years. However, it has become clear that a change of leadership is required to execute our medium-term growth strategy and deliver the detail of the integration process.”