TP ICAP FY profits beat expectations; exploring options for data business

Interdealer broker TP ICAP posted better-than-expected full-year profit on Tuesday, announced a £30m share buyback and confirmed it was exploring options for its data business, Parameta Solutions, which could include a potential IPO of a minority stake.

In the year to the end of December 2023, adjusted pre-tax profit rose to £271m from £226m a year earlier, with group revenue 3% higher at £2.19bn.

TP ICAP said total revenue from the global broking division, its largest, was flat as expected following an "exceptional" 2022. Energy & commodities delivered record revenue growth of 18%, while the three main asset classes - oil, gas and power - delivered double-digit growth.

Chief executive Nicolas Breteau said: "Parameta Solutions, our highly valuable data business, continues to grow and develop - winning new clients, and broadening its distribution and product suite. The board believes that Parameta's significant growth prospects, and the intrinsic value of the business, are not appropriately reflected in our share price.

"We are therefore exploring options for unlocking value for shareholders, whilst retaining ownership of the asset, which include a potential IPO of a minority stake in the business."

The company also announced the launch of a second buyback programme of £30m, having completed its initial £30m buyback.

"We continue to assess opportunities to free up more cash to pay down debt, and/or return capital to shareholders, subject to our balance sheet needs," it said.

At 0810 GMT, the shares were up 10.8% at 220.11p.