TP ICAP revenue rises as some trading conditions improve

The FTSE 250 firm said that revenue growth was consistent with its full year guidance in March.

Trading was marked by improved conditions in rates products and an uptick in equity volatility, though that was offset by ongoing weaknesses in power and poor credit markets.

Global broking delivered an increase in revenues of 5% to £442m, which the board aid was primarily driven by a good performance in the rates business, which was up 8%, and the equities business, which was ahead 22% following a strong performance in the Americas.

The energy and commodities division saw a 4% decline in revenues to £111m, with power and commodities markets still struggling, although the PVM oil business continued to perform well.

Institutional services revenue was down 7% to £10m, and data and analytics revenue rose 4% to £36m.

TP ICAP’s board said both business divisions were going through a period of restructuring in line with its strategic goals.

“The integration of TP ICAP remains our number one priority and we remain firmly on track to deliver our target of £100m of synergies,” said CEO John Phizackerley.

“Post the successful delivery of readiness for MIFID II we are now moving in to large IT system migration, as well as increasing our workforce in Belfast.

“New combined offices are shortly scheduled to open in London and New York.”

Phizackerley said in markets, the global rates environment continued to be increasingly constructive, with bouts of volatility seeming likely to continue.

“We also continue to progress our plans for growth in data and analytics, institutional services, and energy and commodities.”