TP Icap confirms full-year outlook
TP ICAP Plc Group reiterated its full-year guidance on Wednesday, after favourable market conditions helped boost third-quarter revenues at the broker.
In a brief trading update, the City stalwart said group revenues in the three months to 30 September had improved 3% at £560m, against tough comparatives, or by 1% in reported currencies.
Driving the growth was global broking, which saw revenues spark 7%.
The FTSE 250 firm said: "Following a strong first half, the division continued to capitalise on favourable market conditions across all asset classes."
It also helped offset an expected 7% decline in energy and commodities, which TP Icap said reflected ongoing difficulties hiring broking talent in a highly competitive market.
"The division has a strong hiring pipeline in place, with benefits expected to materialise from 2026 onwards," the firm noted.
Revenues at data unit Parameta Solutions rose 4%. TP Icap reiterated plans for a minority US listing of the division, but said timings had yet to be confirmed.
It concluded: "The board remains comfortable with full-year 2025 market expectations for adjusted earnings before interest and tax, subject to foreign exchange movements, especially the US dollar against sterling."
Around 60% of group revenues and 40% of TP Icap's costs are dollar-denominated.
As at 0830 GMT, shares in TP Icap were down 4% at 252.5p.
However, Peel Hunt called the update "solid".
It said: "The overall message is that management remains comfortable with current market expectations.
"There are many positives...such as the ongoing process of investing in technology and the delivering of strong profits and cash flows to support ongoing capital management.
"The share price has drifted more recently, and the PE multiple now stands at only 8x.
"We maintain our 'buy' recommendation, with further upside possible depending on the value ultimately ascribed to Parameta."
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