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TP ICAP Group PLC on Tuesday reported improved annual profit as it benefited from interest rate hikes, lifting its dividend by almost a third.
The London-based financial services firm said revenue in 2022 rose 13% to £2.12 billion from £1.87 billion in 2021.
Pretax profit jumped to £113 million from £24 million, as basic earnings per share rose to 13.2 pence from just 0.7p a year earlier. Adjusted pretax profit was £226 million, up from £177 million.
Earnings before interest and tax amounted to £163 million, up 68% from £97 million in 2021. Adjusted Ebit was up 7.8% to £275 million from £255 million, driven by strong rates performance.
‘We delivered a strong performance: high single-digit revenue growth and an increase in profitability. Significant monetary tightening in many economies benefited Rates, our largest business,’ Chief Executive Officer Nicolas Breteau said.
‘Capital management is an important part of our strategy. We committed to freeing up £100 million of cash, and reducing debt, by the end of 2023. Progress has been good with over £30 million already freed up in H2 2022. In addition, as previously announced, we continue to focus on identifying, and returning, any potential surplus capital to shareholders, subject to the ongoing assessment of our balance sheet and investment requirements.’
TP ICAP lifted its final dividend by 44% to 7.9 pence per share. This took its total annual payout to 12.4p per share, up 31% from 9.5p a year prior.
Looking ahead, TP ICAP said it expects the impact of inflation on the business in 2023 to be broadly mitigated by its focus on cost efficiencies.
Shares were down 8.0% at 164.10 pence each on Tuesday morning in London.
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