TP ICAP first-half profit falls 65%; expects flat full-year revenue performance

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Inter-dealer broker TP ICAP booked a 65% drop in first-half profit as subdued trading conditions and currency headwinds squeezed revenue and margins.

Pre-tax profit for the six months through June fell to £28 million, down from £78 million year-on-year.

Revenue fell 5% to £936 million, or by 1% on a constant currency basis.

TP ICAP cut its interim divided to 4.0p per share, down from 5.6p year-on-year.

Looming forward it guided for full-year revenue, excluding Liquidnet, to be broadly in line with 2020 on a constant currency basis.

It said the guidance came despite subdued trading conditions, together with continuing uncertainty caused by quiet markets and the disruption from Covid-19.

TP ICAP added that it expected to complete its targeted £35 million annualised cost savings plan by year end.

Around two-thirds of the savings were expected to be achieved in the front office.