TP ICAP Reports Flat Revenues, CFO Andrew Baddeley Leaves

Flat revenues are a success considering declines at major industry peers.

TP ICAP has just issued a trading update on its results for the third quarter. The company is reporting that its revenues were higher by 3 percent year-on-year at £420 million ($548 million). The first nine months of the year have so far yielded revenues of £1.35 billion ($1.76 billion). The figure is higher by 9 percent when compared to the first nine months of 2016.

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TP ICAP is showing remarkable resilience amid challenging market conditions. The revenues are 1 percent higher when compared to last year. Income from the Energy & Commodities business was lower by 1 percent, while Data & Analytics grew by 6 percent.

Revenue Per Broker Increases

TP ICAP has highlighted that its Institutional Services business saw strong growth during the period. The company’s revenue per broker has increased, marking improved efficiency of the company’s workforce.

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Despite a relatively solid performance when compared to many industry peers, it issued a conservative outlook for the fourth quarter of the year. Challenging trading conditions have been cited as the main risk while the base in the fourth quarter of last year was marked by volatility around the US presidential election.

Commenting on the interim results, the CEO of TP ICAP, John Phizackerley, said: “Despite mixed market conditions our revenue growth to date demonstrates the value of our diversified portfolio. Looking ahead we expect comparatively subdued market conditions for the fourth quarter of 2017 although we are well-placed to benefit from any interest rate rises in the US and Europe.”

“Our top priority has been delivering the integration of TP ICAP and we continue to make good progress. Integration is on track and in line with the guidance we gave at the half year. We have also made significant one-off and long-term investments in areas such as MiFID II, broker surveillance systems, Cybersecurity, Belfast and our Institutional Services division.”

Looking for a New CFO

In addition to the financials, the company announced top executive changes. Andrew Baddeley, the Chief Financial Officer of TP ICAP, has stepped down from the company’s board. He will remain with the company until the end of the year to ensure a smooth transition. Deputy CFO Robin Stewart will take on the role on an interim basis.

“Andrew Baddeley has overseen the finance function at an intense period of change and growth for the group. He was responsible for putting in place the integration process for ICAP and Tullett Prebon, which is now well underway, and on track. Andrew has done this while helping us deliver a good financial performance in challenging market conditions. We are sad to see him go,” Phizackerley said.

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