TP ICAP's £1.13 Billion Revenue Milestone Triggers a 16% Stock Surge

Shares of the world's largest inter-dealer TP ICAP (LSE: TCAP), soared at the start of today's (Wednesday's) session by over 16%. This is investors' response to the better-than-expected report for H1 2023, in which the company's revenue stood at £1.13 billion. The company also launched a new share buyback program valued at £30 million.

TP ICAP Reports Strong Financials in H1 2023

According to TP ICAP's interim report for the six months ending 30 June 2023, the overall revenue increased 1%, following a strong H1 2022, where the revenue base grew 7%. Adjusted EBIT rose 7%, settling at £163 million compared to £153 million in H1 2022. As a result, the basic earnings per share (EPS) stood at £0.15, above analysts' expectations as in the same period a year earlier it reported EPS at £0.128.

The results of the entire H1 confirm that in the first quarter, when the group's total revenue was £606 million, it grew 2% year-on-year. In addition, TP ICAP has announced an interim dividend of £0.048 per share, which is an increase of 7% from the previous year, payable on 3 November 2023.

"Our focus on productivity, contribution, and tight cost management uplifted profit and EBIT margin. Energy & Commodities delivered a strong performance as energy markets normalized," Nicolas Breteau, the CEO of TP ICAP, commented.

Even though Global Broking revenue experienced a slight decrease of 1%, the Energy & Commodities division observed notable growth of 12%.

Regarding the future outlook, the company remains optimistic about the upcoming months. With central banks focusing on inflation control and normalization of energy markets, TP ICAP's Global Broking and Energy & Commodities divisions are set to benefit.

Asset Purchase Program Worth £30 Million

The company announced today that it is also launching a share buyback program of ordinary shares at 25 pence each, for a maximum of £30 million. The aim is to reduce the company's capital and meet obligations under employee share schemes. On top of that, TP ICAP released £100 million in cash to reduce its debt six months ahead of schedule.

"The buyback is being funded by a range of initiatives following the Jersey re-domiciliation and cash generation. In commencing the buyback program, we believe we have struck the appropriate balance between our continued and substantial investment in our organic prospects," Breteau added.

In response to strong financial results and information about the share buyback from the market, TP ICAP reacted with a solid price increase on the London Stock Exchange .

At the start of Wednesday's session, TP ICAP shares gained over 16% and tested the frontier of £180, which is its highest price since April. For the company, this is one of the strongest intraday movements seen in the chart over the past three years.

In addition, Swissquote, another financial company, published financial results for H1 2023 today. The total operating profit reached CHF 124.87 million, growing by more than CHF 34.2 million compared to the same period a year earlier.