TP ICAP revenues decreased by 19% in the third quarter of the fiscal year.

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TP ICAP revenues decreased by 19% in the third quarter of the fiscal year.
The UK company expects annual savings of £35 million from the restructuring.
TP ICAP appointed Moorgate Benchmarks as benchmark manager.

TP ICAP plc (LON: TCAP) said on Monday that its revenues in the third quarter of the financial year were down 19% year-on-year. The world’s largest inter-dealer broker also disclosed restructuring plans that are expected to result in annual savings of £35 million from the end of 2021.

The company’s shares fell by over 2.5% in pre-trade trading on Monday. The stock lost another 1% at market opening, but gained 5% in the next hour. So far this year TP ICAP has still fallen by more than 50%. Learn more about the value investing strategy.

TP ICAP reports revenues of £1.38 billion in the first 9 months

TP ICAP reported that its revenues for the first nine months of the current fiscal year were £1.38 billion, down 2% compared to the same period last year. The London-based company had experienced robust trading volumes in March earlier this year, which it said had declined in the third quarter of the financial year.

According to TP ICAP:

“While transaction volumes were particularly subdued in the third quarter, we began to see increased activity in our brokerage business in October”.

On a constant currency basis, the global company is now forecasting to close the 2020 fiscal year with annual revenues equivalent to 2019. The company expects to achieve double-digit growth this year.

TP ICAP also said on Monday that it will announce further details of its targeted cost-saving reorganization on December 1 (Capital Markets Day). In an announcement last month, the FTSE 250 listed company said it would buy Liquidnet (electronic trading network) for up to £531 million.

The comments of CEO Nicolas Breteau on Monday

CEO Nicolas Breteau of TP ICAP commented on Monday’s financial report and said

“In a nine-month period of significant economic disruption, the TP ICAP business has proven resilient. We have implemented a targeted cost efficiency program that will further support our profitability in a still uncertain operating environment”.

TP ICAP appointed Moorgate Benchmarks as its benchmark manager last week.

TP ICAP has performed quite well in the stock market last year, with an annual profit of just under 40%. At the time of writing, it is estimated at £1.11 billion and has a price/earnings ratio of 20.15.

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