The TP ICAP Group’s share price fell 6.3% to 122.7p in early morning trading on Tuesday after the company released a significant drop in profit for its 2021 results.
The company reported a revenue of £1,865 million compared to £1,794 million in 2020.
The financial services firm noted a pre-tax profit of £24 million against £129 million in 2020, representing a significant drop.
“Our performance naturally reflects the unusually quiet secondary markets that we experienced in 2021, particularly in the first half of the year. However, as market conditions started to improve in the second half, TP ICAP recovered most of the ground and grew overall market share. We continued to deliver double-digit revenue growth in Data & Analytics.
“We took pre-emptive action to mitigate margin pressure, including greater operational efficiency, and delivered significant overall cost savings of £31 million,” said TP ICAP Group CEO Nicolas Breteau.
“These measures helped to partly offset the impact of market conditions which shifted activity to lower margin asset classes within Global Broking.”
“We are targeting a further £38m of incremental savings from 2022 to 2024.”
The company announced a total dividend per share of 9.5p compared to 6p in 2020.
The Group’s financial highlights included its 8% growth in light of “subdued secondary markets” and disruption due to Covid-19, alongside its programme to save £35 million of annualised costs successfully delivering £19 million of incremental savings over 2021.
The TP ICAP Group was careful to note that it had no immediate predictions for its outlook due to its uncertainty around future market activity.
“Market volatility has continued at more elevated levels in 2022, with the return of inflation and geopolitical uncertainty driving higher volumes across many of our markets.”
“Our revenue in the year to date until 11 March 2022 was approximately 16% higher than the corresponding period in 2021, in constant currency, or 4% higher excluding Liquidnet.”
“While it is too early to judge whether this activity will be sustained, we believe the results of our many actions will show through in improved performance across the group in 2022 and beyond.”