TP ICAP are to announce a 4.0p per share interim dividend (H1 2020 interim dividend reported: 5.6p, 2020 pro-forma for February 2021 rights issue using the current 780.6m shares in issue: 4.0p) will be paid on 5 November 2021 to shareholders on the register at close of business on 1 October 2021.
Other financial hiighlights include:
The Group's performance reflects the challenging trading conditions caused by the combination of quiet secondary markets and ongoing disruption caused by COVID-19.
Revenue of £936m was 1% lower on a constant currency basis (down 5% on a reported basis).
Excluding Liquidnet's post-acquisition revenue of £55m (from the 23 March to 30 June period), the Group's revenue in the Period was 7% lower on a constant currency basis (11% lower on a reported basis).
Reported and Adjusted EBIT margin was 4.1%pts and 3.6%pts lower primarily due to lower revenues, exacerbated by the negative impact of FX.
Global Broking revenue declined 7% on a constant currency basis (11% on a reported basis), against a backdrop of market-wide lower volumes experienced across most asset classes. Equities revenues grew significantly, benefiting from a higher volumes in equity derivatives and the inclusion of the Louis Capital Markets ('LCM') acquisition that was completed on 31 July 2020.
Energy & Commodities revenue decreased 9% on a constant currency basis (14% down on a reported basis) as client activity decreased significantly compared with the exceptionally strong prior period. They saw a notable improvement in activity in the second quarter.
Agency Execution revenue increased 84% on a constant currency basis (81% on a reported basis), due to the acquisition of Liquidnet. Excluding Liquidnet, revenue declined 14% on a constant currency basis (16% on a reported basis) against a record comparative period in H1 2020 as improved FX, listed futures and options activity was offset by weaker rates Relative Value revenue.
Parameta Solutions revenue grew 6% in the Period on a constant currency basis (1% down on a reported basis). The Data & Analytics business continued its double digit growth trajectory with an 11% revenue increase in constant currency (3% on a reported basis) as it continued to benefit from its strategy to launch new higher margin products, expand its distribution channels and diversify its client base. Post-Trade Solutions revenues declined 17% on a constant currency basis (23% on a reported basis) due to lower market wide volumes.