TP ICAP Reports 8% Jump in 2021 Revenue

TP ICAP, a leading provider of market infrastructure, has released its financial report for the year ended 31 December 2021, showing an increase in its total revenue.

Financial performance highlights

• ​A resilient revenue performance (£1,865m, up 8%), given subdued secondary markets (particularly in the first half) and ongoing COVID-19 related disruption.

• ​Excluding Liquidnet's post-acquisition revenue of £159m (23 March 2021 onwards), the Group's revenue in the Period was 1% lower than the prior year, in line with guidance.

• ​Revenue diversification continued with non-Global Broking revenue accounting for 42% of Group revenue (2020: 36%).

• ​Global Broking revenue declined 2% following lower wholesale trading volumes across asset classes. Energy & Commodities revenue decreased 1% against a tough comparative period. 

• ​Agency Execution revenue increased 180% due to the Liquidnet acquisition. Excluding Liquidnet, revenue declined 1%.

• ​The high margin Data & Analytics business within Parameta Solutions again delivered double-digit revenue growth (10%).

• ​Programme to save £35m of annualised costs by the end of 2021 (announced in 2020) achieved, delivering £19m of incremental savings in 2021.

• ​Liquidnet cost synergies: £12m achieved in 2021, exceeding the target of £5m, and raising 2023 total synergy target from £20m to at least £25m.

• ​Excluding Liquidnet, adjusted EBIT margin was 1.0%pts lower than the prior year. This was driven primarily by a £20m contribution decline due to a revenue shift within Global Broking towards lower margin asset classes.

• ​Reported EBIT margin was 4.2%pts lower due to an increase in significant items, principally to generate future cost savings.

"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,"Nicolas Breteau, CEO of TP ICAP Group plc, said.