(Alliance News) - Shares in interdealer broker TP ICAP Group PLC jumped on Wednesday, as it reported better half-year earnings and announced the launch of a buyback.
TP ICAP shares surged 13% to 173.70 pence each in London on Wednesday morning.
Revenue in the first half of the year climbed 4.8% to GBP1.13 billion from GBP1.08 billion a year prior.
Pretax profit improved 26% to GBP91 million from GBP72 million.
TP ICAP said it benefitted from rising volatility during the half, particularly in its Global Broking division.
"Rates had another strong period benefiting from market volatility, interest rate rises and the high inflationary backdrop in the first six months. In Energy & Commodities, the first half reflected improved market conditions following a challenging 2022. European gas and power prices normalised during the period which lowered client margin requirements resulting in improved trading volumes," the company said.
"In Liquidnet, the Equities platform experienced a continuation of the challenging market conditions encountered last year with revenue declining in line with the market. The high interest rate environment has kept investors underweight in equities resulting in low activity levels in block trading: Liquidnet's key market segment. The relative value business performed strongly. We continue to invest in the credit platform opportunity and are making good progress."
TP ICAP declared a 4.8p per share interim dividend, up 6.7% from 4.5p.
In addition, it said it is launching a GBP30 million share buyback programme.
"We will continue to assess opportunities to free up more cash to pay down more debt, and/or initiate further buybacks," it said.
"Dynamic capital management is a key element of our strategy. The GBP100 million of cash we targeted in the first half last year has been freed up 6 months ahead of schedule; it will be used to pay down debt."
By Eric Cunha, Alliance News news editor
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TP ICAP (TCAP)