TP Icap H1 profit falls in quiet markets

TP Icap said annual revenue at constant currency would be broadly unchanged despite falling profit and and income in the first half of the year.

Pretax profit fell to £28m in the six months to the end of June from £78m a year earlier as revenue dropped to £936m from £990m. Excluding currency movements, revenue fell 1% to £936m from £947m.

The FTSE 250 interdealer broker said its performance reflected quiet secondary markets and continuing disruption from Covid-19 with clients working remotely under restricted risk limits. Business boomed earlier in the pandemic as clients traded frantically in highly volatile markets.

Trading activity in July and August was broadly in line with a year earlier and excluding the purchase of Liquidnet revenue was also flat. The stronger pound against the dollar will hit revenue and the operating margin with about 60% of revenue and 40% of costs in dollars.

"Despite the subdued trading conditions we have experienced in the period, together with continuing uncertainty caused by quiet markets and the disruption from Covid-19 , we anticipate full-year revenue for the group, excluding Liquidnet, to be broadly in line with 2020 on a constant currency basis," TP Icap said.