The TP ICAP Group plc Board is recommending a final dividend for 2023 of 10.0p, which, when added to the interim dividend of 4.8p, results in a total dividend for the year of 14.8p, an increase of 19% from the previous year. This aligns to the Group's dividend policy which targets a dividend cover of approximately two times on adjusted post-tax earnings. The dividend distribution during the year is typically based on a pay-out range of 30-40% of H1 adjusted post-tax earnings with the balance paid in the final dividend. The final dividend will be paid on 24 May 2024 to shareholders on the register at close of business on 12 April 2024. The ex-dividend date will be 11 April 2024.
Other financial highlights include:
Good revenue performance, tight cost management
Group revenue up 3% (+4% in reported currency). Builds on 7% increase in 2022 (+13% in reported currency);
Global Broking ('GB') revenue flat, following an exceptional 2022;
GB productivity up: contribution per broker increased 12%;
Energy & Commodities ('E&C') record revenue performance, up 18%; double-digit growth in Oil, Power, Gas;
Parameta Solutions revenue increased 8%; 11% growth in H2 2023;
Liquidnet division revenue declined 1%. Cash Equities revenue down 9%: Global commission wallet at lowest level in 9+ years. Cash Equities grew 13% in Q4 2023; revenue from rest of division up 10%;
Liquidnet integration complete; cost base right-sized. £43m cost savings (annualised) delivered, exceeding £30m target. Adjusted EBIT for division of £10m (2022: £2m).
Increased margins, higher profitability
Group adjusted EBIT up 8% (+9% in reported currency) to £300m, a record level (2022: £277m). Focus on productivity, contribution, and tight cost control;
Adjusted EBIT margin increased to 13.7% (2022: 13.1%);
Reported EBIT, including £76m Liquidnet net impairment (non-cash), down 21%, in reported currency, to £128m (2022: £163m).
