TP ICAP revenues creep 1% higher, acquires Axiom in $29.1 million deal

TP ICAP posted revenues in the four months to October of £568 million, representing a 1% increase over the same period a year ago, with year-to-date revenue of £1.5 billion coming in a touch lower than in the same period last year at £1.48 billion, according to a trade update on Friday.

The slight jump in revenues growth is the result of ‘mixed market conditions’, with the trading environment remaining challenging across the majority of its energy and commodities products, the company said.

‘Today's trading update demonstrates that TP ICAP is well placed to grow in mixed market conditions, characterised by periodic volatility that we saw in October following the US Federal Reserve's rates decision,’ TP ICAP CEO Nicolas Breteau said.

‘This underlines our firmly-held belief that investing in growth areas such as Data & Analytics will benefit TP ICAP over the longer-term as we develop solid and scalable revenues across our global businesses.’

The company’s data and analytics unit saw strong revenue growth over the period of around 11%, with the business undergoing some strategic changes implemented by its new management.

The company expects its full year results to be in line with its guidance, with the interdealer broker reporting its preliminary results on 19 March 2019.

ICAP buys Axiom

TP ICAP increased the size of its energy and commodities brokerage business with its acquisition of Texas, US-based Axiom, with the company specialising in crude and refined oil products, as well as ethanol and physical grains.

‘The purchase of Axiom, which has 22 brokers and specialises in crude oil, refined oil products, ethanol and physical grains, continues the expansion of our Energy & Commodities division and reinforces our existing presence in Houston, Texas.’ Breteau added.

For the year ended 31 December 2017, Axiom made profit before tax of $5.3 million, with gross assets of $7.4 million.