Investor Overview
Our vision is to be the world’s most trusted, and innovative, liquidity and data solutions specialist. To achieve this, we are focused on the delivery of three strategic priorities:
1. Transforming our business;
2. Diversification; and
3. Dynamic capital management.
We aim to deliver sustainable shareholder value in the medium term. We have a clear strategic roadmap and a strong franchise to do so. We are well positioned for current market conditions through our developed business model, market-leading positions, major geographical presence, deep liquidity pools, and cutting-edge technology.
Why invest?
- #1 market positions for Global Broking, Energy & Commodities, and Parameta Solutions;
- World-leading provider of over-the-counter (‘OTC’) liquidity, data, and data-led solutions;
- Liquidnet: a world-leading, global, multi-asset buy-side network.
- Well diversified business model – c. 65% of revenue generated outside the UK and denominated in US$;
- Presence in key markets across 60 offices in 28 countries.
- High profit to cash conversion across the business;
- Group cash conversion: 144% (2023: 124%);
- Average cash conversion ratio of 141% over the past three years.
- Track record of creating new scale businesses, such as Parameta Solutions;
- Well positioned for future growth opportunities, such as the energy transition, digital assets, and Dealer-to-Client(‘D2C’) trading.
- Parameta Solutions is a substantial Data & Analytics business;
- 97% subscription-based revenues;
- 98% client renewal rate;
- Focused on a potential US listing of a minority stake in the business, as early as Q2 2025.
- ~£100m debt/financing obligations paydown; leverage ratio decreased from 1.9x to 1.6x;
- As of 11 March 2025, £120m of share buybacks completed/announced in c.18 months;
- Clear dividend policy: 50% payout of adjusted post-tax earnings;
- At least £50m cash release targeted through legal entity consolidation by 2027;
- Focus on productivity, contribution, and balance sheet optimisation expected to generate substantial cash in the medium term in addition to £50m targeted through legal entity consolidation.
Behind the numbers – our 2024 Full Year Results
- Revenue growing from a strong base. Group revenues up 5% (+3% in reported currency)
- Record profits:
- Adjusted EBIT up 12% to £324m (FY23: £289m); Adjusted EBIT Margin: 14.4% (FY23: 13.5%)
- Diversification delivering: Liquidnet and Parameta Solutions accounted for 42% of Group adjusted EBIT (2023: 29%)
- Strong cash conversion: 144% (2023: 124%). Averaged 141% over the last three years
- Increasing returns to shareholders:
- The Board is recommending a final dividend per share of 11.3 pence up 13% (2023: 10.0p); this would bring the total dividend to 16.1 pence per share, up 9% (2023: 14.8p).
- The final dividend will be paid to eligible shareholders on 23 May 2025, with an ex-dividend and record date of 10 April 2025 and 11 April 2025, respectively.
- Fourth £30m buyback announced. £120m of buybacks completed/announced in c.18 months
- Revenue up 4%, strong H2 momentum (+7%); Revenue per broker up 4%; Contribution per broker up 2%
- ‘Global Inter Dealer Broker of the Year’ Global Capital; ‘World’s Best Foreign Exchange Broker’ Euromoney
- Transforming through technology: collaboration with Amazon Web Services to enhance development of flagship digital platform, Fusion, halving product development times and improving scalability
- Invest to grow: enhancing client coverage, filling gaps where not yet #1 or #2 in market
- Business is well positioned to capitalise on supportive market conditions
- Revenue up 2% following strong 2023. Revenue up 22% in last two years
- Expect energy and commodities market fundamentals to remain strong in 2025
- Continue to strengthen market-leading position in traditional asset classes: oil, power and gas
- Energy transition offers growth opportunity: working with AWS to co-develop sustainability-focused trading solutions; building capability in Battery Metals; meeting increasing client demand for Renewable Energy and Carbon Certificates
- Increased collaboration with Parameta Solutions to monetise E&C data
- Record revenues, up 15%, driven by strong Equities performance, up 18%. Multi-Asset Agency Brokerage up 10%
- Enhanced operational gearing: management and support costs down 31% in last two years
- Nearly six-fold increase in adjusted EBIT to £53m (margin of 15.0%)
- Block market share gains: Europe, up c.4 percentage points to ~40%. US, up 3.6 percentage points, to ~28%.
- Revenue up 8%
- Recurring, subscription-based revenue very strong at 97%. Net Revenue Retention rate of 104%, indicating ability to grow revenue from existing client base.
- Client base increasingly diversified: buy-side and corporate segments now 20% of revenue.
Innovative offerings (evidential data solutions, indices) account for 10% of division’s revenue (2023: 6%). - Growth in direct distribution: 22% of 2024 revenue (2023: 19%, 2022: 15%)
- New management team: CEO Silvina Aldeco-Martinez (previously Morningstar, S&P Global); CFO Chantal Wessels (previously Nasdaq, Thomson Reuters)
- Financial data market is large and projected to grow
