Our Strategy | TP ICAP

Future-proofing our Group through technology and operational excellence.

Fusion is our market-leading, cloud-based digital platform, connecting our clients to our deep liquidity pools, across our brands and asset classes, through the full life cycle of a transaction.

In 2024, we announced a major agreement with Amazon Web Services (‘AWS’), the world’s leading cloud provider, to streamline and scale our technology infrastructure. A key focus of this agreement is to accelerate the development of Fusion by co-developing the platform with specialist AWS engineers, halving new product development times, and nearly doubling our IT workload on the cloud to more than 80%. We will also leverage AWS’s generative AI capabilities to increase productivity, and better respond to client needs.

As announced at our Half Year results in August 2024, a significant operational and IT excellence programme is underway. In addition to our focus on consolidating more legal entities to free up cash (at least £50m targeted), the programme is expected to generate at least £50m in annualised cost savings by 2027 across four main areas. First, technology and data (reducing IT applications and migrating more to cloud); second, an automated and scalable target operating model (aligning functions and office co-location); third, procurement and vendor management (consolidating vendors to drive economies of scale); and finally, optimising the use of office space across the Group.

Our diversification strategy is about broadening our client base, moving into different asset classes and geographies, and delivering more non-broking revenue and profits.

Liquidnet
Liquidnet is focused on enhancing its operational leverage, diversifying its core equity franchise, and developing its fast-growing multi-asset agency brokerage business. In 2024, product launches in equities included: Superblock, a solution for clients who wish to trade large, illiquid blocks, and SmartDark, an algorithm to help traders execute larger trades with better price stability. Additionally, in multi-asset, a new single desk proposition was launched, providing liquidity and bespoke trading tools.

Parameta Solutions
Parameta Solutions helps clients gain insights into complex, low-transparency OTC transactions for alpha identification, risk management, and regulatory compliance.

The division's strategy focuses on three pillars. First, it is enhancing its distribution, with 78% of the division’s 2024 revenue originating from third-party channels, and an increasing proportion (22%) being generated from direct channels, such as the cloud. Second, Parameta is offering more innovative products, including evidential data solutions and benchmarks and indices. Finally, the business is expanding its buy-side client base.

Maximising the value of Parameta is a key priority. As previously announced, we are progressing strategic options in relation to the division. Our focus is a potential listing in the United States, with the Group maintaining a long-term majority stake. Should we proceed, the potential listing could occur as early as Q2 2025.

Energy & Commodities
E&C, the leading OTC broker, focuses on:

Growing revenue in Oil, Gas, and Power: Benefiting from increasing demand, with global LNG demand projected to grow by 50% by 2030.
Leveraging the Energy Transition: Developing an aggregated liquidity pool for renewable products and focusing on product development for US Renewable and Voluntary Energy Credits. E&C will also collaborate with AWS to co-develop sustainability-focused trading solutions, and support Amazon’s suppliers in creating decarbonisation plans.
Monetising Data: Growing energy-related data revenues in conjunction with Parameta Solutions and developing new products like real-time data and indices.

Diversification is delivering: in 2024, our non-broking businesses accounted for 42% of adjusted EBIT, up from 29%.

In August 2023, we initiated our inaugural £30 million buyback programme. Since then, the Group has completed, or announced, £120m of buybacks, including a £30m buyback announced in March 2025, all while adhering to our dividend policy, which is to pay half of the adjusted post-tax profit for the year to shareholders. Our shareholders appreciate this blend of dividends and capital returns.

We are committed to releasing more cash for ongoing business investment, including targeted M&A, where appropriate, debt reduction and further capital returns.

In August 2024, we launched a three-year programme to release at least £50 million of surplus cash through legal entity consolidations and to achieve at least £50 million in annualised cost savings through operational efficiency initiatives. This programme includes a £70 million investment over three years, focusing on real estate optimisation, technology consolidation, procurement, and vendor management, transforming our processes to be more streamlined and agile.

Over the short term, we expect to return most of the proceeds of any potential listing of Parameta Solutions to our shareholders. In the medium term, we are confident in our ability to generate substantial cash organically, in addition to the £50m of cash already targeted through more legal entity consolidation. We will update shareholders on these initiatives at our HY 2025 results. Our focus on productivity and contribution means we will continue to prioritise profitable growth, and cash flows, in the future.

Strategy

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