TP ICAP reshuffles top management, CEO John Phizackerley leaves

Maria Nikolova

John Phizackerley is leaving his post as Chief Executive and as a member of the Board with immediate effect and has been replaced by Nicolas Breteau.

There are major changes at the top ranks of TP ICAP PLC (LON:TCAP), as per an announcement made by the company earlier today.

Nicolas Breteau

John Phizackerley is leaving his post as Chief Executive and as a member of the Board of TP ICAP, with the change effective immediately. Mr Phizackerley has been replaced by Nicolas Breteau, who joined Tullett Prebon in 2016 as Chief Commercial Officer and is currently at the helm of TP ICAP’s largest business, Global Broking.

In addition, Robin Stewart has been appointed as Chief Financial Officer on a permanent basis, subject to FCA approval. He joined Collins Stewart Tullett Plc in 2003 as Head of Tax and has been acting as the Company’s Interim Chief Financial Officer since November 2017.

Both Nicolas Breteau and Robin Stewart will become members of the Board with immediate effect.

Commenting on the changes, Rupert Robson, Chairman, said:

“The evolving landscape is driving up costs across our industry. The acquisition of ICAP has given us greater scale to withstand this pressure. The potential for these combined businesses remains extremely compelling and this will be evidenced in the coming years. However, it has become clear that a change of leadership is required to execute our medium-term growth strategy and deliver the detail of the integration process”.

TP ICAP also provided a trading update for the six months to June 30, 2018, warning its earnings per share for 2018 may fail to meet analyst expectations.

The company said its underlying operating profit for 2018 will be impacted by additional ongoing cost headwinds of around £10 million, relating to Brexit, MIFID II, regulatory and legal costs and IT security. Furthermore, market forces are expected to increase broker compensation in 2018 from 50.5% in FY 2017 to at least 51%. Near-term additional UK regulatory capital requirements and the refinancing of the revolving credit facility (RCF) are likely to push higher finance costs in 2018 to around £35 million.

As a result, earnings per share for 2018 are expected to be slightly below the bottom-end of the range of analyst expectations. Let’s note that company-derived consensus, taking all analysts who have updated models since the Preliminary Results in March 2018 is for underlying EPS of 37.0p, with a range of 34.9p to 39.0p.

Revenues for the six months to June 30, 2018, were 3% higher than the prior year at constant exchange rates and 2% lower as reported. This is consistent with 2018 full year revenue guidance provided in March, which remains unchanged. Both the Tullett Prebon and ICAP businesses continue to contribute to TP ICAP’s revenue growth.

The Board has reassessed its approach to the integration and the ongoing investment needs of the business in the light of the evolving industry landscape. As a result, TP ICAP is reducing its synergy target from £100 million to £75 million by the end of 2019 on an annualised basis.

The company forecasts 2019 will see the cost associated with Brexit, regulatory and legal, and IT security increase from the above-mentioned £10 million in 2018 to £25 million. In addition, TP ICAP plans to make strategic organic investments of around £15 million in Global Broking, Energy & Commodities and the Data & Analytics divisions to accelerate the future growth of the TP ICAP business. The increased finance costs mentioned above are expected to rise to around £40 million in 2019.

Read this next

Digital Assets

Thailand’s SEC to scrap $8,800 limit for retail investment in ICOs

Thailand’s Securities and Exchange Commission (SEC) plans to lift the limit for retail investors who want to participate in initial coin offerings (ICOs) to boost asset-backed digital investments in the country.

Digital Assets

Kraken signs commitment to launch regulated business in Canada

San Francisco-based cryptocurrency exchange Kraken has filed a pre-registration undertaking with a Canadian provincial regulator as it works towards becoming a regulated provider in the country.


TT’s Keith Todd brings fixed income and cybersecurity to FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Keith Todd about Trading Technologies’ move to fixed income after nearly 30 years of existence. TT is also proposing cooperation and transparency among competitors to tackle cyber risks.

Digital Assets

Binance joins FIDO Alliance to enhance user security with introduction of passkeys

“With passkeys, a user can quickly and safely sign in across multiple sites, apps, and devices with local biometric authorization. Binance will offer users a more secure and streamlined experience using passkeys on our platform without compromising on security”.

Digital Assets

ipaymy taps TripleA in Singapore for rent, invoices, taxes, salaries in Crypto

“Our white label crypto payment solution enables our partners to reap the benefits of accepting crypto payments, without managing crypto on their balance sheets. This makes it an ideal solution for businesses looking to offer cryptocurrency payments volatility-free.”

Industry News

London and New York rank joint first as top financial centers, according to…London

“The UK remains one of the most open and global financial centres with better access to international markets than the US, France, or Japan. But our competitive advantage is at risk.”


Sterling Trading Tech (STT) discusses their Risk & Margin System at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Chief Customer Officer Keith Cacciola and Managing Director of Business Development Andrew Actman about STT’s competitive advantages, the challenges their clients face today, the firm’s product roadmap and new leadership at STT.

Institutional FX

Swedish online brokerage pioneer Nordnet deploys Citi Securities Lending Access platform

“Nordnet was one of the first online brokers in Sweden and has since expanded into a pan-Nordic leading digital platform for savings and investments. We are proud to add this collaborative initiative to our ever-growing list of market innovations for our customers.”

Digital Assets

Elwood integrates Fireblocks to further connect digital asset ecosystem

“As a first port of call, the integration of Fireblocks will enhance the portfolio management system experience for clients, providing users with a comprehensive view of their current and historical digital asset positions across all venues, including their Fireblocks movements and balances.”