Grantsu - I tend to agree
Since Breteau took over they've done excellent work to turn the company around, cut costs and electrify. Potential is huge and is clearly being realized and executed by correct management decisions. Even the Jersey relocation was important piece in achieving that. There is absolutely too much focus on parameta when lot of the business is now performing well. Even liquidnet contributing now. Whilst we wait for higher share price - there is the dividend and the buybacks so nicely ticking along. And like another excellent poster pointed out earlier - H2 seems somewhat in the bag already. And the current CEO does have skin in the game. If I'm correct his stake might be worth 3.5M |
personally feel that far too many people focus on Parameta when it comes to ICAP...they miss the bigger picture in terms of what a good business broking is. It has its pressures...but its an incredibly high barrier to entry business which should structurally benefit massively over the next decade as the world enters a new era of monetary policy. you have to say hats off to mgmt and the work they have done over the last two years...simply astounding effort in terms of cash generation, cost cutting and getting parameta into shape.
brokers are targetting roughly 3 quid on icap - this is a share where i genuinely believe 4-5 quid is possible. the broking business merits a decent multiple in and of itself if it can electrify successfully. liquidnet has huge potential...and actually so far, mgmt are turning it around (albeit slowly).
cash generation and yield second to none. |
Fear management are playing a risky game. Value will be revealed once Parameta is floated but clear mgmt is holding off while its still growing strongly and thus pushing up the valuation. The risk is the growth rate drops off and then they shoot themselves in the foot. I was told the listing was well advanced 6 months ago…. |
Thank you fft: I wasn't able to dial in. I'm well committed to this as a long term hold with good growth characteristics, and you have pulled out the main themes I'd have been interested to hear about. |
 Curates egg of a meeting. I probably don't know enough about the how the business works but it seems to me that at a very low P/E it is doing now what Beeks is trying to do (and Beeks has a high p/e).As well as being the number 1 provider in a number of areas it has embarked on a serious cost cutting exercise that isn't promising too much.It has also floated the idea of floating it's data unit in the USA Some of the questions tried to get an idea of how, as a standalone unit, it might be valued - i.e. have all costs currently been transferred over - but mgmt played a fairly straight bat.Management said many times they were comfortable with forecasts, which sounded to me that they were confident of beating them. Increased volatility should mean more revenue and they themselves said H1 was less volatile, and with the USA election coming up, the yen carry issue (smile on face from CEO) etc etc, it seems H2 is in the bag.Yield is very good and it seems a safe long term hold with promises of capital growth. |
EPs up near 50% but no divi increase. Bit stingy? But at least they are increasingly comfortably covered. |
Good results, but I guess it's the phrase " which might entail a listing in the United States" that's caused the rise.
Still should be closer to £3 IMO. |
Lots of nerves
Dropped from 225 quickly to 217
Just appears to me that market is nervous about the unlocking of the value for psrameta.
I think the company will definitely do something to unlock value. They already done so much groundwork. They have listed parameta separately to facilitate this and even hired a new CEO of Parameta who has had a good start with 12% growth in Q1. |
rising tide lifts all boats - bgc/gfi up over 100% last year, tp up 35% conditions excellent tullet management these days abysmal |
Something cooking or just traders taking it to top of the trading range? |
Presumably these:
Swiss LIBOR Class Action
Commodities and Futures Trading Commission – Bond issuances investigation
Supplier contractual dispute
Labour claims – ICAP Brazil
Flow case – Tullett Prebon Brazil
Stichting LIBOR Class Action
Euribor Class Action
ICAP Securities Ltd, Frankfurt branch – Frankfurt Attorney General administrative proceedings
ICAP Securities Limited and The Link Asset and Securities Company Limited – Proceedings by the Cologne Public Prosecutor
Portigon AG and others v. TP ICAP Markets Limited and others
MM Warburg & CO (AG & Co.) KGaA and others v. TP ICAP Markets Limited, The Link Asset and
Securities Company Limited and others
Securities Exchange Commission Information Request
See Annual Report for status of the above. According to management there are no individual matters which are considered to pose a significant risk of material adverse financial impact on the Group’s results or net assets |
PodgytedLegacy litigation - what r u referring to? |
Stockopedia has this as a classic value share - fwd PER of 7 and fwd yield of 7%.
Seems currently to be rising in anticipation of the interim results on 7th August. Broken thru 50 day ma.
Looks good, but I guess you have to balance the upside of Parameta vs the potential downside of the legacy litigation. Core business seems undervalued given the PER .
Interesting.
BWDIK |
TP ICAP Group's Net Funds excluding lease liabilities as of December 31, 2023 was £381 million. This represents a significant improvement in the company's financial position compared to the previous year.
To break this down:
The company had cash and cash equivalents of £1,029 million
Financial investments of £189 million
An overdraft of £10 million
Total debt of £827 million (excluding lease liabilities)
The calculation is as follows:
(£1,029m + £189m) - £10m - £827m = £381m
The improvement in the company's financial position is partly due to their active debt management, including refinancing activities and debt repayment. For instance, in April 2023, the company issued new Sterling Notes maturing in 2030 to refinance part of their 2024 notes.
For anyone asking why lease liabilities should be excluded when calculating Net Debt/Funds it is important for several reasons:
Historically, net debt calculations have focused on interest-bearing financial obligations. By excluding lease liabilities, companies maintain consistency with traditional debt definitions and allow for better historical comparisons.
While lease liabilities share some characteristics with debt, they differ in important ways. For instance, lease obligations typically cannot cause bankruptcy, unlike secured debt. This fundamental difference in risk profile justifies treating them separately from traditional debt.
Lease liabilities can be more flexible than traditional debt. In some cases, companies can renegotiate or terminate leases more easily than they can restructure debt.
Excluding lease liabilities allows investors and analysts to focus on the company's core financial obligations and its ability to service traditional debt. |
Really?
£1.019bn of cash and £837 million (ex-leases) of debt. So net cash of approx £200 million. |
I agree Chasbas. This is now my largest holding. Half year results are due 7th August. Fundamentals are very good and I particularly like the fact that they're trading below 'cash'. According to Stockopedia they have net liquidity (after debt is taken out) of £2.475billion yet their Market cap is only £1.56 billion. Analyst consensus is 277. |
I am piling into TCAP ahead of results in August (date anybody?) hoping for news on Parameter but happy with fundamentals regardless. Love the yield of over 7% (at 202p) which seems to me to be very secure IMO. There are share buy backs so balance sheet is strong. Management is focusing on capital management.
Deutsche Bank starts TP ICAP with 'buy' - price target 264 pence (thanks Ppreston1)
Money brokers have always been lowly rated by the stockmarket BUT I am hoping that Parameter IPO or similar will boost the share price. What's not to like?
Market cap is £1.6bn so I believe this to be a consequential company and a global market leader. IMO
GLA |
Agreed Mpage. Have now filtered him too. |
@XAMF - Agree. Have filtered him out forever. |
DO NOT CLICK ON THE NEILYB675 LINK ABOVE.
The same link has been posted to numerous other threads without explanation. Best be safe.
Back to TCAP. All this volatility must be good for business! |
That is one serious dividend payment, gratefully received..... |
Kind of nothingy in a good way, but this sounds promising: "We continue to explore options to unlock the value of Parameta Solutions for shareholders, including a potential IPO of a minority stake in the business." |
Deutsche Bank starts TP ICAP with 'buy' - price target 264 pence |
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