Business
Launch of second share buyback programme of £30m
Launch of second share buyback programme of £30m.
About this update from Tp Icap Group Plc
[{"type":"text","content":"\n\n12 March 2024\n \nTP ICAP Group plc \n\n \n Launch of second share buyback programme of £30 million\n \nFollowing the completion of its first buyback programme of £30 million in January 2024 (the \"First Buyback\"), TP ICAP Group plc (the \"Company\" or \"TP ICAP\") announces that it will commence a second share buyback programme, starting today, of TP ICAP's ordinary shares of 25p each (the \"Ordinary Shares\") for a maximum consideration of £30 million (the \"Second Buyback\", together with the First Buyback, the \"Buybacks\"), in order to reduce the capital of the Company and/or meet obligations under employee share schemes. Ordinary Shares purchased under the Buyback that are not cancelled will have their rights to dividend receipt waived by the Company.\n \nThe Second Buyback highlights the Board's confidence in the future prospects of TP ICAP, reflects its strong financial position, and is consistent with its dynamic capital management strategy, which is a key priority. This means reducing our debt, and returning surplus capital to shareholders, subject to our ongoing investment needs and balance sheet requirements.\n \nTP ICAP is cash generative with a prudent capital management framework and the Board believes the Second Buyback strikes the appropriate balance between the continued and substantial investment in the Company's organic prospects such as Fusion, Liquidnet Credit, and Parameta Solutions, alongside reducing debt at a time when interest rates are high.\n \nIn line with the Company's clear dividend policy (a 50% pay-out ratio of adjusted post-tax earnings), the Board is recommending a final dividend of 10.0 pence per share, up 27%, which would bring the total 2023 dividend to 14.8 pence, an increase of 19%. The final dividend will be paid to eligible shareholders on 24 May 2024, with an ex-dividend and record date of 11 April 2024 and 12 April 2024, respectively.\n \nIn addition to the Buybacks, we freed up £100 million of cash before the end of 2023, ahead of schedule. This cash is being used to reduce debt and other financing obligations, lowering our future net finance costs, and increasing our investment grade headroom.\n \nSubject to the Company's balance sheet and investment needs, we are assessing opportunities to free up more cash and pay down more debt, and/or...