Costs of the merger that formed TP ICAP PLC (LON:TCAP) took their toll on profits last year while an unconvincing trading outlook knocked the share price.
TP ICAP, which handles trillions of dollars of money market trades as the world’s largest interdealer-broker, said integration and cost savings from the 2016 merger were ahead of schedule.
Some 295 jobs were cut in 2017 following the deal with more to come.
“We achieved £27mln of synergy savings in 2017, ahead of our initial £10mln target,” said John Phizackerley, chief executive.
“The next phase of the integration will focus on delivering our IT plan and ensuring that the organisation is fit for purpose in a rapidly changing environment. We remain committed to achieving our £100m synergy saving target by 2020.”
MiFID II has had little impact so far, he added, though a pick-up in volatility and interest rates had meant an encouraging start.
“Although it is too early to tell whether these conditions are sustainable,” Phizackerley added.
TC ICAP shares fell 6.5% to 504p as investors were disappointed the final dividend was unchanged at 11.25p.
Revenue over the year rose to £1.75bln from £1.68bln with a £1mln rise in pre-tax profit to £233mln after integration charges.