Following the imminent completion of its second buyback programme of £30 million, TP ICAP Group plc (LON:TCAP) announces that it will commence a third share buyback programme, starting once the Second Buyback completes, of TP ICAP’s ordinary shares of 25p each for a maximum consideration of £30 million, in order to reduce the capital of the Company and/or meet obligations under employee share schemes.
Ordinary Shares purchased under the Buybacks that are not cancelled will have their rights to dividend receipt waived by the Company.
As at 6 August 2024 the Company had bought back 13,320,585 million Ordinary Shares for a gross consideration of £28.9 million out of the £30 million, under the Second Buyback.
The Group is committed to releasing more cash for further capital returns, debt reduction, and ongoing business investment, including targeted M&A, where appropriate.
In line with the Company’s clear dividend policy (a 50% pay-out ratio of adjusted post-tax earnings), it will pay an interim 2024 dividend of 4.8 pence per share, in line with the first half of 2023. The interim dividend will be paid to eligible shareholders on 8 November 2024, with an ex-dividend and record date of 3 October 2024 and 4 October 2024, respectively.
In addition to the Buybacks, TP ICAP is launching a new three-year programme to release at least £50m of surplus cash through more legal entity consolidations, and generate £50m of annualised cost savings through more operational efficiency initiatives.
Any share purchases will be made by the Company within certain pre-set parameters and in accordance with the general authority of the Company to repurchase shares granted by shareholders at the Company’s Annual General Meeting held on 15 May 2024, which permits the Company to purchase no more than 79,539,093 ordinary shares (or 10% of the issued share capital).
