London-based broker TP ICAP warns over hit to earnings because of Brexit

LONDON BROKER TP ICAP has seen around a third wiped off its stock market value after axing its chief executive and warning over a hit to earnings from Brexit costs.

The group – the world’s biggest interdealer broker – said boss John Phizackerley had left with immediate effect and has been replaced by Nicolas Breteau, the head of its global broking division.

The announcement came as it warned over full-year underlying earnings, which it said would be hit by an extra £10 million of costs relating to Brexit, new regulations and IT security.

These costs are set to surge to £25 million next year, while it is also spending about £40 million after ramping up investment to expand the group.

TP ICAP, which changed its name from Tullett Prebon after snapping up ICAP’s voice broking business, also announced it would slash its annual cost savings target from £100 million to £75 million as it refocuses on investment in the business.

On its decision to sack Mr Phizackerley after four years at the helm, the group said a “change of leadership” was needed to take the business forward after the ICAP deal.

Chairman Rupert Robson explained “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 mediumterm growth strategy and deliver the detail of the integration process.”

He said Mr Breteau’s appointment was part of an “established succession plan”. TP ICAP also confirmed the appointment of Robin Stewart as chief financial officer on a permanent basis.