Financial services group, TP ICAP, is commencing with a £30m share buyback programme of its own ordinary shares at 25p each.

The group hopes to reduce the capital of the company and meet obligations under its employee share schemes, and confirmed that ordinary shares purchased under the buyback that are not cancelled will have their rights to dividend receipt waived by the company.

UK-based TP ICAP, which lists on the London Stock Exchange and is a constituent of the FTSE 250 Index, serves as a liquidity and data solutions specialist to the financial services sector.

The group is cash generative with a prudent capital management framework and its board believes the buyback “strikes the appropriate balance” between the continued and substantial investment in its organic prospects such as Fusion, Liquidnet Credit, and Parameta Solutions alongside reducing net debt at a time when interest rates are high.

A statement from TP ICAP said: “The 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.”

The buyback is being funded by a range of initiatives, following the Jersey re-domiciliation in February 2021, and cash generation. An interim dividend per share of 4.8 pence, up 7%, will be paid on 3 November 2023 to eligible shareholders.

In addition to the buyback, TP ICAP also reported that it has freed up £100m of cash to pay down debt six months ahead of schedule.

“Subject to the company’s balance sheet and business investment opportunities, the board will continue to assess opportunities to free up cash and pay down more debt, and return further capital to shareholders,” the group added.

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