Financial Performance - Revenue for H1 2024 increased by 27% to $787.9 million from $622.4 million in H1 2023[8] - Profit Before Tax for H1 2024 rose by 27% to $139.0 million compared to $109.5 million in H1 2023[8] - Adjusted Operating Profit for H1 2024 increased by 28% to $159.2 million from $124.5 million in H1 2023[11] - Net commission income for H1 2024 grew by 23% to $427.3 million from $347.2 million in H1 2023[9] - Net trading income for H1 2024 rose by 14% to $242.7 million from $212.5 million in H1 2023[9] - Net interest income for H1 2024 increased by 68% to $101.0 million from $60.0 million in H1 2023[11] - Net physical commodities income surged by 526% to $16.9 million for H1 2024 from $2.7 million in H1 2023[11] - Adjusted Operating Profit increased by 21% in H1 2024 to $119.0 million, with Adjusted Operating Profit Margins rising by 200 basis points to 53%[15] - Agency and Execution revenue rose to $332.6 million in H1 2024, a 32% increase from $252.3 million in H1 2023, benefiting from positive market conditions and recent acquisitions[16] - Securities revenue increased by 25% to $188.5 million in H1 2024, compared to $150.2 million in H1 2023, primarily due to the Cowen acquisition[18] - Energy division revenue grew by 42% to $143.3 million in H1 2024, up from $101.0 million in H1 2023, reflecting improved activity levels in European Energy markets[20] - Market Making revenue increased by 23% to $111.3 million in H1 2024, driven by strong Metals trading performance[22] - Hedging and Investment Solutions revenue rose by 36% to $86.0 million in H1 2024, up from $63.3 million in H1 2023, with growth across all regions[25] - Profit After Tax for the three months ended June 30, 2024, was $59.3 million, compared to $43.6 million in the previous quarter[48] - Profit after tax for the six months ended June 30, 2024, was $102.9 million, up from $80.8 million, marking a growth of 27.5%[57] - Total comprehensive income for the period ended 30 June 2024 was $98.9 million, compared to $75.3 million for the same period in 2023, reflecting a year-over-year increase of 31.2%[63] Dividends and Shareholder Returns - A progressive dividend policy was announced, with an initial dividend of $10 million or $0.14 per share to be paid in Q3 2024[3] - The Board of Directors approved an initial dividend of $10 million or $0.14 per share, expected to be paid on 16 September 2024[36] - Dividends paid during the period totaled $44.1 million to ordinary shareholders and $6.6 million to holders of AT1 securities, compared to $24.5 million and $6.6 million, respectively, in the prior year[98] - The company paid ordinary dividends of $50.7 million for the six months ended June 30, 2024, compared to $31.1 million in the same period of 2023, reflecting a year-over-year increase of 62.0%[66] Assets and Liabilities - Total Assets decreased from $17.6 billion at 31 December 2023 to $17.2 billion at 30 June 2024, primarily due to a reduction in Reverse Repo agreements from $3.2 billion to $2.1 billion[29] - Cash and Liquid Assets increased from $4.5 billion at 31 December 2023 to $5.1 billion at 30 June 2024, reflecting liquidity generated from structured notes and customer balance growth[30] - Total Equity increased by 14% to $882.3 million, up from $775.9 million, driven by a Profit After Tax of $102.9 million in H1 2024[31] - The Group's Total Capital Ratio improved to 276% as of 30 June 2024, up from 229% at 31 December 2023, indicating significant capital headroom[35] - Total liabilities decreased to $16,307.1 million from $16,835.7 million, showing a reduction of 3.1%[61] - Current assets totaled $16,665.2 million, slightly down from $16,936.0 million at the end of December 2023[59] - Non-current assets as of June 30, 2024, totaled $317.6 million, an increase from $293.0 million as of December 31, 2023[94] - The total balance of derivative financial assets increased from $655.6 million (December 2023) to $730.8 million (June 2024), reflecting a growth of 11.5%[107] - The total balance of derivative financial liabilities increased from $402.2 million (December 2023) to $496.8 million (June 2024), an increase of 23.5%[109] Operational Metrics - Clearing business cleared 538 million contracts in H1 2024, a 28% increase compared to the same period in 2023[13] - Average headcount increased by 13% to 295 in H1 2024, supporting revenue growth across various segments[14] - Total number of trades executed on the platform increased, contributing to overall revenue growth[46] - Average Balances of segregated and non-segregated client balances generating interest income increased over the last five quarters[46] Costs and Expenses - Control and support costs increased by 65% to $(90.2) million in H1 2024 compared to $(54.8) million in H1 2023[28] - The company incurred $4.6 million in IPO preparation costs for the three months ended June 30, 2024[48] - The Corporate segment reported an adjusted operating loss of $70.2 million, impacting the overall profitability of the Group[90] Accounting and Reporting Changes - The Group adopted new accounting standards effective January 1, 2024, but these did not impact the interim condensed consolidated financial statements[70] - The Group's accounting policies for revenue presentation were changed to disaggregate income derived from ordinary activities, enhancing clarity[73] - Revenue for the six months ended June 30, 2023, was restated to $622.4 million, down from the originally reported $1,191.3 million[74] - Interest income for the six months ended June 30, 2023, was restated to $308.3 million, correcting a previous misclassification[76] - Provision for credit losses for the six months ended June 30, 2023, was restated to $4.5 million, previously included in operating expenses[77] - Impairment of goodwill increased by $10.7 million for the six months ended June 30, 2023, related to Volatility Performance Fund S.A.[78] Shareholder Equity and Capital Management - Common Equity as of June 30, 2024, was $784.7 million, up from $673.7 million in the previous quarter[49] - Basic earnings per share increased to $1.41, compared to $1.13 in the prior year, indicating a rise of 24.8%[55] - The Group's management has determined that there are no material uncertainties affecting its ability to continue as a going concern for at least 12 months from the reporting period end[69] - The Group's Level 3 financial assets decreased slightly to $0.7 million as of June 30, 2024, from $0.8 million as of December 31, 2023, while Level 3 financial liabilities decreased to $2.6 million from $6.0 million[139] IPO and Acquisitions - The company issued 3,846,153 new ordinary shares at an initial offering price of $19.00 per share, generating gross proceeds of $73.0 million during its IPO[68] - The Group completed the acquisition of Cowen Asia Limited and Cowen and Company (Asia) Limited for a total consideration of $3.5 million on 2 July 2024[159] - The acquisition of Pinnacle Fuel LLC was completed for a total consideration of $4.0 million, which included $3.7 million of goodwill premium[100]
Marex Group plc(MRX) - 2024 Q2 - Quarterly Report