Transformational year thanks to successful organic growth and the benefit of acquisitions First quarter profit at the top end of range for preliminary results shows continued strong performance Positive momentum continued into the second quarter with good performance in April NEW YORK, May 16, 2024 (GLOBE NEWSWIRE) -- Marex Group plc (‘Marex' or the 'Group'), a diversified global financial services platform, announces strong results for the twelve months ended December 31, 2023, and a positive update for the first three months ended March 31, 2024. Ian Lowitt, Group Chief Executive Officer, commented: "2023 was another exceptional year where we transformed the scale and scope of the firm and maintained our record of delivering sequential growth over each of the last nine years, with an Adjusted Operating Profit compound annual growth rate of 34%. We continued to deliver on our strategy to expand our capabilities and our geographic reach, providing our growing client base with essential market connectivity, liquidity and hedging solutions. We also delivered strong performance in the first quarter of 2024, reflecting the strength and scalability of the diversified global platform we have built. We are pleased to report profit at the top end of the range of the preliminary results in our IPO registration statement and significantly higher than the fourth quarter of 2023. We are delighted to have successfully launched our IPO in April and are grateful for the strong investor engagement and support. As we look to the second quarter, we have seen continued positive momentum. The outlook for Marex remains positive. We have strong momentum in our core businesses bolstered by supportive macro-economic conditions. We continue to consider potential inorganic growth opportunities that will supplement our strong organic growth initiatives, which are proceeding well. We expect to continue to deliver sustainable growth and build an even more diversified and resilient business." Financial Highlights:     12 months ended Dec 31, 2023   12 months ended Dec 31, 2022   % Change2   3 months ended Mar 31, 2024 (unaudited)   3 months ended Dec 31, 2023 (unaudited)   % Change2 $m                         Reported                                 Revenue           1,245   711   75%   366   326   12% Profit before tax           197   122   62%   59   29   104% Profit before tax Margin (%)           16%   17%   (1ppt)   16%   9%   7ppt Profit after tax           141   98   44%   44   18   141% Return on Equity (%)            19%   17%   2ppt   23%   9%   14ppt Adjusted1                                 Operating Profit1           230   122   89%   68   53   29% Operating Profit Margin (%)1           18%   17%   1ppt   19%   16%   3ppt Operating Profit after tax        Attributable to Common Equity1           163   93   75%   49   39   26% Return on Operating Profit after tax Attributable to Common Equity (%)1            26%   18%   8ppt   29%   23%   6ppt These are non-IFRS financial measures. See Appendix 1 "Non-IFRS Financial Measures and Key Performance Indicators" for additional information and for a reconciliation of each such IFRS measure to its most directly comparable non-IFRS measure. % change is calculated on numbers presented to the nearest tenth of a million. For this quarterly update we are providing a comparison to the fourth quarter 2023, the most recent quarter. There are no comparable numbers from the first quarter in 2023 because as a private company we were not required to do a substantive close. We started this process from June 2023 in preparation for our US listing. Therefore, we will provide comparisons for the first half of 2023 as well as the third and fourth quarter. Full Year 2023 Highlights: We have delivered on our strategy to grow our capabilities, our geographic reach, and our clients, through organic growth and selective acquisitions, benefiting from the integration of the ED&F Man Capital Markets division and completing the acquisition of Cowen's prime broking business in December 2023. Our diversified and resilient business delivered increased client activity as we benefited from organic and inorganic growth. Total trades executed were up 122% to 129 million and contracts cleared were up 245% to 856 million in 2023. Average client balances were up 45% to $13.2 billion at December 31, 2023, from $9.1 billion at the end of 2022. Results benefited from a supportive macro-economic environment, characterised by high interest rates. Marex's environmentals business generated strong revenue growth, up 74% to $47 million in 2023, as we continue to help our clients to navigate the energy transition. We continue to invest in our proprietary technology portal Neon, which delivers a high-quality user experience to clients and now has approximately 16,000 users. Successful issuance of €300 million in unsecured 5-year senior notes, further strengthening our liquidity. Through retained earnings we also strengthened the balance sheet and capital position to support continued growth. Investment grade credit ratings affirmed by S&P Global and Fitch. Performance was strong across the Group. Revenue rose 75% to $1,245 million and Reported Profit before tax was up 62% to $197 million and Adjusted Operating Profit rose 89% to $230 million. This was driven by performance across our segments as follows: Clearing provides connectivity between clients, exchanges and clearing houses across four principal asset classes: metals, agriculture, energy and financial products. Revenue for the twelve months ended December 31, 2023 was $373.6 million, up 87% from $200 million in 2022. This includes $236.2 million in net commission income, up 63% from the year before. Agency and Execution acts as an agent matching buyers and sellers thereby facilitating access to market liquidity in energy and financial securities. Revenue for the twelve months ended December 31, 2023 was $541.5 million, up 135% from $230.7 million in 2022, reflecting positive conditions in the energy markets and the benefits of acquisitions that increased our capabilities in financial securities. Market Making operates within four principal markets: metals, agriculture, energy and financial securities. Revenue for the twelve months ended December 31, 2023 of $153.9 million, down 11% from $172.6 million in 2022 reflecting a return to more normalised levels of volatility following exceptionally high levels in 2022, and higher costs of liquidity. Hedging and Investment Solutions provides high-quality bespoke hedging and investment solutions to our clients. Revenue for the twelve months ended December 31, 2023 was $128.1 million, up by 28% from $100 million the year earlier. Corporate revenue is primarily net interest income on house cash balances placed at banks and exchanges. Revenue for the twelve months ended December 31, 2023 was $47.5 million, up 509% from $7.8 million in 2022. First Quarter Year 2024 Highlights: Strong start to the year with increased client activity on our platform and the full benefit of the Cowen acquisition which was completed in December 2023: Contracts cleared were 264 million, up 16% from Q4 2023. All four segments saw a solid first quarter with a particularly strong performance from Hedging and Investment Solutions. Recently acquired Cowen prime brokerage and outsourced trading business performing well, with good progress made onboarding new clients. Prudent approach to capital and liquidity management, with significant headroom maintained above regulatory requirements. Supportive market conditions and strong business performance continue into the second quarter. Well positioned, building on our expanded global footprint and client-centric growth strategy. First quarter performance continued to improve across the Group as compared to the fourth quarter of 2023. We generated $365.8 million in revenue for the three months ended March 31, 2024, up 12% from the three months ended December 31, 2023, driven by performance across our segments as follows: Clearing saw revenue for the three months ended March 31, 2024 of $100.7 million, up 22% from $82.7 million in the fourth quarter of 2023. Revenue in Q1 included $69.5 million in commission income, as well as $30.2 million net interest income reflecting average balances for the period of $13.2 billion, up from $12.7 billion in Q4 2023. Agency and Execution saw revenue for the three months ended March 31, 2024 at $168.1 million, up 6% from $157.9 million in Q4 2023. Revenue in the first quarter consisted of $73.2 million from energy and $94.9 million from financial securities. Market Making benefited from relatively benign conditions in the first quarter, with 94% positive trading days. Revenue for the three months ended March 31, 2024 rose 8% to $41.8 million from $38.8 million in Q4 2023, consisting of $21.4 million from metals, $5.6 million from agriculture, $7.6 million from energy and $7.2 million from financial securities. Hedging and Investment Solutions delivered strong performance in the first quarter, with good demand from clients in both parts of the business. Revenue for the three months ended March 31, 2024 was $41.3 million, up 24% from $33.2 million in Q4 2023, consisting of $19.5 million from hedging solutions and $21.8 million from financial products. Corporate revenue for the three months ended March 31, 2024 was $13.9 million up 8% from $12.9 million in Q4 2023. As at March 31, 2024, the Group's balance sheet was broadly in line with December 31, 2023. Total assets increased 2% to $18.0 billion. The following table presents summary consolidated financial and other data as of the dates and for the periods indicated:      12 months ended Dec 31, 2023   12 months ended Dec 31, 2022   % Change   3 months ended Mar 31, 2024 (unaudited)   3 months ended Dec 31, 2023 (unaudited)   % Change $m                         Revenue           1,244.6   711.1   75.0%   365.8   325.5   12.4% Front Office Costs           (690.4)   (400.0)   72.6%   (210.1)   (186.0)   13.0% Control & Support Costs   (294.2)   (168.6)   74.5%   (80.6)   (79.3)   1.6% Provision for Credit Losses   (7.1)   (9.5)   (25.3)%   0.3   (2.4)   (112.5)% Depreciation & Amortisation   (27.1)   (13.8)   96.4%   (7.8)   (6.1)   27.9% Other income and share of results of associates   4.2   2.5   68.0%   0.1   0.9   (88.9)% Adjusted Operating Profit           230.0   121.7   89.0%   67.7   52.6   28.7% Non-Operating adjustments   (33.5)   (0.1)   n.m.   (8.8)   (23.8)   (63.0)% Reported Profit before tax   196.5   121.6   61.6%   58.9   28.8   104.5% Tax           (55.2)   (23.4)   135.9%   (15.3)   (10.7)   43.0% Reported Profit after tax   141.3   98.2   43.9%   43.6   18.1   140.9%