NEW YORK, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Marex Group plc ((‘Marex' or the ', Group', NASDAQ:MRX), a diversified global financial services platform, announces strong results for the six months ended 30 June 2024, and a positive outlook for the full year. H1 2024 Highlights Financial Highlights: ($m) 3 months ended 30 June 2024   3 months ended 31 March 2024   Change1   6 months ended 30 June 2024   6 months ended 30 June 2023   Change1 Reported                       Revenue 422.1   365.8   15%   787.9   622.4   27% Profit Before Tax 80.1   58.9   36%   139.0   109.5   27% Profit Before Tax Margin (%) 19%   16%   300bps   18%   18%   — bps Profit After Tax 59.3   43.6   36%   102.9   80.8   27% Return on Equity (%) 29%   23%   600bps   25%   23%   200 bps Basic Earnings per Share ($)2 0.81   0.60   35%   1.41   1.13   25% Diluted Earnings per Share ($)2 0.76   0.56   36%   1.32   1.06   25%                         Adjusted3                       Operating Profit3 91.5   67.7   35%   159.2   124.5   28% Operating Profit Margin (%)3 22%   19%   300bps   20%   20%   — bps Operating Profit after Tax Attributable to Common Equity3 66.8   48.9   37%   115.7   90.1   28% Return on Operating Profit after Tax Attributable to Common Equity (%)3 37%   29%   800bps   32%   30%   200 bps Adjusted Earnings per Share($)2,3 0.96   0.74   30%   1.70   1.37   24% Adjusted Diluted Earnings per Share ($)2,3 0.90   0.69   30%   1.59   1.29   23% 1. 1% Change is calculated on numbers presented to the nearest tenth of a million. 2. Weighted average number of shares have been restated as applicable for the reverse share split (refer to note 12 in our condensed consolidated financial statements furnished to the SEC on Form 6-K on 14 August 2024 for further detail). 3. 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. Strong performance in H1 2024: Successful execution of our growth strategy and positive market conditions supported strong performance across all business segments in the first half of the year Exceptionally strong performance in the second quarter: Unusual conditions in the metals market benefited Market Making, as we supported our clients with access to liquidity, increasing volumes on our platform, while maintaining our prudent approach to risk Continued progress with our growth initiatives: We look to grow our platform and expand our client base, building out our product capabilities and geographic reach, diversifying our business and expanding our addressable market Prudent approach to capital and funding: Growing our capital base and significant liquidity headroom maintained Positive outlook: Based on the strong performance in the first half and positive momentum in our business segments, we anticipate full year Adjusted Operating Profit to be approximately $280m to $290m for the year ending 31 December 2024, assuming more normalised market conditions for the remainder of the year Progressive dividend policy announced: The Group Board expects to pay a dividend on a quarterly basis. Initial dividend of $10m or $0.14 per share to be paid in the third quarter of 2024 Ian Lowitt, Group Chief Executive Officer, commented: "Marex delivered strong results in the first half of 2024, supported by organic growth and the ongoing integration of our recent acquisitions, with double digit growth in revenue and Adjusted Operating Profit across all our business segments. We continue to benefit from our diversified global platform, which has enabled us to grow our client base, add additional products across an expanded geographic footprint, and increase the amount of business we do with our clients. We saw an exceptional performance in the second quarter, where in addition to growing in all of our business segments, we were able to take advantage of the unusual opportunities presented in the metals market resulting from amended guidance from the LME regarding Russian metals. We were able to support our clients as a market maker, providing access to liquidity in this active market. This demonstrates Marex's ability to perform well in a favourable environment, while continuing to operate within our strict risk parameters. The outlook for Marex remains positive and we believe we are on track for a tenth year of sequential growth. We anticipate full year Adjusted Operating Profit to be approximately $280m to $290m, assuming more normalised market conditions in H2 2024, following the strong performance in the first half, momentum in our businesses and further progress executing our growth strategy."         Conference Call Information:Marex's management will host a conference call to discuss the Group's financial results today, 14 August 2024, at 9am Eastern Time. A live webcast of the call can be accessed from Marex's Investor Relations website. An archived version will be available on the website after the call. To participate in the Conference Call, please register at the link here https://register.vevent.com/register/BId22ef6b4029c4b8caacf93432d9ecf7f         Financial Review Marex has delivered another period of strong performance, driven by a combination of organic growth and the benefits of recent acquisitions including Cowen's Prime Services and Outsourced Trading business ('Cowen'), which have led to increased client activity on our global platform. This performance has been delivered in an environment of very supportive market conditions, notably in the metals markets, as well as continued high interest rates. The following table presents summary financial results and other data as of the dates and for the periods indicated: Summary Financial Results   3 months ended 30 June 2024   3 months ended 31 March 2024       6 months ended 30 June 2024   6 months ended 30 June 2023       $m   $m   Change   $m   $m   Change – Net commission income 208.4   218.9   (5)%   427.3   347.2   23% – Net trading Income 136.5   106.2   29%   242.7   212.5   14% – Net interest income 65.4   35.6   84%   101.0   60.0   68% – Net physical commodities income 11.8   5.1   131%   16.9   2.7   526% Revenue 422.1   365.8   15%   787.9   622.4   27% Front office costs (224.8)   (210.1)   7%   (434.9)   (335.2)   30% Control and support costs (100.4)   (80.6)   25%   (181.0)   (146.3)   24% Recovery/(provision) for credit losses 1.9   0.3   533%   2.2   (4.5)   (149)% Depreciation and amortisation (7.7)   (7.8)   (1)%   (15.5)   (14.9)   4% Other Income and share of results of associates 0.4   0.1   300%   0.5   3.0   (83)% Adjusted Operating Profit1 91.5   67.7   35%   159.2   124.5   28% Adjusted Operating Profit Margin1 22%   19%   300 bps   20%   20%   0 bps Adjusting items2 (11.4)   (8.8)   30%   (20.2)   (15.0)   35% Reported Profit Before Tax 80.1   58.9   36%   139.0   109.5   27% Tax (20.8)   (15.3)   36%   (36.1)   (28.7)   26% Reported Profit After Tax 59.3   43.6   36%   102.9   80.8   27% 1. 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 IFRS measure. 2. Refer to Appendix 1 "Non-IFRS Financial Measures and Key Performance Indicators" for additional information. Profit Before Tax increased 27% to $139.0m from $109.5m in H1 2023 reflecting strong performance in the first half of the year. Revenue increased by 27% to $787.9m in H1 2024 from $622.4m in H1 2023, reflecting favourable market conditions, strong underlying growth and the benefits of our acquisitions. Net commission income increased by 23% to $427.3m for H1 2024 from $347.2m in H1 2023. The increase was driven mainly by Agency and Execution, which increased by 32% compared to H1 2023, reflecting increased customer activity in Energy, as well as from our acquisition of Cowen. Net commission income was also higher in our Clearing segment which increased by 9% versus H1 2023, driven by our Metals and Agriculturals businesses. Net trading income rose by 14% to $242.7m for H1 2024 from $212.5m for H1 2023. This was driven by our Metals business within our Market Making segment, reflecting exceptional market conditions and market sentiment across Copper, Aluminium and Nickel, following revised guidance on Russian metals from the LME. Net trading income also increased by 36% to $112.0m in Hedging and Investment Solutions, as demand grew for commodity hedging and financial product services. Net interest income increased by 68% to $101.0m for H1 2024 from $60.0m for H1 2023. This growth reflected the benefit of higher average fed fund interest rates, as well as the introduction of Cowen business in December 2023. In addition, it reflected the reinvestment of maturing assets at higher yields. These benefits were partly offset by higher client payouts. Net interest income:   6 months ended 30 June 2024   6 months ended 30 June 2023   Change Average Fed Funds % 5.33%   4.76%   57bps             Average balances ($bn) 13.4   13.5   (0.1) Interest Income ($m) 331.5   251.1   80.4             Interest paid out ($m) (126.0)   (111.4)   (14.6)             Interest on balances ($m) 205.5   139.7   65.8 Net Yield on balances % 3.1%   2.1%   100bps             Average notional debt securities ($bn) 2.6   2.0   0.6 Yield % 7.9%   8.0%   (10)bps Interest expense ($m) (104.5)   (79.7)   (24.8)             Net Interest Income ($m) 101.0   60.0   41.0 Net physical commodities income increased by 526% to $16.9m for H1 2024 from $2.7m for H1 2023. This increase was primarily due to an increase in sales volumes from physical recycled metal and physical oil sales, largely driven by growth in our recycled metals business and the addition of physical oil broking capabilities. Front office costs represent staff, systems and infrastructure costs associated with running our revenue generating operations. These costs increased 30% to $434.9m for H1 2024, largely reflecting a 27% increase in average front office headcount driven by recent acquisitions, as well as organic growth. Control and Support costs primarily reflect staff and property related costs, along with professional fees and other administrative expenses associated with the support functions. These costs increased 24% to $181.0m in H1 2024, primarily reflecting investment in our Finance, Risk and Compliance functions, to ensure we continually invest in our systems and processes to support future sustainable growth, as well as integrating additional Control & Support employees as part of recent acquisitions. Total control and support average FTE grew 21% to 1,030 at the end of H1 2024. Adjusting items grew by 34% to $20.1m from $15.0m. These costs are primarily related to corporate activities and are recognised within our corporate segment. Adjusting items increased mainly due to costs incurred in preparation for and associated with our successful IPO, as well as activities related to our shareholders representing dividend like contributions made to participants within share based payment schemes. As a result of the revenue and cost trends noted above, Adjusted Operating Profit increased 28% to $159.2m for H1 2024 and Adjusted Operating Profit Margins remained at 20%, in line with H1 2023. In addition, as a result of the revenue, cost trends and adjusting items noted above, Profit Before Tax Margins remained at 18% in line with H1 2023. Segmental performance Clearing Marex provides Clearing services across the range of energy, commodity and financial markets. We act as principal for our clients and provide access to over 58 exchanges globally. Our Clearing business performed well in H1 2024, benefiting from higher levels of client activity on our platform, with 538m contracts cleared in the first half of 2024 which is 28% higher than in the same period in 2023. Revenue increased 16% to $224.9m in H1 2024, up from $193.9m in H1 2023, driven by net interest income which rose by 25% to $87.0m from $69.4m in H1 2023 reflecting the benefit of higher interest rates. Net commission income increased 9% to $135.6m. Revenue growth was generated from our established businesses, notably in Metals reflecting market conditions, as well as benefiting from our growth initiatives, notably in Australia, Singapore and in our Prime Services offerings. Revenue growth was supported by investment in staff with average headcount increasing by 13% in H1 2024 to 295. Adjusted Operating Profit increased by 21% in H1 2024 to $119.0m, from $98.6m. Adjusted Operating Profit Margins have increased by 200bps to 53% from 51% in H1 2023.   6 months ended 30 June 2024   6 months ended 30 June 2023       $m   $m   Change Net commission income 135.6   124.1   9% Net interest income 87.0   69.4   25% Other revenue 2.3   0.4   475% Revenue 224.9   193.9   16% Front office costs (72.4)   (56.7)   28% Control and support costs (33.4)   (34.8)   (4%) Recovery/(provision) for credit losses 0.1   (3.7)   (103%) Depreciation and amortisation (0.2)   (0.1)   100% Adjusted Operating Profit ($m)1 119.0   98.6   21% Adjusted Operating Profit Margin1 53%   51%   200 bps             Front office headcount (No.)2 305   262   16% Contracts cleared (m) 533.1   419.0   27% Market volumes (m) 5,627.0   5,170.0   9% 1. 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 IFRS measure. 2. The headcount is as at the end of the period. Agency and Execution Agency and Execution provides essential liquidity and execution services to our clients primarily in the energy and financial securities markets. Revenue increased substantially to $332.6m in H1 2024 compared to $252.3m in H1 2023, reflecting the positive market conditions in the energy markets, and the benefit of recent acquisitions, primarily Cowen, which increased our capabilities in financial securities. Adjusted Operating Profit increased to $44.9m in H1 2024 from $26.9m in H1 2023 reflecting revenue growth and improved Adjusted Operating Profit Margins, which increased to 13% for H1 2024, up from 11% in H1 2023. Securities Our presence in the financial markets is growing as we integrate and optimise recent acquisitions, allowing Marex to diversify its asset class coverage away from traditional commodity markets. The key revenue streams for our agency and execution financial securities business are equity derivatives, primarily index options and fixed income, including corporate and government bonds. Revenue increased by 25% to $188.5m during H1 2024, compared to $150.2m during H1 2023, primarily as a result of the benefit of the Cowen acquisition which completed in December 2023 and OTCex Group which completed on 1 February 2023. Energy Our energy division provides essential liquidity to clients by connecting buyers and sellers in the opaque OTC energy markets to facilitate price discovery. We have leading positions in many of the markets we operate in, including key gas and power markets in Europe; environmental, petrochemical and crude markets in North America; and fuel oil, LPG (liquefied petroleum gas) and mid-distillates globally. We achieve this through the breadth and depth of the service we offer to customers, including market intelligence for each product we transact in, based on the extensive knowledge and experience of our teams. Revenue increased 42% in H1 2024 to $143.3m, compared to $101.0m in H1 2023. This strong growth was a reflection of continued improvement in activity levels in European Energy markets, good demand for our environmentals offering as we continue to support our clients in the energy transition, as well as investment in new desks and capabilities.   6 months ended 30 June 2024   6 months ended 30 June 2023       $m   $m   Change Securities 188.5   150.2   25% Energy 143.3   101.0   42% Other revenue 0.8   1.1   (27)% Revenue 332.6   252.3   32% Front office costs (258.8)   (197.3)   31% Control and support costs (28.1)   (27.2)   3% Provision for credit losses (0.3)   (0.6)   (50)% Depreciation and amortisation (0.5)   (0.4)   25% Other Income and share of results of associates —   0.1   (100)% Adjusted Operating Profit ($m)1 44.9   26.9   67% Adjusted Operating Profit Margin1 13%   11%   200 bps             Front office headcount (No.)2 659   546   21% Marex volumes: Energy (m) 29.2   17.6   66% Marex volumes: Securities (m) 140.9   121.1   16% Market volumes: Energy (m) 840.0   674.0   25% Market volumes: Securities (m) 5,314.0   5,033.0   6% 1. 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 IFRS measure. 2. The headcount is as at the end of the period. Market Making Our Market Making business provides direct liquidity to our clients across a variety of products, primarily in the energy, metals and agriculture markets. This ability to make prices and trade as principal in a wide variety of energy, environmentals and commodity markets differentiates us from many of our peers. Revenue increased by 23% to $111.3m in H1 2024, from $90.7m in H1 2023. This was driven by Metals trading which benefited from unusual market conditions across Copper, Aluminium, Nickel, following revised guidance on Russian metals from the LME. Higher revenue in Metals was partly offset by lower revenue in Agriculturals and Energy in H1 2024. Agriculturals had a strong performance in H1 2023 and there was lower volatility in Energy in H1 2024. Revenue growth was also supported by Front Office hiring, with average headcount increasing by 14% to 104 in H1 2024. Adjusted Operating Profit increased by 59% in H1 2024 to $39.5m, reflecting strong revenue growth, which also led to Adjusted Operating Profit Margins increasing to 35% from 27%.   6 months ended 30 June 2024   6 months ended 30 June 2023       $m   $m   Change Metals 68.4   33.2   106% Agriculture 14.3   22.0   (35)% Energy 13.8   17.8   (22)% Securities 14.8   17.7   (16)% Revenue 111.3   90.7   23% Front office costs (55.2)   (48.7)   13% Control and support costs (16.4)   (18.0)   (9)% Depreciation and amortisation (0.2)   (0.1)   100% Other Income and share of results of associates —   0.9   (100)% Adjusted Operating Profit ($m)1 39.5   24.8   59% Adjusted Operating Profit Margin1 35%   27%   800 bps             Front office headcount (No.)2 107   90   19% Marex volumes: Metals (m) 17.1   13.2   30% Marex volumes: Agriculture (m) 18.1   14.2   27% Marex volumes: Energy (m) 0.9   1.0   (10)% Marex volumes: Financials (m) 1.0   2.0   (50)% Market volumes: Metals (m) 217.0   168.0   29% Market volumes: Agriculture (m) 297.0   269.0   10% Market volumes: Energy (m) 839.0   675.0   24% Market volumes: Financials (m) 5,314.0   5,033.0   6% 1. 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 IFRS measure. 2. The headcount is as at the end of the period. Hedging and Investment Solutions Our Hedging and Investment Solutions business provides high quality bespoke hedging and investment solutions to our clients. Tailored commodity hedging solutions allow corporates to hedge their exposure to movements in energy and commodity prices, as well as currencies and interest rates, across a variety of different time horizons. Our financial products offering allows investors to gain exposure to a particular market or asset class, for example equity indices, in a cost effective manner through a structured product. The business performed strongly during H1 2024, increasing revenue by 36% to $86.0m, up from $63.3m in H1 2023. Revenue growth occurred across all regions, with hedging solutions benefiting from favourable market events and volatility in Cocoa and Coffee, while financial products benefited from positive investor sentiment and equity market performance. We continue to make good progress with our growth initiatives, expanding our product coverage with custom index and FX capabilities, and expanding our global footprint that now includes Australia and the Middle East. As a result, we continue to bring new clients onto our platform in both our Hedging Solutions and Financial Products businesses. Adjusted Operating Profit increased by 35% to $26.0m, up from $19.2m in H1 2023, but Adjusted Operating Profit Margins remained flat at 30% as we continued to invest in our people, with average headcount increasing by 68% to 171 in H1 2024 compared with H1 2023, as well as in our infrastructure and distribution network to support future growth.   6 months ended 30 June 2024   6 months ended 30 June 2023       $m   $m   Change Hedging solutions 42.5   29.7   43% Financial products 43.5   33.6   29% Revenue 86.0   63.3   36% Front office costs (48.2)   (32.5)   48% Control and support costs (13.3)   (11.5)   16% Recovery for credit losses 1.8   —   100% Depreciation and amortisation (0.3)   (0.1)   200% Adjusted Operating Profit ($m)1 26.0   19.2   35% Adjusted Operating Profit Margin1 30%   30%   0 bps             Front office headcount (No.)2 176   109   61% Structured notes balance ($m) 2,112.8   1,589.3   33% 1. 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 IFRS measure. 2. The headcount is as at the end of the period. Corporate The Corporate segment includes the Group's control and support functions. Corporate manages the resources of the Group, makes investment decisions and provides operational support to the business segments. Corporate net interest income is derived through earning interest on house cash balances placed at banks and exchanges. Revenue for H1 2024 was $33.1m compared with $22.2m in H1 2023, driven by net interest income reflecting higher average Fed Fund interest rates.   6 months ended 30 June 2024   6 months ended 30 June 2023       $m   $m   Change Revenue 33.1   22.2   49% Front office costs —   —   —% Control and support costs (90.2)   (54.8)   65% Recovery/(provision) for credit losses 0.6   (0.2)   (400%) Depreciation and amortisation (14.3)   (14.2)   1% Other Income and share of results of associates 0.6   2.0   (70%) Adjusted Operating Loss ($m)1 (70.2)   (45.0)   56%             Control and support headcount (No.)2 1,093   871   25% 1. 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 IFRS measure. 2. The headcount is as at the end of the period. Summary Financial Position Our balance sheet continues to consist of high-quality liquid assets which underpin client activity on our platform. Total Assets have decreased from $17.6 billion at 31 December 2023 to $17.2 billion at 30 June 2024. This was driven by a reduction in Reverse Repo which decreased from $3.2 billion at 31 December 2023 to $2.1 billion at 31 June 2024. The reduction in reverse repurchase agreements, was partly offset by Cash and Liquid Assets which increased from $4.5 billion at 31 December 2023 to $5.1 billion at 30 June 2024, reflecting liquidity generated from our structured notes program, as well as underlying customer balance growth. Securities balances increased from $4.0 billion at 31 December 2023 to $4.3 billion at 30 June 2024, due to growth in stock borrowing and equity instruments driven by client activity. The Group's equity base increased during the first half of the year, with Total Equity increasing by 14% to $882.3m, up from $775.9m as a result of strong profitability during the first half of the year with Profit After Tax of $102.9m in H1 2024. Furthermore, our share capital increased by $68.3m due to the Primary Issuance completed during the IPO. These increases were partly offset by a dividend payment of $44.1m in H1 2024.   30 June 2024   31 December 2023           Restated       $m   $m   Change Cash & Liquid Assets1 5,135.2   4,465.9   15% Trade Receivables 4,413.5   4,789.8   (8%) Reverse Repo Agreements 2,104.3   3,199.8   (34%) Securities2 4,342.0   4,022.7   8% Derivative Instruments 730.8   655.6   11% Other Assets3 242.5   258.2   (6%) Goodwill and Intangibles 221.1   219.6   1% Total Assets 17,189.4   17,611.6   (2%) Trade Payables 7,128.6   6,785.9   5% Repurchase Agreements 1,844.4   3,118.9   (41%) Securities4 4,299.7   4,248.1   1% Debt Securities 2,446.3   2,216.3   10% Derivative Instruments 496.8   402.2   24% Other Liabilities5 91.3   64.3   42% Total Liabilities 16,307.1   16,835.7   (3%) Total Equity 882.3   775.9   14% 1. Cash & Liquid Assets are cash and cash equivalents, treasury instruments pledged as collateral and treasury instruments unpledged.2. Securities assets are equity instruments and stock borrowing.3. Other Assets are inventory, corporate income tax receivable, deferred tax, investment in associate, investments, right-of-use assets, and property plant and equipment.4. Securities liabilities are stock lending and short securities.5. Other Liabilities are deferred tax liability, lease liability, provisions and corporation tax. Liquidity   30 June 2024   31 December 2023   $m   $m Total available liquid resources 1,814.6   1,369.8 Liquidity headroom 1,174.6   738.8 A prudent approach to capital and liquidity and commitment to maintaining an investment grade credit rating are core principles which underpin the successful delivery of our growth strategy. As at 30 June 2024, the Group held $1,814.6m of total available liquid resources, including the undrawn portion of the RCF, compared with $1,369.8m at the end of 2023. Group liquidity resources consist of cash and high-quality liquid assets that can be quickly converted to meet immediate and short-term obligations. The resources include non-segregated cash, short-term money market funds and unencumbered securities guaranteed by the U.S. Government. The Group also includes any undrawn portion of its committed revolving credit facility (‘RCF') in its total available liquid resources. The unsecured revolving credit facility of $150m remains undrawn as at 30 June 2024. Liquidity headroom is based on the Group's Liquid Asset Threshold Requirement, which is prepared according to the principles of the UK Investment Firms Prudential Regime (IFPR). The requirement includes a liquidity stress impact calculated from a combination of systemic and idiosyncratic risk factors. Facilities held by operating subsidiaries, and which are only available to that relevant subsidiary, have been excluded from these figures as they are not available to the entire Group. In February 2023, the Group successfully completed its inaugural public senior bond issuance, raising €300m of additional liquidity. The bonds have an annual coupon of 8.375%, mature in February 2028 and have been rated BBB- by both S&P and Fitch. Regulatory capital The Group is subject to consolidated supervision by the UK Financial Conduct Authority and has regulated subsidiaries in jurisdictions both inside and outside of the UK. The Group is regulated as a MIFIDPRU investment firm under IFPR. The minimum capital requirement as at 30 June 2024 was determined by the Own Funds Threshold Requirement (‘OFTR') set via an assessment of the Group's capital adequacy and risk assessment conducted annually. The Group and its subsidiaries are in compliance with their regulatory requirements and are appropriately capitalised relative to the minimum requirements as set by the relevant competent authority. The Group maintained a capital surplus over its regulatory requirements at all times. Maintaining a prudent approach to capital and liquidity in order to maintain an investment grade credit rating are core principles which underpin the successful delivery of our growth strategy. The Group manages its capital structure in order to comply with regulatory requirements, ensuring its capital base is more than adequate to cover the risks inherent in the business and to maximise shareholder value through the strategic deployment of capital to support the Group's growth and strategic development. The Group performs business model assessment, business and capital forecasting, stress testing and recovery planning at least annually. The following table summarises the Group's capital position as at 30 June 2024 and as at the year end:   30 June 2024   31 December 2023   $m   $m Core equity Tier 1 Capital1 549.7   437.7 Additional Tier 1 Capital (net of issuance costs) 97.6   97.6 Tier 2 Capital 2.5   3.1 Total Capital resources 649.8   538.4                 Own Funds Threshold Requirement2 235.1   235.1 Total Capital ratio3 276%   229% 1. Core Tier 1 Capital contains the unaudited results for the period, which does not form a part of capital resources until they are audited. 2. Own Funds Requirement presented as Own Funds Threshold Requirement based on the latest Individual Capital and Risk Assessment ('ICARA') process. 3. The Group's total capital resources as a percentage of Own Funds Requirement. At 30 June 2024, the Group had a Total Capital Ratio of 276% (31 December 2023: 229%), representing significant capital headroom to minimum requirements. The increase in the Total Capital Ratio resulted from an increase in total capital resources due to profit (unaudited) in H1 2024 and proceeds from the Primary Issuance completed during the IPO in April 2024. Dividend Reflecting the Board of Directors confidence in the future prospects of the Group, we announce the adoption of a progressive dividend policy, with dividends to be paid on a quarterly basis from the third quarter of 2024. The Board of Directors has approved an initial dividend of $10m or $0.14 per share, expected to be paid on 16 September 2024 to shareholders on record as at close of business on 30 August 2024. The decision to pay a dividend and the amount of dividend however, remains at the discretion of our Board of Directors and may be affected by various factors including our future earnings, financial condition, capital requirements, share repurchase activity, current and future planned strategic organic and inorganic growth initiatives, levels of indebtedness, our investment grade credit rating and other considerations our Board of Directors deems relevant. Forward looking statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including expected financial results and Adjusted Operating Profit, expected growth and business plans, expected market conditions and dividend payments. In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation: subdued commodity market activity or pricing levels; the effects of geopolitical events, terrorism and wars, such as the effect of Russia's military action in Ukraine, on market volatility, global macroeconomic conditions and commodity prices; changes in interest rate levels; the risk of our clients and their related financial institutions defaulting on their obligations to us; regulatory, reputational and financial risks as a result of our international operations; software or systems failure, loss or disruption of data or data security failures; an inability to adequately hedge our positions and limitations on our ability to modify contracts and the contractual protections that may be available to us in OTC derivatives transactions; market volatility, reputational risk and regulatory uncertainty related to commodity markets, equities, fixed income, foreign exchange and cryptocurrency; the impact of climate change and the transition to a lower carbon economy on supply chains and the size of the market for certain of our energy products; the impact of changes in judgments, estimates and assumptions made by management in the application of our accounting policies on our reported financial condition and results of operations; lack of sufficient financial liquidity; if we fail to comply with applicable law and regulation, we may be subject to enforcement or other action, forced to cease providing certain services or obliged to change the scope or nature of our operations; significant costs, including adverse impacts on our business, financial condition and results of operations, and expenses associated with compliance with relevant regulations; and if we fail to remediate the material weaknesses we identified in our internal control over financial reporting or prevent material weaknesses in the future, the accuracy and timing of our financial statements may be impacted, which could result in material misstatements in our financial statements or failure to meet our reporting obligations and subject us to potential delisting, regulatory investments or civil or criminal sanctions, and other risks discussed under the caption "Risk Factors" in our final prospectus filed pursuant to 424(b)(4) with the Securities and Exchange Commission (the "SEC") on 26 April 2024 and our other reports filed with the SEC. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. Appendix 1 Non-IFRS Financial Measures and Key Performance Indicators This press release contains non-IFRS financial measures, including Adjusted Operating Profit, Adjusted Operating Profit Margin, Adjusted Earnings per Share, Adjusted Diluted Earnings per Share, Adjusted Operating Profit after Tax Attributable to Common Equity and Return on Adjusted Operating Profit after Tax Attributable to Common Equity. These non-IFRS financial measures are presented for supplemental informational purposes only and should not be considered a substitute for profit after tax, profit margin, return on equity or any other financial information presented in accordance with IFRS and may be different from similarly titled non-IFRS measures used by other companies. We anticipate that full year Adjusted Operating Profit will be approximately $280m to $290m and that our Reported Profit Before Tax for 2024 will be approximately $257m to $267m. The adjustments to full year Reported Profit Before Tax guidance as reflected in  full year Adjusted Operating Profit guidance are: $2.6 million for amortisation of acquired brands and customer lists, $2.4 million of activities related to shareholders, $2.2 million of employer tax on vesting of the growth shares, $2.4 million of owner fees, $8.3 million of IPO preparation costs, and $2.3 million of fair value of the cash settlement option on the growth shares, each of which was incurred in H1 2024 as shown under 'Reconciliation of Non-IFRS Financial Measures and Key Performance Indicators'.  In addition, our Adjusted Operating Profit guidance reflects an estimated $2.6 million related to the amortisation of acquired brands and customer lists expected to be incurred in H2 2024. Neither the Group's independent auditors, nor any other independent accountants, have compiled, examined, or performed any procedures with respect to the anticipated full year results contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with, the anticipated full year results. Adjusted Operating Profit We define Adjusted Operating Profit as Profit after Tax adjusted for (i) goodwill impairment charges, (ii) acquisition costs, (iii) bargain purchase gains, (iv) owner fees, (v) amortisation of acquired brands and customer lists, (vi) activities in relation to shareholders (vii) employer tax on vesting of the growth shares (viii) initial public offering, ("IPO") preparation costs and (ix) fair value of the cash settlement option on the growth shares. Items (i) to (ix) are refer to as 'Adjusting Items'. Adjusted Operating Profit is the primary measure used by our management to evaluate and understand our underlying operations and business trends, forecast future results and determine future capital investment allocations. Adjusted Operating Profit is the measure used by our Executive Board to assess the financial performance of our business in relation to our trading performance. The most directly comparable IFRS measure is Profit after Tax. We believe Adjusted Operating Profit is a useful measure as it allows management to monitor our ongoing core operations and provides useful information to investors and analysts regarding the net results of the business. The core operations represent the primary trading operations of the business. Adjusted Operating Profit Margin We define Adjusted Operating Profit Margin as Adjusted Operating Profit (as defined above) divided by revenue. We believe that Adjusted Operating Profit Margin is a useful measure as it allows management to assess the profitability of our business in relation to revenue. The most directly comparable IFRS measure is profit margin, which is Profit after Tax divided by revenue. Adjusted Operating Profit after Tax Attributable to Common Equity We define Adjusted Operating Profit after Tax Attributable to Common Equity as Adjusted Operating Profit adjusting for (i) the tax effect of the adjusting items to calculate Adjusted Operating Profit and the tax effect from the coupons on the Additional Tier 1 ('AT1') capital. We define common equity as being the equity belonging to the holder of the Group's share capital. We believe Adjusted Operating Profit after Tax Attributable to Common Equity is a useful measure as it allows management to assess the profitability of the equity belonging to the holder of the Group's share capital. The most directly comparable IFRS measure is Profit after Tax. Return on Adjusted Operating Profit after Tax Attributable to Common Equity We define the Return on Adjusted Operating Profit after Tax Attributable to Common Equity as the Adjusted Operating Profit after Tax divided by the average common equity for the period. Common equity is defined as being the equity belonging to the holder of the Group's share capital. Common equity is calculated as the total equity after deducting for the Additional Tier 1 capital, and is calculated as a two point average from the beginning of the period to the end of the period. We believe Adjusted Operating Profit after Tax Attributable to Common Equity is a useful measure as it allows management to assess the return on the equity belonging to the holder of the Group's share capital. The most directly comparable IFRS measure for Return on Adjusted Operating Profit after Tax Attributable to Common Equity is Return on Equity which is Reported Profit after Tax divided by the total equity. Adjusted Earnings per Share Adjusted Earnings per Share is defined as the Adjusted Operating Profit after Tax Attributable to Common Equity as at the reporting date over the total number of shares outstanding after deducting for Own Shares. We believe Adjusted Earnings per Share is useful measure as it allows management to assess the profitability of our business per share. The most directly comparable IFRS metric is Basic Earnings per Share. This metric has been designed to highlight the operating earnings over the available share capital of the Group. Dilution is calculated in the same way as it has been for Diluted Earnings per Share. The most directly comparable IFRS metric is Diluted Earnings per Share. We believe that these non-IFRS financial measures provide useful information to both management and investors by excluding certain items that management believes are not indicative of our ongoing operations. Our management uses these non-IFRS measures to evaluate our business strategies and to facilitate operating performance comparisons from period to period. We believe that these non-IFRS measures provide useful information to investors because they improve the comparability of our financial results between periods and provide for greater transparency of key measures used to evaluate our performance. In addition these non-IFRS measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to us, many of which present related performance measures when reporting their results. These non-IFRS measures are used by different companies for differing purposes and are often calculated in different ways that reflect the circumstances of those companies. In addition, certain judgments and estimates are inherent in our process to calculate such non-IFRS measures. You should exercise caution in comparing these non-IFRS measures as reported by other companies. These non-IFRS measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under IFRS. Some of these limitations are: they do not reflect costs incurred in relation to the acquisitions that we have undertaken; they do not reflect impairment of goodwill; other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures; and the adjustments made in calculating these non-IFRS measures are those that management considers to be not representative of our core operations and, therefore, are subjective in nature. Accordingly, prospective investors should not place undue reliance on these non-IFRS measures. We also use key performance indicators ("KPIs") such as Average Balances, Trades Executed, and Contracts Cleared to assess the performance of our business and believe that these KPIs provide useful information to both management and investors by showing the growth of our business across the periods presented. Our management uses these KPIs to evaluate our business strategies and to facilitate operating performance comparisons from period to period. We define certain terms used in this release as follows: "Average Balances" means the average amount of segregated and non-segregated client balances that generate interest income for us over a given period, calculated by taking the balances at the end of each quarter for the last five quarters. "Trades Executed" means the total number of trades executed on our platform in a given year. "Contracts Cleared" means the total number of contracts cleared in a given year. "Market Volumes" are calculated as follows: All volumes traded on Marex key exchanges (CBOT, CME, Eurex, Euronext, ICE, LME, NYMEX COMEX, SGX) Energy volumes on CBOT, Eurex, ICE, NYMEX, SGX Financial securities (corporate bonds, equities, FX, repo, volatility) on CBOE, CBOT, CME, Eurex, Euronext, ICE, SGX Metals, agriculture and energy volumes on CBOT, CME, Eurex, Euronext, ICE, LME, NYMEX COMEX, SGX Reconciliation of Non-IFRS Financial Measures and Key Performance Indicators:   3 months ended 30 June 2024   3 months ended 31 March 2024   6 months ended 30 June 2024   6 months ended 30 June 2023   $m   $m   $m   $m Profit After Tax 59.3   43.6   102.9   80.8 Taxation charge 20.8   15.3   36.1   28.7 Profit Before Tax 80.1   58.9   139.0   109.5 Goodwill impairment charge1 —   —   —   10.7 Bargain purchase gains2 —   —   —   (0.3) Acquisition costs3 (0.2)   0.2   —   0.5 Amortisation of acquired brands and customer lists4 1.8   0.8   2.6   0.8 Activities relating to shareholders5 —   2.4   2.4   — Employer tax on vesting of the growth shares6 2.2   —   2.2   — Owner fees7 0.7   1.7   2.4   3.3 IPO preparation costs8 4.6   3.7   8.3   — Fair value of the cash settlement option on the growth shares9 2.3   —   2.3   — Adjusted Operating Profit 91.5   67.7   159.2   124.5 Adjusted Operating Tax10 (22.3)   (16.3)   (38.6)   (29.5) Adjusted Operating Profit after Tax 69.2   51.4   120.6   95.0 Profit attributable to AT1 note holders11 (2.4)   (2.5)   (4.9)   (4.9) Adjusted Operating Profit after Tax Attributable to Common Equity 66.8   48.9   115.7   90.1                 Adjusted Operating Profit Margin12 22%   19%   20%   20%                 Adjusted Earnings per Share($)13 0.96   0.74   1.70   1.37 Adjusted Diluted Earnings per Share ($)14 0.90   0.69   1.59   1.29                 Common Equity15 729.2   676.0