Broker TP-Icap has fired boss John Phizackerley as it braces for a hit to profits from Brexit-related costs.
Phizackerley's sudden departure comes as the firm warns that underlying operating profit for 2018 will feel the brunt of an additional £10m in costs relating to Brexit, MiFID II, regulatory and legal costs and IT security. This figure is expected to increase to £25 million in 2019.
In addition, new UK regulatory capital requirements and the refinancing of the firm's revolving credit facility are likely to increase finance costs in 2018 to around £35m. As a result, earnings per share for 2018 are expected to dip below the bottom-end of the range of analyst expectations.
Expected cost-saving synergies from the acquisition of Icap are also being revised downwards from £100m to £75m by the end of 2019 on an annualised basis. An additional £15 million is also being set aside for "strategic organic investments" to grow the merged business.
Rupert Robson, chairman, says: "The evolving landscape is driving up costs across our industry. The acquisition of Icap has given us greater scale to withstand this pressure. 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 medium-term growth strategy and deliver the detail of the integration process."
Phizackerley is leaving his post with immediate effect, says Robson, to be replaced by the firm's global broking head Nicolas Breteau.