London,
16
November
2016
|
08:16
Europe/London

ICAP plc Half Year results to 30 September 2016

Resilient performance despite ongoing market headwinds

London 16 November 2016 – ICAP plc (IAP.L), a leading markets operator and provider of post trade risk mitigation and information services, announces today its results for the six months ended 30 September 2016.

£m Half year to 30 September 2016 (H1 2016/17) Half year to 30 September 2015 (H1 2015/16)
(restated)

Change (%)

Continuing      

Revenue

254

229

11

Trading* profit before tax

51

55

(7)

Profit before tax

66

37

78

Profit for the period (after tax, including discontinued)

86

78

10

Pence      

Trading EPS (basic)

13.7p

13.0p

5

EPS (basic)

13.2p

12.0p

10

Interim dividend per share

6.6p

6.6p

-

* before acquisition and disposal costs and exceptional items (note 1)

Group highlights

  • The transaction with Tullett Prebon (the Transaction) has received FCA clearance and remains on track to complete this year, subject to outstanding change of control consents
  • Group revenue from continuing operations increased by 11%, and was flat on a constant currency basis
  • Trading profit before tax from continuing operations decreased 7% to £51 million
  • Profit before tax from continuing operations increased 78% to £66 million
  • Signed three year $65 million deal with China Foreign Exchange Trade System (CFETS) to deliver technology for electronic execution services
  • Market share gains in trading activity on Electronic Markets in US Treasuries, Asian NDFs and FX Forwards
  • Added ENSO Financial Analytics (ENSO) and Abide Financial (Abide) to the Group, complementing our ability to support customers across the transaction lifecycle
  • ICAP’s global hybrid voice broking and information business’s trading profit before tax for the period increased 28% to £59 million; trading profit margin increased by 2 percentage points to 14%
  • Interim dividend payment to shareholders maintained at 6.6p per share

Michael Spencer, Group Chief Executive Officer, said: “Throughout ICAP’s 30 year history, we have always prided ourselves on being forward thinking for the benefit of our customers. Our strategic advantage lies in our unique networks, our strong product pipeline and our compelling value proposition. That is why we recently won the CFETS mandate and we continue to see market share gains at BrokerTec and EBS Direct. We have recently added both ENSO and Abide to the Group, complementing our ability to support our customers across the transaction lifecycle.

“These are uncertain times for global financial markets as we try to understand the impact of both the Brexit vote and the very recent US election. Despite this uncertainty, it is important that we continue to invest wisely in our product portfolio and financial technology incubator, Euclid Opportunities, to achieve long term profitable growth. In the absence of unforeseen circumstances, we plan to hold the dividend at 22.0p for this year.

“I am excited to be in the final phase of the Transaction before the launch of NEX Group plc. We are pleased that the FCA has recently cleared the Transaction with Tullett Prebon. We remain optimistic that the Transaction will complete by the end of the year, however the Transaction requires other change of control consents to be received before completion can occur. Tullett Prebon is responsible for and working to secure those outstanding clearances.

“While we continue along the slow journey to more normal market conditions I am confident that the fundamental strengths of the business will provide an excellent platform for NEX Group plc’s long term growth and success.”

Please click here for the full press release.

Analysts and investors briefing

There will be a briefing for analysts and investors at 9.30am (GMT) on Wednesday 16 November 2016 at 2 Broadgate, London EC2M 7UR. An audiocast of the presentation will be available later that day at www.icap.com

Contacts
Alex Dee, Head of Investor Relations, +44(0)20 7050 7420
Bryony Scragg, UK Communications, +44(0)20 7818 9689
Neil Bennett, Maitland, +44(0)20 7379 5151

 

 

Please click here for the full press release.

Boilerplate

About ICAP

ICAP is a leading markets operator and provider of post trade risk mitigation and information services. ICAP matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information, please go to www.icap.com.

ICAP announced in November 2015 that it intends to sell its global hybrid voice broking and associated information business to Tullett Prebon, including ICAP's associated technology and broking platforms (including iSwap and Fusion) and certain of ICAP’s joint ventures and associate companies (“IGBB”). On completion of the transaction with Tullett Prebon, the ICAP brand will be transferred to Tullett Prebon and the remaining ‘NewCo’ business comprising of Post Trade Risk and Information services and Electronic Markets will be renamed NEX Group plc.

NEX Group plc will be headquartered in London and will employ 1,800 people in offices worldwide.