Interdealer broker Icap is reporting a 16% rise in annual profits following strong growth in its electronic and voice trading businesses.
The broker reported an underlying profit of £204.3 million in the year to March 31 2006, up from £176.7 million in the previous year.
Icap chief executive Michael Spencer says the profit growth was the result of robust growth in the firm's electronic and voice trading businesses during the year, as well as cost control measures implemented across the group.
The firm's overall group revenue rose by 13% from £812.7 million to £919.2 million, with electronic broking revenue increasing by 17%.
Icap expects to complete its £413 million acquisition of electronic foreign exchange and commodities trading platform EBS by 5 June. The EBS deal will more than double Icap's annual electronic broking revenue. The broker says it will combine the EBS electronic spot foreign exchange system with its electronic broking business to create a single global multi-product platform.
Looking ahead, Spencer says the firm will continue to extend its electronic broking business further into markets with highly liquid, commoditised products, and grow its voice broking business into more structured products.
"Our immediate task is to complete the integration of EBS and to begin to capitalise on the benefits the acquisition brings," adds Spencer.