Icap H1 results boosted by volatility

Source: Icap

Icap (IAP.L), the world's premier interdealer broker, today announced its report for the half year ended 30 September 2008.

  • Record Group revenue, profit and earnings per share
  • Group revenue rose by 22% to £764m
  • Electronic revenue increased by 24% to £156m and operating profit by 34% to £63m
  • Significant acquisitions and investment during the period, which have driven the development of new voice, electronic and post-trade businesses. No exceptional costs were recognised
  • Revenue from new businesses, started or acquired in the last 3 years, increased to 27% of Group total revenue
  • On an underlying basis revenue grew by 9% and operating profit by 8%
  • The Group's operating profit margin was 24% (2007: 26%), reflecting acquisitions and investment
  • Free cash flow of £75m (2007: £109m). Net debt of £243m (31 March 2008 : net debt £59m) after investing £129m on acquisitions
  • An interim dividend of 4.7 pence per share (2007: 3.7 pence) covering the six-month period to 30 September 2008 will be paid on 20 February 2009 to shareholders on the register on 23 January 2009

Michael Spencer, Group Chief Executive Officer, said, "ICAP has continued to benefit from the generally high levels of volatility in the wholesale financial markets. As a result ICAP produced a record profit in the half year to 30 September 2008 of £174m.

Our strategy has positioned ICAP well in the current market storm and allowed the firm to further progress during the turbulent markets of the past six months. It has also placed us in a good position to take full advantage of the likely restructuring of the financial markets. Our business structure and diversity are a major source of strength; and we continue to believe that the changing environment makes this the right time to invest in the future growth of the business. There are significant opportunities to build our business by attracting high quality people and acquiring assets at attractive prices.

Revenue in October remained strong and, although cautious, we remain confident about the outlook."


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