Icap (IAP.L), the world's premier interdealer broker, today announced its audited results for the year ended 31 March 2009.
- Record Group revenue, profit and earnings per share
- Group revenue rose by 23% to £1,601m
- Electronic revenue increased by 19% to £324m and operating profit by 18% to £126m
- Significant acquisitions and investment during the period, which have driven the development of new voice, electronic and post-trade businesses. No exceptional income or costs were recognised
- Revenue from new businesses, started or acquired in the past three years, increased to 28% of Group total revenue
- Achieved annualised cost savings in voice and electronic broking of £38 million
- Proven business model
- Invested £44m in new businesses, in addition to acquisitions during the year
- The Group's operating profit margin was 23% (2008: 25%), reflecting acquisitions and investment
- Free cash flow of £296m (2008: £232m). Net debt of £126m (31 March 2008 : net debt £59m) after investing £200m on acquisitions
- The directors recommend a final dividend per ICAP share of 12.35p, which will be paid on 21 August 2009. The full year dividend will be 17.05p, an increase of 9%.
Michael Spencer, Group Chief Executive Officer, said "These are resilient results against the backdrop of the most extraordinary financial upheavals experienced across the globe during the past 12 months. We have consolidated our position as the leading global intermediary in the wholesale over-the-counter (OTC) markets by a clear margin.
We entered this period of financial instability with a very clear strategy and are well positioned to take advantage of the significant restructuring of the financial services industry that is taking place and the changes that will happen in our customers' business models. Increased focus on reducing the overall level of risk in the global financial markets by improving market infrastructure offers particular opportunities for our post trade business. This environment also creates new opportunities for an unconflicted, independent agency broker like ICAP in areas such as equities and futures.
We are keeping our focus on costs and are taking advantage of a number of opportunities to reduce overheads. These savings will partially offset our continuing investment in building our business, both by attracting high quality people and acquiring some assets at attractive prices. The Group continues to be highly cash generative to support these investments and benefits from a strong balance sheet."
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