Icap FY net profits slide

•Group revenue decreased by 12% to £1,472m with profit before tax1 decreasing by 20% to £284mmarginally ahead of previous guidance

Highlights for the year:

•Electronic Markets and Post Trade Risk and Information contributed 66% of operating profit

•Key developments include the creation of the Global Broking division, the strengthening of EBS and thelaunch of i-Swap in US dollars

•£60m cost savings delivered this year, £10m more than previously announced. Equates to £80mannualised, £20m higher than previously announced

•Group ooperatiing profit1 marggin 21% (2011/12 - 22%)

•EEPS (adjusted basic)3 down 18% to 33.0p; Statutory EPS (basic) down 68% to 6.7p

•Ongoing free cash flow4 of £274m (2011/12 - £268m), representing a profit5 conversion of 130% resultingin net cash of £25m (2011/12 - net debt £82m)

•Proposed final dividend of 15.4p per share. The full-year dividend of 22.0p per share (2011/12 - 22.0p),reflects the continuing strong cash generation and confidence in ICAP's medium-term prospects

Michael Spencer, Group Chief Executive Officer, said: "This has been an extraordinarily tough year in the wholesale financial markets. Trading activity across all asset classes was negatively affected by a combination of cyclical and structural factors including the depressed global economy, a low interest rate environment and lack of clarity around some aspects of regulatory reform. ICAP's financial performance reflects these extremely challenging conditions.

"Despite the current climate, we're keeping our focus on the long term, delivering on our strategic goals and priorities. We're investing, innovating and adapting the business to ensure it will thrive in the new financial landscape that is being shaped by profound regulatory changes. Wholesale financial markets are vital to the global economy and ICAP plays a critical role in increasing the transparency and efficiency of the markets and reducing risk.

"ICAP continues to benefit from its diversified business and global reach. Our electronic, post trade risk and information businesses now contribute 66% of operating profit. We have deepened our relationships and aligned our interests with our customers by partnering with them in i-Swap and Traiana.

"We have exceeded our annualised cost savings target by £20 million, resulting in expected annualised run-rate savings of £80 million and a more flexible cost base going forward. ICAP remains a profitable and a very cash generative business with a strong balance sheet. Today we are a more efficient and collaborative business than we were a year ago and this will stand us in good stead for the future."

There will be a briefing for analysts and investors at 09:30am (BST) on Tuesday 14 May 2013 at 2 Broadgate, London EC2M 7UR.

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