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ICAP - Results and business disposal

Keith Bowman | 11 November 2015 | A A A
ICAP - Results and business disposal

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ICAP Plc Ordinary 10p shares

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ICAP, which matches buyers and sellers in the wholesale markets in products including foreign exchange and equity derivatives through electronic and voice networks, today (11Nov2015) announced its half year results. Reported or headline revenue declined by 4% to £595 million compared to the prior half year, with management pointing to a combination of structural and cyclical factors including historically low interest rates and bank deleveraging in constraining trading activity.

Nonetheless, the Chief Executive flagged benefits from its investment made in its people, technology and products, along with good progress made in relation to new business initiatives. A trading operating profit of £110 million was reported, a 10% increase on the same period last year, with the proportion of the group's trading operating profit generated from the Electronic Markets and Post Trade Risk and Information divisions coming in at 77%. The group maintained its interim dividend payment to shareholders at 6.60 pence per share.

Furthermore, and following a recent announcement (06Nov2015), ICAP confirmed agreed terms with rival Tullett Prebon for the disposal of its global hybrid voice broking and 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 associates.

ICAP's Chief Executive commented: "Today we announce a compelling opportunity to bring together two world class, client focused broking businesses, both with a proud heritage. By coming together they will benefit from improved scale, allowing for a significantly improved product suite and service for customers. Financial regulatory reform means that the global financial markets have profoundly changed and this Transaction means both companies will be better suited to meet the market's changing needs and better serve our customers." ICAP's share price rose by over 6% in early UK stock market trading.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.