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.
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