News

Volatility boosts ICAP interims

18 November 2008 07:10:00

Inter-dealer brokers ICAP toasted a record first half profit as it continued to benefit from the high volatility seen in the wholesale financial markets.

Profit before tax, amortisation and impairment of intangibles arising on consolidation and exceptional items jumped to £174m in the six months ended 30 September from £161m in 2007 on revenue up 22% to £764m. On a statutory basis, pre-tax profit rose to £148m from £141m.

It said the weak pound increased profit for the period by £7m and if it continues to trade at $1.50/ and €1.20 will boost profit by £40m this financial year and operating profit by over £60m in 2009/10.

"Revenue in October remained strong and, although cautious, we remain confident about the outlook," said chief executive Michael Spencer.

The firm admitted it was difficult to forecast market activity for the rest of the year, but it predicts that profit for the year ending 31 March 2009 will be ahead of the average of analysts' current forecasts of £347m. ICAP made £330m in the year to March 2008.

It will pay an interim dividend of 4.7p per share, up from 3.7p a year ago.

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