Icap reports Trump trading boost as it prepares for the Nex step after its Tullett Prebon sale

 
William Turvill
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ICAP Brokers Continue To Trade During Financial Turmoil
Icap's sale of its voice broking business to Tullett Prebon is due to complete this year (Source: Getty)

Icap has reported growing revenues and profits as it prepares for life under a new name, Nex Group.

The figures

Group revenue from continuing operations for the six months to 30 September came in at £254m, up 11 per cent year-on-year from £229m.

Pre-tax profit, meanwhile, was £66m, up from £37m last year.

Trading pre-tax profit – i.e. before before costs associated with mergers and acquisitions – was down seven per cent to £51m.

Read more: FCA approves Tullett Prebon takeover of Icap's voice broking business

The company said its earnings per share were 13.2p, up from 12p.

Icap kept its interim dividend at 6.6p and said its dividend for the year would be held at 22p.

Why it’s interesting

Tullett Prebon yesterday announced that its acquisition of Icap’s voice broking and information business has received the nod from the Financial Conduct Authority (FCA).

The deal is expected to pass other regulatory hurdles and close this year.

When the transaction is complete, the Icap brand will be transferred to Tullett and the remaining business – comprising electronic markets, post-trade risk and information services – will be renamed Nex Group.

On its outlook for the future as Nex, Icap today said the US election had “prompted an increase in trading activity”.

But the company feels it is “too early to assume that the prolonged period in which we have experienced subdued market conditions has come to an end”.

Read more: Broker Icap makes new chief exec appointment after deal is waved through

What the company said

Chief executive Michael Spencer said:

These are uncertain times for global financial markets as we try to understand the impact of both the Brexit vote and the very recent US election.

Despite this uncertainty, it is important that we continue to invest wisely in our product portfolio and financial technology incubator, Euclid Opportunities, to achieve long term profitable growth. In the absence of unforeseen circumstances, we plan to hold the dividend at 22p for this year…

While we continue along the slow journey to more normal market conditions I am confident that the fundamental strengths of the business will provide an excellent platform for Nex Group plc's long term growth and success.

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