LONDON -(Dow Jones)- ICAP PLC (IAP.LN), a global interdealer broker, said Thursday it made a solid start to the year ahead of a pronounced seasonal slowdown during the summer and revenue in the half-year ended Sep. 30 is expected to increase by 6%.
MAIN FACTS:
-Higher market activity levels have now returned.
-Both credit and equity derivatives have experienced more difficult conditions.
-Overall activity levels in commodities have remained strong.
-In electronic broking, markets have been quieter than the very active conditions a year ago; cost reductions and other measures have helped to hold margins.
-Higher volumes are being reported across the post-trade service business.
-Electronic broking revenues continue to grow and are expected to show further growth in the next six months.
-Continues to be highly cash generative and benefits from a strong balance sheet.
-Cost reduction programme bringing further cost cuts of GBP23 million in 2009/10 has been completed.
-Profit before tax, amortisation and impairment of intangibles arising on consolidation and exceptional items in the half-year Sep. 30 is expected to be slightly lower than the same period in the previous year, but in line with current analysts' expectations.
-Range of adjusted profit forecasts for the year to March 2010 is from GBP309 million to GBP354 million.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com