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ICAP Expects Lower Revenue For H1; Finance Director Iain Torrens To Step Down(dpa-AFX International Compact Via Acquire Media NewsEdge) LONDON (dpa-AFX) - Inter-dealer broker ICAP Plc (IAP.L, IAPLY.PK, IAPLF.PK) Tuesday said it expects 15 percent decline in revenues for the first half ending September 30, impacted by trading performance in Global Broking and EBS Market. On a constant currency basis, revenues are expected to be down 10 percent from last year. Separately, the company announced that Iain Torrens, Group Finance Director, is to step down from ICAP to join TalkTalk Group Plc. The board has started to search for his replacement and has appointed Spencer Stuart to seek a successor. Torrens has agreed to remain with the Group to ensure a smooth transition. In a trading statement, the company noted that trading performance in Global Broking and EBS Market was materially impacted by bank deleveraging, low interest rates and subdued FX volatility. Meanwhile, the trading performance showed significant month-on-month improvement in September. Global Broking division's revenue is expected to decline 20 percent on a reported basis, and 16 percent on a constant currency basis. Total revenue from Electronic Markets is expected to decrease 6 percent, reflecting a 4 percent fall in average daily volumes. EBS volumes were significantly impacted by historically low FX volatility. The firm witnessed 11 percent revenue growth in Post Trade Risk and Information division, aided by continued expansion of TriOptima business. According to the company, restructuring of the Global Broking division remains on-track, and is expected to deliver annualized savings in excess of 60 million pounds, of which 40 million pounds will be realized in the second half. Further, phasing of full-year profits is expected to be more heavily weighted to the second half than in comparison to prior years. Michael Spencer, Group chief executive officer stated, "Market conditions remain challenging, but we are increasing the efficiency of the Group while continuing to innovate. Low volatility levels and a focus by our clients on costs and regulation resulted in execution volumes remaining suppressed during much of the period." ICAP said it continues to invest heavily in new product initiatives across Electronic Markets and Post Trade divisions, which contribute more than 70 percent of Group's operating profit. IAP.L is currently trading at 388 pence, down 1.95 percent. Copyright RTT News/dpa-AFX |