IAP.L Regulatory News (IAP)

28 Sep 2006 07:01

ICAP PLC28 September 2006 ICAP Pre Close Period Trading Statement London, 28 September 2006. ICAP plc (IAP.L), the world's largest interdealerbroker announces the following trading update ahead of the closed periodfollowing its financial half year ended 30 September 2006. ICAP's interimresults will be announced on 21 November 2006. ICAP has enjoyed an encouraging start to the financial year. The first threemonths were particularly active compared with the same period last year,benefiting from the market turbulence, notably during May. Overall activitylevels during the seasonally slower summer months were better than the previousyear and volumes in September have maintained this trend. The volatile conditions specifically benefited emerging markets and foreignexchange. Equity derivatives were also especially active. With interest raterises and flat yield curves, interest rate swaps in most markets have beenbusier than they have been for some time but fixed income volumes on the otherhand have been more subdued. The credit markets saw spreads briefly widen in Maybefore the markets calmed again but credit default swap volumes remained strongthroughout the period. The Group has made a very good start on the integration of the ICAP and EBSbusinesses and the total technology and other related savings are now expectedto reach $45 million per annum by the financial year ending in March 2009compared with the pre acquisition estimates of $32 million. The exceptionalcosts of achieving these savings are not expected to change from the previousestimate of $24 million during the same period. The EBS business is performingwell. Profit (before tax, amortisation and impairment of intangibles arising onconsolidation and exceptional items) for the financial year ended 31 March 2007is anticipated to be in line with analysts' current forecasts once adjustment ismade for movements in the US dollar/Sterling exchange rate. Note: The current forecasts for ICAP plc pre-tax profits referred to in thisannouncement are based on forecasts of profit before tax, amortisation andimpairment of intangibles arising on consolidation and exceptional itemsprovided by nine equity analysts. The range of those forecasts for the year toMarch 2007 is from £245 million to £269 million compared with the results forthe year to March 2006 when ICAP plc's profits were £204 million. The sources ofthese estimates were Bloomberg and Hemscott. Contacts: Michael Spencer Group Chief Executive (44) 20 7050 7400 Mike Sheard Director of Corporate Affairs (44) 20 7050 7103 Neil Bennett The Maitland Consultancy (44) 20 7379 5151 About ICAP: ICAP is the world's largest interdealer broker with a daily average transactionvolume in excess of $1.5 trillion, more than 50% of which is electronic. TheGroup is active in the wholesale markets in interest rates, credit, commodities,foreign exchange and equity derivatives. In June 2006 ICAP acquired EBS, theworld's leading provider of FX trading and market data solutions. ICAP plc wasadded to the FTSE 100 Index on 30 June 2006. For more information go towww.icap.com This information is provided by RNS The company news service from the London Stock Exchange