Market conditions remain fragile for ICAP

Interdealer broker ICAP said trading conditions in the last nine months have been extremely challenging and it expects full year revenue to be 13 per cent lower than the previous year.

Interdealer broker ICAP said trading conditions in the last nine months have been extremely challenging and it expects full year revenue to be 13 per cent lower than the previous year.

As a result, the group expects pre-tax profits for the year to March 31st 2013 to be around £280m, in line with the lower end of the guidance given in February 2013.

On a brighter note, ICAP said that the start to the year benefited from increased levels of issuance and volatility, with changes in Japanese monetary policy helping to drive higher electronic FX volumes. However the increased activity levels seen in January and February have not continued at the same rate in March.

Otherwise the cost savings programme remains on track to deliver at least £60m of annualised savings by the year end.

Chief Executive Officer Michael Spencer said: "While we had a better start to the fourth quarter, we are not yet seeing a sustained upturn with market activity remaining fragile and unpredictable. This is caused, in part, by the continued lack of clarity around new regulatory requirements and the impact they may have."

"Our cost savings programme has delivered as we had forecast. ICAP today is a more efficient organisation than a year ago. We also continue to invest in new platforms, products and services which I believe will drive our growth over the next two years."

CJ

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