Announces its trading update ahead of the close period for the full year ending 31 March 2014
ICAP Plc (IAP), the world’s largest broker of transactions between banks unveils in an official news release that overall trading activity levels in the Global Broking division have declined consistent with general market trends since the time of the Group’s Q3 Interim Management Statement on 5 February 2014 as a reflection of a continued slowdown in some financial markets and customer activity. During February and March revenue in Global Broking contracted by 14% compared to the same period last year.
The performance of the Electronic Markets division by contrast benefited from continued volatility around the tapering debate in the US and in addition, the performance of the new EBS Direct service continues to show strong growth.
Revenue growth in the Post Trade division was driven by the ongoing investment in new products and the positive impact of increased demand for its services from financial regulatory reforms, with TriOptima delivering a strong performance in the last three months of the year.
Overall results for the year are expected to be in line with current market consensus forecasts, which is also reflective of the weaker dollar exchange rate.
The Group remains highly cash generative and in a strong financial position. On 6 March 2014, ICAP issued a €350 million, 3.125% bond maturing in March 2019. The proceeds will be used principally to refinance the Group’s €300 million 7.5% bond which matures in July 2014, and thereby extend the debt maturity profile of the Group.
The Group expects to announce its Preliminary results for the year ending 31 March 2014 on 14 May 2014.