Interdealer broker Icap produced a profit of GBP166m in the half year to 30 September 2009 before taxation, amortisation and impairment of intangibles arising on consolidation and exceptional items.
This represents a five per cent drop from a profit of GBP174m in 2008.
On a statutory basis, profit before taxation was GBP139m for the half year ended 30 September 2009 (2008: GBP148m).
Group revenues rose by six per cent to GBP809m. Electronic revenue of GBP122m produced an operating profit of GBP47m.
On an underlying basis, revenue fell by nine per cent and operating profit by 24 per cent.
The group’s operating profit margin was 21 per cent (2008: 24 per cent), reflecting the early stage of some acquisitions and investments.
Icap has free cash flow of GBP107m (2008: GBP75m) and net debt of GBP144m (31 March 2009: GBP126m) after making acquisition related payments of GBP56m and paying GBP59m in dividends.
The board is making an interim dividend of 5.11 pence per share (2008: 4.7 pence) covering the six-month period to 30 September 2009, which will be paid on 19 February 2010 to shareholders on the register on 8 January 2010.
Michael Spencer, group chief executive officer, says: “We have delivered a resilient performance following the very high levels of activity we experienced during 2007 and 2008. Icap made a solid start to the year across many markets ahead of a pronounced seasonal slowdown during the summer, a phenomenon that we have not seen for the past two years. Higher market activity levels returned in September. These results demonstrate the depth and breadth of our business model. This environment has provided a significant number of opportunities to develop an even more diversified revenue base as a platform for future growth and we are continuing to invest.”
