Headline figures showed Icap delivering a strong improvement in first-half profits, but the inter-dealer broker's preferred performance measure showed profits adjusted for exceptional items ahead by just 2 per cent at £186m.
The first-half performance was affected by a series of one-off events including an extended holiday break in the UK in April, while volumes in May were up against a tough comparative from the previous year, which left revenues flat for the half-year. However, volatility in global financial markets produced record trading volume for Icap in the second quarter to end September.
On the core voice broking side, a slight improvement in revenue from operations in Europe and the Middle East was offset by a 5 per cent fall in the US, mainly as a result of continued losses sustained in Brazil, where break even is not expected before 2012/13. As a result, core voice broking operating profits declined 11 per cent to £85m on revenues down 3 per cent to £608m.
In the higher margin electronic broking business, increased volatility helped to boost total average daily volumes by 17 per cent to $880bn (£556bn) and underpinned a 5 per cent rise in both revenues and operating profits to £160m and £67m, respectively.
Numis Securities is forecasting full-year adjusted EPS of 36.3p (2011: 39.9p).
ICAP (IAP) | ||||
---|---|---|---|---|
ORD PRICE: | 350p | MARKET VALUE: | £2.3bn | |
TOUCH: | 350-351p | 12-MONTH HIGH: | 575p | LOW: 344p |
DIVIDEND YIELD: | 5.9% | PE RATIO: | 12 | |
NET ASSET VALUE: | 188p* | NET DEBT: | 17% |
Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2010 | 867 | 116 | 14.5 | 5.27 |
2011 | 867 | 151 | 15.4 | 6.00 |
% change | - | +30 | +6 | +14 |
Ex-div: 4 Jan Payment: 10 Feb Includes intangible assets of £1.4bn, or 214p a share |