Tuesday 30 September 2014

ICAP trading announcement



ICAP is an interdealer broker and provider of post trade risk mitigation and information services.  I have a holding in my income portfolio (epic code: IAP).



Not a good day for ICAP, that announced today a weak trading update and the resignation of its FD. 
 
Group revenue for the half year to 30 September 2014 is expected to be 10% lower than the previous year on a constant currency basis and 15% lower on a reported basis.  Although on a positive note this was an improvement from the first quarter where on a constant currency basis revenue was 14% lower than last year and 19% lower on a reported basis. 
 
Management state that restructuring of the Global Broking division remains on-track to deliver a more focused business and annualised savings in excess of £60m.  Of this, £40m will be realised in the current year's income statement, principally in the second half of the year, so profits will be more heavily weighted to the last 6 months of the year.
 
Iain Torrens, their Group Finance Director, is leaving to join TalkTalk Group PLC, but has said he will remain in place until a replacement is found.

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