ICAP plc (LON:IAP), a leader in markets operation and provision of post trade and information services, has earlier today reported its financial metrics for the fiscal year to March 31, 2015. The audited metrics show a decline in both annual profits and revenues, although the corporate management voiced an upbeat note on performance referring to improvement in market conditions in the second half of the fiscal year. Since we keep an eye on the FX business of the group, we should also mention that EBS managed to buck the trend and registered a small rise in annual revenues.
- Group revenues for the full year to March 31, 2015, were £1,276 million, down 7% from the prior year.
- Revenues at EBS for the full year to March 31, 2015, were £124 million, up 1% from a year earlier.
- Revenues from Forex and money markets at the global broking division totaled £74 million, down 5% from the prior year.
- Group full-year profit before tax was £229 million, down 15% from the year to March 31, 2014.
- The proposed final dividend was maintained at 15.4p; full year dividend – at 22.0p.
The group attributed the results to a combination of structural and cyclical factors, such as bank deleveraging, in response to stricter regulatory capital requirements. On the brighter side, the second half of the year saw European quantitative easing announcements, as well as speculation on the timing of a US interest rate rise which resulted in increased volatility.
Michael Spencer, Group Chief Executive Officer, said: “The past year has been one marked by both challenges and opportunities across many of our businesses. Our bank customers have re-prioritised their sales and trading franchises and continued to reduce balance sheet risk. Our regulators continued their important work for market efficiency, embracing greater transparency and tighter, more risk averse financial systems.
“Against this backdrop of a transformed market environment, we have re-balanced our portfolio of assets with our Electronic Markets and Post Trade Risk and Information divisions now contributing three quarters of the Group’s profitability. We have materially re-engineered ICAP, with a significant reshaping of our Global Broking division and the merging of EBS and BrokerTec. We have had some excellent successes with EBS Direct, the new emerging currencies on EBS, and in our Post Trade Risk and Information division with risk reduction services from TriOptima. These factors, combined with our ongoing investment in technology-based innovative solutions, have set us on the path to growth.”
To view the official filing with the London Stock Exchange, click here.