13th Jul 2016 06:51
LONDON (Alliance News) - ICAP PLC said Wednesday it had made a good start to its financial year, and it remains "cautiously confident" despite the more uncertain outlook for the UK since the vote to leave the European Union.
In a statement ahead of its annual general meeting the interdealer broker said revenue in its first quarter to end-June rose 7% on the previous year, excluding the primarily voice broking businesses it is selling as part of its transaction with Tullet Prebon.
At constant currency revenue was up 2% in the quarter.
ICAP said that overall market conditions had been mixed as the "malaise in global financial markets, low interest rates and bank deleveraging persists", but that trading activity saw a spike around the time of the referendum June 23.
"I expect 2016/17 to be an exciting and challenging year for ICAP as we transition to become NEX Group PLC, the leading venue for electronic transactions in OTC products and post trade services," said Chief Executive Officer Michael Spencer in a statement.
"The referendum result was a tremendous shock to global financial markets but our platforms demonstrated resilience. We handled more than USD200 billion of FX volume on 24 June on our EBS platform demonstrating deep and reliable liquidity throughout a period of extreme volatility," Spencer added.
The company said that, prior to the referendum, it had been looking towards a "long and slow journey" to more normal market conditions, and this journey now looks more uncertain, although the decline in the pound does provide it with a "significant windfall benefit".
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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