16th May 2016 06:12
LONDON (Alliance News) - Interdealer broker ICAP PLC on Monday announced plans to change its name to NEX Group PLC, as profit and revenue for the year to the end of March declined.
Having agreed to sell its hybrid voice broking and information arm to rival Tullett Prebon PLC, a deal expected to complete later this year, ICAP said it will change its name to NEX Group after the deal completes. This will comprise its electronic markets, post-trade and Euclid investments businesses which will remain after the Tullett deal closes.
ICAP said the Tullett deal remains on track.
ICAP Chief Executive Michael Spencer said NEX was "a new name for a new company that intends to lead the market in technology innovation in global financial markets." Spencer didn't provide any other etymology of the new name.
The change of moniker came as ICAP said pretax profit for the year to the end of March fell to GBP89.0 million from GBP95.0 million the year prior. Revenue declined 6.0% to GBP1.20 billion from GBP1.28 billion amid what the FTSE 250 group called "challenging" market conditions. Excluding trading desks ICAP closed during the year, revenue was down 3.0% on a constant currency basis.
"Trading conditions continue to be challenging as a result of the macro economic environment, historically low and negative interest rates and continued bank deleveraging. These headwinds have naturally impacted our performance during the year," Spencer said.
ICAP will pay a 15.4 pence final dividend, meaning its total payout will be flat year-on-year at 22.0p.
ICAP added trading since the start of the current financial year has remained challenging.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
IAP.LTLPR.L