ICAP Plc - Full-Year Results For The Year Ended 31 March 2016 - A Transformational Year

ICAP plc (IAP.L), a leading markets operator and provider of post trade risk and information services, announces today its audited results for the year ended 31 March 2016.

Highlights:

• Transaction with Tullett Prebon on track
• Group revenue down 6% as markets remain challenging; down 3% excluding closed desks and on a constant currency basis
• £96 million invested in new product initiatives
• Trading profit before tax is £203 million (2014/15: £229 million), impacted by £7 million foreign exchange loss
• Trading EPS (basic) 24.6p (2014/15: 28.7p)
• Final dividend payment of 15.4p per share, maintaining full year dividend at 22.0p per share
• Free cash flow conversion rate of 96% in the year (2014/15: 121%)
• Acquisition of ENSO Financial Analytics, provider of a data analytics platform for the buy side

Michael Spencer, Group Chief Executive Officer, said: “It has been a transformational year for ICAP and I believe that we are now on the cusp of one of the most exciting eras in the Company’s 30-year history. The Transaction to sell our Global Broking and associated information business to Tullett Prebon remains on track to complete later this year.

“Our ambition is to create the world’s leading multi-product, global electronic transaction network for OTC products and post trade services. The new electronic markets, post trade and Euclid investments businesses, which we will become once the Transaction completes, will be renamed ‘NEX Group plc’; a new name for a new company that intends to lead the market in technology innovation in global financial markets.

“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. In the US in December 2015, we saw the welcome first step in raising interest rates but in what is likely to be a long and slow journey towards more normal market conditions.

“ICAP has continually invested in electronic platforms and post trade services, developing its products and services to remain at the forefront of our customer’s needs. Euclid Opportunities, our early-stage fintech investment incubator, which finds these new investments will play a bigger and more important role as we become NEX Group plc. We recently launched products and functionality which will extend our reach to a wider customer base, particularly the buyside. The most important of these are Forwards on EBS Direct, BrokerTec Direct and triResolve Margin. Euclid Opportunities completed the acquisition of ENSO which provides operational insights and key analytics to many of the world’s most successful fund managers, making significant progress towards developing a key new customer base.

“Overall, the size of our existing and new target markets, the quality of our mission critical technology and the strength of customer demand will ensure that NEX Group plc will provide an outstanding opportunity to deliver long-term profitable growth for years to come.”

Presentation of information

This document comprises the full year results to 31 March 2016 for ICAP plc (ICAP) and its subsidiary undertakings (together ‘ICAP’ or ‘the Group’). It contains the Interim Management Report, Directors’ Statement of Responsibilities and Financial Statements together with the Independent Auditor’s Review Report, as required by the Financial Conduct Authority’s (FCA) Disclosure and Transparency Rules (DTR). The Financial Statements and related notes are prepared in accordance with IAS34 Interim Financial Reporting.

Cautionary statement regarding forward-looking statements

This full year report contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Group.

Certain statements that are not historical facts, including statements about the Group’s beliefs and expectations, are forward-looking statements. Words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, ‘potential’ and ‘reasonably possible’, variations of these words and similar expressions are intended to identify forward-looking statements. These statements are based on current plans, estimates and projections, and therefore undue reliance should not be placed on them. Forward-looking statements speak only as of the date they are made, and it should not be assumed that they have been revised or updated in the light of new information or subsequent events.

Forward-looking statements involve inherent risks and uncertainties. Readers are cautioned that a number of factors could cause actual results to differ, in some instances materially, from those anticipated or implied in any forward-looking statement.

Analysts and investors briefing

There will be a briefing for analysts and investors at 09:30am (BST) on Monday 16 May 2016 at 2 Broadgate, London EC2M 7UR.

To view the full Full-year Results PDF, please click here.