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ICAP: Trading update 2005
ICAP’s the world’s largest interdealer broker, said its results for the year March 2005 will be “at the top end of current market expectations”. Market expectations for profits before tax, exceptional items and goodwill amortisations range from from £173m to £175m.
ICAP provides a specialist intermediary broking service to commercial banks, investment banks and other “liquidity providers” in the wholesale financial markets. The business comprises voice broking where a broker will actually talk to a client and electronic broking where the client executes deals directly on ICAP’s electronic trading platform.
The company operates as an agent or broker providing banks with the opportunity to deal anonymously through a neutral party in the market.
ICAP attributes a strong performance in electronic broking, which has seen rising volumes and increasing market share for the better results.
ICAP’s preliminary results are due to be announced on 24 May 2005.
The stock currently trades at 284.75p, on a prospective PE (on 2006 earnings) of 14.4x with a yield of 2.9%.
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