UPDATE 2-ICAP says to miss profit expectations

* Sees underlying FY profit 295 mln-315 mln pounds

* Shares down 16.2 percent
(Adds details, comment)

LONDON, Feb 5 (BestGrowthStock) – Britain’s ICAP (IAP.L: ), the
world’s biggest interdealer broker, forecast full-year earnings
below expectations on Friday, saying new businesses were taking
longer than anticipated to become profitable.

Its shares were down 16.2 percent at 829 GMT after the
broker said underlying full-year profit would be between 295
million and 315 million pounds

That compared with consensus expectations of 336 million
pounds ($528 million), according to Nitin Arora, an analyst at
Noble Group.

“It’s difficult to spot any positive news. It’s negative on
all fronts,” he said, adding the data suggested e-broking
volumes were not picking up as expected.

ICAP said group revenue was slightly ahead for the third
quarter to end-December from a year ago, reflecting new business
segments coming on stream, which offset a decline in core voice
revenues.

ICAP also said it had agreed to buy the remaining share
capital of TriOptima to boost its business of providing
post-trade processing services for the derivatives markets.
The middleman in derivatives trades between banks said it
would acquire the nearly 62 percent of TriOptima it did not
already own for an initial payment of about 109 million euros in
cash.

ICAP said it would also pay about 12 million euros toward
working capital as well as two possible payments based on
revenue and profit targets for the period to end-December 2012.

“Post-trade services are an area where risk management
allied with technology innovation is creating exciting hew
high-growth opportunities for ICAP,” Chief Executive Michael
Spencer said in a statement.

Stockholm-based TriOptima AB acts as the repository for the
interest rate swaps market and is a leader in compression, a
process that helps banks reduce the number of outstanding credit
default swaps contracts to reflect underlying net risk
exposures, among other businesses.
($1=.6363 Pound)

Investment Research

(Editing by Hans Peters)

UPDATE 2-ICAP says to miss profit expectations