ICAP recovering from US terror

INTERDEALER broker ICAP has bounced back strongly from the 11 September attacks and set itself a profit target of more than £100m for the current year.

Chairman Michael Spencer said today the group had recovered rapidly from the destruction of its New York offices in the World Trade Centre. 'The business, despite that dreadful event, has never been stronger,' he said.

Profits before tax and exceptional items were up 18% to £89.1m in the year to March. This was despite the tragedy, which wiped an estimated £10m from revenues.

'This year market conditions may be slightly less buoyant because of reduced interest rate volatility,' said Spencer. 'But we expect a sharp rebound in American profit that was lost from 11 September.'

In the US revenues returned to 60% of normal levels within four weeks of the attack and 90% by January. 'We recovered our business more speedily than anyone had thought imaginable,' he said.

ICAP booked exceptional costs of £28.7m as a result of the disaster. It has already received insurance payouts of £11.9m. An 18p final dividend makes a 24p total, up 20%. All but one of the 675 US staff escaped unharmed.