ICAP plc revealed that it is in discussions to combine its shipbroking arm ICAP Shipping with London-based counterpart Howe Robinson Group Pte Ltd .
The newly formed ship-broking company is expected to be operational in the second quarter of 2015, ICAP said.
As explained, the combined entity will be “ well placed to meet the aspirations of its staff and to attract top class talent from across the industry.”
“Howe Robinson and ICAP Shipping are highly complementary in terms of products and geographies. The combined entity will be able to better service the diverse needs of clients operating across multiple locations and market segments, now and in the future,” the company said.
ICAP Group’s revenue decreased by 9% on a constant currency basis (15% on a reported basis) to £620 million, as indicated in half year results.
Michael Spencer, ICAP Group Chief Executive Officer , said: “Our first half results reflect a market environment that has remained relatively fragile; despite this, we are cautiously optimistic that we have started to see some welcome signs of activity and more positive sentiment returning in recent weeks. Having experienced multi-year lows over the past year, FX volatility recovered in September and continued into October with EBS recording its highest trading day in three years on 31 October with traded spot volume of $250 billion. Meanwhile, in October BrokerTec had record single day US Treasury volumes of $471 billion.”
“We are already seeing some benefits of our restructuring programme, although the bulk of the cost savings from it will come through in the second half of the year. Our Global Broking business has been broadly reshaped to reflect the structural changes taking place in the market place. “
Howe Robinson, established in London in 1883, ha grown into one of the largest privately owned dry-cargo and containership broking houses in the world, with a global network of 6 offices, employing over 150 employees.
ICAP Shipping took the stage in the ship-broking sector in 2007 with the acquisition of JE Hyde, followed by the purchase of Capital Shipbrokers the following year. Press Release; Image: Howe Robinson