Spencer says Icap will beat forecasts

THE City's richest self-made man, Michael Spencer, provided a huge boost for his followers in the Square Mile today, revealing that full-year profits at his broking empire Icap are likely to better than many had expected.

Icap revealed in a trading statement that the improving market conditions seen five months ago had continued, with rising volumes of trade at the group's electronic broking business.

Spencer added: 'The last quarter of our financial year - to 31 March - is traditionally a busy period and this year has been no exception.'

Analysts had been forecasting pre-tax profits before exceptionals of between £172m and £175m. But Icap said it fully expected to come in at 'the top end of expectations'.

The bullish trading is likely to mean even greater rewards for Spencer, who still holds a stake in the group of almost 22%. Last year he pocketed £9.75m in dividend payments 2003 and should pass the £10m mark when Icap declares its 2004 payout alongside full-year results in May.

Today's statement draws a line in the sand for Spencer, who admitted in November that the previous 11 months had been 'the toughest I have seen in the industry for a decade'.

Icap is the world's largest interdealer broker and the largest electronic broker of fixed income securities. Its trading systems handle nearly 60% of the market for US treasury bonds.