Icap, the interdealer broker headed by one of the City's wealthiest men Michael Spencer, today said it is on course to hit its full-year profit targets despite a “pronounced seasonal slowdown during the summer”.

Investors were disappointed by the downbeat picture of the summer, and Icap shares fell 7p to 415½.

“Higher market activity levels have now returned and group revenue is expected to increase by approximately 6% in the half year which ended yesterday,” said Spencer, who is also Treasurer of the Conservative party.

He admitted that the summer downturn and investing in new areas of business meant that first-half profits would be “slightly lower than the same period last year” when Icap made £174 million. For the full year the group still expects to come within City forecasts which range from £309 million to £354 million. Last year its profits rose 5% to £346 million.

Spencer said the business benefited from its diverse range of financial instruments in which it offers trades. He said: “Many of the markets in which we operate are benefiting from the continuing low short-term interest rate, steep yield curves and substantial corporate and government bond issuance.”