Volatile markets get Exco year off to strong start

EXCO, the money broker, predicted a 'satisfactory' performance for the full year as it reported its first interim results since returning to the market in July. Profits rose nearly a third to pounds 28m, writes John Willcock.

After volatile trading conditions earlier in the year, the wholesale financial markets in the third quarter have been subdued, 'with banks around the world adopting a more cautious approach to trading', according to Carel Mosselmans, chairman.

The administrators of the collapsed British & Commonwealth group floated their remaining stake in Exco in the summer, with the share price of 175p valuing the company at pounds 215.5m. Yesterday's interims saw the shares slip 1p to 201p in a falling market.

Ron Sandler, chief executive, said the group had benefited from hectic markets in the first quarter. Global economic recovery, an increase in US interest rates and continuing political and economic uncertainty in Japan had meant high levels of volatility in many of Exco's markets.