Tullett Prebon Plc (TLPR) - Interim Management Statement
RNS Number : 7169Q
Tullett Prebon PLC
09 November 2012
9 November 2012
Tullett Prebon plc
Interim Management Statement
Tullett Prebon plc (the "Company") is today issuing its Interim Management
Statement in relation to the period from 1 July 2012.
Market conditions have continued to be challenging and the overall level of
market activity has remained subdued. Since the half year the level of market
activity has been lower than in the same period last year, which benefited
from some periods of more heightened activity, particularly in August.
Revenue in the four months July to October of £276m was 12% lower than
reported for the same period last year. At constant exchange rates, and
excluding the acquisitions of Convenção and Chapdelaine, revenue was 15%
lower. This reflects a particularly slow July and August period compared with
the prior year. Revenue in July/August, at constant exchange rates and
excluding the acquisitions, was 19% lower than in the prior year. Revenue in
September/October, at constant exchange rates and excluding the acquisitions,
was 10% lower than in the prior year, including the adverse effect of
Hurricane Sandy on activity in North America in the last few days of the
Year to date (January to October) revenue of £731m was 5% lower than that
reported for the same period last year. Using constant exchange rates, and
excluding the acquisitions, year to date revenue was 9% lower.
Action was taken during the first half of the year and at the end of 2011 to
reduce fixed costs and to maintain flexibility in the cost base through the
exit or restructuring of contracts of individual brokers. These actions,
which were designed to ensure that the business was well positioned to respond
to less favourable market conditions by preserving the variable nature of
broker compensation costs in relation to broking revenue, have been
The Company has been ranked as the overall number one interdealer broker in
Risk magazine's 2012 annual interdealer rankings published in September.
Dealers across the global wholesale banking market voted Tullett Prebon first
place in 36 product categories, more than any other broker. This is the
second time in three years that the Company has been ranked as the overall
number one in the industry, and reflects the business's delivery of flexible
and innovative products, as well as best in class service.
The business has continued to develop its electronic broking capabilities
through the development and launch of platforms to provide clients with the
flexibility to transact either entirely electronically or via the business's
comprehensive voice execution broker network. This hybrid model is consistent
with the nature and operation of the majority of OTC product markets which are
not characterised by continuous trading, and which therefore depend upon the
intervention and support of voice brokers for their liquidity and effective
In the United States, the final rules relating to Swap Execution Facilities
(SEF) have not yet been published. We are continuing to prepare for the
implementation of these rules, and we are confident that we will qualify as a
Since 30 June, £7.0m of costs have been incurred in relation to the legal
action between the Company and BGC relating to the raid on the business by BGC
in the second half of 2009, taking the year to date exceptional charge for
major legal actions to £13.9m.
The Company's financial position remains strong.
Nigel Szembel, Head of Communications, Tullett Prebon plc
Direct: +44 (0)20 7200 7722
This information is provided by RNS
The company news service from the London Stock Exchange
IMSBCBDBIXGBGDI -0- Nov/09/2012 07:00 GMT
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