Tullett Prebon Plc TLPR Interim Management Statement

  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.



Business Update



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 
period.



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 
effective.



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 
operation.



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 
SEF.



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.





Enquiries:



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

END


IMSBCBDBIXGBGDI -0- Nov/09/2012 07:00 GMT