TP ICAP Regulatory News (TCAP)

6 May 2015

Tullett Prebon plc

AGM Statement and Trading Update

Tullett Prebon plc (the "Company") is today issuing a trading update in relation to the period from 1 January 2015. This statement will be delivered to those attending the Annual General Meeting today.

Business Update

Although the level of activity in the wholesale OTC financial markets in which we predominantly operate has continued to be subdued, it has been more stable. There has been higher volatility in some financial markets in 2015 compared with a year ago, particularly currencies, but volatility in most product areas has continued to be sporadic. The level of activity in Asia Pacific and in some product areas in the Americas has picked up compared with a year ago. The level of activity in Europe and the Middle East has reflected the effect of further flattening and lowering of yield curves which continues to dampen trading activity in the region.

Revenue in the four months to April of £284m was 15% higher than the £248m reported for the same period last year. Excluding PVM, revenue in the first four months of 2015 was unchanged compared with the same period last year (2% lower at constant exchange rates).

The performance of PVM Oil Associates Limited and its subsidiaries ("PVM") since the completion of the acquisition in November last year has been ahead of our expectations. The business's main activities are in crude oil and petroleum products, and it is continuing to benefit from the higher level of activity in the oil and related products markets due to the significant changes in the oil price experienced since the start of the second half of 2014.

Action was taken during 2014 to reduce headcount and other fixed costs in order to preserve the variable nature of broker compensation and to reduce it as a percentage of broking revenue, and to generally reduce fixed costs throughout the business to better align the cost base with the lower level of revenue. The benefits of this action have been reflected in an improvement in the business's contribution margin in the first part of 2015 compared with the same period a year ago. We are continuing to invest in the development of the business, and in the implementation of our cultural framework to deliver on our commitment to instil the highest standards of conduct in the business by embedding our values, principles and behaviours in all our systems and processes.

As previously announced, the Company entered into an agreement with BGC in January under which BGC would pay $100m to the Company to settle the litigation in the New Jersey Superior Court. The first $25m of the $100m settlement was paid to the Company in January 2015 and the remaining $75m was paid to the Company at the end of March. Net of the £2.7m of costs that have been incurred this year in relation to the legal action the year to date exceptional credit relating to major legal actions is £64.4m.

On 2 April the Company entered into a new three year £150m revolving credit facility replacing the previous £150m facility. The financial terms of the new facility are unchanged from the previous facility. Both the new and previous facilities have remained undrawn throughout the year to date.

The Company's financial position remains strong.

The Company will be hosting a capital markets day for institutional shareholders and analysts on 12 June.

Enquiries:

Stephen Breslin, Head of Communications

Tullett Prebon plc

Direct +44 (0)20 7200 7750

Email: sbreslin@tullettprebon.com

Craig Breheny, Director

Brunswick Group LLP

Direct +44 (0)20 7396 7429

Email: cbreheny@brunswickgroup.com