Last checked at 29 Jan 2016 07:00
29 January 2016
Tullett Prebon plc
Business Update
Tullett Prebon plc (the "Company") is today issuing a business update in relation to November and December 2015 and the full year ended 31 December 2015.
In the last two months of 2015 market activity in some traditional interdealer product areas was higher than experienced in the same period a year ago. The increased level of activity experienced throughout the year in the oil and related products markets has continued, and market volumes in equity products has also picked up relative to the prior year.
The performance of PVM Oil Associates Limited and its subsidiaries ("PVM"), which was acquired in November 2014, has continued to be strong. PVM's main activities are in crude oil and petroleum products, and the business has continued to benefit from the pick-up in the level of activity in the oil and related products markets reflecting the significant changes in the oil price experienced since the start of the second half of 2014.
Revenue in the two months of November and December of £125m was 14% higher than reported for the same period in 2014. Excluding PVM, revenue in the two months of November and December was 4% higher at constant exchange rates than in the same period in 2014.
Full year revenue of £796m in 2015 was 13% higher than the £704m reported for 2014. Excluding PVM, full year revenue in 2015 was 2% lower at constant exchange rates than in 2014, and was 1% lower than the £696m reported for 2014.
The 2015 full year underlying operating profit margin is now expected to be higher than previously indicated, at around 13.5%.
As previously announced, actions have been taken to reduce headcount and fixed costs in the product areas most affected by the reduction in market volumes experienced during the year. These actions are expected to result in a reduction of around 7.5% in the front office headcount in the traditional interdealer product areas in Europe and North America. The cost of the actions taken in 2015 is estimated to be around £25m which will be charged as an exceptional item in the 2015 accounts. A further charge of less than £10m is expected to be made in the first half of 2016 relating to actions that will be taken as part of this programme.
The 2015 figures included above are unaudited. As previously announced, the Company will issue its preliminary results for the year ended 31 December 2015 on Tuesday, 1 March 2016.
Enquiries:
Paul Mainwaring
Finance Director, Tullett Prebon plc
Direct: +44 (0)20 7200 7995
Email: pmainwaring@tullettprebon.com
Stephen Breslin
Group Head of Communications, Tullett Prebon plc
Direct: +44(0)20 7200 7750
Email: sbreslin@tullettprebon.com
Craig Breheny
Brunswick Group LLP
Direct: +44(0)20 7396 7429
Email: cbreheny@brunswickgroup.com