Tullett Prebon PLC AGM Statement and Trading Update (2753M)
May 06 2015 - 2:02AM
UK Regulatory
TIDMTLPR
RNS Number : 2753M
Tullett Prebon PLC
06 May 2015
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 GBP284m was 15% higher
than the GBP248m 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 GBP2.7m 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 GBP64.4m.
On 2 April the Company entered into a new three year GBP150m
revolving credit facility replacing the previous GBP150m 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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