Tullett Prebon reports increase 11% of revenues 

Tullett Prebon plc (the “Company”) today announced its results for the six months ended 30 June 2016.

Financial Highlights

Underlying, before exceptional and acquisition related items

• Revenue of £430.3m, an increase of 4% on prior period (2015: £415.7m)
• Operating profit £67.0m, an increase of 11% on prior period (2015: £60.6m)
• Operating margin of 15.6% (2015: 14.6%)
• Profit before tax £60.3m (2015: £52.9m)
• Basic EPS 21.0p (2015: 17.7p)

Reported, after exceptional and acquisition related items

• Operating profit £45.4m (2015: £118.8m*)
• Profit before tax £35.5m (2015: £111.1m*)
• Basic EPS 11.9p (2015: 36.2p*)

*Includes the impact of the £64.4m credit relating to major legal actions

A table showing Underlying and Reported figures for each period, detailing the exceptional and acquisition related items is included in the Financial Review.

The average number of shares used for the basic EPS calculation for period is 242.7m.

Operational Summary

• Resilient performance from the broking business in challenging market conditions
• Strong performance in Energy and Commodities, and Equities products
• Strong contribution from Information Sales and Risk Management Services (“RMS”)
• Tullett Prebon Information named best data provider for sixth consecutive year

Strategic Developments

• Planning for the integration of ICAP’s global hybrid voice broking and information business (“IGBB”) progressing well
• The Company continues to pursue strategic partnerships and high quality acquisitions

Dividend

As in previous years, the interim dividend for 2016 has been set at a level equal to 50% of the final dividend paid for the previous year. This approach to setting the interim dividend is expected to continue. A 5.6p per share interim dividend will be paid on 14 November 2016 to shareholders on the register at close of business on 2 September 2016. For more details on future dividend payment schedules see page 14 of this interim management report.

Commenting on the results, John Phizackerley, Chief Executive of Tullett Prebon plc, said:

“I am pleased with the financial performance in the first half of 2016. A resilient performance from the broking business in challenging markets saw the subdued client demand in some of our heritage product areas more than offset by the performance of our Energy and Commodities, and Equities products. Revenue of £430m was 4% higher than in 2015 with underlying operating profit increasing by 11% to £67m.

Our goal is to become the world’s most trusted source of liquidity in hybrid OTC markets and the best operator in global hybrid voice broking. Our acquisition of IGBB, which provides a unique opportunity to accelerate the delivery of our strategy, is on track. We are in advanced planning for the integration of the two businesses after completion of the transaction, which we expect will be during the latter part of 2016.

At the same time we continue to look for opportunities to increase revenues and raise the quality and quantity of earnings. This will be achieved through further diversification of the client base, continued expansion into Energy and Commodities, building scale in the Americas and Asia Pacific, and preserving the business’ core franchises.”

Forward looking statements

This document contains forward looking statements with respect to the financial condition, results and business of the Company. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. The Company’s actual future results may differ materially from the results expressed or implied in these forward looking statements

Source: Tullett Prebon

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