29th Jul 2014 08:04
LONDON (Alliance News) - Tullett Prebon PLC said Tuesday that revenue and pretax profit declined in its first-half amid challenging market conditions as the overall level of activity in the financial markets remained subdued.
In an interim management statement for the six months to June 30, 2014, the interdealer broker said revenue fell 15% to GBP360.3 million compared to GBP439.8 million last year while reported pretax profit slumped to GBP8.9 million, down from the GBP52.5 million recorded in the first-half of 2013.
The company has retained its interim dividend at the 5.6 pence per share paid in the comparable half last year. The dividend is set at a level equal to 50% of the final dividend paid for the previous year and will be paid on November 13, 2014.
The FTSE 250-listed company said market conditions in the first six months of the year remained challenging and that the overall level of activity in the financial markets has remained subdued. "The widespread tranquillity in the markets we serve, the introduction of regulatory reforms in many of those markets, and the structural pressures on many of our clients combine to make the current environment challenging," said the company.
Tullett Prebon generates revenue from commissions it earns by facilitating and executing customer orders. The level of revenue is substantially dependent on customer trading volumes which are affected by the level of volatility in financial markets, by customers' risk appetite, and by their willingness and ability to trade.
Looking ahead, Tullett Prebon said it cannot predict when the level of activity in the financial markets it serves may increase, and it that market conditions will continue to be difficult. The company said it will focus on managing costs while maintaining its capabilities and seeking new business development opportunities.
"We expect that the benefit of the actions being taken to further reduce headcount and other fixed costs will be reflected in the results for the second half of this year," said Chief Executive Terry Smith.
Tullett Prebon shares were trading 0.9% higher at 241.25 pence per share Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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