Tullett Prebon looking at improved 2015

Tullett Prebon was looking at higher revenues and profit margins in 2015, as it updated the market on its late year activities on Friday ahead of its full year results.

The FTSE 250 company said market activity in the last two months of 2015 was higher than experienced in the same period a year earlier.

It said the increased level of activity experienced throughout the year in the oil and related products markets continued, with market volumes in equity products also picking up relative to the prior year.

"The performance of PVM Oil Associates and its subsidiaries, which was acquired in November 2014, continues to be strong", the company's board said in a statement.

"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", it added.

Tullett Prebon said revenue in the two months of November and December was £125m, 14% higher than reported a year earlier. Excluding PVM, revenue in the two months waw 4% higher at constant exchange rates.

The company's full-year revenue of £796m in 2015 was 13% higher than the £704m reported in 2014. Excluding PVM, full year revenue was 2% lower than 2014 at constant exchange rates.

Tullett Prebon's board said it expected the 2015 full year underlying profit margin 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", the board said.

"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."

Tullett Prebon said the cost of these actions was expected to be around £25m, to be charged as an exceptional item in the 2015 accounts, with a further charge of £10m anticipated in the first half of 2016.

The company was due to announced its final results for the year ended 31 December 2015 in March.