Tullett tumbles as it unveils staff cuts

Shares in Tullett Prebon tumbled almost 10% early on Friday, after the interdealer broker said it will take a charge in its full-year accounts after cutting front office brokers by 5%.

The FTSE 250 group said the cost-saving measure was implemented in the wake of a further reduction in market volumes in the period since the end of June, which has weighed on revenue in the second half of the year.

In the four months between July to October, revenue rose 9% year-on-year to £255m, although it declined 5% at constant exchange rates when excluding the deal for of oil broker PVM Oil Associates, which the group acquired for $112m (£73.8m) in November last year.

The company said it expects underlying operating profit margin for 2015 to be approximately 1.5 percentage points lower than in the previous 12 months, adding the decision to enter the energy and commodities markets remained a positive move as PVM delivered a “strong” performance.

Tullett shares were down 10.3% to 294.90p at 0859 GMT on Friday.