Revenues up after 4 years of declining earnings, yet EPS dipped lower YoY.
Preliminary results for Tullett Prebon's year ending December 31, 2015, highlighted revenue up 13% across every region, and operating profit higher by 7%, but with operating margins decreased when excluding exceptional items and acquisition costs - as the company invested in expanding its business, and which resulted in basic earnings per share being little-changed to the downside by 1 tenth of a pence to 32.2 pence year-over-year.
Financial highlights for 2015 on a preliminary basis, excluding exceptional items and acquisition costs, included revenue of £796.0 million, up from £703.5 million reported in the previous year, thus helping to buck a multi-year downtrend in topline revenue.
Operating profit totaled £107.9 million for 2015 for Tullett Prebon, and was up from £100.7 million when compared year-over-year. The decrease in operating margin fell from 14.3% in the prior year to 13.6% for 2015, whereas profit before tax was £93.7 million, up from £86.6 million reported for 2014.
Revenues Lifted from Energy
When including the exceptional and acquisitions items, the basic EPS was 34 pence, up from 11.2 pence YoY, and the expected proposed dividend for May was anticipated to be unchanged at 11.25 per share in the upcoming board vote in April, in line with the total dividend of 16.85 pence per share that was paid in the prior year.
The bulk of revenues were driven by the company's energy and commodities business lines, including from the PVM acquired business, which together helped to deliver £204.3 million during 2015, up over 100% according to the presentation shown during the company's online webcast of the results.
With regard to the challenges and market environment during 2015, during the online presentation the company's CEO said: “Overall trading volumes in the banks - which are still our main customer - were way down due to balance sheet constraints borne of post-financial crisis regulation.”
The company had taken up a cost reduction initiative that including lowering the number of staff across key segments in Europe and the Middle East, which are Tullett Prebon's higher revenue earning regions. Cost reduction efforts were also undertaken within the Americas, and included restructuring broker contracts in North America, and as revenues from the company’s broking segment was 3% lower YoY.
Revenue from the traditional interdealer broker product areas including treasury products, interest rate derivatives, and fixed income fell 6% year-over-year. The drop was described as having been partly offset by growth in Tullet Prebon's energy and equities divisions, whereas, revenue from information sales and Risk Management services was 14% higher in 2015, when compared to the prior year.
Commenting in the preliminary report, John Phizackerley, Chief Executive of Tullett Prebon plc, said: “We achieved a good overall financial performance in 2015 against the backdrop of a challenging trading environment and subdued client demand.”
Continued Investment in Growth
Mr. Phizackerley also highlighted the ICAP deal: "We took a number of initiatives during 2015 in pursuit of our goal to become the world’s most trusted source of Liquidity in hybrid OTC markets and the best operator in global hybrid voice broking. The agreement for the acquisition of ICAP’s global hybrid voice broking and information business provides a unique opportunity to accelerate the delivery of our strategy, and we are in the process of planning the integration of the two businesses to be implemented after completion of the transaction which we expect will be during 2016.”
“We will continue to look for opportunities to deliver our objectives to build revenue and raise the quality and quantity of earnings through further diversification of the client base, continued expansion into Energy and commodities, and building scale in the Americas and Asia Pacific, whilst preserving the business’s core franchises,” he added.
Preliminary results for Tullett Prebon's year ending December 31, 2015, highlighted revenue up 13% across every region, and operating profit higher by 7%, but with operating margins decreased when excluding exceptional items and acquisition costs - as the company invested in expanding its business, and which resulted in basic earnings per share being little-changed to the downside by 1 tenth of a pence to 32.2 pence year-over-year.
Financial highlights for 2015 on a preliminary basis, excluding exceptional items and acquisition costs, included revenue of £796.0 million, up from £703.5 million reported in the previous year, thus helping to buck a multi-year downtrend in topline revenue.
Operating profit totaled £107.9 million for 2015 for Tullett Prebon, and was up from £100.7 million when compared year-over-year. The decrease in operating margin fell from 14.3% in the prior year to 13.6% for 2015, whereas profit before tax was £93.7 million, up from £86.6 million reported for 2014.
Revenues Lifted from Energy
When including the exceptional and acquisitions items, the basic EPS was 34 pence, up from 11.2 pence YoY, and the expected proposed dividend for May was anticipated to be unchanged at 11.25 per share in the upcoming board vote in April, in line with the total dividend of 16.85 pence per share that was paid in the prior year.
The bulk of revenues were driven by the company's energy and commodities business lines, including from the PVM acquired business, which together helped to deliver £204.3 million during 2015, up over 100% according to the presentation shown during the company's online webcast of the results.
With regard to the challenges and market environment during 2015, during the online presentation the company's CEO said: “Overall trading volumes in the banks - which are still our main customer - were way down due to balance sheet constraints borne of post-financial crisis regulation.”
The company had taken up a cost reduction initiative that including lowering the number of staff across key segments in Europe and the Middle East, which are Tullett Prebon's higher revenue earning regions. Cost reduction efforts were also undertaken within the Americas, and included restructuring broker contracts in North America, and as revenues from the company’s broking segment was 3% lower YoY.
Revenue from the traditional interdealer broker product areas including treasury products, interest rate derivatives, and fixed income fell 6% year-over-year. The drop was described as having been partly offset by growth in Tullet Prebon's energy and equities divisions, whereas, revenue from information sales and Risk Management services was 14% higher in 2015, when compared to the prior year.
Commenting in the preliminary report, John Phizackerley, Chief Executive of Tullett Prebon plc, said: “We achieved a good overall financial performance in 2015 against the backdrop of a challenging trading environment and subdued client demand.”
Continued Investment in Growth
Mr. Phizackerley also highlighted the ICAP deal: "We took a number of initiatives during 2015 in pursuit of our goal to become the world’s most trusted source of Liquidity in hybrid OTC markets and the best operator in global hybrid voice broking. The agreement for the acquisition of ICAP’s global hybrid voice broking and information business provides a unique opportunity to accelerate the delivery of our strategy, and we are in the process of planning the integration of the two businesses to be implemented after completion of the transaction which we expect will be during 2016.”
“We will continue to look for opportunities to deliver our objectives to build revenue and raise the quality and quantity of earnings through further diversification of the client base, continued expansion into Energy and commodities, and building scale in the Americas and Asia Pacific, whilst preserving the business’s core franchises,” he added.
Institutional FX Demand Continues to Climb in April
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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