Broker Tullett Prebon’s preliminary results for the year ended December 31, 2007, show that the company’s revenue rose 20% to £753.8 million, using constant exchange rates. Its operating profit rose 19% to £131.8 million. Adjusted profit before tax came in at £114.4 million.
Commenting on the results, Tullet’s chairman Keith Hamill said: “Our focus in 2007 has been to prioritise growth in revenues and to develop our electronic broking capabilities, and we took a number of actions in pursuit of these objectives. The results for 2007 overall, and particularly for the second half, are encouraging.”
Chief executive Terry Smith added: “The short-term outlook for financial markets continues be characterised by uncertainty, and the volatility that we experienced in the second half of 2007 has continued into the first two months of this year. These conditions are ideal for our business, and we are increasingly well-placed to benefit from them.
The outlook for Tullett Prebon is positive, and we believe that the actions being taken to develop the business will create future value for shareholders.”
Tullett trades at a discount to Icap, which is primarily attributed to the relative weakness of its electronic broking capabilities. It is looking to strengthen this area of its operations and it expanded quite aggressively in 2007 by hiring 125 new brokers.