Operational Highlights
Revenue up 13% with higher revenue in every region
Operating profit up 7% with higher operating profit in every region
Return on capital employed maintained at 20%
Completion of global strategic review
Outstanding performance from PVM
Acquisition of MOAB strengthens Energy in the Americas
Further reductions in broker employment costs
Further cost improvement actions implemented
Investments to strengthen control and support functions
Strong contribution from Information Sales and RMS
Agreement reached to acquire ICAP's global hybrid voice broking and information business ("IGBB")
Financial Highlights
Underlying, before exceptional and acquisition related items
Revenue £796.0m (2014: £703.5m)
Operating profit £107.9m (2014: £100.7m)
Operating margin 13.6% (2014: 14.3%)
Profit before tax £93.7m (2014: £86.6m)
Basic EPS 32.2p (2014: 32.3p)
Reported, after exceptional and acquisition related items
Profit before tax £105.7m (2014: £33.5m)
Basic EPS 34.0p (2014: 11.2p)
A table showing Underlying and Reported figures for each year, detailing the exceptional and acquisition related items, is included in the Financial Review.
The average number of shares used for the EPS calculation for 2015 is 243.6m (2014: 220.4m). The increase reflects the full year weighting of the 25.8m shares issued in November 2014 as the initial consideration for PVM.
Dividend
The Board is recommending an unchanged final dividend of 11.25p per share, making the total dividend for the year 16.85p per share, unchanged from that paid for 2014. The final dividend will be payable on 19 May 2016 to shareholders on the register at close of business on 29 April 2016.
Commenting on the results, 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. Revenue of £796m in 2015 was 13% higher than in 2014 with underlying operating profit increasing by 7% to £108m. Return on capital employed was maintained at 20%. Underlying earnings per share for 2015 of 32.2p are 0.1p lower than for 2014, reflecting the increase in the average number of shares in issue following the acquisition of PVM.
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."
