London-listed interdealer broker Tullett Prebon has reported a boost from the UK’s Brexit vote.
In the first half of the year, before exceptional items and acquisition-related items, Tullett reported revenue of £430.3m, a four per cent year-on-year increase.
Pre-tax profit, meanwhile, was up from £52.9m to £60.3m, and operating profit was up 11 per cent to £67m.
The firm announced a 5.6p per share interim dividend to be paid in November.
Tullett’s share price rose nearly one per cent to 328p on Tuesday morning.
In common with several other London-listed companies, the company’s share price plummeted after June’s Brexit vote – from 323p on 23 June to 275p on 27 June.
Why it’s interesting
The company said that it is “too early to speculate on the long term impact of Brexit”.
But it noted that the immediate aftermath of the vote led to “little adverse impact”.
“And in fact,” the results said, “the increase in volatility has resulted in higher levels of activity recently. The company is well positioned to support its clients during this period and we are grateful that they have continued to place their confidence in us as a trusted partner.”
Tullett was also boosted by the fall in value of sterling, saying this would have a positive effect on reported revenue. In the first six months of the year, more than 80 per cent of its turnover was in non-sterling currencies.
Tullett announced a new US acquisition last week, with a deal for Creditex’s US hybrid voice broking business.
Tullett Prebon also expects to complete its takeover of the ICAP's global hybrid voice broking and information business later this year.
What the company said
The UK and the EU are now entering uncharted waters. Once a formal negotiation procedure has been triggered, there is considerable uncertainty about the outcome that will be achieved. We are following political events very closely, but any decisions that we have to make will be based on facts and not speculation. We have a global business with a wide European footprint, so we will always be where our clients need us to be.