Revenues dived at Tullett Prebon last year as demand from banks and other traders slumped, the interdealer broker said yesterday.
Pre-tax profits fell 13 per cent to £86.6m, as revenues tumbled 12.5 per cent to £703.5m.
The broker responded by slashing costs – 217 staff have been cut, and the firm has cut back its office space to reduce fixed costs.
Chief executive John Phizackerley said Tullett would diversify, investing in new product lines and services.
“Tullett Prebon has produced a robust set of results, reflecting a strong operational performance in what was another challenging year for the interdealer brokerage sector,” he said. “Looking forward, we will continue to add products and services to facilitate our clients’ strategies, incorporating content and technologies that add value.”
Analysts at Numis expect the headwinds hitting the sector to abate, as investment banks have already cut back, and interest rates will rise at some point.
“We do not believe there has been a fundamental shift in the market towards lower volatility,” said analyst Jonathan Goslin.
Tullett’s shares fell 4.69 per cent.
Subscribe to the City A.M. newsletter to have our top stories delivered directly to your inbox.