Tullett Prebon reports drop in full-year profit amid tough trading conditions

Interdealer money broker Tullett Prebon reported a drop in full-year pre-tax profit, reflecting difficult trading conditions in the sector and tougher regulation.

Pre-tax profit came to £86.6m, down from £99.6m the previous year. Revenue declined to £703.5m from £803.7m as volumes were adversely affected by the stricter regulatory environment faced by customers.

Tullett said it will retain money from a settlement with rival BGC to invest in products. BGC had allegedly tried to poach more than 80 brokers from Tullett's US-based subsidiaries five years ago.

The board recommended an unchanged final dividend of 11.25p per share, making the total dividend for the year 16.85p per share, the same rate as 2013.

"The benefit of the actions we have taken through the cost improvement programme in 2014 will continue to flow through in 2015, particularly in the first half," said chief executive John Phizackerley, who was appointed on 1 September 2014.