Tullett Prebon Narrows 2020 Losses despite Revenue Drop

Inter-dealer broker Tullett Prebon (Securities) Limited, which operates under TP ICAP group, has significantly narrowed its losses from its business in 2020, according to annual financials published with the Companies House.

The company generated total revenue of more than £68 million in the year, which was 4.8 percent lower from £72 million in the previous year.

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The Demand Could Not Sustain

The filing highlighted that the inter-dealer broker saw a peak in activities in Q1 and Q2 as institutional clients rushed to amend their portfolios with the covid-induced market turmoil. However, in the next two consecutive quarters, the demand vanished.

Additionally, the inter-dealer broker detailed that its revenue from the global broking business came in at £39.8 million, compared to 2019’s £42 million. Business from its credit asset class only surged year-over-year with the increased customer demand for alternative credit risks.

Tullett Prebon operates in the wholesale financial market and facilitates trading services to the clients like commercial and investment banks, asset managers and hedge funds.

Despite the slump in the revenue, the company significantly narrowed its yearly post-tax losses to £1.5 million. It reported a massive loss of £3.95 million in the previous year. This was achieved as the company cut its costs in many areas, including payroll, information services, clearing and settlement.

The director of the company remained satisfied with the results although there was a revenue drop and an overall loss. Moreover, they are reviewing the role of Tullett Prebon within the group and hinting at some possible restructuring.

“It is expected that the operational activities of the company will be transferred to a fellow subsidiary of the Group within the foreseeable future following the approval of these financial statements, allowing the Group to consolidate certain broking and trading activities,” the filing stated.

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