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.

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 Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term and Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term.

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.