Tullett looks to full year after 16% first-half dip

TULLETT Prebon, the world's-second largest interdealer broker, expects revenues to improve in the rest of the year after posting a fall in half-year profits.

Operating profit for the six months to 30 June fell 15.8 per cent to 84.7 million, slightly ahead of analysts estimates.

Revenue was 475.8m, down from 517.9m last year, with the fall blamed on the departure of a number of brokers to rival BGC Partners and adverse currency movements.

In May, Tullett said talks with a possible buyer had ended with no offer made for the company and the potential suitor was not identified.

Chief executive Terry Smith said "it wouldn't surprise us" if talks over a potential takeover of the company resumed, although he stressed there were no current discussions.

Smith said new regulations sweeping the world's financial sector, such as the US Dodd-Frank Act, meant it was likely that Tullett could attract new suitors. He added that Tullett itself might consider further small-scale acquisitions, such as its takeover of Brazilian interdealer broker Convencao, which is due to complete this year.

Last month ICAP, the world's biggest interdealer broker, reported higher quarterly revenues and profits, but said trade volumes had fallen.