AGM Statement and Interim Management Statement

Released : 13.05.2010 07:00


13 May 2010

Tullett Prebon plc

AGM Statement and Interim Management Statement

Tullett Prebon plc (the "Company") is today issuing its Interim Management
Statement in relation to the period from 1 January 2010. This statement will be
delivered to those attending the Annual General Meeting today.

Business Update

The performance of the business continues to be robust. Financial markets have
remained unsettled and activity in the markets has remained at the level
experienced during the second half of 2009, although this is lower than during
the exceptionally volatile markets experienced in the first half of 2009. The
level of activity has, however, picked up in recent days, reflecting increased
market volatility.

The underlying revenue run rate in the first four months of the year at
constant exchange rates has been 3% lower than a year ago. In addition the net
effect of the broker defections in the second half of last year in North
America following a raid on the business by BGC, has been to reduce revenue by
6%. Revenue in the four months to April was £312m, 12% lower than reported for
the equivalent period last year, including the adverse impact of currency
movements on the translation of our non-UK operations.

Action has been taken to strengthen the management and organisation of our
North American business, including replacing a number of staff. The benefit
from the actions that have been taken to mitigate the impact of the broker
defections will increase during the year as the rebuilding programme continues
and the new brokers hired build up to their full run rate of revenue. The
underlying revenue run rate in comparison with the prior year is also expected
to continue to improve, particularly in the second half.

On 18 March 2010 Judgment was handed down in the legal action that the Company
had taken in London against BGC, two of BGC's senior directors and ten former
Company brokers, in response to a raid by BGC in early 2009 on the London
business. The Judge held that there was an unlawful conspiracy between BGC and
its two senior directors to poach the Company's employees and that the Company
was and is entitled to injunctions against BGC and the former brokers as well
as financial remedies. It may take around 12 months for the financial remedies
due to the Company to be determined. The Judge dismissed BGC's counter-claim
against the Company. At a Directions hearing on 30 April 2010 permission for
BGC to appeal was refused on 20 out of 22 grounds. In particular permission to
appeal against the finding of conspiracy was refused.

Legal action continues to be pursued against BGC and former employees in the
United States, and against former employees in Hong Kong who have unlawfully
terminated their employment with the Company in order to join BGC.

The Company's financial position remains strong.

Enquiries:

Nigel Szembel, Head of Communications, Tullett Prebon plc

Mobile: +44 7802 362088