Annual revenue contracts by seven per cent at Tullett Prebon

Revenue fell by seven per cent to 850.8m pounds in the year ended December 31st at FTSE 250-listed interdealer broker Tullett Prebon as challenging market conditions saw financial markets remain subdued.

Underlying profit fell 15% to £126m and underlying basic earnings per share were 12% lower than last year at 40.5p.

The company reported that market conditions had remained challenging throughout the year as the overall level of activity in the financial markets remained subdued.

Terry Smith, the Chief Executive Officer of Tullett Prebon, commented: "Market conditions are expected to continue to be challenging. The level of activity in financial markets was subdued throughout 2012, particularly during the second half, reflecting persistently low volatility despite the underlying fragility of the world economy.

"Our customers are operating in a more onerous regulatory environment and there is considerable uncertainty over the impact of new regulations covering the OTC markets. It is therefore prudent to expect that financial market activity will continue to be subdued."

He added: "We have taken action to reduce fixed costs and to maintain flexibility in the cost base. The benefits of these actions will continue to be realised in 2013, but are likely to be more than offset by the increased costs that will be incurred related to the regulatory readiness project."

Smith also said that the business had made a reasonable start to the year with revenue in the first two months of 2013 5% lower than in the same period last year at constant exchange rates.

The company's share price was up 3.73% to 269.50p at 11:14 on Tuesday.

MF