TLPR has been added to the Blippy Defensive Portfolio over on Stockpedia. It adds sector diversity. Google sums up its activities pretty well:
Tullett Prebon plc (Tullett) is an inter-dealer brokers, and acts as an intermediary in the wholesale financial markets, facilitating the trading activities of its clients, in particular commercial and investment banks. The business covers the product groups, including fixed income securities and their derivatives, interest rate derivatives, treasury products, equities and energy. Tullett Prebon’s business is conducted through voice broking, where brokers, supported by screens displaying historical data, analytics and real-time prices, discover price and liquidity for their clients, and through hybrid electronic platforms, which cover asset classes that include United States, European, Australian and Scandi Repo, United States Fixed Income, global FX Options, Cash Credit and CDS, and the United States and European Energy markets. On March 4, 2010, the Company acquired 100% of OTC Valuations Ltd.
Kelpie Capital did an excellent write-up on TLPR back in October 2011 – doing it far better justice that I ever could. Just a summary of some of his points:
- the IDB (Inter-dealer Broker) is dominated by a few oligopolistic operators
- it’s core European division had returned around 23% operating margins in the last 2 years
- it has been building a business in Asia
- strong financial position
- CEO Terry Smith holds a 4.5% stake in the company
TLPR currently has a PER of 7.6, far lower than is usual. Its current ROE is nearly 22%. Its median over the last decade has been 18%. Adjusted EPS has grown at about 23% pa over the last decade. EV/EBITDA is around 4.5.