Tullett Prebon plc Annual Report 2010
– The Company’s Chief Executive Ofﬁcer continued his engagement in public debate on issues relevant to the ﬁnancial services sector, where appropriate and where opportunity arose; and – The Company’s Global Head of Research, who was recruited into a new post established in 2009 to increase the Company’s visibility in, and penetration of, the public policy arena, was very active publishing papers addressing the principal economic themes of 2010. Two products were developed during the reporting period: Strategy Insights, larger and in-depth papers of which six were published in 2010; and Strategy Notes, shorter and quicker to write, and designed to respond to “issues of the moment” of which 21 were published in the reporting period. Considerable traction has been achieved with this product and the Company’s visibility in serious political commentary has increased as a consequence. The Company’s public policy engagement programme will continue into the subsequent reporting period as required by the debate surrounding the reform and regulation of the ﬁnancial services sector, to ensure that the Company is able to continue to develop and to grow shareholder value.
in 2012, by introducing the necessary monitoring of its GHG emissions. With this in mind, the Company completed a second carbon footprint and GHG audit in its key geographies for 2010 which will allow it to compare its emissions with its benchmark year of 2008, and to comply with the new reporting requirements when they come into force in 2012. The Company’s environmental management system (‘EMS’) has been successful in achieving savings in energy use at the Company’s two largest properties in the UK in 2010 compared to 2009: the trading ﬂoor at 155 Bishopsgate and the Company’s head ofﬁce, both in the City of London, have seen reductions in energy consumption of 12.2% and 16.0% respectively, representing a saving of circa £60,000.
Contractual or other arrangements essential to the business of the Group
GOVERNANCE SHAREHOLDER INFORMATION
The success of the Company relies on certain contractual or other arrangements within individual entities and across the Group relating to revenue generation, operational performance or ﬁnancing. The successful generation of revenue relies on the Group’s ability to hire and retain highly qualiﬁed employees. Employment costs made up 79% of the Group’s administration expenses in 2010. A number of legal arrangements, including in certain circumstances rolling contracts and non-compete arrangements, are used to enhance the Group’s ability to attract and retain key personnel. The Group facilitates a ﬁnite number of customer relationships. These relationships are serviced over a wide range of products and across a geographically diverse business.
Tullett Prebon, as an ofﬁce based business, is not engaged in activities that are generally regarded as having a high environmental impact. However, the Board has agreed that it will seek to adopt policies to safeguard the environment to meet statutory requirements or where such policies are commercially sensible. The emission of greenhouse gases (‘GHG’), as a result of ofﬁce based business activities and from business travel, is the main environmental impact from the Company’s business. A stringent cost control regime continues to minimise business travel and increasing use is still made of video and telephone conferencing. With the assistance of specialist external consultants a Group-wide environmental policy was developed and adopted during the reporting period, as was an environmental policy speciﬁcally for the UK. The Company’s procurement policy similarly contains a strong statement in support of the environmental policy: “It is TP’s policy to encourage awareness and commitment to improved environmental performance amongst its people, suppliers and clients. In this regard, our procurement choices will favour products showing clear environmental advantages unless there are signiﬁcant reasons for not doing so.” Anticipating the introduction of Carbon Reduction Commitment (‘CRC’) obligations on UK companies in April 2010 the Company took advice from professional specialist consultants and was prepared to comply with CRC requirements when the scheme came into force. Similarly, during 2010 the Company prepared to meet the new requirements for reporting on GHG under the Climate Change Act 2008, which are expected to come into force
The Group is dependent upon certain information, communication and IT system providers and operates from a limited number of properties. The Group seeks to ensure its systems are robust and are capable of operation from tested business continuity sites. The Group relies on a number of international banks to provide banking services and credit facilities. The new committed facilities are provided by ﬁve banks, The Royal Bank of Scotland, Lloyds Banking Group, HSBC, Bank of America and the Australia and New Zealand Banking Group. Further analysis of the Group’s debt structure can be found in Note 21. Terry Smith Chief Executive 8 March 2011
The efﬁciency of the Group’s operations depends on certain key supplier relationships. The Group’s clearing is provided by, or executed through, the DTCC, Euroclear, Clearstream, and certain key banking relationships.