Tullett Prebon 's (TLPR) takeover of ICAP 's (IAP) global broking business may be grabbing all the headlines, but management's acquisition plans by no means stop there. As part of what chief executive John Phizackerley calls the group's "grazing" strategy, the interdealer broker is on the look out for bolt-ons to broaden its geographic and product range. Its first-half acquisition of Creditex's US voice broking business from Intercontinental Exchange provides a case in point.
Management continued to identify underperforming areas ripe for cost-cutting, including some traditional broking services. As a result, Tullett's operating margin increased one percentage point to 15.6 per cent, while broker compensation costs in proportion to sales also fell as part of a review on costs.