London Stock Exchange reports strong full year results

Source: London Stock Exchange

Unless stated otherwise, all figures in the highlights below relate to performance for 12 months to 31 December 2014 and comparisons with the prior 12 month period

• Strong financial performance in 2014 - total income up 26 per cent to £1.38 billion

• Revenue up 32 per cent revenue to £1.28 billion - and up 12 per cent on organic constant currency basis with growth across all main business areas

• Core operating expenses1 tightly managed - up 5 per cent on organic constant currency basis, partly reflecting costs arising from amendments to OTC clearing arrangements

• Upgraded €60 million (£49 million) cost synergy target with LCH.Clearnet successfully achieved

• Adjusted operating profit1 up 8 per cent on organic constant currency basis to £558.0 million; adjusted profit before tax1 of £491.7 million, up 19 per cent (2013: £412.7 million)

• Adjusted basic EPS1 up 7 per cent at 103.3 pence (2013: 96.5 pence); basic EPS of 56.5 pence (2013: 64.2 pence)

• Group strongly positioned to develop further as a leading market infrastructure provider:
- Successful acquisition of Frank Russell Company creates, with FTSE, a global leader in indices - further extends the Group’s geographic and product range
- LCH.Clearnet to launch new, open access, portfolio margining service for all users to maximise margin efficiencies across listed and cleared OTC interest rate derivatives (IRD) portfolios, utilising the world’s largest IRD liquidity pool from SwapClear
- New licensing agreement signed with CBOE, to develop index options based on FTSE and Russell indices - to start trading in the US in April 2015
• Proposed final dividend of 12.8 pence per share, up 6.5 per cent on an equivalent basis; total dividend of 22.5 pence per share for the 9 month period, equivalent to 75 per cent of the payment that the Board would have made for a full year to March 2015

Statutory results for 9 month period to 31 December 2014
• Reported total income for 9 months to end December 2014 of £1,044.0 million; adjusted profit before tax1 of £368.2 million; and, adjusted basic EPS1 of 75.6 pence
1 before amortisation and impairment of purchased intangibles and goodwill, non-recurring items and excluding unrealised net investment gains/losses at LCH.Clearnet

Commenting on the period, Xavier Rolet, Chief Executive, London Stock Exchange Group said:

“The Group has delivered another strong financial performance, with organic growth in all business areas and contribution from acquisitions. We have extended our international footprint and further strengthened our Information Services offering with the acquisition of Russell Indexes. We are already making good progress with the integration of Russell and FTSE, creating a global leader in indices. At LCH.Clearnet, we have successfully achieved the increased cost synergy targets on time, with work underway on further efficiencies.

“Our focus in the year ahead is to further develop opportunities across the Group, from our increased product range and extended geographic reach. Two such initiatives have just been announced, with LCH.Clearnet launching new portfolio margining across listed and cleared OTC interest rate products; and an agreement on new index options based on Russell and FTSE indices with CBOE. Working with our customers, the Group is well positioned to build on its success as the only major, open access market infrastructure business.”

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