LSE revenues jump 50% on LCH Clearnet division

Thursday 15 May 2014 14.37
London Stock Exchange's pre-tax profits up by 16%
London Stock Exchange's pre-tax profits up by 16%

The London Stock Exchange Group today posted mixed annual profits, but saw revenues soar after its recent purchase of a majority stake in clearing house LCH.Clearnet. 

The operator of Britain's main exchange and Italy's Borsa Italiana said pre-tax profit before acquisition, amortisation and non-recurring items, rose 16% to £442.4m. 

Revenues surged almost 50% to €1.09 billion in the group's financial year to March 31 from the previous 12 months helped by results from clearing house LCH.Clearnet. 

But earnings after taxation, or net profits, sank 21% at £170.1m, hit by rising taxation, higher operating expenses and accounting charges.

"It has been a strong year for the group," said chairman Chris Gibson-Smith.

"We expect the substantial benefits of the LCH.Clearnet transaction to continue to work through over the coming year and the improving economic outlook and evolving regulatory landscape also present further opportunity," he said. 

"We look forward to further growth in the year ahead," he added.

The LSE raised its shareholder dividend payment by 4.4% to 30.8 pence, and said that it has identified more cost savings in relation to the integration of LCH.Clearnet.

The company purchased a majority holding in the British clearing house in 2012.

"The group's expansion in capital markets infrastructure is delivering tangible success," said chief executive Xavier Rolet in the earnings release.

"We have produced a good full year financial performance with increased top line, operating profits and earnings, reflecting both strong organic growth and the benefits from recent additions to the group," he said.