The London Stock Exchange will return around £162m sterling to shareholders after it beat expectations with a 12% rise in pre-tax profits, Europe's biggest share market said.
The exchange said it would return the cash via a special dividend of 55 pence a share. The shares will then be consolidated on the basis of six new shares for every seven existing shares.
The LSE's cash pile was boosted by the sale of its previous headquarters in London's financial district.
The exchange booked a 12% rise in full-year pre-tax profits to £89.1m from £79.5m a year ago. Analysts had forecast a more modest increase to £85.9m. The LSE said turnover for the year ended March 31 rose 6% to £250.4m.
'The Exchange is pursuing all opportunities to expand its business by leveraging its flexible trading model,' said LSE Chief Executive Clara Furse. 'With our good ongoing cash flow enabling us to continue investment in new initiatives, the Exchange is well positioned for the future.'
Trading in the first few weeks of the new financial year was broadly the same as at the end of last year, with the number of new companies listing on its market broadly in line with last month, the LSE said in a statement.
But the exchange said revenues at its issuer services division will be hit by the cuts to its fees it agreed to make following a UK watchdog investigation last year.
