London Stock Exchange fiscal 2014 Revenues up 50% thanks mainly to LCH.Clearnet acquisition

London Stock Exchange Group (LON:LSE) has today announced its preliminary results for the year ended March 31, 2014, a year within which the prestigious London venue generated considerable increases in revenue compared with the previous year.

The fruits of what London Stock Exchange’s former Chief Financial Officer Jonathan Howell once called “another day at the coalface” during a social meeting with me some years ago are most certainly positive as the last financial year drew to a close, with reported revenue for the year ending March 31, 2014 up 50 per cent at £1,088.3 million (2013: £726.4 million), and adjusted total income up 42 per cent at £1,213.1 million (2013: £852.9 million).

As far as these results are concerned, London Stock Exchange benefited tremendously from its integration with LCH.Clearnet which is set to deliver €60 million (£49 million) of cost reductions in 2015, which according to the group is significantly ahead of original €23 million target.



Despite the 10 percent organic revenue growth and solid operational performance, the London Stock Exchange reported a fall in 2014 pretax profit, however it raised its total dividend payment by 4.4%, a rise which again can be attributed to the cost savings in relation to the integration of LCH.Clearnet.

“We have accelerated our cost saving targets at LCH.Clearnet Group and we see opportunities for growth as the regulatory landscape evolves,” Chief Executive Xavier Rolet said in a corporate statement.

Adjusted operating profit for the fiscal year was up 20 per cent at £514.7 million (2013: £430.2 million); operating profit rose 1 per cent to £353.1 million (2013: £348.4 million), whereas adjusted profit before tax increased by 17 per cent to £445.9 million (2013: £380.7 million).

Profit before tax for the fiscal year stood at £284.3 million (2013: £298.9 million), principally reflecting increased acquisition amortisation , and basic earnings per share (EPS) were up 2 per cent at 107.1 pence (2013: 105.3 pence); basic EPS of 63.0 pence (2013: 80.4 pence)

London Stock Exchange reported a strong cash generation reduced net debt for this period, with adjusted EBITDA at 1.9x as at 31 March 2014 (from 2.2x at 30 September 2013) and has set a proposed final dividend which is up 4.5 per cent to 20.7 pence per share resulting in a total dividend for the year increased 4.4 per cent to 30.8 pence per share. The final dividend will be paid on
19 August 2014 to shareholders on the register on 26 July 2014 .

Chris Gibson-Smith, Chairman, London Stock Exchange Group made a corporate statement today on the issuing of the results that “It has been a strong year for the Group. We have further expanded our global business, building best in class capabilities as we grow. 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 to develop our business. We look forward to further growth in the year ahead.”

For the full report, click here.



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