Latest Results

Interim Results for the 6 months ended 30 June 2016

4 August 2016

  • Continued good financial performance with growth across all core business areas - in particular, in Information Services, including strong results at FTSE Russell, in Capital Markets and at LCH
  • Revenue up 9% to £721.9 million (H1 2015: £663.0 million); total income up 11% to £785.8 million (H1 2015: £705.9 million) 
  • Adjusted operating profit2 up 9% at £333.3 million (H1 2015: £305.7 million) as operating expenses remained well controlled while continuing to invest in growth opportunities; operating profit of £199.0 million (H1 2015: £210.5 million)
  • Profit after tax of £114.5 million (H1 2015: £130.8 million) which included non-recurring merger related expenses; and, after accounting for the previously announced tax effects of the Russell IM sale , becomes a loss after tax of £15.9million on a reported basis including discontinued operations (H1 2015: £165.1 million)
  • Adjusted EPS2 up 16% at 57.7 pence (H1 2015: 49.9 pence); basic EPS down 18% to 27.4 pence (H1 2015: 33.4 pence)
  • Interim dividend increased 11.1% to 12.0 pence per share (H1 2015: 10.8 pence per share) in line with our stated dividend policy
  • Strong balance sheet position with leverage reduced to 1.3 x net debt:EBITDA

Strategic highlights

  • Merger with Deutsche Börse, announced in March 2016, making good progress - shareholder approvals achieved in July and work underway on regulatory consents 
  • Sale of Russell Investment Management successfully completed on schedule, for gross proceeds of US$1,150 million – resulting in an implied multiple of 18x EBITDA (pre synergies) for the retained, high growth Russell Indices business, now integrated with FTSE 
  • New products and services announced during the period, including LCH Spider, a new rates portfolio margining service, ELITE Club Deal, an online private placement platform for SMEs, and CurveGlobal, a derivative trading venture which is expected to launch in Q3 2016 
  • The Group is well positioned, as a diversified open access market infrastructure business, to navigate political and macroeconomic changes in the period ahead

1 continuing operations exclude businesses sold, primarily being Russell Investment Management and Proquote

2 before amortisation of purchased intangible assets, goodwill impairment and non-recurring items

Organic growth is calculated in respect of businesses owned for at least 6 months in either period and so excludes Exactpro, XTF, Proquote and Russell Investment Management. The Group’s principal foreign exchange exposure arises from translating our European based Euro and US based USD reporting businesses into Sterling.