Latest Results

Interim Management Statement for the 3 months ended 30 September 2016

20 October 2016

  • Continued good growth: Q3 total income from continuing operations (excluding assets sold / held for sale) up 19% to £414.6 million and rose 14% year-to-date to £1,200.4 million

  • Q3 revenues from continuing operations up 15% to £376.2 million; up 11% for 9 months year-to-date at £1,098.1 million 

  • Reflecting strong resilience and diversified range of business, all core divisions delivering good growth despite a backdrop of testing markets and economic uncertainty 

  • Focus remains on completion of the merger with Deutsche Börse, creating a leading global markets infrastructure group – shareholder approvals achieved and work continues to secure regulatory consents

Q3 summary

  • Capital Markets revenues up 16% (up 8% at constant currency), with growth in both primary and secondary markets despite volatile markets; Turquoise continues to trade well, with strong growth in the Block Discovery service (including a record month in September)
  • LCH income increased 29% (up 18% at constant currency), with 21% revenue growth in OTC from higher SwapClear client trades; good volume growth also in CDSClear and ForexClear 
  • Post Trade Services (Italy) income up 23% (up 5% at constant currency) -  increased settlement and custody revenues, together with increased net treasury income, offsetting lower clearing revenue
  • Information Services revenues up 13% (up 3% on organic and constant currency basis) - underlying growth at FTSE Russell impacted in part by market-related weakness (ETF AUM/passive fund revenues lag recovery in market and derivatives contracts down versus high levels in volatile markets last year), and by one–off accounting adjustments.  Improvement is expected in Q4 as values have increased and confidence remains in the many continuing positive market trends and opportunities to drive further good growth 
  • Technology Services revenues up 5% (up 4% at constant currency)
  • Investment continues in a wide range of growth opportunities, with notable developments in the period:
    > CurveGlobal, an open access interest rate derivatives venture, launched in partnership with major dealer banks and CBOE – providing customers with the opportunity to gain efficiencies through the LCH Spider portfolio margining service
    > Turquoise Plato platform launched with buy side and sell side partners – using the successful  “large in scale” Block Discovery platform
    > LCH received recognition as a designated central counterparty in Hong Kong for SwapClear and ForexClear to clear certain OTC interest rate derivatives in HKD or one of the G4 currencies (USD, EUR, GBP and JPY)
    > MillenniumIT equities and fixed income trading and surveillance technology went live at Casablanca Stock Exchange; MillenniumIT also showcased its new real time post trade technology capabilities
    > Integration of the FTSE Russell index businesses is running ahead of plan

Organic growth is calculated in respect of businesses owned for at least the full 3 months in either period and so excludes Exactpro,  Proquote, Russell Investment Management, SwapMatch and XTF Inc. The Group’s principal foreign exchange exposure arises from translating our European based euro and US based USD reporting businesses into sterling.