Latest Results

2017 Q1 Interim Management Statement

26 April 2017

  • Strong start to 2017: Q1 total income from continuing operations up 19% to £458.7 million; gross profit (after cost of sales) up 17%
  • Strong results reflect good headline growth across all core business areas as the Group continues to deliver and execute on its strategy; revenue  up 18% (up 8% on an organic and constant currency basis)
  • Successful strategy based on customer partnership, innovation and an Open Access model makes the Group strongly positioned to make further progress as a well diversified financial markets infrastructure business with a global footprint

Q1 Summary 

  • LCH income increased 31% (up 21% at constant currency), with 27% revenue growth in OTC from higher SwapClear client trades; good performances also in CDSClear and ForexClear. Non-OTC clearing revenue up 15% with good growth in fixed income

  • Post Trade Services (Italy) revenue up 18% (up 6% at constant currency) - increased settlement and custody revenues offset lower clearing revenue

  • Information Services revenues up 24% (up 9% on organic and constant currency basis) – FTSE Russell up 11% on a like for like basis, and up 31% on a headline basis with the inclusion of Mergent following the successful completion in early January 

  • Capital Markets revenues up 1% (down 4% at constant currency), reflecting lower trading levels against a strong comparative quarter last year

  • Technology Services revenues up 27% (up 18% at constant currency)

  • Group continues to invest - new initiatives in the period include:

           - CDSClear launched client clearing

           - LCH SA began offering repo clearing on German debt

           - FTSE Russell launched £SONET – a new secured rate for sterling overnight funds

           - London Stock Exchange announced plans to launch a new International Securities Market

           - More than 500 companies on ELITE, across 26 countries; ELITE Club Deal (online private

             placement platform) signed a strategic partnership with The HUB to provide bespoke technology

  • £200 million share buyback programme commenced at the end of the quarter

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