Preliminary Results for the year ended 31 December 2017
2 March 2018
Unless stated otherwise, all figures in the highlights below refer to continuing operations(1) for 12 months to 31 December 2017 and comparisons with the prior 12 month period on the same basis.
- Continued execution of strategy driving strong operational and financial performance – deployment of capital for acquisitions and organic investment to drive multiple growth opportunities
- Strong financial results – headline growth across all core business divisions – Information Services, Post Trade and Capital Markets - underpins confidence in delivery of three-year financial targets
- Well positioned to drive further growth as a diversified, global financial markets infrastructure business – operating on an Open Access basis in partnership with customers
- Total revenue up 17% to £1,768 million (2016: £1,515 million)
- Total income up 18% to £1,955 million (2016: £1,657 million)
- FTSE Russell delivered 33% revenue growth (up 15% on an underlying basis); LCH OTC revenues up 21% (up 17% on an underlying basis)
- Adjusted operating expenses(2) up 6% on an organic and constant currency basis reflecting continued investment in growth and efficiency projects
- Adjusted operating profit(3) up 18% at £812 million (2016: £686 million); operating profit up 47% at £626 million (2016: £427 million); adjusted EBITDA(2) up 19% at £915 million (2016: £771 million)
- Adjusted EPS(3) up 19% at 148.7 pence (2016: 124.7 pence); basic EPS of 153.6 pence (2016: 63.8 pence)
- Proposed final dividend increased to 37.2 pence per share - a 19% increase in the full year dividend to 51.6 pence per share – reflecting the strong outlook for the Group
- Capital management continues in-line with policy: £200 million share buyback completed; new medium term debt with €1 billion Eurobond issuance to support further growth and leverage reduced to 1.7 times
- New initiatives and achievements in the year include:
- SwapAgent started new service providing efficiencies for non-cleared products
- CurveGlobal making good progress one year on from launch and investing for next stage developments
- Completed acquisitions of The Yield Book and Mergent, further building data and analytics capabilities in our Information Services businesses
- Increased shareholding in LCH Group to 65.9% (up from 57.8%); expect to acquire a further 2% in March 2018
- Strong flow of IPOs in London and Italy helped companies raise over £44 billion in new and further issues
- Turquoise Plato Block Discovery saw 600% rise in total value traded to €54.5 billion as customers started to adjust their trading strategies ahead of MiFID II
- Good progress on recruitment of new CEO with a strong field of high quality candidates
(1) Continuing operations exclude businesses sold, being Russell Investment Management.
(2) Before depreciation, amortisation and non-underlying items.
(3) Before amortisation of purchased intangible assets and non-underlying items.
Organic growth is calculated in respect of businesses owned for at least 12 months in either period and so excludes Russell Investment Management, SwapMatch, ISPS, Mergent and The Yield Book. The Group’s principal foreign exchange exposure arises from translating and revaluing its foreign currency earnings, assets and liabilities into LSEG’s reporting currency of Sterling.