Summary

Preliminary Results for the year ended 31 December 2018

1 March 2019

Unless otherwise stated, all figures below refer to continuing operations for the year ended 31 December 2018. Comparative figures are for continuing operations for the year ended 31 December 2017. Variance is also provided on an organic and constant currency basis.

Organic
Twelve months ended and constant
31 December currency
2018 2017 Variance variance1
Continuing operations: £m £m % %
Revenue
Information Services 1 
841 736 14% 9%
Post Trade Services - LCH 487 432 13% 13%
Post Trade Services - CC&G and Monte Titoli 102 109 (6%) (7%)
Capital Markets
407 391 4% 4%
Technology Services 1 65 91 (28%) 7%
Other 9 9 (1%) (2%)
Total revenue 1,911 1,768 8% 7%
Net treasury income through CCP businesses 218 162 34% 35%
Other income 6 25 (73%) (73%)
Total income 2,135 1,955 9% 9%
Cost of sales (227) (215) 6% 16%
Gross profit 1,908 1,740 10% 8%
         
Operating expenses before depreciation amortisation and impairment (834) (816) 2% 2%
Underlying depreciation, amortisation and impairment (135) (103) 31% 30%
Total operating expenses (969) (919) 5% 6%
Share of loss after tax of associate (8) (9) (14%) (14%)
Adjusted operating profit 2  931 812 15% 11%
Add back underlying depreciation, amortisation and impairment 135 103 31% 30%
Adjusted earnings before interest, tax, depreciation, amortisation and impairment 2  1,066 915 17% 13%
 
Profit on disposal of business - 7 - -
Amortisation of purchased intangible assets and non-underlying items (180) (193) (6%) (5%)
Operating profit 751 626 20% 14%
   
Earnings per share  
Basic earnings per share (p) 138.3 153.6 (10%)
Adjusted basic earnings per share (p) 2  173.8 148.7 17%
 
Dividend per share (p) 60.4 51.6 17%  

1 Organic growth is calculated in respect of businesses owned for at least 12 months in either period and so excludes ISPS, The Yield Book, MillenniumIT ESP and Exactpro.

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.

2 Before amortisation of purchased intangible assets and non-underlying items.

Variances in table are calculated from unrounded numbers.