Announcement of Interim Results for the six months ended 30 June 2015

Unless otherwise stated, all figures below refer to the six months ended 30 June 2015.  Comparative figures are for the six months ended 30 June 2014 (H1 2014). 

  • Continued delivery of strategy - good financial performance driven by contribution from Russell as well as from underlying growth in Capital Markets, Information Services, OTC clearing at LCH.Clearnet and Italian Post Trade operations
  • Revenue1 up 90% to £1,164.9 million (H1 2014: £611.5 million); on a continuing operations basis2, revenue up 9% and up 14% after adjusting for the loss of LME business
  • Total income1 up 83% to £1,208.7 million (H1 2014: £661.2 million)
  • Operating expenses of £842.5 million, up 4% on an organic and constant currency basis as the Group invests in growth initiatives, and flat after excluding cost of sales
  • Adjusted operating profit3 up 27% at £366.1 million (H1 2014: £ 288.8 million); operating profit of £239.4 million (H1 2014: £205.7 million); profit after tax of £165.1 million (H1 2014 £136.0 million)
  • Adjusted EPS1,3 up 14% at 65.5 pence (H1 2014: 57.3 pence); basic EPS1 of 43.4 pence (H1 2014: 40.5 pence)
  • Interim dividend increased 11% to 10.8 pence per share (6 months to 30 September 2014: 9.7 pence per share), reflecting good performance and confidence in future prospects as investment for growth continues
  • Good progress with integration and development of global indexes business, FTSE Russell, and with the sale of Russell Investment Management
  • Open access is delivering - agreement with CME to launch US futures contracts on FTSE Russell indexes;  Turquoise entered exclusive discussions with Plato Partnership, to collaborate on market structure initiatives in Europe

Commenting on performance for the period, Xavier Rolet, Group Chief Executive, said:

“The Group has delivered good operational and financial performance in the period. Our global indexes business, FTSE Russell, has shown strong growth, and there have been positive underlying results in other Information Services products, as well as Capital Markets and Italian Post Trade.  LCH.Clearnet has made further solid progress in the development of its OTC clearing services.  Despite currency headwinds, our diversified global business has delivered good returns.

“As a leading international, open access market infrastructure business we continue to see attractive opportunities for growth in a changing regulatory and competitive landscape.  Reflecting both the good first half performance and the confidence in our prospects as we invest in growth initiatives, we have raised the interim dividend by 11 per cent.”

1 revenue, total income and EPS include both continuing and discontinuing operations

2 continuing operations exclude businesses marked for sale, primarily being Russell Investment Management

3 before amortisation of purchased intangibles and non-recurring items

Organic growth is calculated in respect of businesses owned for at least 6 months in either period and so excludes Bonds.com, MTS Indices and Frank Russell Company. The Group’s principal foreign exchange exposure arises from translating our European based euro and US based USD reporting businesses into sterling.

Further information is available from:

London Stock Exchange   Group plc

Gavin Sullivan – Media

Paul Froud – Investor   Relations

+44 (0) 20 7797 1222

+44 (0) 20 7797 3322

Finsbury

Guy Lamming / Michael   Turner

+44 (0) 20 7251 3801

 

Additional information on London Stock Exchange Group can be found at www.lseg.com

Further information

The Group will host a conference call of its Interim Results for analysts and institutional shareholders today at 09:00am. On the call will be Xavier Rolet (CEO), David Warren (CFO) and Paul Froud (Head of Investor Relations). 

To access the Telephone conference call dial 0800 694 0257 or +44 (0) 1452 555 566

Conference ID  9399 5766

For further information, please call the Group’s Investor Relations team on +44 (0) 20 7797 3322.

Chief Executive’s Statement

Overview

We have made good progress as we continue our strategy to develop as an increasingly international, open access market infrastructure and capital markets business.  Despite currency headwinds our continuing operations, including Russell Indexes, delivered a 9% increase in revenue.  Our diversified global Group is achieving integration benefits, investing to support further organic growth and remains well placed to benefit from structural and regulatory-driven market opportunities.

The Group’s good overall performance reflects underlying growth in Capital Markets, Information Services and our Italian Post Trade businesses, plus the contribution from Russell Indexes and the Investment Management operations. OTC clearing at LCH.Clearnet has also continued to make solid progress.  With our continued focus on operational leverage, costs were well controlled during a period of increased expenditure as the Group invests in a range of growth initiatives, and the integration of FTSE and Russell is well underway.  Reflecting our good performance and confidence in future prospects, we have increased the interim dividend by 11%.

Some of the key developments over the period are detailed below.

In May, we provided an update on our Post Trade operations, highlighting both cost reduction and revenue opportunities.  In summary, we outlined the next phase of cost savings at LCH.Clearnet, amounting to another €40 million in addition to the €60 million already achieved over the past two years.  Further efficiencies are also achievable in the longer term as LCH.Clearnet commences work to replace legacy systems.  Incremental revenue opportunities of €175-250 million by the end of 2018 were also identified, across LCH.Clearnet and the Group’s settlement and custody operations, globeSettle and Monte Titoli.  Work is progressing well to achieve these targets.

Developments in other parts of the Group have been announced during the period.  FTSE started the transition to include China A shares in its global benchmarks, with the launch of transitional indexes for Emerging Markets.  The Group signed an MOU with Haitong Securities to collaborate on trading, ETFs and IPOs, to help facilitate Chinese investor access into London. Regulatory approval for Hong Kong firms to become members of London Stock Exchange has been received and in July, BOCI Securities, a wholly owned subsidiary of Bank of China, became the first member of London Stock Exchange from Hong Kong. In addition, the Group entered a partnership agreement with Borsa Istanbul, to develop trading in Turkish index and equity derivatives, as well as launching an index partnership with FTSE. 

In Primary Markets, activity levels remained strong, with record fund listings from a diverse range of international issuers, launch of the first London listed RMB denominated money market ETF and last month saw Bank of China’s first euro denominated bond which was admitted to trading in London.  At the end of a busy H1, AIM celebrated its 20th anniversary, marking a great achievement as the world’s most successful and established market for growth companies.

Underscoring our commitment to our open access model, we announced in early August an agreement with CME, a US exchange, to launch US futures contracts on FTSE Russell indexes.  This follows a licensing agreement signed earlier this year with CBOE, to develop new index options in the US based on FTSE and Russell indexes In July, Turquoise entered exclusive discussions with Plato Partnership, a group representing asset managers and broker dealers, to collaborate on market structure initiatives in Europe. 

Further commentary on the major factors determining Group performance in this six month period is provided below.

Operational Performance

Revenue for Capital Markets, which includes primary and secondary market activities, increased 4% on an organic and constant currency basis (down 1% at a reported level).  In primary markets, revenue was 1% lower, with growth in annual fee income offset by a slight decline in admission fees.  There was continued good activity in terms of the number of main market new issues in the UK and Italy, while the amount of money raised, at £23.1 billion, was down on the high levels of last year (H1 2014: £28.1 billion).

In secondary markets, revenue increased 6% on an underlying basis (flat at a reported level).  UK cash equities trading revenue increased 8%, reflecting a 12% rise in value traded at London Stock Exchange and 23% growth on Turquoise.  In Italy, revenue increased 10% at constant currency as the number of trades increased by 6%. 

Fixed income trading revenue increased 1% at organic constant currency (down 8% on a reported basis), reflecting 22% growth in trading volumes on the MTS repo markets, offset by a 6% decline in MTS cash markets and BondVision.  Revenue from the Group’s derivatives markets rose 4% on a constant currency basis (down 6% on a reported basis), with growth in Italy derivatives offset by declines in the UK.

Revenue for Post Trade Services in Italy, comprising CC&G and Monte Titoli, increased 3% at constant currency (down 8% at a reported level).  Clearing revenues rose 8% at constant currency, with a 10% increase in clearing volumes. Settlement revenue rose 1% at constant currency (down 10% as reported), while custody revenues declined 1% at constant currency (down 11 per cent on reported basis) as assets under custody reduced by 2% to €3.32 trillion.  Treasury income decreased 11% on a constant currency basis to £13.4 million, as a consequence of the low yield environment in Eurozone government bonds and the short duration of cash margin investments.

Post Trade Services - LCH.Clearnet segment comprises the Group's majority-owned global clearing business.  Revenue for the half year declined 11% on a constant currency basis and down 14% on a reported basis, reflecting the loss of LME commodities clearing from September 2014. Adjusting for LME, revenue was flat on a reported basis and up 5% on a constant currency basis.  OTC revenue rose 15% on a constant currency basis, with interest rate swap (IRS) revenues up 19%.  Although the amount of IRS notional cleared decreased 25%, as a result of a reduction in market-wide activity during the period, revenue rose due to an increase in membership fee income as well as a greater volume of client clearing.  Share of client clearing has remained good at 69% during the period.  Use of compression tools remained strong; in the first six months of 2015, SwapClear has cleared $261 trillion and compressed $164 trillion through proprietary and third party compression services. 

Non-OTC products clearing revenues declined 31% on a constant currency basis and were 8% lower on a reported basis and 2% lower on a constant currency basis after adjusting for loss of LME. Fixed income clearing revenue was flat year on year at constant currency, reflecting an unchanged level of clearing activity.   Derivative revenue declined, reflecting a reduction in clearing volumes, while equity clearing revenues increased following 22% growth in clearing activity. Net treasury income was down 6% at constant currency, with pressures on investment returns mostly offset by an increase in average cash collateral, up 25% to €56.2 billion. 

Information Services revenue increased 45% to £261.0 million (up 5% on an organic constant currency basis).  This growth reflects both the good performance of FTSE, with revenue up 12% (8% at constant currency) to £101.2 million, as well as contribution from Russell Indexes of £70.0 million.  In addition, other information services, including UnaVista, continued to grow well with a 6% increase in revenue.  Partly offsetting this strong performance was a 6% decline in revenue from real time data, reflecting a reduction in the number of professional users of real time UK and Italian data.   

The integration of FTSE and Russell Indexes is progressing well. The two businesses are now unified under a new global brand, FTSE Russell, and the client sales and marketing teams are combined.  Further integration plans are well developed and roll out of the next stages will continue in the months ahead.  In the meantime, both Index businesses are performing well: ETF AUM benchmarked to FTSE grew 8% to $230 billion and Russell ETF AUM increased 16% to $159 billion.

Technology Services revenue increased 17% to £38.3 million (up 14% at constant currency).  MillenniumIT revenue was 18% higher (up 8% at constant currency), mainly due to normal variations in phasing of billable work.  Revenue from other technology services increased 15%, with growth from a number of IT products.

Russell Investment Management performed well with income of £498.2 million, the first six month contribution since completion of the acquisition in December 2014.  The Group concluded its comprehensive review of the Investment Management business in February 2015 and decided to sell this business in its entirety.  As a consequence, this segment of the Group is now treated as a discontinuing business in the principal financial statements and notes to the accounts in this interim report, but the results are included in this summary financial section.

Financial Summary

Unless otherwise stated, all figures below refer to the six months ended 30 June 2015.  Comparative figures are for the six months ended 30 June 2014 (H1 2014).  Variance is also provided at organic and constant currency.  Adjustments have been made to include discontinuing operations in the tables and narratives below.  The basis of preparation is set out at the end of this report. 

Organic and

Six months   ended

constant

30 June

currency

2015

2014

Variance

variance1

 

£m

£m

%

%

Revenue

 

 

 

Capital Markets 1

170.0 

171.2 

(1%)

4% 

Post Trade Services - CC&G and Monte Titoli

46.8 

51.0 

(8%)

3% 

Post Trade Services - LCH.Clearnet

149.1 

173.8 

(14%)

(11%)

Information Services 1

261.0 

180.0 

45% 

5% 

Technology Services

38.3 

32.8 

17% 

14% 

Russell Investment Management 1

497.3 

-

-

Other revenue

2.4 

2.7 

(11%)

(8%)

Total revenue

1,164.9 

611.5 

90% 

1% 

Net treasury income through CCP business:

CC&G

13.4 

16.8 

(20%)

(11%)

LCH.Clearnet

27.0 

29.3 

(8%)

(6%)

Other income

3.4 

3.6 

(6%)

0% 

Total   income

1,208.7 

661.2 

83% 

0% 

Operating   expenses

(842.5)

(372.4)

126%

4% 

Share of loss after tax of associates

(0.1)

-

Adjusted   operating profit 2

366.1 

288.8 

27% 

(5%)

Amortisation of purchased intangibles and non-recurring items

(126.7)

(83.1)

52% 

(25%)

Operating   profit

239.4 

205.7 

16% 

4% 

Basic   earnings per share (p)

43.4 

40.5 

7% 

Adjusted   basic earnings per share (p) 2

65.5 

57.3 

14% 

Dividend   per share (p) 3

10.8 

9.7 

11% 

 

1 Organic growth is calculated in respect of businesses owned for at least 6 months in either period and so excludes Bonds.com, MTS Indices and Frank Russell Company. The Group’s principal foreign exchange exposure arises from translating our European based euro and US based USD reporting businesses into sterling.

2 before amortisation and impairment of purchased intangibles and goodwill and non-recurring items

3 change on an equivalent basis to dividend paid for 6 months period ending 30 September 2014 

Unless otherwise stated, all figures refer to the 6 months ended 30 June 2015 and comparisons are against the same corresponding period in the previous year

The Group has delivered good financial results.  Revenue increased 90% to £1,164.9 million (H1 2014: £611.5 million), which includes the effects of the acquisition of Frank Russell Company.  On a continuing operations basis, revenue increased 9% and rose 14% after adjusting for the loss of LME clearing business at LCH.Clearnet.  On an organic and constant currency basis, revenue increased 1% with growth across most business segments, partly offset by the expected reduction at LCH.Clearnet following the loss of LME clearing revenues.  Total income rose 83% to £1,207.8 million (H1 2014: £661.2 million), and flat on an organic and constant currency basis. 

Operating expenses, before amortisation of purchased intangibles and non-recurring items, rose 126% to £842.5 million (H1 2014: £372.4 million), mostly reflecting inclusion of Russell.  On an organic and constant currency basis, costs were 4% higher, mainly reflecting increased cost of sales following growth at FTSE Russell and SwapClear, and as investment in growth initiatives continues in the period. Offsetting these expenses were €30 million savings at LCH.Clearnet from the planned €60 million cost reduction programme, plus control of other expenditure. 

Adjusted operating profit for the period, before amortisation of purchased intangibles and non-recurring items, increased 27% to £366.1 million (H1 2014: £288.8 million). Operating profit was £239.4 million (H1 2014: £205.7 million)

Net finance costs were £34.2 million (down from £35.4 million in H1 last year), and profit before tax was £205.2 million (H1 2014: £170.4 million).  The underlying effective Group tax rate was 26.0%, an increase from the rate for the year ended 31 December 2014 (25.6%), reflecting inclusion of the Russell Indexes and Investment Management operations, which are predominantly subject to minimum combined US federal and state tax rates of 35%.

Adjusted basic EPS, before amortisation of purchased intangibles and non-recurring items, increased 14% to 65.5 pence (H1 2014: 57.3 pence) while basic EPS was 43.4 pence (H1 2014: 40.5 pence).

Net cash inflow from operating activities was £166.4 million (H1 2014: £199.0 million), reflecting increased tax payments and working capital outflows. Capital expenditure in the period amounted to £48.6 million (H1 2014: £53.6 million).  Looking ahead, we expect full year run rate capex to continue at similar levels to H1, as we continue to invest in further integration work and product initiatives.  Net cash generated after capex, other investments and dividends, was £52.2 million (H1 2014: £108.0 million).  Free cash flow per share (post net interest paid, tax paid and investment activities) was 38.8 pence (30 June 2014: 45.3 pence).

Committed, undrawn credit lines available for Group purposes at 30 June 2015 totalled £462.8 million, extending out to 2016 or beyond. 

At 30 June 2015, adjusted net debt was £1,454.1 million (after setting aside £922 million of cash for regulatory and operational support purposes and assuming no surplus cash at LCH.Clearnet) while drawn borrowings of £1,762.0 million were £35.6 million higher than at the start of the current financial year.  At 30 June 2015, pro forma net debt:EBITDA reduced to 2.0 times (from 2.1 times at 31 December 2014).

The Group had net assets of £2,903.4 million at 30 June 2015 (31 December 2014: £2,955.3 million), including £1,164.8 million in cash and cash equivalents including assets held for sale.

Russell Investment Management 

The Group completed the acquisition of Frank Russell Company on 3 December 2014 and carried out a comprehensive review focused principally on assessing the strategic fit of Russell Investment Management with the Group’s long term strategy. After careful consideration, the Group concluded its review on 5 February 2015 and decided to sell the business in its entirety.

The Group received a number of expressions of interest in a potential acquisition of the Investment Management business, and we continue to make good progress with the sale process.  More information will be provided in due course. Work continues to ensure the full separation of the Russell Indexes business from the Investment Management operations, and this work is expected to be completed by the conclusion of the sale process.  In the meantime, Russell Investment Management will continue its focus on client service, growth and innovation.

Interim Dividend 

The Board continues to review ways to maximise shareholder value and maintain an efficient capital structure, and remains committed to a policy of progressive dividends to enhance shareholder returns.  Accordingly, the Directors have declared an interim dividend of 10.8 pence per share, an increase of 11.4% (9.7 pence per share for the six months ended 30 September 2014).  The interim dividend will be paid on 22 September 2015 to shareholders on the register on 28 August 2015.

The Board intends to provide an update on capital allocation, including its longer term dividend policy, at the time of the Preliminary results for 2015, expected to be in March 2016.

Board changes

There have been a number of changes to the Board since the start of the year.  Chris Gibson-Smith stood down as Chairman and left the Board with effect from 1 July 2015, after 12 years in the role.  Robert Webb, Senior Independent Director and Chairman of the Remuneration Committee, retired from the Board following 14 years service, and Baroness Joanna Shields also stepped down to take on a UK Government role. 

Joining the Board are Donald Brydon, who becomes Chairman, and Mary Schapiro, who is a non-Executive Director.  Paul Heiden has become the Senior Independent Director and Sherry Coutu has taken on the role as Chairman of the Remuneration Committee.

The Board is grateful to all the departing directors for their contributions and in particular to Chris Gibson-Smith and Robert Webb for their significant insight, counsel and guidance over a period of significant development and achievement for the Group.

Outlook

The Group has made a good start to the financial year. We remain focused on achieving the cost synergies and revenue benefits from the integration of FTSE and Russell.  We will also continue to invest in a wide range of growth initiatives across the Group, including the opportunities highlighted in Post Trade operations, as well as the cost reduction programme at LCH.Clearnet.  Looking ahead, we remain well positioned as a leading international, open access market infrastructure business.

Xavier Rolet

Chief Executive
5 August 2015

 

Operating Performance – Key statistics

To assist investors in understanding the underlying performance of the Group, percentage changes are also presented on a constant currency basis.

Capital Markets

Capital Markets comprises the Group’s primary markets activities, providing access to capital for corporates and others, and the secondary market trading of cash equities, derivatives and fixed income. 

Organic and

Six months ended

constant

30 June

currency

2015

2014

Variance

variance1

Revenue

£m

£m

%

%

Primary   Markets

Annual   fees

22.5

21.7

4% 

8% 

Admission   fees

22.9

24.3

(6%)

(5%)

 

45.4

46.0

(1%)

1% 

Secondary Markets

Cash   equities UK & Turquoise

54.9

50.9

8% 

8% 

Cash   equities Italy

19.8

19.9

(1%)

10% 

Derivatives

9.3

9.9

(6%)

4% 

Fixed   income

36.5

39.6

(8%)

1% 

 

120.5

120.3

0% 

6% 

Other

4.1

4.9

(16%)

(13%)

Total revenue

170.0

171.2

(1%)

4% 

 

1 Removal of Bonds.com revenue (Capital Markets – Fixed Income) and MTS Indices removed from Capital Markets Fixed Income revenue and included in Information Services FTSE revenue

 

Capital Markets - Primary Markets

Six months ended

 

30 June

Variance

2015

2014

%

New Issues

UK Main Market, PSM & SFM

47

48

(2%)

UK AIM

32

64

(50%)

Borsa Italiana

14

12

17% 

Total

93

124

(25%)

Money Raised (£bn)

UK New

6.3

12.0

(48%)

UK Further

12.8

8.5

51% 

Borsa Italiana New and Further

4.0

7.6

(47%)

Total (£bn)

23.1

28.1

(18%)

 

Capital Markets - Secondary Markets

Six months ended

 

30 June

Variance

Equity

2015

2014

%

Totals for period

UK value traded (£bn)

655

587

12% 

Borsa Italiana (no of trades m)

37.1

35.0

6% 

Turquoise value traded (€bn)

570

462

23% 

SETS Yield (basis points)

0.61

0.63

(3%)

Average daily

UK value traded (£bn)

5.3

4.7

13% 

Borsa Italiana (no of trades '000)

297

280

6% 

Turquoise value traded (€bn)

4.5

3.7

22% 

Derivatives   (contracts m)

LSE Derivatives

2.3

7.9

(71%)

IDEM

22.0

19.4

13% 

Total

24.3

27.3

(11%)

Fixed Income

MTS cash and BondVision (€bn)

2,135

2,261

(6%)

MTS money markets (€bn term adjusted)

44,856

36,669

22% 

 

Post Trade Services – CC&G and Monte Titoli

This division comprises the Group’s Italian-based clearing, settlement and custody businesses.   

 

Six months ended

Constant

30 June

currency

2015

2014

Variance

variance

£m

£m

%

%

Revenue

Clearing

19.8

20.7

(4%)

8% 

Settlement

8.4

9.3

(10%)

1% 

Custody   & other

18.6

21.0

(11%)

(1%)

Net   treasury income

13.4

16.8

(20%)

(11%)

Total   income

60.2

67.8

(11%)

(0%)

 

Six months ended

 

30 June

Variance

2015

2014

%

CC&G Clearing

Contracts (m)

61.5

55.9

10% 

Initial margin held (average €bn)

12.2

10.7

14% 

Monte Titoli

Settlement instructions (trades m)

35.0

34.8

1% 

Custody assets under management (average €tn)

3.32

3.38

(2%)

 


Post Trade Services - LCH.Clearnet

 

Organic and

Six months ended

constant

30 June

currency

2015

2014

Variance

variance1

Revenue

£m

£m

%

%

OTC

SwapClear

62.4

52.6

19% 

19% 

ForexClear   / CDSClear

12.9

14.7

(12%)

(1%)

 

75.3

67.3

12% 

15% 

Non-OTC

Fixed   income

20.5

22.6

(9%)

(0%)

Commodities

-

25.4

-

Listed   derivatives

19.5

22.7

(14%)

(11%)

Cash   equities

17.9

17.4

3% 

8% 

 

57.9

88.1

(34%)

(31%)

Total   Clearing fee revenue

133.2

155.4

(14%)

(11%)

Other

15.9

              18.4

(14%)

(9%)

Total   revenue

149.1

173.8

(14%)

(11%)

Net   treasury income

27.0

29.3

(8%)

(6%)

Unrealised   gain

                0.1

                0.2

Total   income

176.2

203.3

(13%)

(10%)

 

Six months ended

 

30 June

Variance

2015

2014

%

OTC derivatives

SwapClear

IRS notional cleared ($trn)

261

346

(25%)

SwapClear members

111

106

5% 

CDSClear

Notional cleared (€bn)

66.4

38.4

73% 

CDSClear members

11

9

22% 

ForexClear

Notional value cleared ($bn)

522

402

30% 

ForexClear members

23

20

15% 

Non-OTC

Fixed income - Nominal value (€trn)

36.5

36.6

(0%)

Listed derivatives (contracts m)

72.6

92.0

(21%)

Cash equities trades (m)

271.1

221.7

22% 

Average cash collateral (€bn)

56.2

44.8

25% 

 

Information Services

The Information Services division consists of Global Indices products, real time data products and a number of other discrete businesses including Trade Processing operations, Desktop and Work Flow products. 

 

Organic and

Six months ended

constant

30 June

currency

2015

2014

Variance

variance1

£m

£m

%

%

Revenue

FTSE

101.2

90.3

12% 

8% 

Russell Indexes

70.0

-

Real time data

42.0

44.6

(6%)

(3%)

Other information services

47.8

45.1

6% 

8% 

 

261.0

180.0

45% 

5% 

 

 

1 MTS Indices removed from Capital Markets Fixed Income revenue and included in Information Services FTSE revenue
Other information services includes a small operation which is held for sale

 


 

As at

30 June

Variance

2015

2014

%

Terminals

UK

75,000

79,000

(5%)

Borsa Italiana Professional Terminals

128,000

132,000

(3%)

ETFs assets under management benchmarked ($bn)

FTSE

230

213

8% 

Russell Indexes

159

137

16% 

Russell Investment Management AuM ($bn) 1

266

280

(5%)

 

Technology Services

Technology Services comprises technology connections and data centre services for clients of London Stock Exchange and Borsa Italiana, plus the MillenniumIT software business, based in Sri Lanka, which provides technology for the Group as well as third party sales and enterprise services.

 

Organic and

Six months ended

constant

30 June

currency

2015

2014

Variance

variance

£m

£m

%

%

Revenue

MillenniumIT

19.4

16.4

18%

8%

Technology

18.9

16.4

15%

20%

Total   revenue

38.3

32.8

17%

14%

 

Basis of Preparation

Results for the European and US businesses have been translated into Sterling using the exchange rates set out below.  Constant currency growth rates have been calculated by translating prior period results at the average exchange rate for the current period.

 

 

Average rate

Closing rate at 30 June 2015

Average rate

Closing rate at 30 June 2014

 

6 months ended

6 months ended

 

30 June 2015

30 June 2014

 

 

 

GBP :   EUR

1.37

1.41

1.22

1.25

GBP :   USD

1.52

1.57

1.67

1.70

 

1 LSEG and the members of its group accept no responsibility for or liability in respect of information relating to Russell AUM, which has been published by Russell Investments and has not been independently verified by LSEG. No representation or warranty, expressed or implied, is given by or on behalf of LSEG or its group as to its accuracy or completeness and no reliance should be placed on such information