Strong financial performance, increased revenues across all business segments, continued cost discipline..…
Sign up for our weekly Newsletter and receive the latest ETF and ETC news.
Click here to register for your free copy
- Successful diversification strategy delivering tangible results, providing growth, performance and resilience
- Total income up 20 per cent at £386.5 million (H1 FY 2011: £321.1 million); revenue of £328.1million up 9 per cent (H1 FY2011: £300.6 million)
- Profit before tax up 79 per cent at £179.7 million (H1 FY 2011: £100.2 million); adjusted operating profit1 up 38 per cent at £214.3 million (H1 FY 2011: £154.8 million)
- Basic EPS up 86 per cent at 43.1 pence (H1 FY 2011: 23.2 pence); Adjusted EPS up 48 per cent at 47.6 pence (H1 FY 2011: 32.2 pence)
- Interim dividend of 9.3 pence per share, up 6 per cent (H1 FY 2011: 8.8 pence per share)
All comparisons are against the same corresponding period in the previous year unless stated otherwise
Commenting on performance of the Group, Xavier Rolet, Chief Executive said:
“Our diversification strategy is delivering. Today I am pleased to be reporting a strong first half performance across the Group with a 20 per cent rise in total income and a 79% per cent increase in profit before tax.
“Key highlights include a very good performance from Post Trade, an area we highlighted in 2009 as a core focus for us and which is now making a significant contribution to both Group revenue and growth. During the period we also successfully launched Turquoise Derivatives, launched MTS Gilts and a number of other new indices, secured new MillenniumIT contracts, continued to drive momentum in our UK Order Book for Retail Bonds and agreed to acquire the FSA’s trade reporting service, TRS. In addition, we also remain actively engaged in exclusive discussions with LCH.Clearnet about a potential transaction.
“Our balanced and diversified business, with a well-hedged, inversely-correlated portfolio of products and services, makes us strongly placed to take advantage of growth opportunities that the changing market and regulatory environment is presenting. Partnering with our clients to drive innovation and new services, strong cost control and our continued focus on new opportunities to grow the scale, scope and efficiency of the Group remain core. We are well placed to propel our business forward and successfully deliver on our growth strategy.”
Financial Highlights:
- Total income up 20 per cent at £386.5 million (H1 FY 2011: £321.1 million); revenue of £328.1million (H1 FY2011: £300.6 million), up 9 per cent.
- Adjusted operating expenses on a constant currency basis and excluding one-off effects in H1 last year, were flat in real terms on the prior year; Operating expenses up 4 per cent at £174.5 million (H1 FY 2011: £167.9 million)
- Adjusted operating profit1 up 38 per cent at £214.3 million (H1 FY 2011: £154.8 million)
- Profit before tax up 79 per cent at £179.7 million (H1 FY 2011: £100.2 million)
- Adjusted basic EPS up 48 per cent at 47.6 pence (H1 FY 2011: 32.2 pence); Basic EPS up 86 per cent at 43.1 pence (H1 FY 2011: 23.2 pence)
- Interim dividend of 9.3 pence per share, up 6 per cent (H1 FY 2011: 8.8 pence per share)
- Strong net cash inflow from operating activities of £154.2 million; adjusted net debt down £80 million in the period to £290 million
All comparisons are against the same corresponding period in the previous year unless stated otherwise
Operational Highlights:
- Post Trade Services’ total income up 68 per cent on an organic basis and at constant currency, driven by growth in clearing volumes and increased treasury income from the central counterparty business arising from higher quantum of margin held and improved spreads achieved on cash collateral put on deposit
- Number of new issues on the Group’s primary markets increased 15 per cent to 102, including 24 international companies; total capital raised up 32 per cent at £23 billion
- Revenue from fixed income trading increased 29 per cent with trading volumes on Group’s MTS fixed income (cash) markets up 6 per cent; derivatives trading volumes on IDEM up 6 per cent and volumes on Turquoise Derivatives up 26 per cent
- Trading of FTSE 100 Index Futures and Options successfully launched during the period, with further product additions planned in coming period
- Our new retail bond market in the UK, ORB, continues its strong steady growth, welcoming new issuer Places for People which raised £140 million and National Grid which raised £282.5 million; ORB has successfully raised in excess of £1.3 billion for companies through the retail investor community since it launched in 2010
- Good growth in trading on Turquoise – share of trading more than doubled since acquisition in 2010; Turquoise was the number two European MTF in lit and dark markets
- Revenue from other information products up 8 per cent, with good demand particularly for SEDOL, FTSE and UnaVista services; professional users of London Stock Exchange real time data stable since last year at 93,000 and down four per cent at Borsa Italiana
- Technology Services performing well, with MillenniumIT revenue up 10 per cent at constant currency, commencement of technology deliveries to Mongolia and Tullett Prebon; confirmation that MillenniumIT trading system is to be used by Oslo Bors
- Acquisition of the FSA’s trade reporting service, TRS, completed in October for £15 million, with its customers to be migrated to an enhanced UnaVista service
- Acquisition of remaining 13.6 per cent minority interest in CC&G in November for €62 million; transaction expected to be immediately earnings enhancing. The full economic benefit accrues from the start of this financial year – if the transaction had been completed on 1 April 2011 it would have added 2.3p to first half adjusted EPS
The Group remains actively engaged in exclusive discussions with LCH.Clearnet regarding a potential transaction
Source: ETFWorld – London Stock Exchange
Subscribe to Our Newsletter
