Friday 17 August 2018

First-quarter profits rise at London Stock Exchange Group

LSE’s clearing division, LCH, saw revenue rise 13% to £118 million.

The London Stock Exchange had a strong first quarter (Kirsty O'Connor/PA)
The London Stock Exchange had a strong first quarter (Kirsty O'Connor/PA)

By Ravender Sembhy, Press Association City Editor

London Stock Exchange Group booked a rise in first-quarter revenue and profit as it was buoyed by the performance of its clearing and information units.

The group, which earlier this month named David Schwimmer as its new chief executive, posted a 13% rise in income to £520 million.

LSE’s clearing division, LCH, saw revenue rise 13% to £118 million, with the exchange’s information service posting a 11% rise in sales to £201 million.

Gross profit for the three months to March 31 rose 12% to £464 million.

Interim chief executive David Warren said: “All of our key businesses continue to perform well, with strong growth in FTSE Russell, LCH and Capital Markets.

“During the period, we further increased our stake in LCH and acquired full ownership of the FTSE TMX Global Debt Capital Markets business.

“The group is strategically well placed to further develop its many growth opportunities, working in partnership with our customers.”

The results come on the same day as the group’s AGM, which will cap a tumultuous period for the exchange operator.

Chairman Donald Brydon survived a shareholder attempt to oust him in December over the decision to remove longstanding chief executive Xavier Rolet.

While Mr Brydon survived, he said he will not seek re-election in 2019.

Mr Rolet held the LSE’s top job for more than eight years, during which time the LSE has seen its stock market value soar from £800 million to nearly £14 billion amid a string of acquisitions.

Mr Schwimmer, a 49-year-old Goldman Sachs veteran, will join the LSE on August 1.

Press Association

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