David Schwimmer, Group CEO, said:
“I am delighted to join the Group, which continues to deliver strong growth. The Group's strategy, based on an open access and customer partnership approach, provides a great foundation for further success. My immediate focus is to meet with colleagues, customers, shareholders and other stakeholders, and to ensure we continue our focus on driving operational excellence across LSEG as I work with the executive team to develop the Group's many opportunities ahead.”
David Warren, Group CFO, said:
“The Group has delivered another strong performance, with growth across all business areas. LCH has launched new products and set new records for clearing levels in the SwapClear and ForexClear services, while FTSE Russell has produced another good result. Capital Markets performed well with increases in primary and secondary markets activity. We are in a strong position as we work to execute on our strategy and to meet our financial targets while continuing to invest for further growth.”
Financial Summary
Unless otherwise stated, all figures below refer to continuing operations for the six months ended 30 June 2018. Comparative figures are for continuing operations for the six months ended 30 June 2017 (H1 2017). Variances are also provided on an organic and constant currency basis.
|
|
|
|
|
|
Organic and |
|
|
|
|
Six months ended |
constant |
|
||
|
|
|
30 June |
currency |
|
||
|
|
|
2018 |
2017 |
Variance |
variance1 |
|
|
Continuing operations |
|
£m |
£m |
% |
% |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Information Services 1 |
|
412 |
355 |
16% |
9% |
|
|
Post Trade Services – LCH |
|
237 |
207 |
14% |
14% |
|
|
Post Trade Services – CC&G and Monte Titoli |
|
52 |
55 |
(6%) |
(8%) |
|
|
Capital Markets |
|
215 |
190 |
13% |
12% |
|
|
Technology Services 1 |
|
32 |
41 |
(22%) |
18% |
|
|
Other revenue |
|
5 |
5 |
– |
– |
|
|
Total revenue |
|
953 |
853 |
12% |
11% |
|
|
|
|
|
|
|
|
|
|
Net treasury income through CCP businesses |
|
104 |
75 |
38% |
39% |
|
|
Other income |
|
3 |
18 |
– |
– |
|
|
Total income |
|
1,060 |
946 |
12% |
11% |
|
|
Cost of sales |
|
(106) |
(102) |
4% |
13% |
|
|
Gross profit |
|
954 |
844 |
13% |
11% |
|
|
|
|
|
|
|
|
|
|
Operating expenses before depreciation and amortisation |
|
(407) |
(399) |
2% |
5% |
|
|
Underlying depreciation and amortisation |
|
(64) |
(46) |
39% |
34% |
|
|
Total operating expenses |
|
(471) |
(445) |
6% |
8% |
|
|
Share of loss after tax of associate |
|
(3) |
(1) |
– |
– |
|
|
Adjusted operating profit 2 |
|
480 |
398 |
21% |
14% |
|
|
|
|
|
|
|
|
|
|
Add back underlying depreciation and amortisation |
|
64 |
46 |
39% |
34% |
|
|
Earnings before interest, tax, depreciation and amortisation |
|
544 |
444 |
23% |
16% |
|
|
|
|
|
|
|
|
|
|
Profit on disposal of business |
|
– |
5 |
– |
– |
|
|
Amortisation of purchased intangible assets and non-underlying items |
|
(87) |
(98) |
(11%) |
(10%) |
|
|
Operating profit |
|
393 |
305 |
29% |
19% |
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
Basic earnings per share (p) |
|
71.1 |
50.4 |
41% |
|
|
|
Adjusted basic earnings per share (p) 2 |
|
88.7 |
71.2 |
25% |
|
|
|
|
|
|
|
|
|
|
|
Dividend per share (p) |
|
17.2 |
14.4 |
19% |
|
|
Outlook
The Group has delivered a strong financial performance in H1, with revenue growth across our businesses as we invest further to drive further sales growth and operating efficiencies. We remain well positioned in an evolving regulatory and macroeconomic environment and remain focused on achieving the 2019 financial targets.