LSE posts fall in profits as operating costs rise

Exchange operator London Stock Exchange's (LSE) annual pre-tax profit was five per cent lower than the previous year as operating costs increased.

Exchange operator London Stock Exchange's (LSE) annual pre-tax profit was five per cent lower than the previous year as operating costs increased.

Adjusted pre-tax profit for the year to end of March came to £380.7m, down from £400.6m in 2012, reflecting a 12% rise in core operating expenses to £422.7m following acquisitions.

The company recently completed the acquisition of a majority stake in technology business GATElab and clearing house LCH.Clearnet.

Revenue grew 7.0% to £726.4m from £679.8m while adjusted earnings per share rose 5.0% to 105.3p.

The group's proprietary technology business MillenniumIT helped bolster results as sales rose.

"We have expanded our scale and reach, launched innovative new products and partnered with customers to develop new ventures. FTSE has performed well and is embedded as a core part of our business, and MillenniumIT has increased its third party sales as well as delivering key technology upgrades for the group," said Chief Executive Xavier Rolet.

"These achievements, and other initiatives we have undertaken to become more efficient and diversify our business, have laid strong foundations on which to continue to build and drive the group forward."

The company proposed a final dividend of 19.8p per share, bringing the total to 29.5p, a 4.0% increase.

Rolet said the company was optimistic about the year ahead and will continue to focus on "building best in class capabilities, extending our global footprint and to developing opportunities, now with LCH.Clearnet as part of the group".

Shares rose 3.37% to 1,380p at 08:03 Wednesday.

RD

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