London Stock Exchange up on bumper profits
The London Stock Exchange (LSE) has long been a target of takeover speculation but after revealing a sharp jump in profits, it now looks more hunter than hunted.
The London Stock Exchange (LSE) has long been a target of takeover speculation but after revealing a sharp jump in profits, it now looks more hunter than hunted.
The group does four things: provide markets through which companies can raise funds and investors can invest; it offers Post Trade Services, which make sure investors actually can pay for the assets they have agreed to buy; Information Services puts together different indices (or lists) of assets - like the FTSE 100; while Technology Services provides the computer systems that enable trading to take place.
In other words, there is a lot more to it than just a load of hyped-up people staring at trading screens.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Total income across the whole business in the 12 months to the end of March was £814.8m, up 21% on the previous year, or 16% excluding acquisitions and currency effects.
Adjusted operating profit was £441.9m, a 30% gain on 2010/2011 - 25% excluding acquisitions and currency effects.
Profit before tax rose 169% to £639.7m following the purchase of the outstanding 50% stake in the FTSE indexing business from the publisher of the Financial Times, Pearson.
The final dividend has been increased by 6% to 19p per share, giving a total for the year of 28.3p - also a 6% gain on 2010/2011.
LSE's Chief Executive, Xavier Rolet said the group had made "great progress this year".
The market thought so too, by 10:35 the stock had risen 6%.
BS
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published