LSE firing on all cylinders

Revenue and profits at bourse operator London Stock Exchange came in ahead of expectations, with the group boasting of strong performances across all four of its business divisions.

Total income for the year ended March 31st was up 21% at £814.8m from £674.9m the year before, and ahead of market expectations of £770.3m. Revenue rose 10% to £679.8m from £615.9m the year before.

Adjusted profit before tax was up 35% at £400.6m from £296.3m the year before, beating expectations of profits of £380.2m. When including the value of the LSE's existing interest in FTSE, the indices calculation agency which the firm took full control of last year, profit before tax was up 169% at £639.7m from £238.2m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

Adjusted earnings per share jumped 36% to 100.6p (consensus forecast: 95.47p) from 73.7p the year before, and the only area where the company seemed to fall below expectations was on the dividend front, where a 6% increase in the final dividend to 19p took the full year pay-out to 28.3p, versus expectations of 29.55p; the previous year the full year dividend was 26.8p.

"The group's breadth and diversity continues to provide resilience and a strong platform from which to seek opportunities. The business is alert and responsive to the markets in which it operates and remains focused on integrating its new acquisitions, delivering on stated cost and revenue synergies and driving performance. The group expects to make further good strategic progress in the year ahead," the statement said.

JH