Commenting on the Group's performance, Roger Liddell, Group Chief Executive, said: "LCH.Clearnet has seen spectacular levels of clearing activity, with record volumes being established, broken and then re-broken in clearing cash markets, and unprecedented monthly nominal values in fixed income. On a like for like basis, clearing volumes have risen more than 28% against the same period in 2005, reaching a total of 639.3m contracts. These high levels of business activity have resulted in net revenues increasing by €58.5m (35.5%) to €223.1m. At the same time strong control exercised over the cost base has resulted in costs and expenses, excluding exceptional items, falling by €13.5 m (11.5%) to €103.9m.
"During the period, the Group undertook a further review of its technology strategy. As a result of this review, the Group has decided not to continue to use assets from the Generic Clearing System (GCS) within its technology strategy. Accordingly, a €47.8m write off (2005: €20.1m), which substantially relates to those assets, has been recognised in the consolidated income statement for the 6 months to 30 June 2006. The total cost of GCS was €121.3m, of which a substantial proportion was expensed directly to the Income Statement as incurred. The GCS programme has now been fully written off.
"Given the short period that has elapsed since my appointment, this statement at the half year point has been necessarily brief; I look forward to being able to make more detailed comments at the year end. In particular, I will be undertaking a strategic review of our business and supporting technology, and I will be better placed to comment thereafter."
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