Announcement of preliminary results for year ended 31 March 2013.
• Further strong progress as the Group delivers on its strategy for growth, increased global scale and reach
• Good financial and operational performance from an increasingly diversified business against a backdrop of challenging markets
• Revenue up 7 per cent at £726.4 million (2012: £679.8 million); adjusted total income1 up 5 per cent at £852.9 million (2012: 814.8 million)
• Core operating costs1 held flat, before impact of acquisitions and FX; operating expenses1 up 12 per cent to £422.7 million, reflecting acquisitions (2012: £378.8 million)
• Adjusted operating profit1 3 per cent lower at £430.2 million (2012: £441.9 million); operating profit also 3 per cent down at £348.4 million (2012: £358.5 million)
• Adjusted profit before tax1 down 5 per cent at £380.7 million (2012: £400.6 million); profit before tax of £298.9 million (2012: £639.7 million, which included recognition of the increased value in FTSE)
• Adjusted basic EPS1, including tax credits, up 5 per cent at 105.3 pence (2012: 100.6 pence); basic EPS of 80.4 pence (2012: 193.6 pence, including recognition of the increased value of our interest in FTSE)
• Proposed final dividend up 4 per cent to 19.8 pence per share; total dividend for the year increased 4 per cent to 29.5 pence per share. The final dividend will be paid on 19 August 2013 to shareholders on the register on 26 July 2013
• Completion of acquisition of majority stake in LCH.Clearnet on 1 May 2013; work is underway to achieve the benefits of this transformational deal
1 before acquisition amortisation and non-recurring items
Chris Gibson-Smith, Chairman, London Stock Exchange Group, said: "This has been another year of significant progress as we have become a more international and more diversified business. The successful executecution of our strategy has produced tangible operational and financial benefits and positions us well for further growth opportunities.
"We remain firmly focused on capitalising on the many opportunities that are available to us and to creating long term value."
Commenting on the year, Xavier Rolet, Chief Executive, London Stock Exchange Group said: "The Group has delivered a good full year performance with 7 per cent revenue growth and a 5 per cent increase in adjusted earnings per share.
"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. 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. We are optimistic about the year ahead and we 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."
| |
|
|
|
|
Organic and
|
| |
|
Year ended
|
constant
|
| |
|
31 March
|
currency
|
| |
|
2013
|
2012
|
Variance
|
variance
|
| |
|
£m
|
£m
|
%
|
%
|
|
Revenue
|
|
|
|
|
|
|
Capital Markets
|
|
267.5
|
301.9
|
(11%)
|
(9%)
|
|
Post Trade Services
|
|
91.8
|
101.6
|
(10%)
|
(4%)
|
|
Information Services
|
|
306.3
|
218.9
|
40%
|
4%
|
|
Technology Services
|
|
56.1
|
52.6
|
7%
|
11%
|
|
Other revenue
|
|
4.7
|
4.8
|
(2%)
|
0%
|
|
Total revenue
|
|
726.4
|
679.8
|
7%
|
(3%)
|
| |
|
|
|
|
|
|
Net treasury income through CCP business
|
|
116.7
|
126.9
|
(8%)
|
(4%)
|
|
Other income1
|
|
9.8
|
8.1
|
21%
|
23%
|
|
Adjusted total income1
|
|
852.9
|
814.8
|
5%
|
(3%)
|
| |
|
|
|
|
|
|
Operating expenses1
|
|
(422.7)
|
(378.8)
|
12%
|
1%
|
|
Share of profit of JVs and associates
|
|
-
|
5.9
|
-
|
|
|
Adjusted operating profit1
|
|
430.2
|
441.9
|
(3%)
|
(6%)
|
|
Amortisation of purchased intangibles and non-recurring items
|
|
(81.8)
|
(83.4)
|
(2%)
|
|
|
Operating profit
|
|
348.4
|
358.5
|
(3%)
|
5%
|
| |
|
|
|
|
|
|
Profit on disposal / acquisition of shares in subsidiary and joint ventures
|
|
-
|
324.3
|
|
|
| |
|
|
|
|
|
|
Basic earnings per share (p)
|
|
80.4
|
193.6
|
(58%)
|
|
|
Adjusted basic earnings per share (p) 1
|
|
105.3
|
100.6
|
5%
|
|
| |
|
|
|
|
|
|
Dividend (p)
|
|
29.5
|
28.3
|
4%
|
|
Adjusted basic earnings per share1 of 105.3 pence includes a 5.4 pence benefit from a one-time £14.6 million tax credit relating to prior years. Basic EPS of 193.6 pence in the prior year includes recognition of the increased value of the Group's interest in FTSE
1before amortisation of purchased intangibles and non-recurring items
Organic growth is calculated in respect of businesses owned for at least 12 months and so excludes GATElab and presents FTSE and TRS on a like-for-like basis with prior year.
Unless otherwise stated, all figures refer to the year ended 31 March 2013 and comparisons are against the same corresponding period in the previous year
Outlook
The initiatives we have undertaken to become more efficient and to diversify our business have laid the strong foundations on which to build and drive the Group forward. Our industry remains in the middle of widespread structural change, but the strength and breadth of our business make us well positioned to benefit from these changes, as well as the opportunities presented by an improving economic environment. In the year ahead, we will remain firmly focused on achieving the expected benefits from recent transactions and investment in new products, as well as continuing to seek new growth opportunities. We look ahead with optimism as we continue to develop opportunities to meet the needs of our customers and deliver value for shareholders.