• Continued delivery of successful strategy - Group strongly positioned to make further progress
• Strong performance from underlying growth in Capital Markets, Information Services including indices, SwapClear and Italian Post Trade operations - and full year contribution from Russell Indexes
• Total income1 up 72% to £2,381.5 million (2014: £1,381.1 million)
• Total revenue1 up 78% to £2,285.4 million (2014: £1,283.2 million); revenue up 11% on a continuing operations basis2 and up 15%exc. LME clearing
• Total operating expenses1 continue to be well controlled, at £1,052.0 million - up 1% on an organic and constant currency basis as the Group invests in growth initiatives
• Total adjusted operating profit3 up 27% at £709.6 million (2014: £558.0 million); operating profit of £499.9 million (2014: £346.0 million); adjusted profit before tax3 up 31% at £643.4 million (2014: £491.7 million)
• Adjusted EPS1,3 up 25% at 129.4 pence (2014: 103.3 pence); basic EPS1 of 94.6 pence (2014: 56.5 pence)
• Proposed final dividend increased to 25.2 pence per share - an implied 20% increase in the full year dividend to 36.0 pence per share - reflecting strong financial position and confidence in further progress
• Group remains committed to a progressive dividend policy with intention to move towards a 2.5 - 3.0x dividend cover range
• Good operational performance and new initiatives from our strategy to deliver best in class capabilities, drive global growth and develop our customer partnership approach:
- Group’s Post Trade operations (in May 2015) highlighted €175-250 million incremental revenues by end 2018 through new products
- SwapClear provided record compression of US$328 trillion (resulting in estimated regulatory capital reductions of US$25 billion for our customers), strengthened its share of OTC swaps clearing to almost 95% in the United States and is preparing to launch new portfolio margining service by using its IRD liquidity pool, the world’s largest
- CDSClear growing and ForexClear service further developed
- Development of CurveGlobal listed derivatives trading venue, in partnership with customers
- Group’s Information Services operations (in November 2015) disclosed expected double-digit revenue growth from its indexes business, through multiple initiatives, including new future and options contracts on FTSE Russell Indexes agreed in year with CBOE and CME
• Further cost efficiencies to come with FTSE Russell integration benefits on track; an additional €40 million of cost synergies identified at LCH.Clearnet (May 2015), and further long term efficiencies as IT platforms are upgraded
• Agreed sale of Russell Investment Management for US$1,150 million with proceeds used to repay debt; completion on track for H1 2016
• In February 2016, the Group confirmed that it is in detailed discussions with Deutsche Börse regarding a potential merger of equals to form a global market infrastructure group with significant benefits for our customers and shareholders
1 revenue, total income, operating expenses and EPS include both continuing and discontinued operations and excludes unrealised gains and losses for 2014 at LCH.Clearnet
2 continuing operations exclude businesses classified as disposal group, primarily being Russell Investment Management
3 before amortisation of purchased intangible assets and non-recurring items
Organic growth is calculated in respect of businesses owned for at least 12 months in either period and so excludes Bonds.com, Proquote, Exactpro, MTS Indices and Frank Russell Company. The Group’s principal foreign exchange exposure arises from translating our European based euro and US based USD reporting businesses into sterling.


Commenting on performance for the year and recent developments, Xavier Rolet, Group Chief Executive, said:

“The Group has produced another strong financial performance and continues to make excellent progress executing our strategy to be a leader in global markets infrastructure. We have delivered underlying growth in each of our business areas and maintained good cost control. We have further strengthened the Group through integrating recent acquisitions and developing innovative new products.

"FTSE Russell, our global indexes business has shown strong growth and our integration savings remain firmly on track. LCH.Clearnet has delivered another good performance in its OTC clearing services, and its new portfolio margining service, LCH Spider will launch shortly. Across all of our businesses, we are well positioned with a number of growth opportunities delivering significant efficiencies and services on an open access basis to customers globally.

“We have recently confirmed that we are in detailed discussions with Deutsche Börse regarding a potential merger of equals. This represents a compelling opportunity to strengthen each other in an industry-defining combination, by creating a global market infrastructure group with significant benefits for our customers and shareholders.”

Post period end

On 23 February 2016, the Board of LSEG and the Management Board of Deutsche Börse confirmed that they are in detailed discussions about a potential merger of equals, with the new Combined Group to be a UK plc domiciled in London.

The Boards believe that the potential merger would represent a compelling opportunity for both companies to strengthen each other in an industry-defining combination, creating a leading European-based global markets infrastructure group. The combination of LSE and Deutsche Börse’s complementary growth strategies, products, services and geographic footprint would be expected to deliver an enhanced ability to provide a full service offering to customers on a global basis. LSEG and Deutsche Börse believe that the potential merger would offer the prospect of enhanced growth, significant customer benefits including cross-margining between listed and OTC derivatives clearing (subject to regulatory approvals), as well as substantial revenue and cost synergies and increased shareholder value. All key businesses of LSEG and Deutsche Börse would continue to operate under their current brand names. The existing regulatory framework of all regulated entities within the Combined Group would remain unchanged, subject to customary and final regulatory approvals.

Discussions between the parties remain ongoing regarding the other terms and conditions of the potential merger. There can be no certainty that any transaction will occur. Any transaction would be subject to regulatory approval, LSEG shareholders’ approval and Deutsche Börse shareholders’ acceptance, as well as other customary conditions.