LSE reports a 31% increase in profits

The London Stock Exchange has released a strong set of results for the year

LSE reports a 31% increase in profits

The London Stock Exchange has released full year results which show operating profits rose to £499.9m from £346m, while basic earnings were up to 94.6 pence per share from 56.5 pence in 2014.

As a result, the LSE, which is in ongoing merger talks with Deutsche Boerse, announced a 20% increase in its full year dividend to 36 pence per share.

“Looking ahead the group expects to make another £40m in cost savings from the acquisition of Russell Investments and efficiencies from the upgrade of its platform,” said Graham Spooner, investment research analyst at The Share Centre.

“LSE said the case for merger with Deutsche Boerse is ‘compelling’ but made no mention of a potential rival bid from the owner of the New York Stock Exchange, which was reported this week.

“Investors should acknowledge that the share price has powered ahead over the last five years on the back of improving markets, leading to higher volumes of trading, new issues and, fund raising.

“The move into other areas of financial services has rewarded shareholders and the group remain confident of being well placed to develop further across their range of businesses and markets. There is a lot already baked into the price.”

Enter your e-mail address to receive updates straight to your inbox

My Newsletter

You can easily unsubscribe at any time by clicking on the unsubscribe links at the bottom of each of our emails

About Author