IPO flurry helps London Stock Exchange to 19pc profit hike

Ollie Gordon
The London Stock Exchange has expanded in to the US and enjoyed rising profits (Source: Getty)
The London Stock Exchange (LSE) yesterday reported a 19 per cent jump in profits for the year ended 31 December, boosted by the healthy flow on initial public offerings over the period.

The 214-year-old bourse reported adjusted profits before tax of £491.7m for the period, up from £412.7m in 2013. Total income also expanded 26 per cent to £1.38bn, and revenues were up 32 per cent to £1.28bn, with growth seen across all the group’s main business areas.

Over the course of the year, LSE expanded its geographic and product footprint with the acquisition of US stock index and asset management firm Frank Russell Company, as well as signing a licensing agreement with the Chicago Board Options Exchange to develop index options – to start trading in the US in April – based on FTSE and Russell indices. The group also announced that clearing house LCH.Clearnet is to launch a new, open access, portfolio margining service.

“The group has delivered another strong financial performance, with organic growth in all business areas and contribution from acquisitions,” said chief executive Xavier Rolet.

“Working with our customers, the group is well positioned to build on its success as the only major, open access market infrastructure business.”

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