· Strong start to 2017: Q1 total income from continuing operations up 19% to £458.7 million; gross profit (after cost of sales) up 17%
· Strong results reflect good headline growth across all core business areas as the Group continues to deliver and execute on its strategy; revenue up 18% (up 8% on an organic and constant currency basis)
· Group remains actively engaged in exploring selective ongoing organic and inorganic investments in order to drive further growth
Q1 summary:
· LCH income increased 31% (up 21% at constant currency), with 27% revenue growth in OTC from higher SwapClear client trades; good performances also in CDSClear and ForexClear. Non-OTC clearing revenue up 15% with good growth in fixed income
· Post Trade Services (Italy) revenue up 18% (up 6% at constant currency) – increased settlement and custody revenues offset lower clearing revenue
· Information Services revenues up 24% (up 9% on organic and constant currency basis) – FTSE Russell up 11% on a like for like basis, and up 31% on a headline basis with the inclusion of Mergent following the successful completion in early January
· Capital Markets revenues up 1% (down 4% at constant currency), reflecting lower trading levels against a strong comparative quarter last year
· Technology Services revenues up 27% (up 18% at constant currency)
· Group continues to invest – new initiatives in the period include:
– CDSClear launched client clearing
– LCH SA began offering repo clearing on German debt
– FTSE Russell launched £SONET – a new secured rate for sterling overnight funds
– London Stock Exchange announced plans to launch a new International Securities Market
– More than 500 companies on ELITE, across 26 countries; ELITE Club Deal (online private placement platform) signed a strategic partnership with The HUB to provide bespoke technology
· £200 million share buyback programme commenced at the end of the quarter
Organic growth is calculated in respect of businesses owned for at least the full 3 months in either period and so excludes: Russell Investment Management, SwapMatch, Mergent and ISPS. 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 in Q1, Xavier Rolet, Chief Executive, said:
“The Group has made a strong start to the year with growth across all of our core businesses. In particular, we recorded strong results in the SwapClear OTC clearing service, and at FTSE Russell. We also have the first contribution from Mergent, having completed the transaction at the start of the quarter.
“We are well positioned as an open access financial markets infrastructure group to benefit from the introduction of MiFID II and remain focused on executing our strategy, partnering with customers and delivering value for shareholders. We continue to be actively engaged in exploring selective ongoing organic and inorganic investments in order to drive further growth.”