LSE Group reveals ‘strong start’ to its financial year

The London Stock Exchange Group on Wednesday reported growing demand for its key clearing and data businesses in the first quarter as it moved on from the collapse of its planned merger with Deutsche Börse.

In its first figures since the deal ended in late March, the UK exchange said it had made “a strong start” to the financial year.

The group published a trading statement ahead of its annual meeting with shareholders on Wednesday. For the period from January to April 25, the LSE reported total first quarter income from continuing operations up 19 per cent to £458.7m. The numbers were boosted by a 31 per cent increase in income at LCH, its majority-owned clearing house, and a 24 per cent rise in turnover at FTSE Russell, its data business.

Xavier Rolet, group chief executive, said the LSE was “actively engaged” in looking at deals and investments to drive further growth.

Earnings were boosted by the decline in the value of the pound against the euro and the dollar. A €0.05 change in the average euro:sterling rate would have resulted in a change to continuing operations total income of around £6.3 million for the first quarter, it added.

It had previously disclosed that it would start a £200m share buyback programme that was the equivalent of the special dividend shareholders would have received if the Deutsche Börse deal had gone through.