London Stock Exchange profits climb as it continues its hunt for a new boss

The London Stock Exchange Group’s (LSE) profit jumped in 2017 as it recorded growth across all of its core businesses.

The figures

The LSE’s total income rose 18 per cent to £1.96bn while operating profit jumped 47 per cent to £626m.

Revenue for the year to December 2017 climbed 17 per cent to £1.77bn.

The group proposed a final dividend of 51.6p per share, a 19 per cent increase reflecting a “strong” outlook.

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​Why it’s interesting

Despite an activist campaign to oust the group’s chairman at the end of last year, LSE was boosted by double-digit revenue increases at both FTSE Russell (33 per cent growth) and its clearing house unit LCH (21 per cent growth).

The board of the FTSE 100 firm beat off the attempt by Sir Chris Hohn to remove Donald Brydon as chairman following a row over the departure of Xavier Rolet as chief executive in November.

LSE said it was making “good progress” on the recruitment of a new chief exec with a “strong field of high-quality candidates”.

What the LSE said

David Warren, the chief financial officer and interim group chief executive, said 2017 was another year of strong performance with growth across all of the group’s core businesses.

Warren said:

The group is strategically, operationally and financially well positioned to capitalise on a range of opportunities ahead and to enhance shareholder returns.

We also remain focused on delivering the financial targets we have set for the next two years. Our Open Access approach in partnership with customers will enable us to benefit from Mifid II and to adapt to an evolving regulatory and macroeconomic environment.

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