Press releases 1999
25 November 1999
INTERIM RESULTS FOR THE LONDON STOCK EXCHANGE FOR THE HALF YEAR TO 30 SEPTEMBER 1999 (UNAUDITED)
LONDON STOCK EXCHANGE RAISES PROFITS
The London Stock Exchanges interim results, published today, show a 32 per cent increase in profits for the first half of the financial year. The results come ahead of the Exchanges forthcoming plan to demutualise.
Highlights of the results for the six months April September 1999 are:
- Profit before tax up 32 per cent (20.1 million to 26.5 million)
- Surplus after tax transferred to reserves up 34 per cent (13.9 million to 18.6 million)
Commenting on the financial period under review, Sir John Kemp-Welch, Chairman of the London Stock Exchange, said: "As international financial markets continue to develop at a rapid rate, the business environment for stock exchanges is becoming ever more competitive. We believe a more commercial basis of operation can be achieved by demutualising and this will ensure that our decision- making processes are better able to respond to customer demand in todays competitive conditions."
Looking ahead, Gavin Casey, Chief Executive of the London Stock Exchange, said: "Our programme in the second six months of the year will include the detailed arrangements for the proposed change to our ownership structure. During this period we will continue the strong promotion of techMARK, increase our international marketing programmes and further progress the implementation of the European market model. In addition, we shall be developing significant enhancements to the order book as part of our continuing commitment to provide Londons equity market with efficient, transparent and cost effective services."
Note to editors:
1. Some of the key activities that have taken place during the interims period include:
Investor Relations Seminars The first of a national programme of Exchange sponsored Investor Relations Seminars for listed companies was launched in Birmingham. The seminars, supported by leading investor relations experts, attracted over 400 companies during the following months.
Europe The eight leading European stock exchanges signed a Memorandum of Understanding in Madrid, building on the alliance formed between the London Stock Exchange and Deutsche Börse. The agreement paves the way for harmonising the markets for Europes top stocks.
Share Aware 1999 The Share Aware campaign to encourage more people to consider equity investment is was launched in London. Week-long promotional events in conjunction with national and local brokers and companies took place in Birmingham in June and Scotland in October.
Demutualisation The Exchange announced its plans to move from mutual ownership to a new basis of owning its shares. The change is designed to equip the Exchanges business more appropriately to meet the competitive demands of the electronic market place.
Practical Guide to Listing A new user-friendly guide and CD for companies considering a flotation was launched.
Order book A further 47 of the most liquid stocks from the FTSE 250 transfered to order book trading.
Company Report Service A specialised website designed exclusively for listed companies was launched. Free of charge, the site provides companies with instant, secure access to a tailor- made report, detailing their own stock market performance in terms of share price, trading and market value over a chosen period.
techMARK The new London market for technology stocks was announced, together with a fast- track method for innovative companies to join our main market. techMARK brings together London listed companies involved in leading edge technologies, creating for the first time a central focus for investors.
Year 2000 testing Over 95 per cent of customers with a direct interface with the Exchanges trading systems had completed testing, allowing them to continue trading beyond 31 December 1999. (By October all firms had completed testing.)
International listings Two new Japanese companies, Toyota and Konami, listed in London, bringing the total number of Japanese companies on the market to 31.
For further information please contact:
Andy Muncer: 0207 797 3465
Jeremy Hughes: 0207 797 1395
Duty press officers number available on 0207 797 1000