Press releases 2001

A full version of this press release, including further information and financial results tables may be downloaded in Word format

24 May 2001

ANNOUNCEMENT OF INTENTION TO LIST AND PRELIMINARY
FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2001

Reporting strong results for the year ended 31 March 2001, London Stock Exchange plc (the "Exchange") today unveiled its corporate strategy with an intention to list in July 2001.

The Exchange's strategic aims are:

• To be Europe's leading exchange organisation
• To shape the globalisation of capital markets through technology links and partnerships
• To create value for its shareholders

It intends to do this by:

• Becoming the clear market of choice in the European time zone
• Extending its service offering and broadening its product range
• Building the reach and scale of its businesses
• Promoting the growth of capital markets

The Exchange's listing plans include:

• Introduction to the main market of the London Stock Exchange by the end of July 2001
• EGM, inter alia, to remove the 4.9 per cent limit on shareholdings
• 9 for 1 bonus issue to facilitate trading in the Exchange's shares

Financial Highlights for the year 2000 / 2001 include:

• Turnover from continuing operations up 18 per cent to 193.4 million
• Operating profit from continuing operations before exceptional items up 39 per cent to 57.9 million
• Adjusted earnings per share on continuing operations before exceptional items up 34 per cent to 152.0 pence
• Final dividend 22 pence per share, bringing the total dividend for the year to 31 March 2001 to 32 pence per share

Commenting on the announcement of the intention to list, Don Cruickshank, Chairman of the Exchange, said:

"The restructured board and strengthened management team at the Exchange are well positioned to carry forward the development of our business as a commercial organisation. We have reached the point now where we are ready to move to a full listing, offering us the flexibility to pursue the strategy developed by Clara Furse and her team."

Clara Furse, Chief Executive of the Exchange, said:

"This year's strong results put us in a great position to scale up the business in the future. Delivering on the corporate strategy I have laid out today should ensure that the business and shareholder value continue to grow.

"The Exchange operates in a fast-moving and competitive market-place. I am determined that the Exchange should seize opportunities presented by its position in that market. If that means actively pursuing corporate deals, that is what we will do.

"During the year, we have worked with our customers to develop and deliver a wide range of initiatives. Over the coming year this will gather pace. As a business we must seek to position ourselves as Europe's leading capital market exchange organisation and exchange service provider rather than purely as a stock exchange."

Further information is available from:

Schroder Salomon Smith Barney is acting as financial adviser and sponsor to the Exchange in relation to the proposed introduction. Cazenove & Co. Ltd is acting as corporate stockbroker in relation to the proposed introduction.

Salomon Brothers International Limited (trading as "Schroder Salomon Smith Barney"), which is regulated in the UK by The Securities and Futures Authority Limited, is acting for the Exchange and no one else in connection with the proposed introduction and will not be responsible to anyone other than the Exchange for providing the protections afforded to customers of Schroder Salomon Smith Barney nor for giving advice in relation to the proposed introduction. Schroder Salomon Smith Barney has approved the contents of this document solely for the purposes of section 57 of the Financial Services Act 1986.

This document does not constitute, or form part of, any offer of, or any solicitation of an offer for, securities.

The distribution of this document in certain jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with those restrictions may constitute a violation of the laws of such jurisdictions. The ordinary shares of the Exchange will not be registered under the US Securities Act of 1933 (as amended).

A full version of this press release, including further information and financial results tables may be downloaded in Word format

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