Press releases 2004

20 May 2004

Announcement of Preliminary Results for the year ended March 2004

Highlights:

• Turnover up six per cent to £250.4 million
• Operating profit up 17 per cent to £81.6 million
• Operating profit before exceptional items and goodwill amortisation up two per cent to £83.2 million
• Adjusted earnings per share up two per cent to 21.3 pence
• Final dividend of 3.4 pence per share bringing the total dividend for the year to 4.8 pence per share, up 12 per cent
• Return of approximately £162 million surplus cash by way of a 55 pence per share special dividend and share consolidation

Commenting on the results, Chris Gibson-Smith, Chairman of the Exchange, said:

"The Exchange has produced satisfactory results against a background of variable market conditions.  Turnover increased six per cent and adjusted earnings per share grew two per cent with a proposed 13 per cent increase to the final dividend". 

"Strong cash generation, together with the anticipated proceeds from the Tower disposal, results in the Exchange holding significant cash balances.  The Board is therefore recommending a special dividend to return surplus cash of approximately £162 million to shareholders whilst maintaining the financial flexibility to continue to pursue opportunities for growth."

Clara Furse, Chief Executive of the Exchange, said:

"Whilst market conditions in Information Services remained challenging, performance in our Broker Services’ division was good and our Issuer Services business grew in the second half of the year.  We also made progress in diversifying and growing our business through the introduction of new services, such as SETSmm and SEDOL Masterfile and the launch of our equity derivatives business EDX London".

"The Exchange is pursuing all opportunities to expand its business by leveraging its flexible trading model, leading technology through its Technology Roadmap programme and strong relationships with a broadening customer base.  With our good ongoing cash flow enabling us to continue investment in new initiatives, the Exchange is well positioned for the future."

Download our full results announcement in Word format here.

Or visit our Investor Relations section.
 

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Further information is available from:

London Stock Exchange

John Wallace - Media 020 7797 1222

Paul Froud - Investor Relations  020 7797 3322

Ruth Anagnos - Investor Relations 020 7797 3322

Finsbury

James Murgatroyd 020 7251 3801

Melanie Gerlis 020 7251 3801