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LSE reports trading in line with forecasts before AGM
(WebFG News) - The London Stock Exchange reported first-quarter trading broadly in line with expectations before an annual shareholder meeting that will seek to draw a line under the group's recent troubles.
Total income for the three months to the end of March increased 13% to £520m and gross profit rose 13% to £464m. Analysts on average had forecast total income of £522m and £467m gross profit.
LSE published its trading update on the morning before its annual general meeting in London, where chairman Donald Brydon is likely to face questions about one of the most turbulent periods in its 217-year history.
The exchange was locked in a bitter dispute with one of its biggest shareholders, TCI Fund Management, after the departure of former chief executive Xavier Rolet was announced in October. TCI accused the board of forcing Rolet out and called for his reinstatement.
The matter came to a head in late November when Rolet agreed to leave immediately and Brydon agreed not to stand for re-election to the board in 2019. LSE ended a six-month search for Rolet's replacement on 13 April when it announced the appointment of David Schwimmer, a veteran Goldman Sachs banker, who will join in August.
Trading in the first quarter appeared to be undisturbed by the company's governance problems. Information services revenue rose 16% to £201m and revenue from London Clearing House, LSE's giant post-trade business, rose 12% to £118m.
David Warren, LSE's chief financial officer and interim CEO, said: "The group has delivered a strong first quarter performance. All of our key businesses continue to perform well. We continue to invest in new product initiatives while maintaining a focus on improving efficiencies as we work to deliver on our financial targets."