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London Stock Exchange shares up as it reveals there is life after death of Deutsche Borse deal

Last updated: 15:50 03 Aug 2017 BST, First published: 08:23 03 Aug 2017 BST

London-stock-exchange
The LSE outlined its go-it-alone strategy

The London Stock Exchange Group PLC (LON:LSE) saw its shares gain today after the bourses operator reiterated its strategy to cap costs and eke out further savings alongside a strong set of half-year figures.

The blue-print was first unveiled in June following the failure of the its £24bn merger with Deutsche Borse, which was torpedoed by Brussels.

It wants to cap the growth in expenses, deliver economies of £50mln a year by 2019 and boost its operating margins to 55%.

READ: LSE expands its indices business with first acquisition since Deutsche Boerse merger blocked

It appears to have some fairly solid foundations on which to build with total income up 20% at £946mln, with the LSE’s clearing operations the star performer.

On a reported basis, operating profit jumped to £305mln from £199mln, while investors will be rewarded with a 20% hike to the dividend, which weighs in at 14.4p a share.

"The group has produced a strong financial performance, with good income growth across all of our core business areas,” said chief executive Xavier Rolet.

In late afternoon trading, LSE shares on the FTSE 100 index were up 2.9%, or 108p at 3,877p.

In a note to clients, analysts at UBS said: "Given the revenue and earnings beat at LSE (excluding the one-time items), we would expect the market to react positively to LSE shares today."

 -- Adds share price, analysts comment --

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