We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Name | Symbol | Market | Type |
|---|---|---|---|
| Lon.Stk.Exch.B | LSE:LSEB | London | Preference Share |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 195.00 | 0 | 01:00:00 |
Hot Features
Premium
TIDMLSE TIDMLSEB
RNS Number : 5375S
London Stock Exchange Group PLC
20 May 2009
20 May 2009
LONDON STOCK EXCHANGE GROUP PLC
ANNOUNCEMENT OF PRELIMINARY RESULTS OF LONDON STOCK EXCHANGE GROUP PLC FOR THE
YEAR ENDED 31 MARCH 2009
London Stock Exchange Group plc (the "Group") today reports results for the
financial year ended 31 March 2009. In summary, the Group has delivered a good
underlying performance against the backdrop of difficult markets, reflecting the
overall resilience and diversification of the business.
Financial Headlines:
* Revenue up 23 per cent to GBP671.4 million; a one per cent increase on a pro
forma basis (six per cent down at constant currency) assuming the merger with
Borsa Italiana had taken place on 1 April 2007
* Adjusted operating profit (before goodwill impairment, amortisation of purchased
intangibles and exceptional items) up 17 per cent to GBP338.6 million; down one
per cent pro forma (down seven per cent at constant currency)
* Adjusted basic earnings per share up two per cent to 74.2 pence
* Total dividend for the year up two per cent to 24.4 pence per share and an
additional GBP51.5 million returned to shareholders through share buybacks in H1
* Including non-cash goodwill impairment (of GBP484.0 million), amortisation of
purchased intangibles and exceptional items, loss before tax was GBP250.8
million (2008: profit before tax GBP227.0 million) and basic loss per share was
126.1 pence (2008: basic EPS 70.8 pence)
* Strong net cash flow from operations after exceptional items of GBP352.6 million
- up from GBP292.9 million last year; and free cash flow of GBP100.2 million
(2008: GBP102.1 million)
* GBP905 million committed borrowing facilities, of which GBP700 million extends
through to 2012 or beyond compared to GBP625 million drawn debt; interest cover
at 10.1 times (2008: 9.8 times) remains strong
Operational Highlights:
* The Group underlined its vital role for companies with a record GBP106 billion
raised by companies on our markets, including GBP99 billion in secondary issues
* There was a total 160 new issues, and the Group remained the leading
international listing venue with 21 international IPOs; AIM Italia was
successfully launched and since year-end has hosted its first two IPOs
* Merger integration programme with close to full run rate is well ahead of plan,
with 60 per cent increase in cost synergies to GBP32 million to be achieved in
the March 2010 financial year; Italian cash equities market successfully
migrated to TradElect
* SETS volumes continued to grow, increasing 15 per cent to 740,000 trades per
day. SETS average daily value traded declined 24 per cent, in line with an
average 22 per cent fall in the FTSE 100; trading at Borsa Italiana was 12 per
cent lower at 256,000 trades per day
* Resilient overall performance in the Derivatives and Fixed Income businesses in
challenging market conditions
* Demand for the Group's real time data remained generally robust despite the
market downturn, with 104,000 professional users of LSE information at year-end,
down 8,000 over last year; and in Italy professional terminals stood at 151,000,
down 9,000
* Strong performance from post trade services as CC&G performs its crucial
function as central counterparty throughout the financial crisis
Commenting on the results, Chris Gibson-Smith, Chairman of London Stock Exchange
Group, said:
"While the Group's markets have been affected by the crisis in global financial
markets, we have produced good underlying results, underpinned by robust cash
flows, as the benefits of a more diversified business emerge following our
successful merger with Borsa Italiana.
"The goodwill impairment arising from the all share merger is a technical
accounting adjustment reflecting the major deterioration in current economic
conditions. It belies the high quality of, and potential arising from the
combination. Indeed, the assessed value of Borsa Italiana remains comfortably
above the GBP1.3 billion value at the time of completion of the merger given the
strengthening of the euro.
"Although market conditions are expected to remain testing, the Board believes
the Group is well placed for the future. We remain at the heart of global equity
capital markets at a time when such markets are fundamental to the recovery of
the real economy."
Clara Furse, Chief Executive, said:
"We have performed well, with revenue up 23 per cent, reflecting the overall
resilience and diversification of our business, and full year effect of our
merger with Borsa Italiana. Each of our divisions responded well in increasingly
difficult markets, with Information Services and our CC&G clearing operations
delivering particularly strong growth, and the Exchange playing an essential
role in economic recovery during a year of record equity fund raising on its
markets.
"We have also made very good progress in achieving synergies from the merger and
will now deliver a further increase in cost synergies to GBP32 million, up by 60
per cent from the original plan."
Further information is available from:
+------------------------+------------------------------+----------------------+
| London Stock Exchange | Patrick Humphris - Media | +44 (0) 20 7797 1222 |
+------------------------+------------------------------+----------------------+
| | Alessandro Pavesi - Media | +39 02 72426 211 |
+------------------------+------------------------------+----------------------+
| | | |
+------------------------+------------------------------+----------------------+
| | Paul Froud - Investor | +44 (0) 20 7797 3322 |
| | Relations | |
+------------------------+------------------------------+----------------------+
| | | |
+------------------------+------------------------------+----------------------+
| Finsbury | Matthew Newton | +44 (0) 20 7251 3801 |
+------------------------+------------------------------+----------------------+
Summary financial Results
Unless otherwise stated, all figures refer to the year ended 31 March 2009.
Comparative information for the prior year reflects the inclusion of Borsa
Italiana S.p.A. from its merger on 1 October 2007. In addition, to assist
investors in understanding the performance of the enlarged Group, pro forma
figures are presented for the prior comparative year as if the merger with Borsa
Italiana had taken place on 1 April 2007, with growth on pro forma prior year
also shown using the same average exchange rate as for the year ended 31 March
2009. Details relating to the pro forma calculations are set out later in this
statement.
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| | | | | | | Change |
| | | | | | | at |
+----------------------------+--+------------------------------------------------+--+--------+--+----------+
| | | Year ended | | | | Constant |
| | | 31 March | | | | currency |
+----------------------------+--+------------------------------------------------+--+--------+--+----------+
| | | 2009 | | 2008 | Change | | 2008 | | Change | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| | | GBPm | | GBPm | % | | GBPm | | % | | % |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Revenue | | | | Statutory | | | Pro | | | | |
| | | | | | | | forma | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Issuer | | 90.4 | | 82.4 | 10% | | 97.1 | | (7%) | | (12%) |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Trading | | 275.3 | | 264.7 | 4% | | 310.0 | | (11%) | | (16%) |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Information | | 182.9 | | 143.6 | 27% | | 161.9 | | 13% | | 8% |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Post Trade | | 104.0 | | 42.8 | 143% | | 82.0 | | 27% | | 7% |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Other income | | 18.8 | | 12.9 | 46% | | 15.8 | | 19% | | 8% |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Total revenue | | 671.4 | | 546.4 | 23% | | 666.8 | | 1% | | (6%) |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| | | | | | | | | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Operating costs | | (332.8) | | (257.4) | 29% | | (323.8) | | 3% | | (5%) |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Goodwill impairment | | (484.0) | | - | | | - | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Exceptional items and | | (64.6) | | (23.8) | 171% | | (43.6) | | 48% | | (26%) |
| amortisation of purchased | | | | | | | | | | | |
| intangibles | | | | | | | | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Operating loss / profit | | (210.0) | | 265.2 | (179%) | | 299.4 | | (170%) | | (167%) |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Adjusted operating profit* | | 338.6 | | 289.0 | 17% | | 343.0 | | (1%) | | (7%) |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| | | | | | | | | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Profit from jv/associates | | 4.1 | | 2.2 | | | 2.2 | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Net Finance expense** | | (44.9) | | (40.4) | 11% | | (41.2) | | 9% | | 13% |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| | | | | | | | | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Profit / loss before tax | | (250.8) | | 227.0 | (210%) | | 260.4 | | (196%) | | (192%) |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Adjusted profit before | | 304.7 | | 258.5 | 18% | | 304.0 | | 2% | | (8%) |
| tax* | | | | | | | | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| | | | | | | | | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Basic earnings per share | | (126.1) | | 70.8 | | | | | | | |
| (p) | | | | | | | | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
| Adjusted earnings per | | 74.2 | | 73.1 | 2% | | | | | | |
| share (p)* | | | | | | | | | | | |
+----------------------------+--+----------+--+-----------+--------+--+----------+--+--------+--+----------+
*excluding goodwill impairment, amortisation of purchased intangibles and
exceptional items
** includes exceptionals (FY 2009 GBP6.9m/FY2008 GBP7.7m)
In the context of difficult market conditions and a sharp reduction in trading
in the second half of the year, the Group has delivered a good underlying
financial performance, benefiting from increased diversification.
Revenue for the year ended 31 March 2009 was robust, increasing to GBP671.4
million, up 23 per cent over the previous year and up one per cent on a pro
forma basis (down six per cent in constant currency). Strong performances in the
Post Trade and Information businesses in large part offset lower activity levels
in Trading and Issuer Services as market conditions weakened.
Operating costs, excluding goodwill impairment, amortisation of purchased
intangibles and exceptional items, were GBP332.8 million.Costs were controlled
well (down 5 per cent in constant currency), with increases from the
strengthening Euro offset in large part by cost synergies, reductions in
performance related pay and other savings. Headcount during the year reduced by
six per cent to 1,135 as at 31 March 2009, net of increases related to Baikal.
The Group incurred exceptional costs of GBP15.2 million relating to integration
work. In addition, amortisation of purchased intangibles, relating to the
Italian business, amounted to GBP49.4 million.
Following a review of goodwill we have taken a GBP484.0 million non-cash
impairment, primarily in respect of the all share merger with Borsa Italiana.
This impairment reflects the major deterioration in current economic conditions
and the associated greater uncertainty about the future, but has no impact on
our day-to-day operations, our ability to generate cash or our banking
covenants. Given the strengthening of the Euro, the assessed value in use of
Borsa Italiana remains comfortably above the GBP1.3 billion value at the time of
completion of the merger.
Adjusted operating profit (excluding goodwill impairment, amortisation of
purchased intangibles and exceptional items) increased 17 per cent to GBP338.6
million, on a pro forma basis down one per cent. Including goodwill impairment,
amortisation of purchased intangibles and exceptional items, the operating
result decreased to a loss of GBP210.0 million.
Following the merger with Borsa Italiana, the Group's reported results are
impacted by movement in the Sterling/Euro rate. A five cent movement
approximates a two per cent change in adjusted operating profit.
Net finance expense for the year was GBP44.9 million, reflecting higher average
borrowings year on year, partially offset by a reduction in market interest
rates. Also included in net finance expense is a net exceptional cost of GBP6.9
million, relating to GBP10.6 million for closing out a gilt lock hedging
instrument, partly offset by a GBP3.7 million non-recurring non-cash credit
related to the GBP250 million bond.
The loss before taxation was GBP250.8 million. After tax, the loss for the
Group for the year was GBP332.8 million (2008: profit of GBP173.0 million).
The taxation charge for the year was GBP82.0 million.Adjusting for excluding
goodwill impairment, amortisation of purchased intangibles and exceptional
items, the tax rate of 32 per cent on underlying profit reflects an effective
tax rate of 28 per cent for UK earnings and 37 per cent on Italian earnings.
Capital expenditure amounted to GBP59.2 million, including GBP13.2 million
associated with integration projects. Most integration expenditure has now been
incurred although there will continue to be a number of other projects over the
coming year as the Exchange looks to further develop, including upgrades to its
trading technology.
The Group delivered good cash flows from operations after exceptional items,
increasing 20 per cent to GBP352.6 million (2008: GBP292.9 million) reflecting
the good operating performance as well as a full year of Borsa Italiana. Free
cash flow, after net interest, tax, investing activities and dividends was
GBP100.2 million, from GBP102.1 million last year (excluding cash from the
merger with Borsa Italiana).
The Group has maintained a prudent financial structure, as reflected in an
improvement in the Moody's rating from Baa3 to Baa2 in February 2009, as well as
retaining an S&P rating at A-. At 31 March 2009 drawn borrowings amounted to
GBP625 million with net debt (after setting aside GBP125 million for regulatory
purposes) of GBP608 million and the Group's interest cover ratio remained strong
at 10.1 times (2008: 9.8 times). Committed facilities available for general
Group purposes total GBP905 million, of which GBP700 million extends to 2012 or
beyond, providing comfortable headroom.
Dividend and share buyback
The Board proposes a final dividend of 16.0 pence per share, to be paid to those
shareholders on the register on 24 July 2009, for payment on 17 August 2009.
Together with the interim dividend of 8.4 pence per share paid in January 2009,
the total dividend for the year rises to 24.4 pence per share, an increase of
two per cent over the previous year (2008: 24.0 pence per share). The payment
reflects the resilience of the business balanced by the Board's belief that it
is appropriate to remain cautious at this stage while market conditions remain
exceptionally uncertain.
The Group made on-market purchases of 5.9 million shares for a total
consideration of GBP51.5 million, these purchases taking place in the first half
of the year before the programme was halted in September. As at 31 March 2009,
the number of ordinary shares in issue was 270,518,518.
Operating Performance
The Group reports its revenues by business segments, these being Issuer
Services, Trading Services, Information Services and Post Trade Services.
A review of the operational performance of the business is provided below. All
comparative information is provided on a pro forma basis.
Issuer Services
+----------------------------------+------+----------+----------+------------+
| | Year ended | | Variance |
| | | | at |
+----------------------------------+-----------------+----------+------------+
| | 31 March | Variance | constant |
+----------------------------------+-----------------+----------+------------+
| | 2009 | 2008 | % | currency % |
+----------------------------------+------+----------+----------+------------+
| | | pro | | |
| | | forma | | |
+----------------------------------+------+----------+----------+------------+
| Annual fees | 41.0 | 40.7 | 1% | -6% |
+----------------------------------+------+----------+----------+------------+
| Admission fees | 28.1 | 34.3 | -18% | -21% |
+----------------------------------+------+----------+----------+------------+
| RNS, other | 21.3 | 22.1 | -4% | -10% |
+----------------------------------+------+----------+----------+------------+
| Revenue GBPm | 90.4 | 97.1 | -7% | -12% |
+----------------------------------+------+----------+----------+------------+
Issuer Services comprises the primary market operations of London Stock Exchange
and Borsa Italiana. The revenue decline principally reflected a drop in IPO
revenue as market conditions for this form of capital raising experienced a
marked downturn from the summer onwards. Revenue from Issuer Services comprised
13 per cent of total Group revenue.
+--------------------------------+---------------------+-------+----------+----------+
| | Year ended | |
+--------------------------------+----------------------------------------+----------+
| | 31 March | Variance |
+--------------------------------+----------------------------------------+----------+
| | 2009 | 2008 | % |
+--------------------------------+-----------------------------+----------+----------+
| New Issues | | | |
+--------------------------------+-----------------------------+----------+----------+
| Main Market, PSM & SFM | 65 | 116 | -44% |
+--------------------------------+-----------------------------+----------+----------+
| AIM | 87 | 262 | -67% |
+--------------------------------+-----------------------------+----------+----------+
| Blt | 8 | 33 | -76% |
+--------------------------------+-----------------------------+----------+----------+
| Total | 160 | 411 | -61% |
+--------------------------------+-----------------------------+----------+----------+
| | | | |
+--------------------------------+-----------------------------+----------+----------+
| Company Numbers (as at 31 | | | |
| March) | | | |
+--------------------------------+-----------------------------+----------+----------+
| Main Market, PSM & SFM | 1,530 | 1,592 | -4% |
+--------------------------------+-----------------------------+----------+----------+
| AIM | 1,478 | 1,681 | -12% |
+--------------------------------+-----------------------------+----------+----------+
| Blt | 296 | 306 | -3% |
+--------------------------------+-----------------------------+----------+----------+
| Total | 3,304 | 3,579 | -8% |
+--------------------------------+-----------------------------+----------+----------+
| | | | |
+--------------------------------+-----------------------------+----------+----------+
| Market capitalisation (as at | | | |
| 31 March) | | | |
+--------------------------------+-----------------------------+----------+----------+
| Main Market (UK only) (GBPbn) | 1,170 | 1,707 | -31% |
+--------------------------------+-----------------------------+----------+----------+
| AIM (GBPbn) | 38 | 89 | -57% |
+--------------------------------+-----------------------------+----------+----------+
| Borsa Italiana (EURbn) | 314 | 604 | -48% |
+--------------------------------+-----------------------------+----------+----------+
| Borsa Italiana (GBPbn) | 289 | 482 | |
+--------------------------------+-----------------------------+----------+----------+
| Total (GBPbn) | 1,497 | 2,278 | -34% |
+--------------------------------+-----------------------------+----------+----------+
| | | | |
+--------------------------------+-----------------------------+----------+----------+
| Money raised (GBPbn) | | | |
+--------------------------------+-----------------------------+----------+----------+
| LSE New money raised | 7 | 21 | -67% |
+--------------------------------+-----------------------------+----------+----------+
| LSE Further money raised | 91 | 17 | 435% |
+--------------------------------+-----------------------------+----------+----------+
| Borsa Italiana new and further money raised | 8 | 7 | 14% |
+------------------------------------------------------+-------+----------+----------+
| Total money raised | 106 | 45 | 136% |
+--------------------------------+---------------------+-------+----------+----------+
Income from annual fees was generally resilient at GBP41.0 million, with the
small reduction in constant currency reflecting a fall in the number of
companies on our markets and lower market capitalisations in Italy where fees
are re-set semi-annually.
London Stock Exchange remains the international listing venue of choice with 21
international IPOs during the year, with a total of 656 international companies
from 72 countries on our markets. We continue to expand into new regions.
Fresnillo provided our first IPO from Mexico, we attracted two IPOs from Kuwait,
one from Qatar, as well as others from Egypt, Bahrain, Russia and the Czech
Republic.
Admission fee revenues fell during the year with turbulent market conditions
particularly impacting new issues. Nevertheless, our markets raised a record
GBP106 billion, including GBP99 billion from further issues. Capital raising was
particularly active in the fourth quarter as companies from across the market
successfully accessed equity markets at a time when credit markets remained
difficult and expensive. In total there were 160 new issues across the Group's
markets, including 8 on Borsa Italiana.
In December we launched AIM Italia, which has been well received by Italian
companies and investors. Eight Nomads have now been approved and a series of
activities and roadshows to promote the new market have identified a good
pipeline of potential listings. Two companies have joined the market since year
end. In May we formalised agreements for the joint venture company with Tokyo
Stock Exchange to run the TOKYO AIM market in Japan.
RNS, the London Stock Exchange's financial communications service, and Servizio
Titoli, which provides company secretarial services to listed companies in
Italy, made good progress though demand for training and consultancy services
and the level of announcements declined in the second half of the year as market
activity reduced.
Trading Services
+----------------------------------+-------+----------+----------+------------+
| | Year ended | | Variance |
| | | | at |
+----------------------------------+------------------+----------+------------+
| | 31 March | Variance | constant |
+----------------------------------+------------------+----------+------------+
| | 2009 | 2008 | % | currency % |
+----------------------------------+-------+----------+----------+------------+
| | | pro | | |
| | | forma | | |
+----------------------------------+-------+----------+----------+------------+
| Cash | 184.1 | 218.7 | -16% | -18% |
+----------------------------------+-------+----------+----------+------------+
| Derivatives | 25.6 | 24.4 | 5% | -4% |
+----------------------------------+-------+----------+----------+------------+
| Fixed income | 25.8 | 32.4 | -20% | -32% |
+----------------------------------+-------+----------+----------+------------+
| Other | 39.8 | 34.5 | 15% | 2% |
+----------------------------------+-------+----------+----------+------------+
| Revenue GBPm | 275.3 | 310.0 | -11% | -16% |
+----------------------------------+-------+----------+----------+------------+
The Trading Services division consists of the cash equities, derivatives and
fixed income trading activities of the Group. This division produced a solid
performance, against a backdrop of declining value traded as share prices fell
and a marked slowdown in trading activity in the second half of the year, and
contributed 41 per cent of total Group revenue.
+--------------------------------+----------+----------+----------+
| | Year ended | |
+--------------------------------+---------------------+----------+
| | 31 March | Variance |
+--------------------------------+---------------------+----------+
| | 2009 | 2008 | % |
+--------------------------------+----------+----------+----------+
| Equity Volume Bargains (m) | | | |
+--------------------------------+----------+----------+----------+
| LSE | 188.6 | 161.0 | 17% |
+--------------------------------+----------+----------+----------+
| Borsa Italiana | 64.9 | 72.6 | -11% |
+--------------------------------+----------+----------+----------+
| Total | 253.5 | 233.6 | 9% |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Equity Value Traded | | | |
+--------------------------------+----------+----------+----------+
| LSE (GBPbn) | 1,771 | 2,276 | -22% |
+--------------------------------+----------+----------+----------+
| Borsa Italiana (EURbn) | 838 | 1,518 | -45% |
+--------------------------------+----------+----------+----------+
| Borsa Italiana (GBPbn) | 684 | 1,070 | -36% |
+--------------------------------+----------+----------+----------+
| Total (GBPbn) | 2,455 | 3,346 | -27% |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Equity Average Daily Bargains | | | |
| ('000) | | | |
+--------------------------------+----------+----------+----------+
| LSE | 740 | 642 | 15% |
+--------------------------------+----------+----------+----------+
| Borsa Italiana | 256 | 290 | -12% |
+--------------------------------+----------+----------+----------+
| Total | 996 | 932 | 7% |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Equity Average Daily Value | | | |
| Traded | | | |
+--------------------------------+----------+----------+----------+
| LSE (GBPbn) | 6.9 | 9.1 | -24% |
+--------------------------------+----------+----------+----------+
| Borsa Italiana (EURbn) | 3.3 | 6.1 | -46% |
+--------------------------------+----------+----------+----------+
| Borsa Italiana (GBPbn) | 2.7 | 4.3 | -37% |
+--------------------------------+----------+----------+----------+
| Total (GBPbn) | 9.6 | 13.4 | -28% |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Equity Average Bargain Size | | | |
+--------------------------------+----------+----------+----------+
| LSE (GBP'000) | 9.4 | 14.1 | -33% |
+--------------------------------+----------+----------+----------+
| Borsa Italiana (EUR'000) | 12.9 | 20.9 | -38% |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| SETS Yield | | | |
+--------------------------------+----------+----------+----------+
| Yield per bargain GBP | 0.82 | 1.12 | -27% |
+--------------------------------+----------+----------+----------+
| Yield basis points | 0.87 | 0.79 | 10% |
+--------------------------------+----------+----------+----------+
Total value traded on SETS declined 22 per cent to GBP1,771 billion,
representing a daily average of GBP6.9 billion, a reduction of 24 per cent. This
fall in value traded mainly reflects the average 22 per cent fall in the value
of the FTSE 100 over the period.The total number of SETS bargains increased 17
per cent to 188.6 million, with a 15 per cent increase in average daily bargains
to 740,000, driven in part by a continued trend to trade in smaller sizes. The
average value of a SETS bargain decreased to GBP9,400 with the yield per
bargain reducing to GBP0.82, representing a yield of 0.87 basis points of value
traded.
Cash equities trading in Italy decreased 11 per cent in total over the year,
with 64.9 million trades in the period, and declined 12 per cent on an average
basis to 256,000 trades per day. Value traded decreased 45 per cent to EUR838
billion, mostly due to a 35 per cent decline in the average value of the S&P MIB
Index. In November we successfully migrated cash equities trading in Italy to
the lower latency TradElect platform, a significant milestone in the integration
of our trading businesses. We expect to move Italian ETF, retail fixed income
and securitised derivatives markets to TradElect in the first quarter of the
current financial year.
The TradElect system was further enhanced during the year with new capabilities
and was upgraded again this month to bring trading latency down to 3.7
milliseconds, with capacity increased to 18,000 messages per second. This
investment enables customers to trade at very high speed and with greater
certainty of execution, helping us compete for orderflow from high frequency
technical traders (or electronic liquidity providers), which have become an
important new source of liquidity provision.
Other enhancements to our equity trading services during the year included:
* the introduction of central counterparty services for the 50 most liquid
depositary receipts on our International Order Book (IOB);
* the launch of a Member Authorised Connection service which enables member firms
to offer their customers direct and higher speed access to our trading platform;
and
* Competitive clearing for the London market with the option of clearing of SETS
trades by X-Clear, the Swiss-based clearing house.
In June 2008 the Group announced its intention to launch a pan-European
non-display, or "dark pool", trading venue, called Baikal. A full team is in
place, working towards a phased launch starting this summer, subject to
regulatory approval. TradElect will be used as the trading platform, with other
technology for smart order routing and algorithmic order entry/trading
strategies being provided by specialist technology firms. Clearing services will
be provided by the Group's clearer, CC&G.
In March 2009 we entered into a strategic partnership with Oslo Bors, to
cooperate on a number of business opportunities, including the provision of
TradElect for cash equities and fixed income in 2010.
The Group maintained its position as the European leader in the provision
of, and trading in, Exchange Traded Funds (ETFs). Trading in ETF and Exchange
Traded Commodities (ETCs) increased 64 per cent in value, reaching new records
levels during the period with 1.9 million trades and value traded at GBP70
billion.
+---------------------------------+----------+----------+----------+
| | Year ended | |
+---------------------------------+---------------------+----------+
| | 31 March | Variance |
+---------------------------------+---------------------+----------+
| | 2009 | 2008 | % |
+---------------------------------+----------+----------+----------+
| Derivatives (contracts m) | | | |
+---------------------------------+----------+----------+----------+
| EDX | 61.1 | 48.6 | 26% |
+---------------------------------+----------+----------+----------+
| IDEM | 37.0 | 37.2 | -1% |
+---------------------------------+----------+----------+----------+
| Total | 98.1 | 85.8 | 14% |
+---------------------------------+----------+----------+----------+
| | | | |
+---------------------------------+----------+----------+----------+
| Fixed Income | | | |
+---------------------------------+----------+----------+----------+
| MTS (EURbn nominal) | 18,310 | 20,279 | -10% |
+---------------------------------+----------+----------+----------+
| Borsa Italiana MOT (EURbn) | 197 | 152 | 30% |
+---------------------------------+----------+----------+----------+
| Borsa Italiana MOT number of | 3.4 | 2.7 | 26% |
| trades (m) | | | |
+---------------------------------+----------+----------+----------+
The Group's Derivatives operations performed well overall in challenging
markets, with total revenue of GBP25.6million (down 4 per cent in constant
currency). Trading on the Italian derivatives market IDEM reduced slightly, down
one per cent to 37.0 million contracts, while on EDX the number of contracts
traded increased 26 per cent to 61.1 million, helped by further growth in
Russian derivatives which increased 175 per cent in volume terms at 73,000
trades per day. Incentive and rebate scheme changes at EDX, recognising the
highly competitive market for Scandinavian derivatives in particular, and tariff
changes at IDEM were implemented, with signs that the recent introduction of fee
caps in the Italian market is already increasing volumes as a result.
During the year trading commenced on Borsa Italiana's new energy derivatives
market, IDEX, which has made a good start in trading of electricity futures. In
March we signed an agreement with the Canadian exchange TMX Group to use their
derivatives platform, SOLA, for the EDX business and also for use by Oslo Bors
by the end of 2009. Earlier this month we strengthened our relationship with TMX
taking a 19.9 per cent stake in EDX.
In fixed income markets, trading conditions remained difficult as a consequence
of the global credit crisis. On MTS, the leading market in Europe for wholesale
electronic trading of bonds, nominal value traded declined ten per cent year on
year at EUR18.3 trillion, with a reduction in the level of government bonds traded
which provide a higher yield per trade. However on MOT, Borsa Italiana's
Electronic Bond and Government Securities Market, value traded was strong, with
an increase of 30 per cent to EUR197 billion.
Information Services
+----------------------------------+-------+----------+----------+------------+
| | Year ended | | Variance |
| | | | at |
+----------------------------------+------------------+----------+------------+
| | 31 March | Variance | constant |
+----------------------------------+------------------+----------+------------+
| | 2009 | 2008 | % | currency % |
+----------------------------------+-------+----------+----------+------------+
| | | pro | | |
| | | forma | | |
+----------------------------------+-------+----------+----------+------------+
| Data charges | 114.4 | 105.6 | 8% | 3% |
+----------------------------------+-------+----------+----------+------------+
| Other | 68.5 | 56.3 | 22% | 17% |
+----------------------------------+-------+----------+----------+------------+
| Revenue GBPm | 182.9 | 161.9 | 13% | 8% |
+----------------------------------+-------+----------+----------+------------+
Information Services consists of the information products businesses in London
and Milan. The division delivered a strong performance, helped by general
resilience in the number of users taking the London Stock Exchange's and Borsa
Italiana's real-time market data, and from good growth in revenues from
non real-time data products. The division contributed 27 per cent to Group
revenues.
+--------------------------------+----------+----------+----------+
| | Year ended | |
+--------------------------------+---------------------+----------+
| | 31 March | Variance |
+--------------------------------+---------------------+----------+
| | 2009 | 2008 | % |
+--------------------------------+----------+----------+----------+
| LSE Terminals | | | |
+--------------------------------+----------+----------+----------+
| Professional - UK | 42,000 | 45,000 | -7% |
+--------------------------------+----------+----------+----------+
| Professional - International | 62,000 | 67,000 | -7% |
+--------------------------------+----------+----------+----------+
| Total | 104,000 | 112,000 | -7% |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| | | | |
+--------------------------------+----------+----------+----------+
| Borsa Italiana Professional | 151,000 | 160,000 | -6% |
| Terminals | | | |
+--------------------------------+----------+----------+----------+
Demand in both the UK, Italy and elsewhere held up well through most of the
year, though headcount reduction at investment and trading firms has now reduced
the number of customers for our pricing and trading information. Total
professional terminals taking London Stock Exchange data at the year end stood
at 104,000, down 8,000 on the same time last year, and down 7,000 in the fourth
quarter. In Borsa Italiana there was a similar pattern of development, with
professional users taking Italian data down 9,000 at 151,000.
Proquote, the London Stock Exchange's provider of financial market software and
data, made good progress. The number of installed screens at year end increased
to 4,800 (2008: 4,200), with higher value Proquote International screens
standing at 2,700. In Italy, the number of users of Market Connect (to whom
real-time information on non Italian markets is supplied) increased 30 per cent
to 26,000.
SEDOL, the securities numbering service that provides unique identification for
securities on a global basis, produced another good performance with an increase
in the number of securities covered to more than 5 million (2008: 2.4 million).
A new SEDOL system was launched in the year, using the Exchange's UnaVista
technology, providing 1,300 global customers with access to 3 million SEDOLs for
global exchange traded derivatives and a range of new website services.
During the year the Group launched a server hosting service, which enables
market users to locate their servers in our data centre. This service provides
high frequency trading firms with sub-millisecond access to TradElect and
Infolect, the trading and information systems, aiding their trading strategies
and enhancing trading opportunities. Nine firms are already signed up to use
this facility and further space will be made available later this year.
Performance channels, a data delivery service that ensures even during peak
trading activity that data is provided at industry leading speeds, was
introduced in mid 2008.
In April 2009, FTSE, the global index provider and Borsa Italiana unveiled
details of a new series of Italian equity indices, available to domestic and
international investors. This FTSE Italia series offers a more structured and
integrated range of representative market sectors and segments to help track
market performance and provide new investment opportunities. FTSE Group, which
is half owned by the London Stock Exchange, continues to perform well,
contributing over GBP10 million to Group profits, including royalties of GBP8.2
million to Information Services.
Post Trade Services
+----------------------------------+-------+----------+----------+------------+
| | Year ended | | Variance |
| | | | at |
+----------------------------------+------------------+----------+------------+
| | 31 March | Variance | constant |
+----------------------------------+------------------+----------+------------+
| | 2009 | 2008 | % | currency % |
+----------------------------------+-------+----------+----------+------------+
| | | pro | | |
| | | forma | | |
+----------------------------------+-------+----------+----------+------------+
| Clearing | 52.8 | 37.4 | 41% | 18% |
+----------------------------------+-------+----------+----------+------------+
| Settlement | 17.2 | 15.1 | 14% | -3% |
+----------------------------------+-------+----------+----------+------------+
| Custody | 34.0 | 29.5 | 15% | -3% |
+----------------------------------+-------+----------+----------+------------+
| Revenue GBPm | 104.0 | 82.0 | 27% | 7% |
+----------------------------------+-------+----------+----------+------------+
Post Trade Services comprises the Group's Italian-based clearing, settlement and
custody businesses. Revenue growth was mainly driven by a strong performance by
the CC&G clearing operations. The Post Trade division accounted for 15 per cent
of total Group revenue.
+-------------------------------------+--------+--------+----------+
| | Year ended | |
+-------------------------------------+-----------------+----------+
| | 31 March | Variance |
+-------------------------------------+-----------------+----------+
| | 2009 | 2008 | % |
+-------------------------------------+--------+--------+----------+
| CC&G Clearing: | | | |
+-------------------------------------+--------+--------+----------+
| Equity Clearing (m) | 66.3 | 73.8 | -10% |
+-------------------------------------+--------+--------+----------+
| Derivative Clearing (m) | 37.0 | 37.2 | -1% |
+-------------------------------------+--------+--------+----------+
| Total Contracts (m) | 103.3 | 111.0 | -7% |
+-------------------------------------+--------+--------+----------+
| Open interest contracts (m) (as at | 4.6 | 3.0 | 53% |
| 31 March) | | | |
+-------------------------------------+--------+--------+----------+
| | | | |
+-------------------------------------+--------+--------+----------+
| Monte Titoli: | | | |
+-------------------------------------+--------+--------+----------+
| Settlement Instructions (m) | 45.6 | 52.7 | -13% |
+-------------------------------------+--------+--------+----------+
| Custody assets under management | 2.7 | 2.8 | -4% |
| (EURtn) | | | |
+-------------------------------------+--------+--------+----------+
CC&G acts as a central counterparty (CCP), guaranteeing trades and eliminating
counterparty risk in Italian cash equities, derivatives and fixed income and
other products. In turbulent market conditions, CC&G successfully executed this
crucial function, enabling trading to continue in volatile conditions and
demonstrating the effectiveness of its risk management processes.
Overall clearing transaction volumes decreased as a result of lower trading
activity during the year. Open interest at the end of March 2009 was up 53 per
cent at 4.6 million contracts. The Clearing business benefited from treasury
management fees on increased cash deposits resulting from higher levels of
margin required in volatile market conditions, and from wider interest spreads.
CC&G expanded and diversified its customer base, commencing clearing for the
Group's new IDEX energy derivatives market. It has applied to the FSA to become
a Recognised Overseas Clearing House, which will enable it to offer clearing
services in the UK. In the year ahead the business will provide CCP services for
Baikal, the Group's pan-European dark pool MTF.
Settlement revenues for Monte Titoli were down three per cent in constant
currency terms as the number of settlement instructions during the year
decreased 13 per cent, mainly due to a lower level of trades and increased
settlement netting.
Monte Titoli's post trade routing system, X-TRM, was successfully used for the
first time in the UK with the launch of the Group's IOB clearing service. This
service increases operational efficiency through matching trades and automatic
routing to the CCP provider.
Monte Titoli custody revenues were GBP34.0 million, down slightly in constant
currency. The average value of assets under custody was broadly stable at EUR2.7
trillion, mainly reflecting an increase in quantum of corporate and Government
bonds and a decline in value of equity assets.
Integration with Borsa Italiana
Very good progress has been made with integration of the two exchanges. The key
achievement in this process was the early and successful migration of cash
equities trading in Italy onto the TradElect platform in London, thereby
integrating our equity trading platforms.
By year end, GBP19 million of cost synergies had been delivered and we now
expect total cost synergies from the merger to be at least GBP32 million, an
increase of 60 per cent on our original forecast. Close to the full run rate
will be delivered in the coming financial year.We now expect to incur GBP42
million of implementation cost to achieve the extra savings, of which GBP34
million has been incurred to date and a residual GBP8 million is expected in the
coming financial year.
Good work has taken place towards achievement of revenue synergies though the
market downturn means these are likely to come through at slower rate than
previously expected.
Board of Directors
In February we announced that Clara Furse will step down as Chief Executive.
Clara has made a major contribution to the success of the Exchange, leading the
transformation from mutual organisation to a dynamic international business, and
the Board extends its considerable gratitude for her hard work, dedication and
leadership.
Xavier Rolet joined the Group Board in March, and formally assumes the role as
Chief Executive from today. He brings 25 years of experience and a thorough
understanding of the market, and his deep knowledge and extensive customer
network means he is highly qualified to lead the Exchange through its next
stages of development and progress.
Current trading and prospects
Trading levels have shown some signs of improvement since the start of the
financial year. In April the daily average value traded on UK order book
increased two per cent above the average of the previous quarter, though were
still well below the levels of the same month last year. In Italy there was
stronger growth, with average daily trades 34 per cent above the average of the
preceding three months and 19 per cent up on April last year. The number of
derivatives traded across the Group's markets increased 41 per cent year on
year.
As we look to the future, although the markets and economic environment remain
challenging, the Board believes the exchange model will be seen as vital. Over
the next year, we expect companies to continue to seek equity funds and we will
continue to justify the trust that investors place in our well regulated, highly
efficient and price forming trading service.
We are working closely with governments and other policy makers to help ensure
that the response to the banking and economic crisis is proportionate and
internationally coordinated. We also continue to lobby in the UK and Italy for a
tax system that recognises the essential and positive role of equity markets to
our economic well-being.
We are benefiting from the synergies from our merger, as well as the benefits of
increased diversification.
Although market conditions are expected to remain testing, the Board believes
the Group is well placed for the future.
Further information
The Group will host a presentation of its Preliminary Results for analysts and
institutional shareholders today at 09:30am at 10 Paternoster Square,
London EC4M 7LS. The presentation will be accessible via live web cast, which
can be viewed at www.londonstockexchange.com. For further information, please
call the Group's Investor Relations team on +44 (0) 20 7797 3322.
The Group will also hold a presentation of its Preliminary Results for members
of the press today at 11:30am at 10 Paternoster Square, London EC4M 7LS. For
further information, please call the Exchange's London Press Office on +44 (0)
20 7797 1222 or Milan office on +39 02 72 426 212.
Basis of preparation of pro forma information
On 1 October 2007, Borsa Italiana S.p.A. (BIt) was acquired by London Stock
Exchange Group plc (LSEG).
The unaudited pro forma information has been prepared by the directors to
illustrate the acquisition of BIt as if it had taken place on 1 April 2007 (the
first day of the comparative period). In addition, the pro forma information
includes the results of MBE Holding S.p.A. (the holding company for MTS), of
which the remaining 51% was acquired on 14 September 2007, as if it had it been
acquired on 1 April 2007 by BIt. The information has not been designed to and
does not give a presentation of the consolidated results of LSEG that would have
been reported had the business combination actually occurred on 1 April 2007
(for example, it does not include the impact of potential synergies). It has
been prepared for illustrative purposes only through the aggregation of existing
LSEG, existing BIt group and MBE Holding S.p.A. (including MTS) financial
information.
The information has been prepared without making any adjustments to reflect the
impact of acquisition accounting in accordance with IFRS 3. Therefore, undue
reliance should not be placed on this information.
Results for BIt for the year ended 31 March 2009 have been translated into
Sterling using the average monthly exchange rates prevalent during the period
equating to an average for the year of EUR1.20 : GBP1. Pro forma results for BIt
for the year ended 31 March 2008 have been translated at the average exchange
rate for the year ended 31 March 2008 of EUR1.42 : GBP1. Constant currency growth
rates have been calculated by translating prior period results at the average
exchange rate for the current period. The exchange rate used at 31 March 2009
was EUR1.08 : GBP1 (31 March 2008 EUR1.25 : GBP1).
CONSOLIDATED INCOME STATEMENT
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Year ended 31 March 2009 | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| | | 2009 | 2008 |
+--------------------------------+-------+----------------------------------------+------------------------------------------+
| | | Before | Impairment, | Total | Before | Amortisation | Total |
| | | impairment, | amortisation | | amortisation | of purchased | |
| | | amortisation | of purchased | | of purchased | intangibles | |
| | | of purchased | intangibles | | intangibles | and | |
| | | intangibles | and | | and | exceptional | |
| | | and | exceptional | | exceptional | items | |
| | | exceptional | items | | items | | |
| | | items | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| | Notes | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Continuing operations | | | | | | (restated) | (restated) |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Revenue | 3 | 671.4 | - | 671.4 | 546.4 | - | 546.4 |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Expenses | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Operating expenses | | (332.8) | (64.6) | (397.4) | (257.4) | (23.8) | (281.2) |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Operating profit before | | 338.6 | (64.6) | 274.0 | 289.0 | (23.8) | 265.2 |
| impairment | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Impairment of goodwill | 10 | - | (484.0) | (484.0) | - | - | - |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Operating profit/(loss) | | 338.6 | (548.6) | (210.0) | 289.0 | (23.8) | 265.2 |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Finance income | | 20.8 | - | 20.8 | 18.8 | - | 18.8 |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Finance expense | | (58.8) | (6.9) | (65.7) | (51.5) | (7.7) | (59.2) |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Net finance expense | 6 | (38.0) | (6.9) | (44.9) | (32.7) | (7.7) | (40.4) |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Share of profit after tax of | | 2.1 | - | 2.1 | 2.2 | - | 2.2 |
| joint ventures/associates | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Profit on disposal of | | 2.0 | - | 2.0 | - | - | - |
| associate | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Profit /(loss) before taxation | | 304.7 | (555.5) | (250.8) | 258.5 | (31.5) | 227.0 |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Taxation | 5,7 | (96.7) | 14.7 | (82.0) | (80.3) | 26.3 | (54.0) |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Profit/(loss) for the | | 208.0 | (540.8) | (332.8) | 178.2 | (5.2) | 173.0 |
| financial year | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Profit attributable to | | 9.1 | (3.9) | 5.2 | 4.4 | 0.3 | 4.7 |
| minority interests | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Profit/(loss) attributable to | | 198.9 | (536.9) | (338.0) | 173.8 | (5.5) | 168.3 |
| equity holders | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| | | 208.0 | (540.8) | (332.8) | 178.2 | (5.2) | 173.0 |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Basic (loss)/earnings per | 8 | | | (126.1)p | | | 70.8p |
| share | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Diluted (loss)/earnings per | 8 | | | (126.1)p | | | 69.7p |
| share | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Adjusted basic earnings per | 8 | | | 74.2p | | | 73.1p |
| share | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Adjusted diluted earnings per | 8 | | | 73.6p | | | 71.9p |
| share | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Dividend per share in respect | | | | | | | |
| of financial year | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Dividend per share paid during | 9 | | | 24.4p | | | 20.0p |
| the year | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
| Dividend per share declared | 9 | | | 24.4p | | | 24.0p |
| for the year | | | | | | | |
+--------------------------------+-------+--------------+--------------+----------+--------------+--------------+------------+
+-------------------------------------+------+------------+------------+------------+------------+
| STATEMENT OF RECOGNISED INCOME AND EXPENSE |
+------------------------------------------------------------------------------------------------+
| Year ended 31 March 2009 | | | |
+-------------------------------------+------+-------------------------+-------------------------+
| | | | | 2009 | 2008 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | GBPm | GBPm |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | | (restated) |
| | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| (Loss)/profit for the financial | | | | (332.8) | 173.0 |
| year | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Defined benefit pension scheme | | | | (11.7) | 21.2 |
| actuarial (loss)/gain | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Cash flow hedge | | | | 6.2 | (7.9) |
+-------------------------------------+------+------------+------------+------------+------------+
| Net investment hedge | | | | (24.8) | (6.8) |
+-------------------------------------+------+------------+------------+------------+------------+
| Exchange gains on translation of | | | | 284.3 | 212.7 |
| foreign operation | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Tax related to items not recognised | | | | 2.2 | (3.9) |
| on income statement | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | 256.2 | 215.3 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Total recognised (expense)/income for the | | | (76.6) | 388.3 |
| financial year | | | | |
+--------------------------------------------+------------+------------+------------+------------+
| Attributable to minority interests | | | | 14.9 | 15.9 |
+-------------------------------------+------+------------+------------+------------+------------+
| Attributable to equity holders | | | | (91.5) | 372.4 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | (76.6) | 388.3 |
+-------------------------------------+------+------------+------------+------------+------------+
+-------------------------------------+------+------------+------------+------------+------------+
| BALANCE SHEET |
+------------------------------------------------------------------------------------------------+
| 31 March 2009 | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | 2009 | 2008 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | Notes | GBPm | GBPm |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | | (restated) |
| | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Assets | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Non-current assets | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Property, plant and equipment | | | | 79.9 | 72.8 |
+-------------------------------------+------+------------+------------+------------+------------+
| Intangible assets | | | 10 | 1,584.9 | 1,821.9 |
+-------------------------------------+------+------------+------------+------------+------------+
| Investments in joint ventures | | | | 1.7 | 1.9 |
+-------------------------------------+------+------------+------------+------------+------------+
| Investments in associates | | | | 1.9 | 2.3 |
+-------------------------------------+------+------------+------------+------------+------------+
| Deferred tax assets | | | | 5.7 | 10.0 |
+-------------------------------------+------+------------+------------+------------+------------+
| Available for sale investments | | | | 0.4 | 0.4 |
+-------------------------------------+------+------------+------------+------------+------------+
| Retirement benefit asset | | | | 5.0 | 11.8 |
+-------------------------------------+------+------------+------------+------------+------------+
| Other non-current assets | | | | 0.4 | 0.4 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | 1,679.9 | 1,921.5 |
+-------------------------------------+------+------------+------------+------------+------------+
| Current assets | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Trade and other receivables | | | | 114.5 | 121.1 |
+-------------------------------------+------+------------+------------+------------+------------+
| CCP financial assets | | | | 32,077.9 | 15,649.2 |
+-------------------------------------+------+------------+------------+------------+------------+
| CCP cash and cash equivalents | | | | 3,596.6 | 1,654.1 |
| (restricted) | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| CCP clearing business assets | | | 11 | 35,674.5 | 17,303.3 |
+-------------------------------------+------+------------+------------+------------+------------+
| Current tax | | | | - | 3.9 |
+-------------------------------------+------+------------+------------+------------+------------+
| Assets held at fair value | | | | 5.0 | 13.8 |
+-------------------------------------+------+------------+------------+------------+------------+
| Cash and cash equivalents | | | | 143.7 | 200.6 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | 35,937.7 | 17,642.7 |
+-------------------------------------+------+------------+------------+------------+------------+
| Total assets | | | | 37,617.6 | 19,564.2 |
+-------------------------------------+------+------------+------------+------------+------------+
| Liabilities | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Current liabilities | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Trade and other payables | | | | 112.9 | 146.2 |
+-------------------------------------+------+------------+------------+------------+------------+
| Derivative financial instruments | | | | 1.6 | 7.9 |
+-------------------------------------+------+------------+------------+------------+------------+
| CCP clearing business liabilities | | | 11 | 35,679.2 | 17,307.7 |
+-------------------------------------+------+------------+------------+------------+------------+
| Current tax | | | | 7.6 | 13.9 |
+-------------------------------------+------+------------+------------+------------+------------+
| Borrowings | | | 12 | 2.3 | 436.0 |
+-------------------------------------+------+------------+------------+------------+------------+
| Provisions | | | | 3.8 | 5.2 |
+-------------------------------------+------+------------+------------+------------+------------+
| Other current liabilities | | | | - | 1.8 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | 35,807.4 | 17,918.7 |
+-------------------------------------+------+------------+------------+------------+------------+
| Non-current liabilities | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Borrowings | | | 12 | 622.5 | 256.1 |
+-------------------------------------+------+------------+------------+------------+------------+
| Deferred tax liabilities | | | | 103.3 | 95.7 |
+-------------------------------------+------+------------+------------+------------+------------+
| Retirement benefit obligation | | | | 8.3 | 7.6 |
+-------------------------------------+------+------------+------------+------------+------------+
| Provisions | | | | 22.9 | 23.2 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | 757.0 | 382.6 |
+-------------------------------------+------+------------+------------+------------+------------+
| Total liabilities | | | | 36,564.4 | 18,301.3 |
+-------------------------------------+------+------------+------------+------------+------------+
| Net assets | | | | 1,053.2 | 1,262.9 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
+-------------------------------------+------+------------+------------+------------+------------+
| Equity | | | | | |
+-------------------------------------+------+------------+------------+------------+------------+
| Capital and reserves attributable to the Group's equity | | | |
| holders | | | |
+---------------------------------------------------------+------------+------------+------------+
| Share capital | | | 14,15 | 18.7 | 19.1 |
+-------------------------------------+------+------------+------------+------------+------------+
| Retained loss | | | 15 | (803.2) | (331.1) |
+-------------------------------------+------+------------+------------+------------+------------+
| Other reserves | | | 15 | 1,741.4 | 1,479.7 |
+-------------------------------------+------+------------+------------+------------+------------+
| | | | | 956.9 | 1,167.7 |
+-------------------------------------+------+------------+------------+------------+------------+
| Minority interests in equity | | | 15 | 96.3 | 95.2 |
+-------------------------------------+------+------------+------------+------------+------------+
| Total equity | | | | 1,053.2 | 1,262.9 |
+-------------------------------------+------+------------+------------+------------+------------+
| |
+-------------------------------------+------+------------+------------+------------+------------+
+--------------------------------------+------+-----------+------------+------------+------------+
| CASH FLOW STATEMENT | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Year ended 31 March 2009 | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | 2009 | 2008 |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | Note | GBPm | GBPm |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | | (restated) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Cash flow from operating activities | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Cash generated from operations | | | 16 | 352.6 | 292.9 |
+--------------------------------------+------+-----------+------------+------------+------------+
| Interest received | | | | 7.0 | 5.8 |
+--------------------------------------+------+-----------+------------+------------+------------+
| Interest paid | | | | (52.1) | (39.4) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Corporation tax paid | | | | (51.9) | (68.7) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Withholding tax paid | | | | (30.5) | (12.7) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Net cash inflow/(outflow) from | | | | 225.1 | 177.9 |
| operating activities | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Cash flow from investing activities | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Net cash inflow from merger | | | | - | 82.3 |
+--------------------------------------+------+-----------+------------+------------+------------+
| Purchase of property, plant and | | | | (19.9) | (10.3) |
| equipment | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Purchase of intangible assets | | | | (36.5) | (21.9) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Disposal of associate | | | | 2.7 | - |
+--------------------------------------+------+-----------+------------+------------+------------+
| Investment in joint venture | | | | (0.7) | - |
+--------------------------------------+------+-----------+------------+------------+------------+
| Investment in subsidiary | | | | (5.3) | - |
+--------------------------------------+------+-----------+------------+------------+------------+
| Dividends received | | | | 3.8 | 2.4 |
+--------------------------------------+------+-----------+------------+------------+------------+
| Acquisition of minority interests in | | | | - | (0.5) |
| Borsa Italiana | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Net cash (outflow)/inflow from | | | | (55.9) | 52.0 |
| investing activities | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Cash flow from financing activities | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Dividends paid to shareholders | | | | (65.3) | (46.0) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Dividends paid to minorities | | | | (7.0) | - |
+--------------------------------------+------+-----------+------------+------------+------------+
| Redemption of B shares | | | | (5.3) | (8.1) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Share buyback | | | | (51.5) | (143.8) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Purchase of own shares by ESOP trust | | | | (26.3) | (36.7) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Proceeds from own shares on exercise of | | | 0.9 | 5.9 |
| employee share options | | | | |
+---------------------------------------------+-----------+------------+------------+------------+
| Proceeds from borrowings | | | | 735.2 | 613.0 |
+--------------------------------------+------+-----------+------------+------------+------------+
| Repayment of borrowings | | | | (818.5) | (497.5) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Share issue costs | | | | - | (2.9) |
+--------------------------------------+------+-----------+------------+------------+------------+
| Net cash outflow from financing | | | | (237.8) | (116.1) |
| activities | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| (Decrease)/increase in cash and cash | | | | (68.6) | 113.8 |
| equivalents | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Cash and cash equivalents at | | | | 200.6 | 72.9 |
| beginning of year | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Exchange gains on cash and cash | | | | 11.7 | 13.9 |
| equivalents | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Cash and cash equivalents at end of | | | | 143.7 | 200.6 |
| year | | | | | |
+--------------------------------------+------+-----------+------------+------------+------------+
| Group cash flow does not include cash and cash equivalents held by CC&G on behalf of its |
| clearing members for use in its operation as manager of the clearing and guarantee system. |
| These balances represent margins and default fund amounts held for counterparties in |
| connection with this operation. |
+--------------------------------------+------+-----------+------------+------------+------------+
+------------------------------------------------------------------------------------------+
| Notes to the Financial Statements |
| 1. Basis of preparation |
| The Group's consolidated financial statements are prepared in accordance with |
| International Financial Reporting Standards (IFRS) and International Financial Reporting |
| Interpretations Committee (IFRIC) interpretations endorsed by the European Union, and |
| with those parts of the Companies Act 1985 applicable to companies reporting under IFRS. |
| The financial statements are prepared under the historical cost convention as modified |
| by the revaluation of assets and liabilities held at fair value, including those of the |
| central counterparty (CCP) clearing business of the Group's majority-owned subsidiary |
| Cassa di Compensazione e Garanzia S.p.A. (CC&G), and on the basis of the Group's |
| accounting policies. |
| The Group uses a columnar format for the presentation of its consolidated income |
| statement. This enables the Group to aid an understanding of its results by presenting |
| profit for the year before goodwill impairment, amortisation of purchased intangible |
| assets and exceptional items. This is the profit measure used to calculate adjusted |
| earnings per share and is considered to be the most appropriate as it best reflects the |
| Group's underlying cash earnings. Profit before impairment of goodwill, amortisation of |
| purchased intangible assets and exceptional items is reconciled to profit before |
| taxation on the face of the income statement. |
| |
+------------------------------------------------------------------------------------------+
+------------------------------------------------------------------------------------------+
| 2. Prior year adjustment |
| The Group carries its bank borrowings and bonds at amortised cost, with interest charged |
| to the income statement over the period of the borrowings using the effective interest |
| rate (EIR) method. Its July 2006 GBP250m bond paid an initial coupon of 5.875 per cent |
| p.a. Due to amendments to the Group's long term credit rating, the coupon increased to |
| 6.125 per cent and 6.375 per cent in July 2007 and January 2008 respectively. For the |
| purposes of its interim and annual financial statements at 30 September 2007 and 31 |
| March 2008, the Group treated this bond as a floating rate instrument and, accordingly, |
| did not reflect the impact of the expected future cash flows at the original EIR in its |
| calculations. |
| Following further consideration, the Directors decided that, although there were good |
| arguments for treating elements of the bond as floating rate, it was more appropriate to |
| have treated this as a fixed rate instrument. Accordingly, the prior year financial |
| statements have been adjusted by restating the carrying amount of the debt instrument by |
| discounting the revised cash flows using the original EIR, with the resulting |
| adjustments being recorded in the income statement as an exceptional finance cost. The |
| resulting charge to the income statement will be offset following revisions to the EIR |
| calculations, which will result in reduced future interest expense, over the remaining |
| life of the bond. |
+------------------------------------------------------------------------------------------+
+-----------------------------------------+----------+---------------------------+------------+
| The effect of these adjustments on the prior year is shown below: | Year ended |
| | 31 March |
| | 2008 |
+--------------------------------------------------------------------------------+ +
| | |
+--------------------------------------------------------------------------------+------------+
| | | Note | GBPm |
+-----------------------------------------+----------+---------------------------+------------+
| Effect on the income statement | | | |
+-----------------------------------------+----------+---------------------------+------------+
| Profit for the financial year (as | | | 178.5 |
| originally stated) | | | |
+-----------------------------------------+----------+---------------------------+------------+
| Finance expense increase | | 6 | (7.7) |
+-----------------------------------------+----------+---------------------------+------------+
| Taxation charge reduction | | | 2.2 |
+-----------------------------------------+----------+---------------------------+------------+
| Profit for the financial year | | | 173.0 |
| (restated) | | | |
+-----------------------------------------+----------+---------------------------+------------+
| | | | |
+-----------------------------------------+----------+---------------------------+------------+
| Effect on the balance sheet | | | |
+-----------------------------------------+----------+---------------------------+------------+
| Net assets (as originally stated) | | | 1,268.4 |
+-----------------------------------------+----------+---------------------------+------------+
| Borrowings increase | | | (7.7) |
+-----------------------------------------+----------+---------------------------+------------+
| Current tax creditor decrease | | | 2.2 |
+-----------------------------------------+----------+---------------------------+------------+
| Net assets (restated) | | | 1,262.9 |
+-----------------------------------------+----------+---------------------------+------------+
| | | | |
+-----------------------------------------+----------+---------------------------+------------+
| | | | Year ended |
| | | | 31 March |
| | | | 2008 |
+-----------------------------------------+----------+---------------------------+ +
| | | | |
+-----------------------------------------+----------+---------------------------+------------+
| Effect on earnings per share | | | |
+-----------------------------------------+----------+---------------------------+------------+
| Basic earnings per share (as originally | | | 73.1p |
| stated) | | | |
+-----------------------------------------+----------+---------------------------+------------+
| Prior year adjustment | | | (2.3p) |
+-----------------------------------------+----------+---------------------------+------------+
| Basic earnings per share (restated) | | | 70.8p |
+-----------------------------------------+----------+---------------------------+------------+
| | | | |
+-----------------------------------------+----------+---------------------------+------------+
| Diluted earnings per share (as | | | 71.9p |
| originally stated) | | | |
+-----------------------------------------+----------+---------------------------+------------+
| Prior year adjustment | | | (2.2p) |
+-----------------------------------------+----------+---------------------------+------------+
| Diluted earnings per share (restated) | | | 69.7p |
+-----------------------------------------+----------+---------------------------+------------+
| | | | |
+-----------------------------------------+----------+---------------------------+------------+
| There was no effect on adjusted basic earnings per share as the bond adjustment is treated |
| as an exceptional item. |
+-----------------------------------------+----------+---------------------------+------------+
+---------------------------+-----------+-------+----------+-------------+------------+---------+-----------+------------+
| 3. Segment information |
| Segmental disclosures for the year ended 31 March 2009 are shown below. |
| |
+------------------------------------------------------------------------------------------------------------------------+
| | Issuer | Trading | Information | Post | Other | Corporate | Group |
| | | | | Trade | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Revenue | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Total revenue | 90.6 | 277.0 | 183.9 | 111.4 | 38.1 | - | 701.0 |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Inter-segmental revenue | (0.2) | (1.7) | (1.0) | (7.4) | (19.3) | - | (29.6) |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| External revenue | 90.4 | 275.3 | 182.9 | 104.0 | 18.8 | - | 671.4 |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Expenses | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Depreciation and software | (3.4) | (15.0) | (12.5) | (3.1) | (1.9) | (0.5) | (36.4) |
| amortisation | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Other non-exceptional | (48.9) | (117.7) | (75.0) | (33.7) | (12.8) | (8.3) | (296.4) |
| expenses | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Adjusted operating profit | 38.1 | 142.6 | 95.4 | 67.2 | 4.1 | (8.8) | 338.6 |
| | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Amortisation of purchased intangible | (4.6) | (13.5) | (6.7) | (24.6) | - | - | (49.4) |
| assets | | | | | | | |
+---------------------------------------+-------+----------+-------------+------------+---------+-----------+------------+
| Exceptional integration | (0.9) | (3.2) | (3.4) | (4.0) | (0.9) | (2.8) | (15.2) |
| costs (see note 5) | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Operating profit before | 32.6 | 125.9 | 85.3 | 38.6 | 3.2 | (11.6) | 274.0 |
| impairment | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Impairment of goodwill | (107.6) | (250.0) | (40.9) | (85.5) | - | - | (484.0) |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Operating profit (segment | (75.0) | (124.1) | 44.4 | (46.9) | 3.2 | (11.6) | (210.0) |
| result) | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Finance income | - | - | - | - | - | 20.8 | 20.8 |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Finance expense | - | - | - | - | - | (65.7) | (65.7) |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Share of profit after tax | - | (0.1) | 2.2 | - | - | - | 2.1 |
| of joint ventures / | | | | | | | |
| associates | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Profit on disposal of | - | 2.0 | - | - | - | - | 2.0 |
| associate | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Assets | 149.1 | 631.9 | 322.5 | 36,386.5 | 51.8 | 72.2 | 37,614.0 |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Investment in joint | - | 1.9 | 1.7 | - | - | - | 3.6 |
| ventures / associates | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Total assets | 149.1 | 633.8 | 324.2 | 36,386.5 | 51.8 | 72.2 | 37,617.6 |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Liabilities | (25.4) | (84.3) | (52.2) | (35,721.7) | (18.4) | (662.4) | (36,564.4) |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| | | | | | | | |
+---------------------------+-------------------+----------+-------------+------------+---------+-----------+------------+
| Capital expenditure | 4.1 | 27.4 | 13.4 | 1.6 | 8.2 | 4.5 | 59.2 |
+---------------------------+-----------+-------+----------+-------------+------------+---------+-----------+------------+
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Comparative segmental disclosures for the year ended 31 March 2008 are as follows: |
+--------------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | Issuer | Trading | Information | Post | Other | Corporate | Group |
| | | | | Trade | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | | | | | | (restated) | (restated) |
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Revenue | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Total revenue | 82.5 | 265.1 | 143.8 | 46.0 | 20.5 | - | 557.9 |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Inter-segmental revenue | (0.1) | (0.4) | (0.2) | (3.2) | (7.6) | - | (11.5) |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| External revenue | 82.4 | 264.7 | 143.6 | 42.8 | 12.9 | - | 546.4 |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Expenses | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Depreciation and software | (3.0) | (13.9) | (5.2) | (3.4) | (0.8) | (0.6) | (26.9) |
| amortisation | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Other non-exceptional | (41.6) | (87.5) | (58.4) | (15.3) | (11.4) | (16.3) | (230.5) |
| expenses | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Adjusted operating profit | 37.8 | 163.3 | 80.0 | 24.1 | 0.7 | (16.9) | 289.0 |
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Amortisation of purchased | (2.0) | (5.9) | (2.9) | (10.7) | - | - | (21.5) |
| intangible assets | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Exceptional integration | (0.2) | (0.3) | (0.3) | - | - | (1.5) | (2.3) |
| costs (see note 5) | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Operating profit (segment | 35.6 | 157.1 | 76.8 | 13.4 | 0.7 | (18.4) | 265.2 |
| result) | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Finance income | - | - | - | - | - | 18.8 | 18.8 |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Finance expense | - | - | - | - | - | (59.2) | (59.2) |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Share of profit after tax | - | 0.1 | 2.1 | - | - | - | 2.2 |
| of joint venture / | | | | | | | |
| associates | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Assets | 232.3 | 801.1 | 319.5 | 18,015.8 | 42.4 | 148.9 | 19,560.0 |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Investment in joint | - | 2.0 | 2.2 | - | - | - | 4.2 |
| venture / associates | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Total assets | 232.3 | 803.1 | 321.7 | 18,015.8 | 42.4 | 148.9 | 19,564.2 |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Liabilities | (32.2) | (71.8) | (47.7) | (17,368.0) | (23.6) | (758.0) | (18,301.3) |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| Capital expenditure | 4.8 | 15.4 | 6.4 | 0.1 | 1.5 | 0.1 | 28.3 |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| | | | | | | | |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
| The Other segment represents property sub-letting and activities not directly related to the four |
| main business segments and which do not individually constitute separately reportable segments. |
| Corporate expenses are for corporate services which cannot reasonably be allocated to business |
| segments. Other costs are allocated according to appropriate metrics, e.g. headcount or floor |
| space. |
+---------------------------+--------+----------+-------------+------------+---------+------------+------------+
+-------------------------------------+--------+--------+--------+--+--+--+--+-----+--+----+--+
| 4. Employee costs | | | |
| Employee costs comprise the following: | | | |
+----------------------------------------------------------------------+-----+--------+-------+
| | | 2009 | 2008 |
+----------------------------------------------------------------------+-----+--------+-------+
| | | GBPm | GBPm |
+----------------------------------------------------------------------+-----+--------+-------+
| Salaries and other short term benefits | | 82.4 | 69.9 |
+----------------------------------------------------------------------+-----+--------+-------+
| Social security costs | | 13.9 | 11.9 |
+----------------------------------------------------------------------+-----+--------+-------+
| Pension costs | | 6.8 | 5.4 |
+----------------------------------------------------------------------+-----+--------+-------+
| Share based compensation | | 10.2 | 12.3 |
+----------------------------------------------------------------------+-----+--------+-------+
| Total | | 113.3 | 99.5 |
+----------------------------------------------------------------------+-----+--------+-------+
| The number of employees in the | | |
| Group was: | | |
+-------------------------------------+-----------------------------+----------------------+
| | 2009 | 2008 |
+-------------------------------------+-----------------------------+----------------------+
| | UK | Italy | Total | | UK | Italy | Total |
+-------------------------------------+--------+--------+--------+--+-----+--------+-------+
| At the year end | 570 | 565 | 1,135 | | 599 | 611 | 1,210 |
+-------------------------------------+--------+--------+--------+--+-----+--------+-------+
| Average for the year | 592 | 583 | 1,175 | | 514 | 358 | 872 |
+-------------------------------------+--------+--------+--------+--+-----+--------+-------+
| | | | | | | | |
+-------------------------------------+--------+--------+--------+--+--+--+--+-----+--+----+--+
+-----------------------------------------------------------------+-------+----------+------------+
| 5. Impairment, amortisation of purchased intangible assets and | | |
| exceptional items | | |
| | | |
+-------------------------------------------------------------------------+----------+------------+
| | 2009 | 2008 |
+-------------------------------------------------------------------------+----------+------------+
| | GBPm | GBPm |
+-------------------------------------------------------------------------+----------+------------+
| | Notes | | (restated) |
| | | | |
+-----------------------------------------------------------------+-------+----------+------------+
| Impairment of goodwill | 10 | (484.0) | - |
+-----------------------------------------------------------------+-------+----------+------------+
| Amortisation of purchased intangible assets | 10 | (49.4) | (21.5) |
+-----------------------------------------------------------------+-------+----------+------------+
| Integration costs | | (15.2) | (2.3) |
+-----------------------------------------------------------------+-------+----------+------------+
| Total affecting operating profit | | (548.6) | (23.8) |
+-----------------------------------------------------------------+-------+----------+------------+
| | | | |
+-----------------------------------------------------------------+-------+----------+------------+
| Exceptional finance costs: | | | |
+-----------------------------------------------------------------+-------+----------+------------+
| Bond adjustment to reflect changes in valuation of cash flows | | 3.7 | (7.7) |
+-----------------------------------------------------------------+-------+----------+------------+
| Loss on cash flow hedge recycled to income statement | | (7.9) | - |
+-----------------------------------------------------------------+-------+----------+------------+
| Loss on gilt lock contract in the year | | (2.7) | - |
+-----------------------------------------------------------------+-------+----------+------------+
| Total affecting profit before tax | | (555.5) | (31.5) |
+-----------------------------------------------------------------+-------+----------+------------+
| | | | |
+-----------------------------------------------------------------+-------+----------+------------+
| Tax effect on items affecting profit before tax and tax | | | |
| exceptional items | | | |
+-----------------------------------------------------------------+-------+----------+------------+
| Deferred tax on amortisation of purchased intangible assets | | 8.5 | 3.7 |
+-----------------------------------------------------------------+-------+----------+------------+
| Tax effect on other items affecting profit before tax | | 6.2 | 2.9 |
+-----------------------------------------------------------------+-------+----------+------------+
| Credit to taxation in respect of change of Italian tax rate | 7 | - | 19.7 |
+-----------------------------------------------------------------+-------+----------+------------+
| Total tax effect on items affecting profit before tax and tax | | 14.7 | 26.3 |
| exceptional items | | | |
+-----------------------------------------------------------------+-------+----------+------------+
| Total charge to income statement | | (540.8) | (5.2) |
+-----------------------------------------------------------------+-------+----------+------------+
| |
+-------------------------------------------------------------------------------------------------+
| Integration costs relate to the integration of the businesses of the London Stock Exchange |
| and Borsa Italiana, and include costs of integrating trading systems and websites as well as |
| staff related costs. The change of Italian tax rate on 1 January 2008 affected the value of |
| deferred tax liabilities acquired, resulting in a credit to the taxation account. |
+-----------------------------------------------------------------+-------+----------+------------+
+------------------------------------------------------------------+-------+--------+------------+
| 6. Net finance expense | 2009 | 2008 |
+--------------------------------------------------------------------------+--------+------------+
| | GBPm | GBPm |
+--------------------------------------------------------------------------+--------+------------+
| | | | (restated) |
+------------------------------------------------------------------+-------+--------+------------+
| Finance income | | | |
+------------------------------------------------------------------+-------+--------+------------+
| Bank deposit and other interest income | | 7.5 | 6.3 |
+------------------------------------------------------------------+-------+--------+------------+
| Expected return on defined benefit pension scheme assets | | 13.0 | 12.3 |
+------------------------------------------------------------------+-------+--------+------------+
| Investment income | | 0.3 | 0.2 |
+------------------------------------------------------------------+-------+--------+------------+
| | | 20.8 | 18.8 |
+------------------------------------------------------------------+-------+--------+------------+
| | | | |
+------------------------------------------------------------------+-------+--------+------------+
| Finance expense | | | |
+------------------------------------------------------------------+-------+--------+------------+
| Interest payable on bank and other borrowings | | (40.4) | (34.5) |
+------------------------------------------------------------------+-------+--------+------------+
| Other finance expense | | (2.8) | (3.1) |
+------------------------------------------------------------------+-------+--------+------------+
| Interest on discounted provision for leasehold properties | | (1.2) | (1.3) |
+------------------------------------------------------------------+-------+--------+------------+
| Defined benefit pension scheme interest expense | | (14.4) | (12.6) |
+------------------------------------------------------------------+-------+--------+------------+
| | | (58.8) | (51.5) |
+------------------------------------------------------------------+-------+--------+------------+
| | | | |
+------------------------------------------------------------------+-------+--------+------------+
| Exceptional finance expense | | | |
+------------------------------------------------------------------+-------+--------+------------+
| Bond adjustment to reflect change in future coupon | | 3.7 | (7.7) |
+------------------------------------------------------------------+-------+--------+------------+
| Loss on cash flow hedge recycled to income statement | | (7.9) | - |
+------------------------------------------------------------------+-------+--------+------------+
| Loss on gilt lock contract in the year | | (2.7) | - |
+------------------------------------------------------------------+-------+--------+------------+
| Total exceptional finance expense | | (6.9) | (7.7) |
+------------------------------------------------------------------+-------+--------+------------+
| | | (65.7) | (59.2) |
+------------------------------------------------------------------+-------+--------+------------+
| Net finance expense | | (44.9) | (40.4) |
+------------------------------------------------------------------+-------+--------+------------+
| | | | |
+------------------------------------------------------------------+-------+--------+------------+
| Due to deteriorating market conditions, a proposed bond issue was deemed as improbable |
| during the year and so the hedging relationship with a gilt lock interest rate contract |
| ended. As a result the accumulated mark to market loss charged through reserves was |
| recycled to the income statement. This and the loss incurred on settlement in December have |
| been disclosed as exceptional finance expense. |
+------------------------------------------------------------------+-------+--------+------------+
+-----------------------------------------------------------------------+-----------+------------+
| 7. Taxation | | |
+-----------------------------------------------------------------------+-----------+------------+
| | 2009 | 2008 |
+-----------------------------------------------------------------------+-----------+------------+
| | GBPm | GBPm |
+-----------------------------------------------------------------------+-----------+------------+
| Taxation charged to the income statement | | (restated) |
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| Current tax: | | |
+-----------------------------------------------------------------------+-----------+------------+
| UK corporation tax for the year at 28% (last year 30%) | 42.4 | 55.8 |
+-----------------------------------------------------------------------+-----------+------------+
| Overseas tax for the year | 46.7 | 22.7 |
+-----------------------------------------------------------------------+-----------+------------+
| Adjustments in respect of previous years | (4.3) | (1.7) |
+-----------------------------------------------------------------------+-----------+------------+
| | 84.8 | 76.8 |
+-----------------------------------------------------------------------+-----------+------------+
| Deferred tax: | | |
+-----------------------------------------------------------------------+-----------+------------+
| Deferred tax for the current year | 3.1 | 2.3 |
+-----------------------------------------------------------------------+-----------+------------+
| Adjustments in respect of previous years | 2.6 | 0.5 |
+-----------------------------------------------------------------------+-----------+------------+
| Exceptional credit to deferred tax in respect of Italian tax rate | - | (19.7) |
| change | | |
+-----------------------------------------------------------------------+-----------+------------+
| Deferred tax on amortisation of purchased intangible assets | (8.5) | (3.7) |
+-----------------------------------------------------------------------+-----------+------------+
| Foreign exchange | - | (2.2) |
+-----------------------------------------------------------------------+-----------+------------+
| Taxation charge | 82.0 | 54.0 |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
+-----------------------------------------------------------------------+-----------+------------+
| The adjustments in respect of previous years' corporation tax are mainly in respect of tax |
| returns agreed with relevant tax authorities. |
| |
+------------------------------------------------------------------------------------------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| | 2009 | 2008 |
+-----------------------------------------------------------------------+-----------+------------+
| Taxation on items (credited)/charged to equity | GBPm | GBPm |
+-----------------------------------------------------------------------+-----------+------------+
| Current tax credit: | | |
+-----------------------------------------------------------------------+-----------+------------+
| Tax allowance on share options/awards in excess of expense recognised | (1.1) | (5.7) |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| Deferred tax charge/(credit): | | |
+-----------------------------------------------------------------------+-----------+------------+
| Defined benefit pension scheme actuarial (losses)/gains | (3.2) | 6.3 |
+-----------------------------------------------------------------------+-----------+------------+
| Tax allowance on share options/awards in excess of expense recognised | 2.1 | 3.1 |
+-----------------------------------------------------------------------+-----------+------------+
| Change in UK tax rate | - | 0.2 |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| Factors affecting the tax charge for the year | | |
+-----------------------------------------------------------------------+-----------+------------+
| The reconciling items between the profits multiplied by the UK rate of corporation tax 28% |
| (2008: 30%) and the income statement tax charge for the year are explained below: |
+------------------------------------------------------------------------------------------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| | 2009 | 2008 |
+-----------------------------------------------------------------------+-----------+------------+
| | GBPm | GBPm |
+-----------------------------------------------------------------------+-----------+------------+
| | | (restated) |
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| (Loss)/Profit before taxation | (250.8) | 227.0 |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| (Loss)/Profit multiplied by the UK rate of corporation tax at 28% | (70.2) | 68.2 |
| (2008: 30%) | | |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| Expenses not deductible | 10.5 | 2.5 |
+-----------------------------------------------------------------------+-----------+------------+
| Impairment of goodwill | 135.5 | - |
+-----------------------------------------------------------------------+-----------+------------+
| Share of joint venture and associates consolidated at profit after | (0.6) | (1.0) |
| tax | | |
+-----------------------------------------------------------------------+-----------+------------+
| Exceptional credit to deferred tax in respect of Italian tax rate | - | (19.7) |
| change | | |
+-----------------------------------------------------------------------+-----------+------------+
| Overseas earnings taxed at higher rate | 3.2 | 3.5 |
+-----------------------------------------------------------------------+-----------+------------+
| Adjustments in respect of previous years | (1.7) | (1.2) |
+-----------------------------------------------------------------------+-----------+------------+
| Amortisation of purchase intangible assets | 5.3 | 2.7 |
+-----------------------------------------------------------------------+-----------+------------+
| Other | - | (1.0) |
+-----------------------------------------------------------------------+-----------+------------+
| Taxation charge | 82.0 | 54.0 |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| The weighted average tax rate for the Group was 30% (2008: 32%). | | |
+-----------------------------------------------------------------------+-----------+------------+
+-------------------------------------------------------------------------------------------+
| 8. Earnings per share |
| Earnings per share is presented on four bases: basic earnings per share; diluted earnings |
| per share; adjusted basic earnings per share; and adjusted diluted earnings per share. |
| Basic earnings per share is in respect of all activities and diluted earnings per share |
| takes into account the dilution effects which would arise on conversion or vesting of |
| share options and share awards under the Employee Share Ownership Plan (ESOP). Adjusted |
| basic earnings per share and adjusted diluted earnings per share exclude goodwill |
| impairment, amortisation of purchased intangible assets and exceptional items to enable |
| comparison of the underlying earnings of the business with prior periods. |
+-------------------------------------------------------------------------------------------+
+-----------------------------------------------------------------------+-----------+------------+
| | 2009 | 2008 |
+-----------------------------------------------------------------------+-----------+------------+
| | | (restated) |
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| Basic earnings per share | (126.1)p | 70.8p |
+-----------------------------------------------------------------------+-----------+------------+
| Diluted earnings per share | (126.1)p | 69.7p |
+-----------------------------------------------------------------------+-----------+------------+
| Adjusted basic earnings per share | 74.2p | 73.1p |
+-----------------------------------------------------------------------+-----------+------------+
| Adjusted diluted earnings per share | 73.6p | 71.9p |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| | GBPm | GBPm |
+-----------------------------------------------------------------------+-----------+------------+
| (Loss)/Profit for the financial year attributable to equity holders | (338.0) | 168.3 |
+-----------------------------------------------------------------------+-----------+------------+
| Adjustments: | | |
+-----------------------------------------------------------------------+-----------+------------+
| Amortisation of purchased intangible assets | 49.4 | 21.5 |
+-----------------------------------------------------------------------+-----------+------------+
| Impairment of goodwill (note 10) | 484.0 | - |
+-----------------------------------------------------------------------+-----------+------------+
| Integration costs | 15.2 | 2.3 |
+-----------------------------------------------------------------------+-----------+------------+
| Exceptional finance costs | 6.9 | 7.7 |
+-----------------------------------------------------------------------+-----------+------------+
| Tax effect of amortisation and exceptional items and tax exceptional | (14.7) | (24.1) |
| item | | |
+-----------------------------------------------------------------------+-----------+------------+
| Exceptional items, amortisation and taxation attributable to minority | (3.9) | (1.9) |
| interests | | |
+-----------------------------------------------------------------------+-----------+------------+
| Adjusted profit for the financial year attributable to equity holders | 198.9 | 173.8 |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| Weighted average number of shares - million | 268.1 | 237.8 |
+-----------------------------------------------------------------------+-----------+------------+
| Effect of dilutive share options and awards - million | - | 3.8 |
+-----------------------------------------------------------------------+-----------+------------+
| Diluted weighted average number of shares - million | 268.1 | 241.6 |
+-----------------------------------------------------------------------+-----------+------------+
| | | |
+-----------------------------------------------------------------------+-----------+------------+
| The weighted average number of shares excludes those held in the ESOP. The effect of |
| dilutive share options and awards is 2.0 million (2008: 3.8 million), and applies only to |
| adjusted earnings per share in the current year. |
+-----------------------------------------------------------------------+-----------+------------+
+-----------------------------------------------------------------------+-----------+----------+
| 9. Dividends | | |
+-----------------------------------------------------------------------+-----------+----------+
| | 2009 | 2008 |
+-----------------------------------------------------------------------+-----------+----------+
| | GBPm | GBPm |
+-----------------------------------------------------------------------+-----------+----------+
| Final dividend for 2008 paid August 2008: 16.0p per Ordinary share | 42.9 | 23.8 |
| (2007: 12.0p) | | |
+-----------------------------------------------------------------------+-----------+----------+
| Interim dividend for 2009 paid January 2009: 8.4p per Ordinary share | 22.4 | 22.2 |
| (2008: 8.0p) | | |
+-----------------------------------------------------------------------+-----------+----------+
| | 65.3 | 46.0 |
+-----------------------------------------------------------------------+-----------+----------+
| | | |
+-----------------------------------------------------------------------+-----------+----------+
| The Board has proposed a final dividend in respect of the year ended 31 March 2009 of |
| 16.0 pence per share, which is estimated to amount to GBP42.8m, to be paid on 17 August |
| 2009. |
+-----------------------------------------------------------------------+-----------+----------+
+----------------------------------------------------+----------+----------+------------+----------+
| 10. Intangible assets |
| |
+--------------------------------------------------------------------------------------------------+
| Group | Goodwill | Software | Purchased | Total |
| | | | intangible | |
| | | | assets | |
+----------------------------------------------------+----------+----------+------------+----------+
| | GBPm | GBPm | GBPm | GBPm |
+----------------------------------------------------+----------+----------+------------+----------+
| Cost: | | | | |
+----------------------------------------------------+----------+----------+------------+----------+
| 1 April 2007 | 32.2 | 111.3 | - | 143.5 |
+----------------------------------------------------+----------+----------+------------+----------+
| Additions | - | 19.9 | - | 19.9 |
+----------------------------------------------------+----------+----------+------------+----------+
| Acquisition of subsidiaries | 917.3 | 5.6 | 635.2 | 1,558.1 |
+----------------------------------------------------+----------+----------+------------+----------+
| Foreign exchange | 132.7 | 0.8 | 93.1 | 226.6 |
+----------------------------------------------------+----------+----------+------------+----------+
| 31 March 2008 | 1,082.2 | 137.6 | 728.3 | 1,948.1 |
+----------------------------------------------------+----------+----------+------------+----------+
| Additions | 0.5 | 35.2 | 0.9 | 36.6 |
+----------------------------------------------------+----------+----------+------------+----------+
| Disposals | - | (8.6) | - | (8.6) |
+----------------------------------------------------+----------+----------+------------+----------+
| Foreign exchange | 170.6 | 1.1 | 116.7 | 288.4 |
+----------------------------------------------------+----------+----------+------------+----------+
| 31 March 2009 | 1,253.3 | 165.3 | 845.9 | 2,264.5 |
+----------------------------------------------------+----------+----------+------------+----------+
| | | | | |
+----------------------------------------------------+----------+----------+------------+----------+
| Amortisation and accumulated impairment: | | | | |
+----------------------------------------------------+----------+----------+------------+----------+
| 1 April 2007 | 21.1 | 66.6 | - | 87.7 |
+----------------------------------------------------+----------+----------+------------+----------+
| Amortisation charge for the year | - | 14.0 | 21.5 | 35.5 |
+----------------------------------------------------+----------+----------+------------+----------+
| Disposals | - | - | 3.0 | 3.0 |
+----------------------------------------------------+----------+----------+------------+----------+
| 31 March 2008 | 21.1 | 80.6 | 24.5 | 126.2 |
+----------------------------------------------------+----------+----------+------------+----------+
| Amortisation charge for the year | - | 20.3 | 49.4 | 69.7 |
+----------------------------------------------------+----------+----------+------------+----------+
| Impairment charge | 484.0 | - | - | 484.0 |
+----------------------------------------------------+----------+----------+------------+----------+
| Disposals | - | (8.5) | - | (8.5) |
+----------------------------------------------------+----------+----------+------------+----------+
| Foreign exchange | - | - | 8.2 | 8.2 |
+----------------------------------------------------+----------+----------+------------+----------+
| 31 March 2009 | 505.1 | 92.4 | 82.1 | 679.6 |
+----------------------------------------------------+----------+----------+------------+----------+
| | | | | |
+----------------------------------------------------+----------+----------+------------+----------+
| Net book values: | | | | |
+----------------------------------------------------+----------+----------+------------+----------+
| 31 March 2009 | 748.2 | 72.9 | 763.8 | 1,584.9 |
+----------------------------------------------------+----------+----------+------------+----------+
| 31 March 2008 | 1,061.1 | 57.0 | 703.8 | 1,821.9 |
+----------------------------------------------------+----------+----------+------------+----------+
+-------------------------------------------------------------------------------------------+
| The purchased intangible assets arising on consolidation represent customer |
| relationships, brands, software and licences relating to Borsa Italiana and EDX. |
| Impairment tests for goodwill |
| Goodwill has been allocated for impairment testing purposes to nine cash generating units |
| (CGUs). The Borsa Italiana group comprises seven of these CGUs (Issuer, Equities Trading, |
| Derivatives Trading, Fixed Income Trading, Information Services, Post Trade Services and |
| Other) and Proquote Ltd and EDX London Ltd each constitute one CGU. |
| The recoverable amount of these CGUs have been determined based on value in use |
| calculations, using discounted cash flow projections prepared by management covering the |
| five year period ending 31 March 2014. Cash flows beyond this period are extrapolated |
| using the estimated long term growth rates and applying the pre-tax discount rates |
| referred to below. |
+-------------------------------------------------------------------------------------------+
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| The amount of the net book value of goodwill allocated to each CGU is set out below: |
| |
+---------------------------------------------------------------------------------------------------------+
| | Net book value of goodwill | |
+--------------------------------+---------------------------------------------------------+--------------+
| | 31 March | Additions | Foreign | Impairment | 31 March | Pre-tax |
| | 2008 | | Exchange | | 2009 | Discount |
| | | | | | | rate used |
| | | | | | | in |
| | | | | | | value in |
| | | | | | | use |
| | | | | | | calculations |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Cash generating unit | GBPm | GBPm | GBPm | GBPm | GBPm | |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Borsa Italiana group: | | | | | | |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Issuer | 115.0 | - | 18.6 | (107.6) | 26.0 | 13.2% |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Equities Trading | 140.0 | - | 22.7 | (94.2) | 68.5 | 13.6% |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Derivatives Trading | 26.4 | - | 4.3 | - | 30.7 | 13.5% |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Fixed Income Trading | 195.4 | - | 31.7 | (155.8) | 71.3 | 12.8% |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Information Services | 152.1 | - | 24.6 | (29.8) | 146.9 | 13.7% |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Post Trade | 405.7 | - | 65.7 | (85.5) | 385.9 | 13.8% |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Other | 15.4 | - | 3.0 | - | 18.4 | 10.9% |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| | | | | | | |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| Proquote Ltd | 11.1 | - | - | (11.1) | - | 11.5% |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| EDX London Ltd | - | 0.5 | - | - | 0.5 | |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
| | 1,061.1 | 0.5 | 170.6 | (484.0) | 748.2 | |
+--------------------------------+----------+-----------+----------+------------+----------+--------------+
+-------------------------------------------------------------------------------------------+
| Management has based its value in use calculations for each CGU on key assumptions about |
| short and medium term revenue and cost growth, long term economic growth rates (used to |
| determine terminal values) and pre-tax discount rates. |
| The values assigned to short and medium term revenue and cost growth assumptions reflect |
| current trends, anticipated market developments, discussions with customers and |
| suppliers, and management's experience, taking account of an expected recovery in |
| underlying financial markets. |
| Long term growth rates (assumed to be 2.5 per cent for each of the Borsa Italiana group |
| CGUs, and 3.0 per cent for Proquote and EDX) represent management's internal forecasts |
| based on external estimates of GDP and inflation for the ten year period 1 January 2004 |
| to 31 December 2013, and do not exceed the long term average growth rates for the |
| countries in which the CGUs operate. |
| Pre-tax discount rates are based on a number of factors including the risk-free rates in |
| the countries in Italy and the UK, as appropriate, the Group's estimated market risk |
| premium and a premium to reflect the inherent risks of each of the CGUs. |
| The impairments detailed in the table above were all written off against goodwill and |
| were driven by the significant deterioration in the economic conditions in the markets |
| concerned, corresponding reductions in expected revenues, greater uncertainty about the |
| future and changes in applicable discount rates. |
| Value in use calculations for each CGU are sensitive to changes in short and medium term |
| revenue and cost growth assumptions, long term growth rates and pre-tax discount rates. |
| The impact on value in use of a change in these assumptions is shown below: |
+-------------------------------------------------------------------------------------------+
+----------------------------+-------------+------------+------------+-------------+-------------+
| | | Impact on value in use of: |
+----------------------------+-------------+-----------------------------------------------------+
| | Excess of | 5% | 5% | 0.5% | 0.5% |
| | value in | reduction | increase | reduction | increase |
| | use | in | in costs | in | in pre-tax |
| | over | revenues | | long-term | discount |
| | carrying | | | growth rate | rate |
| | value | | | | |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Cash generating unit | GBPm | GBPm | GBPm | GBPm | GBPm |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Borsa Italiana group: | | | | | |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Issuer | - | (15.7) | (10.0) | (5.8) | (5.6) |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Equities Trading | - | (24.3) | (14.3) | (11.0) | (10.4) |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Derivatives Trading | 28.8 | (11.4) | (7.2) | (4.6) | (4.3) |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Fixed Income Trading | - | (20.5) | (10.9) | (9.6) | (9.5) |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Information Services | - | (24.3) | (11.7) | (12.7) | (11.6) |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Post Trade | - | (55.3) | (18.5) | (32.6) | (29.5) |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Other | 4.0 | (5.6) | (3.8) | (1.4) | (1.6) |
+----------------------------+-------------+------------+------------+-------------+-------------+
| | | | | | |
+----------------------------+-------------+------------+------------+-------------+-------------+
| Proquote Ltd | - | (3.4) | (3.6) | - | - |
+----------------------------+-------------+------------+------------+-------------+-------------+
+-------------------------------------------------------------------------------------------+
| Management believes goodwill allocated to EDX London Ltd is unlikely to be impaired under |
| any reasonable changes to key assumptions. The excess of value in use over carrying value |
| is determined by reference to the carrying value, post impairment charge, as at 31 March |
| 2009. Revenue and cost sensitivities assume a five per cent change in revenues or costs |
| for each of the five years in the value in use calculations. |
+-------------------------------------------------------------------------------------------+
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| 11. Financial instruments by category |
| |
+---------------------------------------------------------------------------------------------------+
| The financial instruments of the Group are categorised as follows: |
+---------------------------------------------------------------------------------------------------+
| | | | | | | 2009 | 2008 |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| | | | | | | GBPm | GBPm |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Assets as per balance | | | | | | | |
| sheet | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Financial assets of the | | | | | | | |
| CCP clearing business | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| - CCP trading assets | | | | | | 5,480.5 | 4,782.1 |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| - Receivables for | | | | | | 25,302.5 | 10,299.3 |
| repurchase transactions | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| - Other receivables from | | | | | | 1,287.6 | 560.7 |
| clearing members | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| - Financial assets held | | | | | | 7.3 | 7.1 |
| at fair value | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| - Cash and cash | | | | | | 3,596.6 | 1,654.1 |
| equivalents of clearing | | | | | | | |
| members | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Financial assets of the | | | | | | 35,674.5 | 17,303.3 |
| CCP clearing business | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Assets held at fair value | | | | | | 5.0 | 12.8 |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Total financial assets | | | | | | 35,679.5 | 17,316.1 |
| for CC&P clearing | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Assets held at fair value | | | | | | - | 1.0 |
| - non-CCP | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Trade and other | | | | | | 114.5 | 121.1 |
| receivables | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Cash and cash equivalents | | | | | | 143.7 | 200.6 |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Available for sale | | | | | | 0.4 | 0.4 |
| financial assets | | | | | | | |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
| Total | | | | | | 35,938.1 | 17,639.2 |
+---------------------------+----------+-----------+-----------+---------+--+-----------+-----------+
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | | | | 2009 | 2008 |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | | | | GBPm | GBPm |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| Liabilities as per | | | | | | |
| balance sheet | | | | | | |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| | | | | | | |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| Financial liabilities of | | | | | | |
| the CCP clearing business | | | | | | |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| - CCP trading liabilities | | | | | 5,480.5 | 4,782.1 |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| - Liabilities under | | | | | 25,302.5 | 10,299.3 |
| repurchase transactions | | | | | | |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| - Other payables to | | | | | 4,889.0 | 2,218.1 |
| clearing members | | | | | | |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| - Financial liabilities | | | | | 7.2 | 8.2 |
| held at fair value | | | | | | |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| Financial liabilities of | | | | | 35,679.2 | 17,307.7 |
| the CCP clearing business | | | | | | |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| Borrowings | | | | | 624.8 | 692.1 |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| Derivative financial | | | | | 1.6 | 7.9 |
| instruments | | | | | | |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
| Total | | | | | 36,305.6 | 18,007.7 |
+---------------------------+-----------+-----------+-----------+-----------+-----------+-----------+
+-----------------------------------------+-+------------+------------+-+------+-+------------+
| 12. Borrowings |
| |
+---------------------------------------------------------------------------------------------+
| | | | 2009 | 2008 |
+-------------------------------------------+------------+--------------+--------+------------+
| | | | GBPm | GBPm |
+-------------------------------------------+------------+--------------+--------+------------+
| | | | | (restated) |
| | | | | |
+-------------------------------------------+------------+--------------+--------+------------+
| Current | | | | |
+-------------------------------------------+------------+--------------+--------+------------+
| Bank borrowings | | | - | 427.2 |
| | | | | |
+-------------------------------------------+------------+--------------+--------+------------+
| Redeemable Class B shares | | | 2.3 | 7.6 |
+-------------------------------------------+------------+--------------+--------+------------+
| Other borrowings | | | - | 1.2 |
| | | | | |
+-------------------------------------------+------------+--------------+--------+------------+
| | | | 2.3 | 436.0 |
+-------------------------------------------+------------+--------------+--------+------------+
| | | | | |
+-------------------------------------------+------------+--------------+--------+------------+
| Non-current | | | | |
+-------------------------------------------+------------+--------------+--------+------------+
| Bond | | | 252.6 | 256.1 |
+-------------------------------------------+------------+--------------+--------+------------+
| Bank borrowings | | | 369.9 | - |
+-------------------------------------------+------------+--------------+--------+------------+
| | | | 622.5 | 256.1 |
+-------------------------------------------+------------+--------------+--------+------------+
| The Group has the following unsecured bank facilities: |
+---------------------------------------------------------------------------------------------+
| | | Facility | Drawn | Interest |
| | | | at 31 | rate |
| | | | March | basis |
| | | | 2009 | points |
| | | | | at 31 |
+-------------------------------------------+------------+------------+--------+--------------+
| Type | Expiry | GBPm | GBPm | March 2009 |
| | date | | | |
+-------------------------------------------+------------+------------+--------+--------------+
| Bridge facility | April 2010 | 180.0 | 180.0 | LIBOR + |
| | | | | 225 |
+-------------------------------------------+------------+------------+--------+--------------+
| Multi-currency revolving credit | October 2011 | 25.0 | 12.6 | LIBOR + 80 |
| facility | | | | |
+-----------------------------------------+--------------+------------+--------+--------------+
| Multi-currency revolving credit | February | 200.0 | - | LIBOR + |
| facility | 2012 | | | 125 |
+-----------------------------------------+--------------+------------+--------+--------------+
| Multi-currency revolving credit facility | July 2013 | 250.0 | 178.9 | LIBOR + 80 |
+-------------------------------------------+------------+------------+--------+--------------+
| Capitalised bank facility arrangement | | - | (1.6) | |
| fees | | | | |
+-------------------------------------------+------------+------------+--------+--------------+
| | | 655.0 | 369.9 | |
+-----------------------------------------+-+------------+------------+-+------+-+------------+
+-------------------------------------------------------------------------------------------+
| CC&G has direct intra-day access to refinancing with the Bank of Italy to cover its |
| operational liquidity requirements. In addition, uncommitted credit lines of EUR1bn are |
| available from major Italian banks in relation to support of the MTS markets. If these |
| are drawn they are guaranteed by Italian government bonds. CC&G also has available to it |
| EUR150m of committed facilities with banks, available for short term CCP related activity |
| purposes only. |
| Current borrowings |
| The Group has Redeemable Class B shares. Holders of B shares are entitled to a |
| non-cumulative preference dividend based on 75 per cent of six month LIBOR on 1 June and |
| 1 December each year until 1 June 2009. The outstanding B shares will be redeemed for 200 |
| pence on 1 June 2009. |
| Non-current borrowings |
| In July 2006, the Group issued a GBP250m bond which is unsecured and is due for repayment |
| in 2016. Interest is paid semi-annually in arrears. The issue price of the bond was |
| GBP99.679 per GBP100 nominal. The coupon on the bond is dependent on the Group's credit |
| rating with Moody's, which improved from Baa3 (positive outlook) to Baa2 (stable) in |
| February 2009. Changes in the credit rating since the bond was issued had led to |
| increases in the coupon on the bond by 25 basis points in each of July 2007 and January |
| 2008, which have been reflected in the prior year adjustment (note 2). The bond coupon |
| was 6.375 per cent throughout the last financial year but the impact of the rating |
| improvement will be to reduce the coupon to 6.125 per cent from July 2009. |
+-------------------------------------------------------------------------------------------+
+--------------------------------------------+------------+------------+------------+------------+
| 13. Analysis of net debt |
+------------------------------------------------------------------------------------------------+
| | | | 2009 | 2008 |
+--------------------------------------------+------------+------------+------------+------------+
| | | | GBPm | GBPm |
+--------------------------------------------+------------+------------+------------+------------+
| | | | | (restated) |
+--------------------------------------------+------------+------------+------------+------------+
| Due within one year | | | | |
+--------------------------------------------+------------+------------+------------+------------+
| Cash and cash equivalents | | | 143.7 | 200.6 |
+--------------------------------------------+------------+------------+------------+------------+
| Bank borrowings | | | - | (427.2) |
+--------------------------------------------+------------+------------+------------+------------+
| Redeemable Class B shares | | | (2.3) | (7.6) |
+--------------------------------------------+------------+------------+------------+------------+
| Other borrowings | | | - | (1.2) |
+--------------------------------------------+------------+------------+------------+------------+
| Derivative financial liabilities | | | (1.6) | (7.9) |
+--------------------------------------------+------------+------------+------------+------------+
| | | | 139.8 | (243.3) |
+--------------------------------------------+------------+------------+------------+------------+
| Due after one year | | | | |
+--------------------------------------------+------------+------------+------------+------------+
| Bank borrowings | | | (369.9) | - |
+--------------------------------------------+------------+------------+------------+------------+
| Bond | | | (252.6) | (256.1) |
+--------------------------------------------+------------+------------+------------+------------+
| Total net debt | | | (482.7) | (499.4) |
+--------------------------------------------+------------+------------+------------+------------+
| | | | | |
+--------------------------------------------+------------+------------+------------+------------+
| Reconciliation of net cash flow to | | |
| movement in net debt | | |
+--------------------------------------------+-------------------------+-------------------------+
| | | | 2009 | 2008 |
+--------------------------------------------+------------+------------+------------+------------+
| | | | GBPm | GBPm |
+--------------------------------------------+------------+------------+------------+------------+
| | | | | (restated) |
+--------------------------------------------+------------+------------+------------+------------+
| (Decrease)/increase in cash in the year | | | (68.6) | 113.8 |
+--------------------------------------------+------------+------------+------------+------------+
| Bank loan repayments/(new loans) | | | 82.0 | (271.5) |
+--------------------------------------------+------------+------------+------------+------------+
| B share redemptions | | | 5.3 | 8.1 |
+--------------------------------------------+------------+------------+------------+------------+
| Other repayments/(loans) | | | 1.2 | (0.7) |
+--------------------------------------------+------------+------------+------------+------------+
| Change in net debt resulting from cash | | | 19.9 | (150.3) |
| flows | | | | |
+--------------------------------------------+------------+------------+------------+------------+
| Foreign exchange movements | | | (13.0) | 13.9 |
+--------------------------------------------+------------+------------+------------+------------+
| Movement on derivative financial assets | | | 6.3 | (7.9) |
| and liabilities | | | | |
+--------------------------------------------+------------+------------+------------+------------+
| Bond valuation adjustment | | | 3.5 | (7.9) |
+--------------------------------------------+------------+------------+------------+------------+
| Net debt at start of year | | | (499.4) | (347.2) |
+--------------------------------------------+------------+------------+------------+------------+
| Net debt at end of year | | | (482.7) | (499.4) |
+--------------------------------------------+------------+------------+------------+------------+
+--------------------------------------------+------------+--------------+------------+--------------+
| 14. Ordinary share capital |
+----------------------------------------------------------------------------------------------------+
| | 2009 | 2008 |
+--------------------------------------------+---------------------------+---------------------------+
| | millions | GBP | millions | GBP |
+--------------------------------------------+------------+--------------+------------+--------------+
| Authorised | 350.0 | 24,215,116 | 350.0 | 24,215,116 |
+--------------------------------------------+------------+--------------+------------+--------------+
| Ordinary shares of 6 79/86p | 140.6 | 281,265,500 | 140.6 | 281,265,500 |
+--------------------------------------------+------------+--------------+------------+--------------+
| Class B shares of GBP2 | | | | |
+--------------------------------------------+------------+--------------+------------+--------------+
| | | | | |
+--------------------------------------------+------------+--------------+------------+--------------+
| Issued, called up and fully paid | | | | |
+--------------------------------------------+------------+--------------+------------+--------------+
| Ordinary shares of 6 79/86p | 270.5 | 18,716,107 | 276.4 | 19,123,893 |
+--------------------------------------------+------------+--------------+------------+--------------+
| Class B shares of GBP2 | 1.1 | 2,270,866 | 3.8 | 7,568,222 |
+--------------------------------------------+------------+--------------+------------+--------------+
| | | 20,986,973 | | 26,692,115 |
+--------------------------------------------+------------+--------------+------------+--------------+
| Less: Class B shares designated as | | (2,270,866) | | (7,568,222) |
| borrowings (see note 12) | | | | |
+--------------------------------------------+------------+--------------+------------+--------------+
| | | | | |
+--------------------------------------------+------------+--------------+------------+--------------+
| Share capital | | 18,716,107 | | 19,123,893 |
+--------------------------------------------+------------+--------------+------------+--------------+
+-------------------------------------------------------------------------------------------+
| During the year the Group re-purchased, and subsequently cancelled, 5.9m ordinary shares |
| at an average price of GBP8.67 per share. The total consideration was GBP51.5m. The |
| excess of the consideration over the nominal value has been charged against retained |
| earnings. |
+-------------------------------------------------------------------------------------------+
+----------------------+----+------+----------+----------+-------+----+-------------+-------------+-----------+----+----+----------+----------+
| 15. Reconciliation of movements in equity |
+---------------------------------------------------------------------------------------------------------------------------------------------+
| | Attributable to equity holders of the Group | |
+----------------------------------+-------------------------------------------------------------------------------+--------------------------+
| | Other reserves | |
+----------------------------------------------------------------+-------------------------------------------------+--------------------------+
| | | Ordinary | Retained | Capital | Reverse | Foreign | Merger | Hedging | Minority | Total |
| | | Share | earnings | redemption | acquisition | Exchange | Reserve | Reserve | interest | equity |
| | | capital | | reserve | reserve | translation | | | | |
| | | | | | | reserve | | | | |
+----------------------+-----------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Group | Notes | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm | GBPm |
+----------------------+-----------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| 1 April 2007 | 253.0 | (351.7) | 258.7 | (512.5) | - | - | - | 2.6 | (349.9) |
+----------------------------------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| | | | | | | | | | |
+----------------------------------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Issue of shares | 5.5 | - | - | - | - | 1,302.2 | - | - | 1,307.7 |
+----------------------------------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Equity transaction costs | - | - | - | - | - | (3.0) | - | - | (3.0) |
+----------------------------------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Redemption of deferred shares | (238.7) | - | 238.7 | - | - | - | - | - | - |
+----------------------------------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Redemption of B shares | | - | (8.1) | 8.1 | - | - | - | - | - | - |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Total recognised income and | - | 191.1 | - | - | 201.5 | - | (14.7) | 15.9 | 393.8 |
| expense for the financial year | | | | | | | | | |
+----------------------------------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Final dividend relating | 9 | - | (23.8) | - | - | - | - | - | - | (23.8) |
| to the year ended 31 | | | | | | | | | | |
| March 2007 | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Interim dividend relating | 9 | - | (22.2) | - | - | - | - | - | - | (22.2) |
| to the year ended 31 | | | | | | | | | | |
| March 2008 | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Share buyback | | (0.7) | (92.3) | 0.7 | - | - | - | - | - | (92.3) |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Employee share schemes | | - | (18.6) | - | - | - | - | - | - | (18.6) |
| and own shares | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Acquisition of subsidiary | | - | - | - | - | - | - | - | 76.7 | 76.7 |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| At 31 March 2008 as | | 19.1 | (325.6) | 506.2 | (512.5) | 201.5 | 1,299.2 | (14.7) | 95.2 | 1,268.4 |
| originally stated | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Prior year adjustment | 2 | - | (5.5) | - | - | - | - | - | - | (5.5) |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| At 31 March 2008 restated | | 19.1 | (331.1) | 506.2 | (512.5) | 201.5 | 1,299.2 | (14.7) | 95.2 | 1,262.9 |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Redemption of B shares | | - | (5.3) | 5.3 | - | - | - | - | - | - |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Total recognised income | | - | (347.5) | - | - | 274.6 | - | (18.6) | 14.9 | (76.6) |
| and expense for the | | | | | | | | | | |
| financial year | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Final dividend relating | 9 | - | (42.9) | - | - | - | - | - | - | (42.9) |
| to the year ended 31 | | | | | | | | | | |
| March 2008 | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Dividend payment to | | - | - | - | - | - | - | - | (9.5) | (9.5) |
| minorities | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Interim dividend relating | 9 | - | (22.4) | - | - | - | - | - | - | (22.4) |
| to the year ended 31 | | | | | | | | | | |
| March 2009 | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Share buyback | | (0.4) | (38.5) | 0.4 | - | - | - | - | - | (38.5) |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Employee share schemes | | - | (15.9) | - | - | - | - | - | - | (15.9) |
| and own shares | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Acquisition of subsidiary | | - | - | - | - | - | - | - | (4.3) | (4.3) |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| Share of equity | | - | 0.4 | - | - | - | - | - | - | 0.4 |
| recognised by FTSE | | | | | | | | | | |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| 31 March 2009 | | 18.7 | (803.2) | 511.9 | (512.5) | 476.1 | 1,299.2 | (33.3) | 96.3 | 1,053.2 |
+---------------------------+------+----------+----------+------------+-------------+-------------+-----------+---------+----------+----------+
| |
| The hedging reserve represents the cumulative fair value adjustment recognised in respect of cash flow hedges and the net |
| investment hedge. |
| |
+----------------------+----+------+----------+----------+-------+----+-------------+-------------+-----------+----+----+----------+----------+
+-------------------------------------------+------------+------------+------------+------------+
| 16. Net cash flow generated from operations |
| |
+-----------------------------------------------------------------------------------------------+
| | | | 2009 | 2008 |
+-------------------------------------------+------------+------------+------------+------------+
| | | | GBPm | GBPm |
+-------------------------------------------+------------+------------+------------+------------+
| (Loss)/profit before taxation | | | (250.8) | 227.0 |
+-------------------------------------------+------------+------------+------------+------------+
| Depreciation and amortisation | | | 85.8 | 48.4 |
+-------------------------------------------+------------+------------+------------+------------+
| Goodwill impairment | | | 484.0 | - |
+-------------------------------------------+------------+------------+------------+------------+
| Loss on disposal of property, plant and | | | 0.1 | - |
| equipment | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| Profit on disposal of share of associate | | | (2.0) | - |
+-------------------------------------------+------------+------------+------------+------------+
| Net finance expense | | | 44.9 | 40.4 |
+-------------------------------------------+------------+------------+------------+------------+
| Share of profit after tax of joint | | | (2.1) | (2.2) |
| ventures | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| Provisions created during the year | | | 2.1 | - |
+-------------------------------------------+------------+------------+------------+------------+
| Provisions utilised during the year | | | (5.0) | (6.0) |
+-------------------------------------------+------------+------------+------------+------------+
| Decrease/(increase) in trade and other | | | 15.2 | (1.4) |
| receivables | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| Decrease in trade and other payables | | | (32.7) | (23.1) |
+-------------------------------------------+------------+------------+------------+------------+
| Increase/(decrease) in CCP clearing | | | 18,371.5 | (287.7) |
| business liabilities | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| (Increase)/decrease in CCP financial | | | (18,371.2) | 286.3 |
| assets | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| Defined benefit pension obligation - | | | (6.9) | (1.1) |
| contributions in excess of expenses | | | | |
| charged | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| Decrease in assets held at fair value | | | 9.9 | - |
| from operating activities | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| Share scheme expense | | | 10.2 | 12.3 |
+-------------------------------------------+------------+------------+------------+------------+
| Foreign exchange gains on operating | | | (0.4) | - |
| activities | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| Cash generated from operations | | | 352.6 | 292.9 |
+-------------------------------------------+------------+------------+------------+------------+
| Comprising: | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------------------+------------+------------+------------+------------+
| Operating activities | | | 378.9 | 295.4 |
+-------------------------------------------+------------+------------+------------+------------+
| Exceptional items | | | (26.3) | (2.5) |
+-------------------------------------------+------------+------------+------------+------------+
| | | | 352.6 | 292.9 |
+-------------------------------------------+------------+------------+------------+------------+
| Interest on CCP balances is received by CC&G net of withholding tax, which is deducted at |
| source. This withholding tax is effectively a cash outflow, and is therefore shown in the |
| cash flow statement. |
+-----------------------------------------------------------------------------------------------+
| 17. Commitments and contingent liabilities |
| Contracted capital commitments and other contracted commitments not provided for in the |
| financial statements of the Group were nil (2008: GBP0.1m) and GBP7.6m (2008: GBP1.2m) |
| respectively. |
| The Group is the subject of a legal claim by PLUS Markets, for a declaration and damages |
| relating to certain Rules of the Exchange and their application to AIM. Trial of the matter |
| is due to commence in the near future. The directors are of the opinion that it is highly |
| unlikely that the matter will have a material adverse effect on the financial condition of |
| the Group. Additional information is not disclosed on the grounds that it could result in |
| prejudice to the Group. |
| 18. Abridged Accounts |
| These abridged accounts do not constitute, but have been extracted from, the Group's |
| statutory financial statements. The statutory financial statements, which include an |
| unqualified audit report, will be delivered to the Registrar of Companies in due course. |
+-------------------------------------------+------------+------------+------------+------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UKVRRKNRVAUR
1 Year Lon.Stk.Exch.B Chart |
1 Month Lon.Stk.Exch.B Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
