London Stock Exchange Group (LSE)

Business description

LSE is Europe’s leading exchange group in cash equities. MTS is Europe’s largest electronic government bond market, LCH and CC&G offer post-trade services and FTSE Russell provides benchmark indices and related data services.

Stock data

Market cap.£15621.1m
Last close4,489.00p
High / Low (52 weeks)4543.0p / 3391.0p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamFinancials
SectorFinancials

Price performance

%1m3m12m
Actual4.410.731.1
Relative *0.54.127.1

* % Relative to local index

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Company news

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 1657.0 771.0 623.0 124.7 36.0 N/A
2017A 1955.0 915.0 750.0 148.7 30.2 N/A
2018E N/A N/A N/A N/A N/A N/A
2019E N/A N/A N/A N/A N/A N/A

Last updated on 24/04/2018

Latest research

Investment management sale

Outlook | Financials | 19/10/2015

Daily comment

Institutional Comment | Financials | 20/03/2015

Successful organic and inorganic growth

Update | Financials | 19/03/2015

Daily comment

Institutional Comment | Financials | 05/03/2015

Daily comment

Institutional Comment | Financials | 06/02/2015

Frank Russell completion

Update | Financials | 11/12/2014

Daily comment

Institutional Comment | Financials | 13/11/2014

Daily comment

Institutional Comment | Financials | 29/05/2014

Delivering on diversity and integration

Outlook | Financials | 28/05/2014

Improving trends already factored into share price

Update | Financials | 24/01/2014

Recent acquisitions driving growth

Update | Financials | 25/11/2013

LCH.Clearly ahead of expectations

Update | Financials | 22/07/2013

Investment summary

The LSE announced the appointment of ex-Goldman banker David Schwimmer as its new CEO. He has market infrastructure sector experience but, as a recruit from outside the industry, there are no indicators of any changes in direction he may initiate. The Q118 trading update in April showed total income up 13% including +11% for Information Services (accounting for 39% of group), while both Post Trade: LCH and Capital Markets were up 13% (all figures organic and on constant currency basis).

Last updated on 27/04/2018

Industry outlook

LSE remains on track to meet the targets set out in its June 2017 investor update. These include continued double-digit revenue growth for 2017-19 with sustainable margins at FTSE Russell, similar growth in OTC clearing revenue at LCH with margins for this business set to approach 50% by 2019 (35.6% 2016). For the group, expense growth should be held at 4% pa 2017-19, with cost savings of £50m by the end of the period contributing to an EBITDA margin of c 55% by 2019 (46.5% 2016).

Last updated on 27/04/2018

Key management

Chris Gibson-Smith, Chairman
David Schwimmer, CEO
David Warren, CFO

Company address

10 Paternoster Square
London
EC4M 7LS
United Kingdom
+44 (0) 20 7797 1000
View website