London Stock Exchange share price rallies as investors digest full-year update

Shares in London Stock Exchange Group (LON:LSE) are outperforming the UK market today as the company posted its full-year results, revealing a rise in revenue and profits. The blue-chip group further signalled that it will prioritise investment in the current year.

As of 14:49 GMT, London Stock Exchange’s share price had added 3.82 percent to 4,679.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.61 percent higher at 7,117.54 points. The group’s shares have added more than 18 percent to their value over the past year, as compared with about a 0.8-percent drop in the Footsie.

LSE posts results

LSE announced in a statement today that its total revenue had climbed eight percent to £1.91 billion last year, while its adjusted operating profit had come in 15 percent higher at £931 million. The group proposed a final dividend of 43.2p per share, marking a 17-percent increase in the full year dividend to 60.4p per share.

“Since joining LSEG, my early impressions of its strengths have only been reinforced,” the group’s chief executive David Schwimmer commented in the statement. “The strategic positioning of each of our businesses has reinforced for me the continued opportunities for growth. We will continue to invest in our businesses.”

The company, however, noted that prioritisation of further investments in growth opportunities meant that it did not intend to achieve its cost and margin targets in the current year.

Analysts weigh in

The Financial Times quoted Chris Turner, analyst at Berenberg, as commenting that dropping the target was “disappointing but widely anticipated by investors, and is unlikely to be taken particularly negatively”. The newspaper further quoted Philip Middleton, analyst at Bank of America Merrill Lynch, as saying that overall, the broker suspects that “2020 numbers won’t move much at all and, given investors usually buy the LSE for revenue growth, this strikes us as fine, if a bit frustrating”.

As of 15:10 GMT, Friday, 01 March, London Stock Exchange Group Plc share price is 4,679.00p.