London Stock Exchange returns to black in FY10

The London Stock Exchange Group swung into profits of 90.4 million pounds in the year ended March 31, 2010, amid rising competition from its smaller rivals.

The Group had reported a loss of 338 million pounds in the previous fiscal due to its write-offs for its acquisition of Borsa Italiana SpA.

Revenue of the group declined to 628.3 million pounds in FY10 as compared to 671.4 million pounds in FY09, LSE said in a statement. The Group saw overall good performance from Post Trade Services, which increased revenues in settlement and custody, and led to growth in clearing transaction volumes.

But, growth was offset by reduction in non-transaction revenues compared to unusually high levels of volatility last year, the statement added.

"We have made very good progress to get in shape, to leverage our assets and develop opportunities, and the acquisitions of MillenniumIT and Turquoise helped us in many regards. We recognise that there remains much work to be done and that, in many cases, the fruits of our labour to date are yet to be harvested," LSE Chief Executive Xavier Rolet said.

"In the coming year, as we continue to deliver on the key elements of our strategy within a fluid market and regulatory environment, we expect to see further progress across our business," Rolet added.

During the fiscal, LSE underlined its fundamental capital raising role with 77 billion pounds raised by companies on its markets with a 20 per cent increase in admission fee income and an accelerating rate of new issues in the second half of the fiscal.

"Notwithstanding the strength of our brand and the quality of our assets, we are operating in a fast changing and challenging environment, characterised by robust competition and a number of potential regulatory changes," Rolet said.