Interim Results

London Stock Exchange
25 November 1999


Interim Results for the London Stock Exchange 
for the half year to 30 September 1999 
(Unaudited) 
 
 
The London Stock Exchange's interim results, published today, show a 32 per
cent increase in profits for the first half of the financial year. The
results come ahead of the Exchange's forthcoming plan to demutualise.  
 
Highlights of the results for the six months April - September 1999 are: 
 
 
* Profit before tax up 32 per cent (£20.1 million to £26.5 million) 
 
* Surplus after tax transferred to reserves up 34 per cent (£13.9 million to
  £18.6 million) 

Commenting on the financial period under review, Sir John Kemp-Welch,
Chairman of the London Stock Exchange said: 'As international financial
markets continue to develop at a rapid rate, the business environment for
stock exchanges is becoming ever more competitive. We believe a more
commercial basis of operation can be achieved by demutualising and this will
ensure that our decision making processes are better able to respond to
customer demand in today's competitive conditions.' 
 
Looking ahead, Gavin Casey, Chief Executive of the London Stock Exchange
said: 'Our programme in the second six months of the year will include the
detailed arrangements for the proposed change to our ownership structure.
During this period we will also continue the strong promotion of techMARK,
increase our international marketing programmes and further progress the
implementation of the European market model. In addition, we shall be
developing significant enhancements to the order book as part of our
continuing commitment to provide London's equity markets with efficient,
transparent and cost effective services.' 
 

                                                                              
  Group revenue account                                                       
                                                                              
                                                Half year ended    Year ended  
                                                  30 September       31 March   

                                               1999        1998          1999 
                                                 £m          £m            £m 
                                                       Restated               
  
  Income                                       79.1        76.2         149.8 
  Operating costs                             (55.8)      (60.2)       (130.5) 
                                           ________    ________      ________
  Operating surplus                            23.3        16.0          19.3 
  
  Provisions for restructuring                    -           -           1.8 
  and SETS                                                                    
  Investment income                             0.2         0.2           0.4 
  Net interest receivable                       3.0         3.9           7.6 
                                           ________    ________      ________
  Surplus on ordinary activities               26.5        20.1          29.1 
  before taxation                                                             
  Taxation on surplus on                       (7.9)       (6.2)         (9.7) 
  ordinary activities                                                         
                                           ________    ________      ________
  Surplus for the period                       18.6        13.9          19.4 
  transferred to reserves                  ________    ________      ________   
                     
  
  
  Prior year comparatives have been restated due to a change in accounting    
  policy, made in the financial statements for the year ended 31 March 1999,  
  to meet the requirements of FRS 12. This has resulted in the surplus for    
  the six months to September 1998 being reduced from £15.8m to £13.9m.       
 

                                                                              
  Summarised group balance                                                    
  sheet                                                                       
                                               At 30 September    At 31 March 
                                              1999        1998           1999 
                                                £m          £m             £m 
                                                      Restated                 
  
  Fixed assets                                                                
  
  Tangible assets                             98.8       106.9          104.1 
  Investments                                  1.0         0.7            0.8 
                                          ________    ________       ________
                                              99.8       107.6          104.9 
                                          ________    ________       ________
  Current assets                                                              
  
  Debtors due within one year                 28.3        31.6           27.7 
  Deferred tax due after more                  4.7         6.5            4.6 
  than one year                                                               
  Investments - term deposits                196.0       173.0          194.0 
  with banks                                                                  
  Cash at bank                                 5.2         6.8            6.5 
  Creditors due within one year              (59.2)      (44.4)         (58.5) 
                                          ________    ________       ________
  Net current assets                         175.0       173.5          174.3 
                                          ________    ________       ________
  Total assets less current                  274.8       281.1          279.2 
  liabilities                                                                 
  Creditors due after more than              (30.0)      (30.0)         (30.0) 
  one year                                                                    
  Provisions for liabilities                 (33.5)      (43.4)         (36.6) 
  and charges                                                                 
                                          ________    ________       ________
  Net assets                                 211.3       207.7          212.6 
                                          ________    ________       ________
                                          ________    ________       ________
  Capital and reserves                       211.3       207.7          212.6 
                                          ________    ________       ________