LSE announces job cuts as it warns on 2019 earnings
London Stock Exchange will make 250 employees redundant this year it announced as it revealed it will not meet earnings targets in 2019.
The exchange said it will cut five per cent of its staff to hit a £30m savings target but said it would not meet its goal of a 55 per cent goal core earnings margin as it invests in the business.
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The figures
Total revenue was up eight per cent to £1.9 bn while adjusted operating profit jumped 15 per cent to £931m.
Adjusted earnings per share increased 17 per cent from 148.7p to 173.8p, and the exchange announced a final dividend of 43.2p per share.
However, the firm said that “prioritisation of further investment in growth opportunities means the group does not plan to achieve cost and group margin targets in 2019".
Why it’s interesting
New chief executive David Schwimmer joined the exchange in August last year, taking over from former boss Xavier Rolet who set the 55 per cent earnings target.
The exchange revealed it has put in place plans in case the UK crashes out of the EU with no deal this month saying businesses, including those thought to be most exposed to Brexit uncertainties, continue to perform well.
In 2018 the group increased its holding in its clearing business LCH and took a minority stake in Euroclear.
What the company said
London Stock Exchange Group chief executive David Schwimmer said: "Since joining LSEG, my early impressions of its strengths have only been reinforced. The Group is distinguished by its open access and customer partnership approach, a set of world class businesses across the capital markets lifecycle and a team of committed colleagues.
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“LSEG continues to be well positioned in an evolving macroeconomic and regulatory landscape. Our businesses, including those perceived to be most exposed to Brexit, such as clearing, continue to perform very well, with no change in our market position."
He added: “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 and to increase Group-wide collaboration to better meet the needs of our clients and to continue to drive strong returns for our shareholders.”