Xavier Rolet sees a rosy future for London Stock Exchange amid ‘hi-tech revolution’
Xavier Rolet is more optimistic than he has been since he became chief executive of the London Stock Exchange five years ago.
“We are now seeing good organic growth across all areas of the business,” he said. “The UK is growing at 4% a year and we are just at the start of the hi-tech revolution which is taking place in this country.”
Companies raised £34 billion through initial public offerings, placings and rights issues on the LSE last year and Rolet has no doubts that is going to carry on.
“There has been an overall recalibration by this Government, which we welcome, shifting the benefits of funding business through debt back towards equity,” he said.
“At the same time the pension funds and insurers who have been materially underweight in equities in recent years are coming back. The IPO market is the best way for them to invest quickly in the real economy.”
Shares in LSE gained more than 2%, rising 39p to 1840p.
Revenues soared by 50% to just over £1 billion, largely reflecting the LSE’s acquisition of a majority stake in LCH Clearnet almost a year ago.
Operating profits rose 20% to £515 million with pre-tax profits, excluding one-off items, up 17% at £446 million. Rolet said since buying LCH Clearnet the group has increased the annual savings it expects to make from €23 million (£19 million) to €60 million.
He said this would “inevitably” mean more jobs going but would not say how many. He also declined to comment on the discussions to buy the indices business of US group Frank Russell.
