The London Stock Exchange suffered a pre-tax annual loss of £251m after it was obliged to write down the accounting value of Borsa Italiana, the Italian stock exchange it bought in an all-share deal in 2007.
The London Stock Exchange suffered a pre-tax annual loss of £251m after it was obliged to write down the accounting value of Borsa Italiana, the Italian stock exchange it bought in an all-share deal in 2007.
However, the LSE pointed out on Wednesday that the writedown did not take into account the strengthening of the euro against sterling. When translated back into pounds, the value of the business was still “comfortably above” its £1.3bn valuation when the deal completed, it said.
It also announced that the savings from the deal would be 60 per cent higher than expected, at a minimum of £32m.
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Overall, the LSE – which earns fees from listed companies and traders, as well as selling market data – said it had delivered a “good underlying performance against a backdrop of difficult markets” during the year.
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