NEX Group plc Full-year results for the year ended 31 March 2017

15 May 2017

TRANSFORMED FOR GROWTH

NEX Group plc (“NEX”) (NXG.L), a financial technology company at the centre of the global markets, announces today its audited results for the year ended 31 March 2017.

Continuing Year ended 31 March 2017
£m
Year ended 31 March 2016
£m
Revenue 543 460
Trading operating profit 145 139
Trading profit before tax 114 110
Profit before tax (statutory) 120 27
     
Trading operating profit margin – continuing 27% 30%
     
Trading EPS (basic) – continuing1 23.2p 23.6p
Trading EPS (basic) – (including discontinued)1 42.9p 43.4p
Dividend per share1 38.5p 38.5p

1Trading EPS (basic) and the full-year dividend per share have been restated for the year ended 31 March 2016 to incorporate the effect of the share consolidation.

 

Highlights

  • ICAP Global Broking division: sold for £1.3 billion
  • Revenue from continuing operations increased by 18% to £543 million (2015/16: £460 million), an increase of 8% on a constant currency basis 
  • Trading operating profit from continuing operations increased by 4% to £145 million (2015/16: £139 million), an increase of 12% excluding the impact from hedging 
  • Trading EPS (basic) from continuing operation is marginally down at 23.2p per share (2015/16: 23.6p per share) 
  • Trading EPS (basic) including discontinued operations is marginally down at 42.9p per share. On a like-for-like basis trading EPS (basic) increased by 22% 
  • Final dividend payment unchanged at 27.0p per share; full-year dividend unchanged at 38.5 pence per share 
  • Annual cost savings identified of approximately £25 million by 2019/20 will be offset by incremental investment for growth 

Michael Spencer, Group Chief Executive Officer, said: “The sale of ICAP Global Broking for £1.3 billion to TP ICAP plc delivered exceptional value to NEX shareholders. NEX is a well-established financial technology company which, thanks to our continued investment in the development of financial technology and our focus on putting our clients’ needs at the heart of our business, has an unprecedented opportunity to become the world’s leading multi-product, global electronic transaction network for OTC products and post trade services.

“Our performance remains strong in a tough market environment. NEX Markets has focused on expanding its product suite to a wider client base and continues to win market share in US Treasury actives, EU Repo and Asian NDF’s. NEX Optimisation continues to innovate, delivering market leading services across the transaction lifecycle that help clients solve their financial, regulatory and operational challenges. Through NEX Opportunities, our financial technology investment business, we acquired ENSO, which provides alpha-generating analytics to many of the world’s most successful fund managers, and Abide Financial, which provides regulatory reporting services that are becoming increasingly required by financial institutions as we head towards MiFID II.

“Our priorities for 2017/18 are clear and we are excited about the future. Through a combination of continued investment in new products, and the implementation of our transformation programme, which will focus on creating efficiencies, NEX is well positioned to deliver growth, increase divisional operating margins to at least 40% and deliver value for our clients and shareholders.”

Presentation of information
This document comprises the full-year results for the year ended 31 March 2017 for NEX Group plc (NEX) and its subsidiary undertakings (together ‘NEX’ or ‘the Group’). The financial information set out in this document for the years ended 31 March 2017 and 2016 does not constitute statutory accounts as defined in section 435 (1) and (2) of the Companies Act 2006, but is derived from those accounts. Statutory accounts for 2016 have been delivered to the Registrar of Companies and those for 2017 will be delivered following the Group’s Annual General Meeting. The auditors’ reports on both the 2017 and 2016 accounts were unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under s498(2) or (3) of Companies Act 2006.

On 15 December 2016, NEX Group plc obtained control of the entire share capital of ICAP plc via the Scheme of Arrangement. There were no changes in the rights or the proportion of control exercised and therefore the financial statements reflect the continuation of the pre-existing group headed by ICAP plc. See the basis of preparation note to the financial statements.

Unless specifically stated all references are to continuing operations.

Cautionary statement regarding forward-looking statements
This full-year report contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Group.

Certain statements that are not historical facts, including statements about the Group’s beliefs and expectations, are forward-looking statements. Words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, ‘potential’ and ‘reasonably possible’, variations of these words and similar expressions are intended to identify forward-looking statements. These statements are based on current plans, estimates and projections, and therefore undue reliance should not be placed on them. Forward-looking statements speak only as of the date they are made, and it should not be assumed that they have been revised or updated in the light of new information or subsequent events.

Forward-looking statements involve inherent risks and uncertainties. Readers are cautioned that a number of factors could cause actual results to differ, in some instances materially, from those anticipated or implied in any forward-looking statement.

Analysts and investors briefing
There will be a briefing for analysts and investors at 09:30am (BST) on Monday 15 May 2017 at NEX Group plc, 2 Broadgate, London EC2M 7UR. A webcast of the presentation made to analysts will be available at www.nex.com later that day.

Full release
To download the full results release PDF, please click here.


CONTACTS
Alex Dee, Head of Investor Relations
+44 (0) 20 7050 7420
 
Bryony Scragg, Head of Media Relations
+44 (0) 20 7818 9689
 
Neil Bennett/Rebecca Mitchell, Maitland
+44 (0) 20 7379 5151

NEX Group plc offers clients better ways to execute trades and manage risk. Our products and services underpin the entire trade lifecycle pre-, during and post-execution. Our electronic trading platforms are industry standards. Clients use our lifecycle management and information services to optimise portfolios, control risk and reduce costs. We partner with emerging technology companies to bring greater efficiency, transparency and scale to the world’s capital markets. NEX is headquartered in London with offices around the world. For more information, go to www.nex.com  

Contact Us

Bryony Scragg
Head Of Media Relations
bryony.scragg@nex.com +4 20 7818 9689 LinkedIn
Bryony scragg
Casey Sheets
Media Relations (US)
casey.sheets@nex.com +1 212 521 4627 LinkedIn
Casey Sheets
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