3 March 2022
If you are covering the London Stock Exchange Group’s results, please see the following comment from Will Howlett, equity research analyst at Quilter Cheviot:
“The London Stock Exchange Group (LSE) delivered a strong set of results for the 2021 financial year, providing much reassurance to investors on costs after the disappointment this time last year. LSE has identified further cost synergies relating to Refinitiv and also reiterated guidance of low-single digit growth in costs for the next couple of years. The EBITDA margin target is above the 50% mark for next year.
“Leverage has also fallen more quickly than expected and now stands within the target range of 1-2x. Revenue growth was also slightly ahead of expectations, which will provide considerable confidence to investors. We see LSE as a good place to hide in the current macro environment with recurring revenues, strong cash flows and a discounted valuation.”
