LIFFE Announces Increased Profit In First Half

The London International Financial Futures and Options Exchange (LIFFE) announces increased profit in the six months to 30 June 2001.

The key points are:

Profit before tax and exceptional items up 43% in the first half to £6.8 million (2000: £4.7 million)
Trading volumes up by 46% for the first half compared to the same period last year
Increasing investment to strengthen LIFFE's commercial technology capabilities

Brian Williamson, Chairman of LIFFE, said: "1999 was a year in which LIFFE was re-invented. 2000 saw more change, accompanied by a return to profit. Six months on, and less than twelve months since LIFFE became a fully electronic exchange, the company has continued to make excellent progress. Profits are 43% up on the same period last year as a result of strong trading volumes, fuelled by extended global access to LIFFE's market.

Three years ago, all of LIFFE's trades were conducted by open outcry in London. Today trading is automated via LIFFE CONNECT ™ and accessible from 440 locations in 23 countries across the globe. This represents a significant store of value for LIFFE's shareholders.

If 1999 was a year of survival and reinvention, and 2000 a year of conversion to electronic trading, then 2001 is a year of significant further investment in technology to ensure future prosperity."

Hugh Freedberg, Chief Executive of LIFFE, said: "We have created the most sophisticated trading technology, easily accessible from around the world. We offer the broadest range of financial and non-financial products of any electronic market. We have secured three highly valued customers for our new Market Solutions business, which combines our exchange and technology expertise.

We believe longer-term success depends not on products alone, but the crucial combination of products, technology, global distribution and the associated expertise.

We are clear in our direction and will continue to build our two interdependent businesses, driven by the needs of customers and the requirement to deliver shareholder value."