LIFFE Announces Preliminary Results for 1998

The Board of the London International Financial Futures and Options Exchange (LIFFE) has approved the audited results for the year ended 31 December 1998. Brian Williamson, LIFFE's Chairman said, "LIFFE made a pre tax profit, before exceptional items, of GBP17m. Having made provisions of GBP81m, before tax, for the transition from an essentially floor-based open outcry market to a screen-based trading environment, the Exchange has made a loss, before tax, of GBP64m and a loss for the financial year, after taxation, of GBP62m. These results are obviously disappointing and they are likely to remain so throughout 1999 which will be a year of transition and restructuring. However, the Exchange has net assets of GBP120m including net cash and deposits of GBP93m at 31 December 1998. We expect progressive improvement in the financial performance throughout 1999 as costs reduce. Given reasonable volumes, we are confident of a return to profitability in 2000." Last month, LIFFE's membership unanimously approved a reconstruction of the Company's share capital as a vital step towards making the Exchange a commercial, customer-driven business to deliver value to shareholders.