This has led the LIFFE Board to conclude that the development of LIFFE's own trading and processing systems requires separate management attention. We really have two businesses within LIFFE and it is our intention to exploit them separately. The technology-based activities will be grouped together under the name LIFFE.com and we see the structure and growth of this business being highly dependent on partners we wish to involve. We are currently in preliminary discussions both with organisations who have approached us and with others where contact was initiated by us." In addition to the restructuring plan, LIFFE made a preliminary announcement of its audited results for 1999.
Hugh Freedberg, LIFFE's Chief Executive, said, "During 1999 the Exchange implemented a major restructuring, progressed an ambitious cost reduction programme and pursued a strategy to meet customer needs and deliver value to its shareholders.
Total costs were reduced from £212m in 1998 to £113m in 1999. Revenues, as expected, were lower. The doubling in the nominal size of the Euromark and Eurolira contracts following the euro conversion effectively halved comparative trading volumes, resulting in a fall in average daily volumes by 39% from 1998 and a total operating income for 1999 of £85m. The loss for the year, at £22 million, is slightly better than budgeted. With costs continuing to fall throughout 2000 we expect this year to see the Exchange return to profitability. There has also been an encouraging increase in volumes in the first few months of trading."
