Stock exchange surplus doubles

THE Irish Stock Exchange saw its annual surplus more than double last year.

Accounts for the stock exchange, just filed at the Companies Registration Office, show the annual surplus before tax rose from €4.5 million in 2003 to €10.2m at the end of last year.

Income for the year rose sharply, from €13.6m to €17.1m and administration expenses were flat at €9.6m.

The Exchange made an operating surplus of €7.4m, though when investment gains, dividends and other income is included, the ISEQ pushed past the €10m mark.

The stock exchange’s balance sheet shows it had investments valued at €25m at year end, and members’ funds of €21m. The company does not pay a dividend.

The figures will be a boost to the Irish market as it had suffered in recent years from a number of major firms leaving. To make up for the shortfall in new companies joining, it has branched out very successfully into the business of listing investment funds, and is the market leader in this area.

Last year, total turnover on market was from down €77.5 billion to €72bn.

The total value of the companies listed on the exchange surged by 29%, making the ISEQ one of the best performing indices in the world.

And it has fought back against the encroachment by London Stock Exchange’s move into Irish territory by setting up a new market - the Irish Enterprise Exchange - for smaller companies in a bid to fend off AIM, the junior London market.

The accounts show the number of people employed by the exchange rose by five to 56, pushing the wages bill for the year higher by almost 15% to €4.1m. The accounts also reveal that the Exchange plugged the hole in its employees pension scheme by making a €1m contribution.

Five of the 14 directors of the company shared €102,000 in fees, with chairman David Kingston getting €46,000.

The Irish market has remained independent despite the move in Europe toward consolidation.