ISE reports €15.4m pre-tax loss

THE Irish Stock Exchange reported a €15.4 million pre-tax loss for 2008.

The figure represents a major reversal in fortunes from two years ago when it had a €21.2m profit.

According to accounts just filed, the company said the global financial turmoil in 2008 affected its revenues, which fell 21% from €30.3m in 2007 to €23.9m in 2008.

The decline in turnover was driven by the global downturn, as the issuance of specialist financial products fell sharply, resulting in reduced listings, according to a statement from the ISE yesterday.

The accounts noted that the decline in revenues arose from reduced new debt securities listing, which was down 47% to €5.3m on 2007 and reduced new investment fund listing, which was down 31% to €692,000.

The company noted its cost base was tightly managed during the year and administration expenses incurred by the company decreased by 11% from €19.5m to €17.3m in 2008. It said the main component of administration expenses is staff costs and in 2008 it saw a fall off in staff costs of 9% or €828,000 from 2007.

At year end, staff numbers stood at 88, down marginally from 92 at the end of the previous year.

Profits from operating activities for the financial year amounted to €6.6m, from €10.8m 2007.

Investment losses of €22.1m, including an unrealised loss of €18.9m were incurred in 2008 compared with investment losses of €11m in 2007.

“It is the ISE’s policy, in line with international best practice, to mark investments to market,” the statement read yesterday.

In 2008 there was a loss on investments held for trading. “This is due to continued volatility in the equity markets and because the company’s policy is to mark investments to market.”

These investment losses of €22m in 2008 compare with investment losses of €11m in 2007. In 2006 the company recorded a gain of €9.6m on “unrealised gains on investments held for trading”.

Chief executive of the Stock Exchange Deirdre Somers said: “Despite exceptionally difficult market conditions, the ISE delivered a solid operating performance and profitability in 2008”.

Investment losses reflected the generally poor performance of markets during 2008, she said.

While financial markets continued to be volatile “we expect international structured product markets, which are key to our financial performance, to recover somewhat in the latter half of the year”, she said.