The London Stock Exchange (LSE) experienced its largest outflow of companies since the global financial crisis last year, according to new analysis by auditing firm EY.
Once considered a leading financial hub in Europe, the LSE has faced a steady drain of businesses that have either delisted or moved their primary listings elsewhere. Data from EY reveals that 88 companies left the exchange in 2024, while only 18 new companies listed on the market.
Prominent firms such as Just Eat, Flutter (owner of Paddy Power), travel group Tui, and equipment rental giant Ashtead were among those that chose to shift their main listings away from London. Many of these companies cited low valuations and limited liquidity as key reasons for relocating, with the US market often seen as offering more capital and greater trading activity.
Scott McCubbin, EY’s head of IPOs for the UK and Ireland, described 2024 as a “quiet year” for the LSE. He noted that ongoing geopolitical instability, slow economic growth, and a lack of interest in domestic equities from UK pension funds have all contributed to a challenging environment for market valuations and liquidity. “As a result, we saw the largest outflow of companies from the main market since the global financial crisis,” McCubbin said. “Many firms moved to other exchanges in search of access to a deeper pool of investors and the promise of better liquidity.”
However, McCubbin remains cautiously optimistic for the year ahead. He pointed to a potential stabilisation of the domestic policy environment following the UK’s upcoming general election, along with a strong pipeline of deals and planned reforms to the listing process, as factors that could restore the LSE’s competitiveness. “These changes could create new opportunities and potentially lead to a rebound in market activity in the first half of 2025.
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