London Stock Exchange Group's shares nosedived after the company said it will spend more on its integration with Refinitiv this year than expected and warned of impending job cuts.

Capital expenditure is set to come in at £850m in 2021, with £150m of associated operating costs, the group said.

It came as chief executive David Schwimmer warned that the integration of data company Refinitiv will lead to job losses. He said the group is "working towards cost synergies" and reducing "overlap", but declined to specify how many roles will be axed.

Shares closed more than 14pc lower at £81.24.

The higher costs and talk of job cuts overshadowed an otherwise robust performance, with LSE posting pre-tax profits of £685m in 2020, compared with £651m a year earlier. Revenue jumped 3pc to £2.1bn. As a result, it increased its full-year dividend by 7pc to 75p.

The stock exchange completed its $27bn (£19.5bn) acquisition of Refinitiv earlier this year, which will result in the majority of its revenues coming from data.

Mr Schwimmer, a former Goldman Sachs banker, also shrugged off concerns about the City losing business to Amsterdam since the beginning of the year.

The Dutch capital has overtaken London as Europe’s biggest share trading hub and has hoovered up a chunk of trading in euro-denominated swaps that has flooded out of the UK.

He said the shift to Amsterdam was expected and "not meaningful" in terms of the LSE’s business. "There is no question that London remains one of the world’s leading global financial capitals and will continue to remain so," he added.

Mr Schwimmer also welcomed proposals from Lord Hill's review of London's listings rules, calling the recommendations "very constructive".

He added that the proposals, including on special purpose acquisition companies (Spacs), should be adopted quickly to help the City maintain its position as Europe's leading financial centre.

On Spacs, Mr Schwimmer said blank-cheque vehicles do have a role to play in capital markets. However, he cautioned that investors need to use them "thoughtfully and carefully".

"There is clearly some froth in the US market for Spacs," he said. "Some of that could end poorly for some of those opportunities or some of those investors."