CMC Markets (CMCX)

Sector:

Financials

Index:

FTSE 250

302.50p
   
  • Change Today:
      2.50p
  • 52 Week High: 505.00
  • 52 Week Low: 219.50
  • Currency: UK Pounds
  • Shares Issued: 287.21m
  • Volume: 139,516
  • Market Cap: £868.82m

CMC Markets cuts FY earnings outlook, shares slide

By Michele Maatouk

Date: Thursday 02 Sep 2021

LONDON (ShareCast) - (Sharecast News) - CMC Markets cut its full-year earnings outlook on Thursday as it highlighted subdued trading and reduced market volatility, sending shares in the online trading platform tumbling.
In an update for the five months to the end of August, the company said it entered the current financial year with significant momentum following a year of record performance.

Underlying fundamentals remain robust with overall monthly active client numbers at similar levels to those reported in the recent first-quarter trading update. In addition, client assets under management remain near record levels.

However, overall market activity has remained subdued through July and August, having moderated in the first quarter.

"Reduced volatility in markets has resulted in lower trading activity across both the newly acquired and existing cohort of clients. Similar trends have been seen across our non-leveraged and leveraged businesses," CMC said.

"In addition to lower activity, year to date client income retention has also been tracking moderately below the targeted 80% although is expected to recover through the remaining seven months of the year based on a reversion towards historical averages in the mix of asset class trading."

As a result, the company now expects FY 2022 net operating income of between £250m and £280m, down from previous guidance of in excess of £330m.

CMC said FY 2022 operating costs will continue to track moderately higher year over year, albeit partly offset by lower marketing costs in line with lower activity trends.

"Beyond the recent moderation in market activity, the group continues to have confidence in the long term growth opportunities of the business and in conjunction with further progress on its strategic initiatives, including the ongoing development of the non-leveraged investment platform, looks forward to continuing to generate long-term business growth and value," it said.

At 0820 BST, the shares were down 26% at 312.53p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

CMC Markets Market Data

Currency UK Pounds
Share Price 302.50p
Change Today 2.50p
% Change 0.83 %
52 Week High 505.00
52 Week Low 219.50
Volume 139,516
Shares Issued 287.21m
Market Cap £868.82m

CMC Markets Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
21.24% above the market average21.24% above the market average21.24% above the market average21.24% above the market average21.24% above the market average
30% below the sector average30% below the sector average30% below the sector average30% below the sector average30% below the sector average
Price Trend
39.83% above the market average39.83% above the market average39.83% above the market average39.83% above the market average39.83% above the market average
31.39% above the sector average31.39% above the sector average31.39% above the sector average31.39% above the sector average31.39% above the sector average
Income
74.24% above the market average74.24% above the market average74.24% above the market average74.24% above the market average74.24% above the market average
34.21% above the sector average34.21% above the sector average34.21% above the sector average34.21% above the sector average34.21% above the sector average
Growth
98.05% above the market average98.05% above the market average98.05% above the market average98.05% above the market average98.05% above the market average
94.96% above the sector average94.96% above the sector average94.96% above the sector average94.96% above the sector average94.96% above the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 1
Sell 0
Strong Sell 1
Total 6
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CMC Markets Dividends

  Latest Previous
  Interim Final
Ex-Div 25-Nov-21 05-Aug-21
Paid 20-Dec-21 09-Sep-21
Amount 3.50p 21.43p

Trades for 26-May-2022

Time Volume / Share Price
16:15 309 @ 302.50p
16:15 12 @ 302.50p
16:15 339 @ 302.00p
16:15 699 @ 302.00p
16:15 202 @ 302.00p

CMC Markets Key Personnel

CEO Peter Cruddas
CFO Euan Marshall

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