CMC Markets (CMCX)

Sector:

Financials

Index:

FTSE 250

232.50p
   
  • Change Today:
    -3.50p
  • 52 Week High: 317.00
  • 52 Week Low: 211.50
  • Currency: UK Pounds
  • Shares Issued: 279.82m
  • Volume: 312,147
  • Market Cap: £650.57m

CMC Markets confirms 'exploring' possible breakup

By Frank Prenesti

Date: Monday 15 Nov 2021

LONDON (ShareCast) - (Sharecast News) - Online financial trading group CMC Markets said it was looking at a possible separation of its leveraged and non-leveraged divisions in order to unlock shareholder value.
The London-listed firm on Monday said talks were exploratory at this stage and it would start a formal review before the end of the year and complete it by next June. It was responding to media reports about a potential split.

It is looking at a split of its contracts-for-difference (CFD) operation, called the "leveraged" business, from its growing investment platform and business-to-business operations.

CMC said the CFD and non-leveraged units had benefited from significant investment and the review was triggered by the growing size of its client portfolio as well as by the launch of a new UK investment platform.

In a September profit warning CMC cut its full-year 2022 net operating income guidance was cut to £250m - £280m from £330m. The shares have fallen 38% since then.

Analysts at Jefferies upgraded CMC shares to a 'buy' from 'hold' saying the move announced on Monday "is likely to have been accelerated by dissatisfaction with the valuation".

"The rationale is likely to be to maximise value from the faster growing stockbroking unit - around 19% of first-half net operating income - and investment platform roll-out, details of which are still to be confirmed. These businesses have lower market and regulatory risk than CFD trading, and are less capital intensive."

CMC is run by Peter Cruddas, who also holds 60% of the company. He is a former Conservative Party treasurer who has given millions to the party and was awarded a peerage in 2020, allowing him to sit in the House of Lords and vote on legislation, against the advice of an appointments panel.

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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 232.50p
Change Today -3.50p
% Change -1.48 %
52 Week High 317.00
52 Week Low 211.50
Volume 312,147
Shares Issued 279.82m
Market Cap £650.57m

CMC Markets Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
48.79% above the market average48.79% above the market average48.79% above the market average48.79% above the market average48.79% above the market average
5.69% above the sector average5.69% above the sector average5.69% above the sector average5.69% above the sector average5.69% above the sector average
Price Trend
33.69% below the market average33.69% below the market average33.69% below the market average33.69% below the market average33.69% below the market average
29.77% below the sector average29.77% below the sector average29.77% below the sector average29.77% below the sector average29.77% below the sector average
Income
58.00% above the market average58.00% above the market average58.00% above the market average58.00% above the market average58.00% above the market average
7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average
Growth
0.99% above the market average0.99% above the market average0.99% above the market average0.99% above the market average0.99% above the market average
14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 3
Sell 0
Strong Sell 1
Total 6
neutral
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 01-Dec-22 14-Jul-22
Paid 05-Jan-23 11-Aug-22
Amount 3.50p 8.88p

Trades for 02-Dec-2022

Time Volume / Share Price
16:59 100,000 @ 237.00p
16:35 54,023 @ 232.50p
16:35 29 @ 232.50p
16:35 454 @ 232.50p
16:35 186 @ 232.50p

CMC Markets Key Personnel

CEO Peter Cruddas
CFO Euan Marshall

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