CMC Markets (CMCX)

Sector:

Financials

Index:

FTSE 250

225.50p
   
  • Change Today:
    -2.50p
  • 52 Week High: 317.00
  • 52 Week Low: 211.50
  • Currency: UK Pounds
  • Shares Issued: 279.82m
  • Volume: 27,670
  • Market Cap: £630.98m

CMC Markets profits fall as trading normalises after pandemic boost

By Michele Maatouk

Date: Thursday 09 Jun 2022

LONDON (ShareCast) - (Sharecast News) - Online trading platform CMC Markets reported a drop in full-year pre-tax profit on Thursday - although this was broadly in line with expectations - and slashed its dividend, as it said it was targeting 30% growth in net operating income over the next three years.
In the year to the end of March, pre-tax profit fell 59% to £92.1m. Meanwhile, net operating income declined 31% to £281.9m, which was at the top end of guidance and a record performance outside of Covid restrictions.

CMC pointed out that 2021 had benefited from significant market volatility, which resulted in exceptionally high client trading activity. However, 2022 trading returned to more normalised levels.

Leveraged net trading revenue fell 34% to £229.6m and the board recommended a final dividend of 8.88p a share, down from 21.43p a year earlier and taking the total dividend for the year to 12.38p a share, down from 30.63p.

CMC said investment in growth initiatives is expected to result in a 30% jump in net operating income over the next three years.

Chief executive officer Peter Cruddas said: "I am delighted to report another year of impressive performance from both a strategic and financial standpoint. Excluding the exceptional Covid-19 impacted prior year, which due to market volatility saw unusually significant trading volumes, this is a record net operating income result for the group.

"Over the last year we have taken steps to define the strategic direction and diversification of the Group, building on our existing technology to launch a new investment platform that will unlock significant shareholder value and challenge the existing client transaction fee cost structures.

"There is significant opportunity and growth potential in the self‑directing investment platform space, especially in the UK, not just for improved technology but also transaction costs and fees. We believe commissions, execution spreads and custodial fees are too high and too expensive for retail investors. We will utilise our platform technology, including pricing and execution, to drive down the transaction costs of investments for retail clients, just like we did in Australia, where we are the number two investment platform for retail investors."

At 0840 BST, the shares were down 11.4% at 268p.

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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 225.50p
Change Today -2.50p
% Change -1.10 %
52 Week High 317.00
52 Week Low 211.50
Volume 27,670
Shares Issued 279.82m
Market Cap £630.98m

CMC Markets Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
50.99% above the market average50.99% above the market average50.99% above the market average50.99% above the market average50.99% above the market average
10.57% above the sector average10.57% above the sector average10.57% above the sector average10.57% above the sector average10.57% above the sector average
Price Trend
33.55% below the market average33.55% below the market average33.55% below the market average33.55% below the market average33.55% below the market average
22.14% below the sector average22.14% below the sector average22.14% below the sector average22.14% below the sector average22.14% below the sector average
Income
57.23% above the market average57.23% above the market average57.23% above the market average57.23% above the market average57.23% 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
0.79% above the market average0.79% above the market average0.79% above the market average0.79% above the market average0.79% above the market average
15.97% below the sector average15.97% below the sector average15.97% below the sector average15.97% below the sector average15.97% 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 09-Dec-2022

Time Volume / Share Price
12:14 694 @ 225.50p
12:14 49 @ 225.50p
12:14 67 @ 225.50p
12:14 42 @ 226.50p
12:14 67 @ 226.00p

CMC Markets Key Personnel

CEO Peter Cruddas
CFO Euan Marshall

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