3rd Sep 2020 10:33
(Alliance News) - CMC Markets PLC said Thursday its consistently strong trading performance has continued.
Shares in the soon-to-be FTSE 250-listed online trading firm were 6.5% higher at 332.25 pence each in London on Thursday.
CMC said net operating income run-rate for the two months to the end of August was only slightly below the first quarter, and client income has continued to be "in excess" of a year ago.
The firm also noted client income retention has remained "particularly strong" and "well in excess of the guidance of above 80%". CMC's stockbroking business also continues to perform "strongly".
"As a result, the board is confident that with the strong underlying performance and diversity of the business, financial 2021 net operating income will exceed the upper end of current market consensus," said CMC.
Net operating income consensus, the firm noted, is around GBP287.6 million, ranging between GBP282.4 million to GBP300.6 million.
The revenue performance since the start of the financial year has been driven by existing clients trading more as well as the platform continuing to attract new customers, CMC added, which has led to an increase in variable operating costs.
The company will issue a first half pre-close trading update on October 8.
CMC's update comes after FTSE Russell said the stock is set for a promotion to the FTSE 250 effective from the market open on Monday, September 21.
By Paul McGowan; [email protected]
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