21st Nov 2019 10:39
(Alliance News) - CMC Markets PLC on Thursday gave a positive outlook for the reminder of its financial year following a surge in earnings in the first half.
The contracts for difference trading platform reported a more than quadrupled pretax profit of GBP30.1 million for the six months to the end of September compared to just GBP7.2 million a year before, as net operating income climbed by 45% to GBP102.3 million from GBP70.6 million.
CMC declared an interim payout of 2.85 pence a share, more than doubled compared to 1.35p paid a year ago.
The company said its performance was driven by higher CFD revenue per active client, which grew by 45% to GBP2.05 billion, thanks to improving retention of CFD client income, and a GBP9.0 million increase in stockbroking net revenue.
CMC highlighted that it continues to invest in its proprietary technology platforms to diversify its offering and secure institutional relationships.
"This time last year we had the uncertainty of regulatory change overhanging the sector with the client response to the changes in minimum margin levels unclear. A year on, we are seeing clients adapt, maintaining their interest in the products and the trading platforms we offer," said Chief Executive Peter Cruddas.
Looking ahead, Cruddas added: "I remain positive on the outlook for the remainder of the financial year and am excited about the future opportunities that will open up as we continue to focus on the development of our technology and platform offerings."
CMC shares were trading 1.8% higher in London on Thursday morning at 128.52p each.
By Evelina Grecenko; [email protected]
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