20th Mar 2020 09:37
(Alliance News) - CMC Markets PLC on Friday said net operating income for the year to the end of March will be ahead of current market consensus due to continued high levels of client trading activity.
Shares in the contracts for difference trading provider were 16% higher at 157.20 pence each in London.
The company compiled consensus estimates financial 2020 net operating income of GBP219.0 million and pretax profit of GBP72.9 million.
CMC said heightened trading volume has continued, with continued high levels of client activity over the 13 days to March 19, in excess of double that seen in more normalised market conditions in both the company's CFD and stockbroking businesses. Client retention also has remained strong, CMC added.
Peter Cruddas, chief executive officer, said: "Due to our long-term investment in technology, we can effectively run this business from home and from our disaster recovery sites in Hertfordshire and Sydney, and that is what we have been doing this week. As a result of this, there is effectively no limit to the amount of time we can operate this way.
"At times like these it is not just about our financial performance, which is clearly very good, but it is about protecting the business, our clients and our staff and that is my major concern now. However, I can confirm that we are operating very well and there are no major commercial or technology issues that concern me at this time. Hopefully we can all get back to normal soon."
By Tapan Panchal; [email protected]
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