20th Jan 2021 10:10
(Alliance News) - CMC Markets PLC on Wednesday said it was "delighted" with its third quarter performance, and said its entire business has "continued to perform very well".
In the three months to December 31, the online trading platform said it continues to focus on high active clients, which has resulted in strong client trading activity, but noted at lower levels than earlier in the financial year.
Chief Executive Peter Cruddas said: "I'm delighted by our performance, and as we enter our final financial reporting quarter, we are focusing on delivering on our premium client strategy through technology, service and a resilient trading platform. In addition, we have a healthy pipeline of projects that will drive new revenue streams, which I will talk more about in the next financial year."
CMC also noted client income retention remained well in excess of 80%, but below the levels seen in the first half - although the company guided for this.
Due to the its recent performance, CMC is confident that its net operating income for financial 2021 will be at the upper end of the current market consensus.
In financial 2020, the firm reported net operating income of GBP252.0 million.
Going forward, Cruddas said the firm will continue to "grow and diversify", with increased investment in its technology. This is expected to lead to product expansion, including new asset classes.
"In addition, continued investment in our risk infrastructure is delivering latency reduction and pricing and execution efficiencies. This allows us to capture a higher percentage of our premium client income especially during volatile market conditions," Cruddas continued.
He added: "As a group, we will continue to deliver underlying growth and considerable value to shareholders, through strong results, an attractive dividend policy, investment in the business, investment in technology and investment in risk management infrastructure."
He also said he is "very positive" about CMC's outlook and believe the company's "strong" momentum is underpinned by its technology investments.
Shares in CMC Markets were marginally lower in London on Wednesday at 429.36 pence each.
By Paul McGowan; [email protected]
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