3rd Apr 2020 09:26
(Alliance News) - CMC Markets PLC said Friday revenue in financial 2020 has been "strong" with a particularly impressive final quarter.
Shares in the contracts for difference trading provider were 7.9% higher in London on Friday morning at 205.00 pence each.
CMC said its CFD unit recorded gross client income of about GBP241 million in the year ended on March 31, up 12% from GBP216.0 million the year before.
"This was further enhanced by the increased market activity in the final quarter, which more than offsets the reduced client trading activity resulting from the ESMA intervention measures implemented in August 2018, four months into financial 2019," CMC added.
The firm noted client income retention was "considerably" stronger than the 75% to 80% guided in interim results.
CMC expects annual CFD net trading revenue to be about GBP214 million, more than double the GBP110.2 million seen the year before.
"The group is encouraged by the continued trading of its loyal client base, in addition to new clients who have joined the platform and existing clients have been reactivating their accounts," CMC said.
The company said its Stockbroking unit also had a "strong" financial 2020, with net revenue expected at about GBP32 million, double the GBP15.5 million seen the year before.
CMC said its balance sheet and liquidity remain in "strong" positions and reaffirmed its dividend policy of paying 50% of profit after tax.
Chief Executive Peter Cruddas said: "At CMC we have focused rigorously on our strategic priorities and feel that the benefit of this focus has started to come through in our performance this year which demonstrates a step-change from where we were 12 months ago.
"Looking forward, there are many new uncertainties, including how governments, regulators and exchanges will react. Notwithstanding the uncertainty, we remain confident in the outlook for 2021 as we progress with our numerous strategic growth initiatives. We're not reliant on a sustained period of high volatility in markets, but our well-invested platform, technical expertise and diversified offering supports us delivering sustainable results not just now but also in years to come."
CMC expects to release financial 2020 results on June 11.
By Paul McGowan; [email protected]
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