9th Oct 2024 08:30
(Alliance News) - CMC Markets PLC on Wednesday said its "diversification strategy" and focus on widening profit margins has brought a swing to profit in the first half of its financial year.
The London-based online trading platform for contracts-for-difference and other financial instruments said it expects to report pretax profit of GBP51 million for the half year that ended September 30, swinging from a loss of GBP2 million a year before.
Net operating income of around GBP180 million is expected, up 45% from GBP123 million a year prior, while operating costs have been reduced by 7.4% to GBP113 million from GBP122 million. The cost figure excludes "variable remuneration and non-recurring charges".
"The strong performance reflects the success of our ongoing diversification strategy, continued expansion of the B2B segment, and sustained levels of client trading activity," CMC said.
"Management remains focused on growing profit margins and taking a disciplined and balanced approach to investment whilst driving efficiencies through the business.
"From an operational standpoint, the group has continued to enhance its service offering across platforms with the expansion of cash equities and options products, as well as the upcoming launch of cash ISAs in the UK underpinned by our treasury management division and proprietary technology."
CMC added that onboarding of Revolut clients has kicked off after a "soft launch". CMC had announced a partnership with Revolut back in June. The deal gives customers at the fintech access to the "CMC Markets Connect trading universe".
"FX, Index, Commodities, Treasuries and Equity CFDs will be offered initially, with the ability to support other asset classes in the future as the relationship develops and matures," CMC Chief Executive Officer Peter Cruddas said at the time.
CMC will release its full interim results on November 21.
Shares rose 6.2% in response to the trading update. They were quoted at 324.00 pence early Wednesday in London.
By Tom Waite, Alliance News editor
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