3rd Jul 2020 09:01
(Alliance News) - Shares rose in CMC Markets PLC on Friday as it said that net operating income for its first quarter alone exceeded the figure reported for the first half of its prior financial year.
Shares in the London-based online trading firm were 17% higher at 329.00 pence on Friday.
CMC Markets said for the three months to the end of June, the entire business performed very well, as client trading activity at around double that of the same period the year before.
Meanwhile, client income retention was materially higher than the 82% reported for the six months ended September 30, 2019, and stockbroking net trading revenue has benefited from the current market conditions.
As a result, net operating income for the quarter has risen above GBP102.3 million, which was reported for the interim period of CMC's 2020 financial year.
In addition, CMC is confident that its net operating income for the year ending March 31, 2021 to exceed the upper end of its current market consensus, even if client trading activity returns to more normal levels.
As at Thursday, CMC said consensus expectations for its current financial year is for net operating income to be between GBP239.1 million and GBP255.5 million, and pretax profit to be in the range of GBP75.8 million and GBP93.5 million. This would be down from GBP98.7 million in pretax profit in the year that ended this past March.
CMC will no longer release a trading update for July 30, but will publish a pre-close trading update for the interim period on October 8.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
CMC Markets