3rd Mar 2020 09:34
(Alliance News) - CMC Markets PLC on Tuesday raised its full-year expectations, with "recent market conditions" boosting activity on its online trading platform.
Shares in the company were 12% higher at 171.40 pence each in London on Tuesday morning.
CMC expects net operating income ahead of the market consensus range of GBP199.0 million and GBP202.3 million in the financial year ending March 31.
This could represent a hike of as much as 55% from GBP130.8 million in the year prior, which was hampered by "regulatory change and market conditions".
In January, CMC said it expected net operating income to come in at GBP187.5 million.
Current market consensus for pretax profit is in the range of GBP46.9 million and GBP56.7 million. Pretax profit in the prior year came in at GBP6.3 million, so either way a big improvement is expected. The company at the time explained that it had a "difficult" year in financial 2019 due to the introduction of new measures by the European Securities & Markets Authority in the summer of 2018, which caused many clients in the UK and Europe to stop trading or trade less.
CMC added that in calendar year 2020 to date, "performance across the business has continued to be strong".
CMC added: "The underlying net operating income performance has continued to maintain momentum throughout the fourth quarter, and the retention of client income continues to be higher than in the first half.
"In addition, the recent market conditions experienced have seen heightened trading activity amongst CMC's clients over and above the strong performance delivered to date."
The company will issue another trading update on April 3.
Chief Executive Peter Cruddas said: "I am delighted that CMC's strategy of targeting and retaining higher valued clients and our diversifying revenue base, alongside our ongoing success in retaining a higher percentage of client income, has continued to yield positive underlying performance throughout the second half of the year."
By Eric Cunha; [email protected]
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