21st Jul 2016 06:50
LONDON (Alliance News) - Online retail trading firm CMC Markets PLC on Thursday said it does not anticipate a disruption to its business from the UK leaving the European Union, as it said it continued to make good progress in the first quarter.
CMC said it saw continued robust levels of active clients and client applications in the first quarter to the end of June. Active clients at the end of June increased 13% year-on-year.
The value of client trades, however, was lower in the quarter, in particular in the lead-up to the EU referendum in the UK. This resulted in a "moderate" fall in revenue per active client year-on-year.
CMC said it proactively controlled margins in the quarter, and no losses were made during the volatility which followed the announcement of Brexit.
The company said it expects no disruption to its business from the UK's decision to leave the EU, and any cost it may have to incur from restructuring its offices to continue serving European clients should not have a material impact on its cost base.
CMC added that its global headquarters will remain in London.
"The group continues to make progress on its five pillars for growth, and we continue to attract high-quality clients through our focus on retention, service and technology. In line with the wider market, volumes were lower leading into the EU referendum as clients traded in smaller sizes. However, clients trade volumes have subsequently increased and improvements in underlying client metrics are very positive," said Chief Executive Peter Cruddas.
By Sam Unsted; [email protected]; @SamUAtAlliance
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