21st Nov 2024 10:25
(Alliance News) - CMC Markets PLC on Thursday backed its full-year guidance as it reported strong interim growth figures.
For the six months ended September 30, the London-based online trading platform swung to a pretax profit of GBP49.6 million compared with a pretax loss of GBP2.0 million the prior year.
Net operating income rose over the same period by 45% to GBP177.4 million from GBP122.6 million, driven by continued growth across the institutional segments coupled with an increase in client trading activity.
Trading net revenue grew by 50% on-year to GBP131.3 million from GBP87.4 million as both CMC's retail and institutional segments performed well.
The firm said this divisional performance was driven by a mix of increased client income and higher client income retention, with CMC noting particularly strong trading volumes in its B2B client segment.
Despite the strong first-half, analysts at Peel Hunt said "we remain cognisant of the trading and volatile nature o the group's revenues".
Shares in CMC were down 14% at 290.00 pence on Thursday morning in London.
The FTSE 250-listed firm said B2B services now contribute 38% of trading volumes compared with 31% in the prior year.
In line with its dividend policy of 50% of profit after tax, CMC proposed an interim dividend of 3.10 pence, up significantly on-year from 1.0p.
CMC reaffirmed its full-year guidance provided at the start of financial year 2025, expecting net operating income of between GBP320 million and GBP360 million. This compares with GBP332.8 million realised at the the end of financial 2024.
CMC said this range aligns with external market expectations of GBP332.9 million.
Full-year operating cost guidance was also unchanged at GBP225 million excluding variable remuneration and non-recurring charges. Full-year operating costs for financial year 2024 were GBP254.9 million.
CMC Chief Executive Peter Cruddas said: "I am delighted that CMC has delivered another strong performance in the first-half, with pleasing results across our business driven by our commitment to technological innovation.
"CMC has reached the peak of the investment cycle and whilst we continue to invest in the business, we are taking a disciplined approach, and we remain laser focused on driving further efficiencies across our global operations as we continue to leverage our scale and technology.
"We remain confident in meeting the guidance set earlier this year".
By Christopher Ward, Alliance News reporter
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