CMC Markets Plc Trading Update (8744X)
03 September 2020 - 4:00PM
UK Regulatory
TIDMCMCX
RNS Number : 8744X
CMC Markets Plc
03 September 2020
3 September 2020
CMC Markets Plc
Trading Update
Continuing strong trading performance
CMC Markets Plc ("CMC" or the "Group"), a leading global
provider of online trading and institutional ("B2B") platform
technology solutions, today issues a trading update for the period
from 1 July 2020 to 31 August 2020 (the "period").
The Group's consistently strong trading performance across the
business has continued, with net operating income run rate for the
two month period only slightly below Q1 2021, and client income has
continued to be in excess of the same period in the prior year. In
addition, client income retention has remained particularly strong
and well in excess of the guidance of above 80%. The stockbroking
business also continues to perform strongly.
As a result, the Board is confident that with the strong
underlying performance and diversity of the business, FY 2021 net
operating income will exceed the upper end of current market
consensus(1) .
The higher revenue performance since the start of the financial
year has been driven by existing clients trading more as well as
the platform continuing to attract new clients. This has led to an
increase in variable operating costs, predominantly driven by
higher client onboarding costs and the more efficient acquisition
of new clients.
The Group is also continuing its focus on investment in its
technology to attract and retain clients and drive future
growth.
Pre-close trading update
The Group is scheduled to release a H1 2021 pre-close trading
update on Thursday 8 October 2020.
Enquiries
CMC Markets Plc investor.relations@cmcmarkets.com
Euan Marshall, Chief Financial Officer
Camarco +44 (0) 20 3757 4994
Geoffrey Pelham-Lane
Jennifer Renwick
Forward looking statements
This trading update may include statements that are forward
looking in nature. Forward looking statements involve known and
unknown risks, assumptions, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Group to be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements. Except as required by the Listing Rules and
applicable law, the Group undertakes no obligation to update,
revise or change any forward looking statements to reflect events
or developments occurring after the date such statements are
published.
(1) As at 2 September 2020, the Group's compiled Full Year 2021
consensus is as follows:
-- Net operating income of GBP287.6 million, ranging from
GBP282.4 million to GBP300.6 million; and
-- Profit Before Tax of GBP122.8 million, ranging from GBP114.9 million to GBP137.0 million.
Notes to Editors
CMC Markets plc ("CMC"), whose shares are listed on the London
Stock Exchange under the ticker CMCX (LEI: 213800VB75KAZBFH5U07),
was established in 1989 and is now one of the world's leading
online financial trading businesses. The Group serves retail and
institutional clients through regulated offices and branches in 13
countries, with a significant presence in the UK, Australia,
Germany and Singapore. CMC Markets offers an award-winning, online
and mobile trading platform, enabling clients to trade up to 10,000
financial instruments across shares, indices, foreign currencies,
commodities and treasuries through contracts for difference
("CFDs"), financial spread bets (in the UK and Ireland only) and,
in Australia, access stockbroking services. More information is
available at http://www.cmcmarkets.com/group/
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END
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