CMC Markets: Lord Cruddas’ firm set for big jump in profit amid ‘sustained’ client activity
CMC Markets expects to deliver a big increase in revenue compared to last year as the firm hailed its diversification strategy and “sustained” customer demand.
In a statement to the market, the firm, which was founded by Tory peer Lord Cruddas, said it expects net operating income to be around £180m in the first six months of the year, up 45 per cent on the year before.
Costs are expected to be around seven per cent lower than last year thanks to “disciplined cost management”, which should help the firm return to profit.
In the same period last year, CMC Markets reported a loss of £2m but it said it expects to deliver a pretax profit of around £51m.
“The strong performance reflects the success of our ongoing diversification strategy, continued expansion of the B2B segment, and sustained levels of client trading activity,” the firm said.
Shares in the firm were nearly six per cent higher in early trade.
The UK-based FTSE 250 firm was founded in 1989 originally as a foreign exchange market maker before becoming one of the first companies to offer online trading in the 1990s.
The business has undergone a significant shift over the last year as it looks to diversify into new assets, including expanding its investment platform in the UK and Singapore.
It said it remains committed to a “disciplined and balanced approach” to investment, which should help drive efficiencies in the business.
“From an operational standpoint, the Group has continued to enhance its service offering across platforms with the expansion of cash equities and options products, as well as the upcoming launch of cash ISAs in the UK,” it said.