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CMC Markets upbeat after Covid-19 boosts trading
3rd Apr 2020 08:18
(Sharecast News) - CMC Markets said it was confident about its outlook after increased trading caused by the Covid-19 crisis helped push up annual income.
The online trading platform reported gross client income of about £241m for the year to the end of March - up from £216m a year earlier.
Contracts for difference net trading revenue rose to about £214m from £110.2m. Stockbroking revenue more than doubled to about £32m from £15.5m, boosted by a deal to provide services for ANZ Bank. Annual operating costs rose to £136m from £120.4m.
CMC said its business performed well during the year and that it gained from increased market activity in the final quarter, when financial markets became highly volatile in response to the rapidly escalating Covid-19 crisis. CMC said extra revenue more than made up for spread betting limits imposed by the European Union.
Chief Executive Peter Cruddas said: "Looking forward, there are many new uncertainties, including how governments, regulators and exchanges will react. Notwithstanding the uncertainty we remain confident in the outlook for 2021 as we progress with our numerous strategic growth initiatives.
"We're not reliant on a sustained period of high volatility in markets, but our well invested platform, technical expertise and diversified offering supports us delivering sustainable results not just now but also in years to come."
Analysts on average expect annual net operating income of £193.2m and pretax profit of £46.8m for the year to the end of March, CMC said.
The online trading platform reported gross client income of about £241m for the year to the end of March - up from £216m a year earlier.
Contracts for difference net trading revenue rose to about £214m from £110.2m. Stockbroking revenue more than doubled to about £32m from £15.5m, boosted by a deal to provide services for ANZ Bank. Annual operating costs rose to £136m from £120.4m.
CMC said its business performed well during the year and that it gained from increased market activity in the final quarter, when financial markets became highly volatile in response to the rapidly escalating Covid-19 crisis. CMC said extra revenue more than made up for spread betting limits imposed by the European Union.
Chief Executive Peter Cruddas said: "Looking forward, there are many new uncertainties, including how governments, regulators and exchanges will react. Notwithstanding the uncertainty we remain confident in the outlook for 2021 as we progress with our numerous strategic growth initiatives.
"We're not reliant on a sustained period of high volatility in markets, but our well invested platform, technical expertise and diversified offering supports us delivering sustainable results not just now but also in years to come."
Analysts on average expect annual net operating income of £193.2m and pretax profit of £46.8m for the year to the end of March, CMC said.