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CMC upgrades guidance after record first half
8th Oct 2020 07:35
(Sharecast News) - CMC Markets upgraded its guidance for annual revenue after trading revenue more than doubled to a record in the first half.
The online trading platform said net trading revenue rose to about £200m in the six months to the end of September from £85m a year earlier. Client income retention was "well in excess" of previous guidance for more than 80%.
Stockbroking net revenue rose to about £26m from £14m. Operating costs excluding variable pay rose to about £80m from £65m as CMC spent on technology and marketing to attract "high-value clients".
CMC said its results were helped by continuing market volatility linked to Covid-19. The FTSE 250 company said it was confident that net operating income would be near the upper end of the current range of expectations and that costs would be modestly higher than consensus.
Analysts on average expect net operating income of £329.9m this year with the highest estimate predicting £348.7m. Consensus for operating costs is £148.5m.
Peter Cruddas, CMC's chief executive, said: "I am delighted with our record first half performance, which vindicates our strategy of diversification and continuing focus on high value clients. The performance is particularly pleasing given that the financial year began in the midst of the global Covid-19 pandemic."
The online trading platform said net trading revenue rose to about £200m in the six months to the end of September from £85m a year earlier. Client income retention was "well in excess" of previous guidance for more than 80%.
Stockbroking net revenue rose to about £26m from £14m. Operating costs excluding variable pay rose to about £80m from £65m as CMC spent on technology and marketing to attract "high-value clients".
CMC said its results were helped by continuing market volatility linked to Covid-19. The FTSE 250 company said it was confident that net operating income would be near the upper end of the current range of expectations and that costs would be modestly higher than consensus.
Analysts on average expect net operating income of £329.9m this year with the highest estimate predicting £348.7m. Consensus for operating costs is £148.5m.
Peter Cruddas, CMC's chief executive, said: "I am delighted with our record first half performance, which vindicates our strategy of diversification and continuing focus on high value clients. The performance is particularly pleasing given that the financial year began in the midst of the global Covid-19 pandemic."