Trading Update

RNS Number : 7699E

CMC Markets Plc

03 March 2020

 

3 March 2020

CMC Markets Plc

Trading Update

Strong underlying performance continuing in Q4 2020, underpinned by the strategy of targeting and retaining higher valued clients and diversifying revenue

CMC Markets Plc ("CMC", the "Group" or the "Company"), a leading global provider of online trading and institutional ("B2B") platform technology solutions, today issues a trading update for the period 1 January 2020 to 28 February 2020 (the "Period").

As previously stated in the Q3 Trading Update, Q4 2020 had started well and performance across the business has continued to be strong during the Period.

The underlying net operating income performance has continued to maintain momentum throughout Q4 2020, and the retention of client income continues to be higher than H1 2020.

In addition, the recent market conditions experienced have seen heightened trading activity amongst CMC's clients over and above the strong performance delivered to date.

This leads the Board to expect to deliver net operating income ahead of market consensus¹ for the year ended 31 March 2020.

Peter Cruddas, Chief Executive Officer, commented:

"I am delighted that CMC's strategy of targeting and retaining higher valued clients and our diversifying revenue base, alongside our ongoing success in retaining a higher percentage of client income, has continued to yield positive underlying performance throughout the second half of the year."

Pre-close trading update

CMC expects to announce its pre-close trading update for the year ended 31 March 2020 on 3 April 2020.

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 28 February 2020, the Company compiled full year 2020 consensus is as follows:

· Net operating income of £200.6m, ranging from £199.0m to £202.3m

· Profit Before Tax of £53.2m, ranging from £46.9m to £56.7m

Enquiries

CMC Markets Plc  [e-mail]

Euan Marshall, Chief Financial Officer

Camarco  [phone]

Geoffrey Pelham-Lane

Ed Gascoigne-Pees

Jennifer Renwick

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 Company serves retail and institutional clients through regulated offices and branches in 12 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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