CMC Markets ends FYQ3 with improved client metrics

CMC Markets PLC (LSE:CMCX) today published a trading update covering the three months to the end of December 2021 – the third quarter of its fiscal year.

CMC Markets

The UK-listed brokerage firm reiterated its previous guidance for annual net operating income through March 2022. As previously guided, the figure is expected to come in between £250 million and £280 million if current market conditions continue for the rest of the fiscal year.

In the first half, margin and non-leveraged trading business yielded £126 million in net operating income, half of the amount it earned in the previous year. CMC Markets, founded by tycoon Lord Cruddas, reported £410 million in net operating income for the year ended March 2021.

During Q3 2022, CMC highlighted solid performance across both leveraged and non-leveraged operations as the broker continues to invest in the development of the UK non-leveraged platform.

London-based trading provider has set ambitious growth targets for their B2B arm of business which CMC expect to achieve by catering to a greater range of institutional client types and their respective trading strategies. This will be further boosted with the launch of their new UK investment platform, which will offer both B2C and B2B potential, the company added.

CMC mulls a break-up of its two divisions

Overall client money and assets under administration also remain close to record highs, it said in a filing with the London Stock Exchange.

Monthly active client numbers across all business segments were similar to levels seen in the first half of 2022 when markets were extremely volatile as the world got to grips with the pandemic.

Investors ditched CMC Markets’ stock earlier in September after it warned that its annual net revenue is forecast to be sharply lower from more than £330 million it had set out in July.

Lord Cruddas, CMC Markets CEO, commented: “I am pleased with the ongoing trends we’re seeing in client money, and physical share assets in Australia. In addition, the team is on track to launch our new UK investment platform in the first half of the calendar year. I remain confident in the outlook for CMC as we make progress with our strategic initiatives as set out in our recent half year results and I look forward to updating the market further on these at our full year results later this year.”

The online trading group is also on track to split its financial betting business from its brokerage arm in an attempt to boost returns for its investors.