Group results

Financial review summary

Revenue

Group Revenue increased by 7% to £193.2m for the year ended 31 March 2009 (2008: £181.4m). In what has been a challenging year in the financial markets, this level of growth is an excellent achievement considering the record levels in revenue growth achieved in the prior year.

EBITDA

The Group's adjusted EBITDA (earnings before interest, tax, depreciation and amortisation and exceptional items) decreased by 22% to £60.3m in the year and the adjusted EBITDA margin reduced from 42.6% to 31.2%. EBITDA for the Group was £25.3m (2008: £69.3m) and was significantly impacted by the exceptional items.

Exceptional items

Exceptional items total £51.3m (2008: £7.9m) and £26.0m of these costs relate to the restructure and re-focus the Board has made on the business for the next phase of its development. The Group has reviewed the carrying value of goodwill and intangible assets in light of the current economic environment and future outlook and has impaired these assets by £16.3m. Other exceptional costs include charitable donations of £8.5m (2008: £3.1m) and share-based payment charge of £0.5m (2008: £4.8m).

Balance sheet

The Group has net assets of £89.7m at 31 March 2009 (2008: £104.3m). The Group continues to invest in its proprietary software platform, Marketmaker™, and other technology to support the continued development of the business. Intangible assets comprise £44.5m (2008: £50.4m) of the net assets of the business. The reduction in net assets from the prior year reflects the loss for the year which has been impacted by the charge for exceptional items associated with the restructuring programme.

Liquidity and capital resources

At 31 March 2009, the Group held total cash balances of £314.9m (2008: £259.8m) which includes £196.8m (2008: £151.8m) held in client money accounts for customers.

Regulatory capital

CMC Markets is supervised on a consolidated basis by the UK's Financial Services Authority. The Group maintained a significant surplus capital over the regulatory capital requirement throughout the year. At 31 March 2009, the capital resources represented 137% (2008: 124%) of the capital resources requirement.

Risk Warning