Trading Update

CMC Markets Plc ("CMC" or the “Group”), a leading global provider of online trading and institutional (“B2B”) platform technology solutions, today issues a trading update for the period from 1 July 2020 to 31 August 2020 (the “period”).

The Group’s consistently strong trading performance across the business has continued, with net operating income run rate for the two month period only slightly below Q1 2021, and client income has continued to be in excess of the same period in the prior year. In addition, client income retention has remained particularly strong and well in excess of the guidance of above 80%. The stockbroking business also continues to perform strongly.

As a result, the Board is confident that with the strong underlying performance and diversity of the business, FY 2021 net operating income will exceed the upper end of current market consensus1.

The higher revenue performance since the start of the financial year has been driven by existing clients trading more as well as the platform continuing to attract new clients. This has led to an increase in variable operating costs, predominantly driven by higher client onboarding costs and the more efficient acquisition of new clients.

The Group is also continuing its focus on investment in its technology to attract and retain clients and drive future growth.

Pre-close trading update

The Group is scheduled to release a H1 2021 pre-close trading update on Thursday 8 October 2020.

Enquiries

CMC Markets Plc
Euan Marshall, Chief Financial Officer
[email protected]

Camarco
Geoffrey Pelham-Lane
Jennifer Renwick
+44 (0) 20 3757 4994

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 2 September 2020, the Group’s compiled Full Year 2021 consensus is as follows:

  • Net operating income of £287.6 million, ranging from £282.4 million to £300.6 million; and
  • Profit Before Tax of £122.8 million, ranging from £114.9 million to £137.0 million.

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 Group serves retail and institutional clients through regulated offices and branches in 13 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/