Reiterating FY guidance; core underlying business trending well above pre-pandemic levels
|For the half year ended||30 September 2021||30 September 2020||Change||30 September 2019||Change|
|Net operating income (£ million)||126.7||230.9||(45%)||102.3||24%|
|Leveraged net trading revenue (£ million)||101.0||200.4||(50%)||85.1||19%|
|Non-leveraged net trading revenue (£ million)||24.2||26.3||(8%)||14.5||67%|
|Other income (£ million)||1.5||4.2||(63%)||2.7||(43%)|
|Profit before tax (£ million)||36.0||141.1||(74%)||30.1||20%|
|Basic earnings per share (pence)||9.6||38.3||(75%)||9.5||1%|
|Dividend per share (pence)||3.50||9.20||(62%)||2.85||23%|
|Leveraged gross client income (£ million)||127.0||173.6||(27%)||103.5||23%|
|Leveraged client income retention||80%||115%||(35%)||82%||(2%)|
|Leverage active clients (numbers)||53,834||59,082||(9%)||41,603||29%|
|Leveraged revenue per active client (£)||1,877||3,392||(45%)||2,047||(8%)|
|Non-leveraged active clients (numbers)||185,847||168,270||10%||118,468||57%|
“I’m very pleased to see the business is operating well above pre-pandemic levels across all our business lines. This is testament to the resilience and quality of our platform and offering.
Encouragingly for the future, we closed our first half with client money (“AUM”) in our leveraged business being maintained close to record highs. It was also encouraging to see active client numbers increase by 10% in our non-leveraged business in support of our diversification strategy. Our non-leveraged business continues to offer the greatest growth potential and now represents approximately 50% of our trading revenue in Australia and nearly 20% of Group net operating income. In line with our aim to diversify and grow our non-leveraged earnings we announced the acquisition of the ANZ Share Investing clients that, when completed over a 12-18 month period, will boost our non-leveraged business with approximately 500,000 clients with total assets in excess of AUD$45bn. We are on a fast track to diversification, using our existing platform technology to win B2B and B2C non-leveraged business. This will be further boosted with the launch of our new UK investment platform planned in the early part of the next financial year, which will offer both B2C and B2B potential.
In line with this strategy, we believe it is right for us to evaluate the viability of separating the businesses in order to unlock the significant value within the current Group structure. The Board is expected to start this review before year end and complete it by June 2022. We will update on progress in due course.”
A presentation will be held for equity analysts and investors today, 17 November 2021, at 10:30 a.m. (GMT).
A live webcast of the presentation will be available via the following link:
Should you wish to ask a question, please dial into the presentation on +44 (0)20 3059 5869, and quote “CMC Markets plc H1 2022 Results Conference” when prompted.
|20 January 2022||Q3 2022 trading update|
|8 April 2022||FY 2022 pre-close update|
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.
CMC Markets Plc
James Cartwright, Investor Relations
Euan Marshall, Chief Financial Officer
+44 (0) 20 3757 4994
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 12 countries, with a significant presence in the UK, Australia, Germany and Singapore. CMC offers an award-winning, online and mobile trading platform, enabling clients to trade over 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/