Interim results for the half year ended 30 September 2022

^Notes:

• ^{Net operating income represents total revenue net of introducing partner commissions and levies}
• ^{Trading net revenue represents contracts for difference (“CFD”) and spread bet gross client income net of rebates, levies and risk management gains or losses}
• ^{Investing net revenue represents stockbroking revenue net of rebates}
• ^{Trading gross client income represents spreads, financing and commissions charged to clients (client transaction costs)}
• ^{Active clients represent those individual clients who have traded with or held a CFD or spread bet position or who traded on the stockbroking platform on at least one occasion during the six-month period}
• ^{Trading revenue per active client represents total trading revenue from trading active clients after deducting rebates and levies}
• ^{A reconciliation of revenue alternative performance measures (“APMs”) to the Group’s primary statements can be found on page 34}

H1 2023 Financial Highlights

• Net operating income of £153.5 million (H1 2022: £126.7 million +21% yoy).
• Trading net revenue was £128.4 million (H1 2022: £101.0 million +27% yoy).
• Investing net revenue was £20.8 million (H1 2022: £24.2 million -14% yoy).
• Operating costs (excluding variable remuneration) of £106.3 million (H1 2022: £83.1 million¹ +28% yoy) and £115.6 million (H1 2022: £89.7 million¹ +29% yoy) including variable remuneration. The majority of the cost increase reflects investment for growth across CMC’s investing and trading platforms.
• Regulatory total capital ratio of 610% (FY 2022: 489%) and net available liquidity of £254.2 million (FY 2022: £245.9 million).
• Interim dividend of 3.50 pence per share (H1 2022: 3.50 pence) with a total dividend for the year expected to be in line with policy at 50% of profit after tax.

Operational Highlights

• Plans to grow Group net operating income by 30% over three years based on the 2022 results and underlying conditions, remain on track.
• Significant development upgrades delivered across existing trading platforms in H1 2023. These include enhanced FX liquidity functionality, new trading analytics, new pricing functions and enhanced onboarding initiatives. Further product upgrades on track for delivery in H2 2023.
• Expansion of CMC Invest continues. The recent launch of the UK investment platform, CMC Invest UK, which will see new product additions over the coming months, will be followed by the launch of CMC Invest Singapore by the end of FY 2023. Further regional expansion in New Zealand and Canada also being considered.
• Trading active client figures decreased by 7% although all regions saw an increase in revenue per client (+36% yoy) largely due to higher client income along with an increase in client income retention to 83% (H1 2022: 80%). CMC’s marketing focus on premium customers continues to act as a successful strategy for the Group.
• Operating cost guidance for FY 2023 remains unchanged at £215 million excluding variable remuneration. Ongoing GBP weakness and the rate of recruitment for the delivery of strategic initiatives could result in higher costs.

^{1 30 September 2021 figures restated to include social taxes on FY 2022 annual discretionary bonus to be within variable remuneration}

Lord Cruddas, Chief Executive Officer, commented:

"I am pleased to report another strong performance for the first six months of the year. We saw an acceleration in activity across FX and commodities in addition to the normal activity across our index flow during a period of heightened focus on monetary policy action around the globe and a pickup in market volatility and trading volumes.

Against this backdrop, we are on track to deliver our three-year expansion initiatives aimed at driving higher revenues and diversifying our earnings. We remain committed to improving our offering across our core trading CFD and spread bet businesses, allowing our clients to access a wider range of products through our award-winning platforms. In our Institutional trading business, we continue to grow volumes as a non-bank liquidity provider in the FX spot market. I am also pleased to have launched our new UK investing business, CMC Invest UK. This move in the UK into self-directed investing marks a significant milestone for us and complements our already sector-leading stockbroking business in Australia. CMC Invest UK will see significant new product additions in coming months, enhancing the platform to include ISAs, multi-currency accounts, mutual funds, and SIPPs. The UK wealth market remains an attractive environment and we are on target to offer retail investors a market-leading solution for long-term investment and wealth creation.

I am also excited about the ongoing geographical expansion of our offering into new regions like Singapore. We have committed to launch CMC Invest Singapore by the end of FY 2023. This will complement our already substantial business in Australia, where the migration of the approximately 500,000 ANZ Share Investing client base is set to be completed on time, by the end of this financial year.

We are on a fast track to diversification, using our existing platform technology to win B2B and B2C investing business. Our strategic growth plans are on track and set to deliver significant new business expansion as we introduce new products across our retail, institutional and stockbroking businesses.”

An analyst and investor presentation will be held on 16 November 2022 9:00am UK time. Participants need to register using the links below to access the webcast.

Webcast:

https://www.lsegissuerservices.com/spark/CMCMarkets/events/fd562c32-760a-4137-a993-c9ada1ca9232 

Conference Line:

https://cossprereg.btci.com/prereg/key.process?key=PFDJXXVAE

Forthcoming announcement dates

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.

MAR disclosure statement

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is considered to be in the public domain.

Enquiries:

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 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 and the UK, access stockbroking services. More information is available at http://www.cmcmarketsplc.com