CMC Markets Plc COVID-19 and Trading Update (8942G)
March 20 2020 - 2:00AM
UK Regulatory
TIDMCMCX
RNS Number : 8942G
CMC Markets Plc
20 March 2020
20 March 2020
CMC Markets Plc
COVID-19 and Trading Update
Strong trading activity and technology enabled operational
resilience
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 first
13 trading days of March from 1 March 2020 to 19 March 2020 (the
"Period").
Peter Cruddas, Chief Executive Officer, commented:
"During these worrying times we are supporting our staff to stay
safe by working from home. Due to our long-term investment in
technology, we can effectively run this business from home and from
our disaster recovery sites in Hertfordshire and Sydney, and that
is what we have been doing this week. Ninety-nine per cent of our
London office are working from home or from our disaster recovery
site in Hertfordshire. We are operating split shift systems in
Sydney across our main office and our Chatswood disaster recovery
site. As a result of this, there is effectively no limit to the
amount of time we can operate this way.
"I am proud of my team and their commitment to the business
during these difficult times. They understand that we have to
support the business and our clients during these turbulent times.
We are also listening to advice from the Government and support the
Government's plans as much as possible. I am pleased to say that
our technology infrastructure has held up well, including our B2B
and stockbroking platforms, despite record trades in the underlying
markets and exchanges. At times like these it is not just about our
financial performance, which is clearly very good, but it is about
protecting the business, our clients and our staff and that is my
major concern now. However, I can confirm that we are operating
very well and there are no major commercial or technology issues
that concern me at this time. Hopefully we can all get back to
normal soon."
Trading update
The heightened trading activity experienced at the end of
February and highlighted in the 3 March trading update has
continued into March. The Group has experienced continued high
levels of client trading activity over the Period which has been in
excess of double that seen in more normalised market conditions in
both our CFD and stockbroking businesses. During the Period the
retention of client income has remained strong.
This leads the Board to expect to deliver net operating income
ahead of current market consensus(1) for the year ended 31 March
2020 with nine trading days remaining in the financial year.
Business continuity
Particularly during periods of heightened volatility, our
clients rely on our ability to support their trading activity on a
real time basis. Building on our continuing investment in scalable,
modular technology, the Group confirms that internal systems,
external interfaces and the trading platform have remained robust
during the heightened levels of trading activity, client support
needs and new client applications. We are confident our technology
will continue to serve our clients during these times.
The Group has been implementing changes in working practices in
response to the COVID-19 virus to protect our employees and their
families as well as slowing the spread in the wider community. All
employees have the ability to work from home in order to support
our business and our clients during these challenging times.
Pre-close trading update
CMC expects to announce its pre-close trading update for the
year ended 31 March 2020 on 3 April 2020.
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 19 March 2020, the Group compiled full year 2020
consensus is as follows:
-- Net operating income of GBP219.0m, ranging from GBP217.9m to GBP220.1m
-- Profit Before Tax of GBP72.9m, ranging from GBP71.0m to GBP74.4m
Enquiries
CMC Markets Plc investor.relations@cmcmarkets.com
Euan Marshall, Chief Financial Officer
Camarco +44 (0) 20 3757 4994
Geoffrey Pelham-Lane
Ed Gascoigne-Pees
Jennifer Renwick
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 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 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/
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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