TIDMCMCX
RNS Number : 4141T
CMC Markets Plc
25 March 2021
25 March 2021
CMC Markets Plc
FY 2021 Pre-Close Trading Update
Strong Q4 performance and increased confidence in the FY22
outlook
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 January 2021 to 24 March 2021 (the "period") ahead of its
full year results.
The entire business has continued to perform very strongly
during the period, with ongoing strength in the acquisition and
retention of CFD and stockbroking active clients and higher levels
of client trading activity versus regular trading periods. In
addition, client income retention remained well in excess of 80%,
but below the levels reported for H1 2021, as previously
guided.
As a result of the strong performance, net operating income for
the financial year ended 31 March 2021 ("FY 2021") is expected to
be slightly ahead of the upper end of the current range of
consensus of GBP399.6(1) million, which, combined with continued
cost control, is expected to provide positive operating
leverage.
We continue to see ongoing high monthly active client numbers,
which for the full year will be over 75,000. Client acquisition
levels have remained high during the period driven by increased
marketing expenditure. As previously stated, the quality of this
year's new cohort of clients remains encouraging as the clients
continue to show similarly high value and longevity qualities to
prior cohorts.
This builds the Board's confidence that this new cohort of
clients will contribute meaningful revenue streams for the Group
into the next financial year and beyond, raising the Board's
expectations for FY 2022 to deliver net operating income in excess
of GBP330m.
Peter Cruddas, Chief Executive Officer, commented:
"I am delighted by the strong performance of the business so far
during the last quarter of our financial year. Our relentless focus
on supporting clients with market leading technology and service
has fuelled record growth and puts us in a great position as we
start the next financial year.
Over the last 12 months, market volatility has driven up client
activity across the industry. I am particularly pleased that our
new clients are demonstrating similar behaviours to existing
long-term, high value clients, which supports our longstanding
strategy. Our client acquisition rates are very encouraging and
reflect the advancements we have made in our technology, pricing
and execution of trades.
Robust risk management continues to be fundamental to the
ongoing success of the business and, together with ongoing
refinement of our analytics and learnings from client behaviour, is
a key competitive advantage.
The resilience of our platform continues to be evident through
very high uptime. Our ability to support increased trading
activity, unobstructed through recent periods of heightened market
volatility, has built trust with clients and embedded CMC as a key
partner in fulfilling their trading ambitions.
Our continued investment in technology and people to support our
expanding client base together with an exciting pipeline of
projects give me confidence in the outlook for CMC."
Full Year results
CMC will no longer release a trading update on 8 April 2021. CMC
expects to report its results for the year ended 31 March 2021 on
10 June 2021. There will be a presentation at 10.00am on 10 June
2021 for institutional investors and analysts, more details will be
made available closer to the date of the announcement.
Footnote
(1) As at 24 March 2021, the company compiled FY 2021 consensus
was as follows:
-- Net operating income of GBP390.9 million, ranging from GBP387.5 million to GBP399.6 million
-- Profit Before Tax of GBP210.6 million, ranging from GBP206.3 million to GBP217.7 million
This excludes one covering analyst where CMC Markets considers
the estimates to be out of date.
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.
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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END
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