CMC Markets Plc Trading Update (4668K)
September 02 2021 - 1:00AM
UK Regulatory
TIDMCMCX
RNS Number : 4668K
CMC Markets Plc
02 September 2021
2 September 2021
CMC Markets plc
Trading Update
Updated Net Operating Income Expectations for FY2022
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 five
months ending 31 August 2021.
Trading Update
CMC entered the current financial year with significant momentum
following a year of record performance. Underlying fundamentals
remain robust with overall monthly active client numbers at similar
levels as reported in the recent Q1 2022 trading update, which
remain up around a third from pre-pandemic levels. Likewise, client
AuM remains near record levels, highlighting the inherent ability
of clients to trade when market opportunity arises.
Offsetting this, overall market activity has remained subdued
through July and August following on from the moderation in
activity reported in Q1. Reduced volatility in markets has resulted
in lower trading activity across both the newly acquired and
existing cohort of clients. Similar trends have been seen across
our non-leveraged and leveraged businesses.
In addition to lower activity, year to date client income
retention has also been tracking moderately below the targeted 80%
although is expected to recover through the remaining seven months
of the year based on a reversion towards historical averages in the
mix of asset class trading.
As a result, should current market conditions prevail for the
remainder of the year the Group now expects FY 2022 net operating
income to settle in a range between GBP250-280million. FY 2022
operating costs will continue to track moderately higher year over
year albeit partly offset by lower marketing costs in line with
lower activity trends.
Beyond the recent moderation in market activity, the Group
continues to have confidence in the long term growth opportunities
of the business and in conjunction with further progress on its
strategic initiatives, including the ongoing development of the
non-leveraged investment platform, looks forward to continuing to
generate long-term business growth and value.
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
James Cartwright, Investor Relations
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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