TIDMCMCX
RNS Number : 6952H
CMC Markets Plc
08 April 2022
8 April 2022
CMC Markets Plc
FY 2022 Pre-Close Trading Update
Q4 performance drives net operating income to the top end of
guidance
CMC Markets Plc ("CMC" or the "Group"), a leading global
provider of online ("D2C") trading and institutional ("B2B")
platform technology, today issues a trading update for the period
from 1 January 2022 to 31 March 2022 (the "period") ahead of its
full year results.
Key Highlights
-- FY 2022 net operating income expected to be approximately
GBP280 million, at the top end of guidance and a record performance
outside of the pandemic period.
-- FY 2022 gross leveraged client income is expected to be
approximately GBP 288 million (FY 2021: GBP335 million, -14%
yoy).
-- FY 2022 leveraged trading revenue is expected to be
approximately GBP230 million (FY 2021: GBP349 million, -34%
yoy).
-- FY 2022 non-leveraged trading revenue is expected to be
approximately GBP48 million (FY 2021: GBP55 million, -12% yoy).
-- GBP30 million share buyback commenced 15(th) March 2022.
-- CMC Invest, the UK non-leveraged platform already launched
internally. Full market release set for mid-2022. The platform is
ahead of schedule and on budget.
Trading Update
Q4 was CMC's strongest quarter of the year leaving net operating
income at the top end of guidance at approximately GBP280 million.
Active monthly trading client numbers continue to remain at similar
levels as reported earlier in the year. Our APAC stockbroking
business finished FY 2022 with record AuA and a record number of
annual active clients.
Operating costs for FY 2022, excluding variable remuneration,
are expected to be approximately GBP173 million (FY 2021: GBP168
million). The increase primarily reflects higher personnel costs to
deliver strategic objectives.
FY 2022 results for the 12 months ended 31 March 2022 will be
announced on 9 June 2022.
Share Buyback Programme
On 15 March 2022, the Company commenced a share buyback
programme of up to GBP30 million. The Board's decision to undertake
the buyback was underpinned by the Company's robust capital
position and having considered required ongoing investment in the
business. This Buyback Programme forms part of a normal balanced
approach to shareholder returns alongside the current dividend
policy.
The share buyback programme is progressing well and remains on
track to be completed no later than 30 June 2023.
Business Development
CMC has this week delivered the initial internal launch of CMC
Invest, our UK non-leveraged platform to our UK staff. This has
been achieved ahead of schedule and on budget. The new platform
will be made available to the broader market over the coming
quarter.
In addition, we will be launching a new investment platform in
Singapore within a year, as well as considering two other
jurisdictions for launch next year as we continue to diversify and
expand our geographic footprint through technology, our leveraged
institutional offering, and our non-leveraged platforms.
FY 2023 will be another year of investment in these strategic
initiatives, which aim to deliver future revenue growth. In
addition to the incremental investment, FY 2023 costs are expected
to grow with higher marketing spend together with further
investment in personnel.
Lord Cruddas, Chief Executive Officer, commented
"I am delighted to report another year of strong performance
both strategically and financially. Outside of the pandemic year
(Financial year ending March 2021), this is a record net operating
income result for the company. The performance reflects the ongoing
success of our B2B technology partnerships and focus across our
leveraged and non-leveraged businesses.
This business continues to change as we look to utilise our
technology to enter new markets and expand our non-leveraged
offering. I look forward to updating investors as the strategy
expands over both the short and long-term. "
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
Euan Marshall, Chief Financial Officer
investor.relations@cmcmarkets.com
Camarco +44 (0) 20 3757 4994
Geoffrey Pelham-Lane
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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