CMC Markets shares jump as FY results above forecast By Investing.com

By Samuel Indyk

Investing.com – Shares in CMC Markets PLC (LON:CMCX) jumped over 7% in early trade after the online trading company said the business has performed very strongly during the start of 2021 amid higher levels of client trading activity versus regular trading periods.

In today’s statement, the company said that as a result of the strong performance, they now expect net operating income for the financial year ending 31st March 2021 to be “slightly ahead” of the upper end of the current range of consensus of £399.6mln.

Following the strong end to 2021, the company has also raised expectations for FY 2022 to deliver net operating income in excess of £330mln.

“I am delighted by the strong performance of the business so far during the last quarter of our financial year,” said CMC CEO Peter Cruddas. “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.”

Client acquisition

Supporting their expectations for increased operating income next year, the company said client acquisition levels have remained high, with the quality of new clients continuing to show similarly high value and longevity qualities to prior cohorts. They added that client income retention remained well in excess of 80%.

“Over the last 12 months, market volatility has driven up client activity across the industry,” Cruddas added. “I am particularly pleased that our new clients are demonstrating similar behaviours to existing long-term, high value clients, which supports our longstanding strategy.”