CMC Markets releases interim results for the half year ended 30 September 2024
CMC MARKETS PLC
(“CMC” or the “Company”)
Interim results for the half year ended 30 September 2024
Strategy delivering enhanced profitability and margins
Summary financials
30 September 2024 | 30 September 2023 | Change % | |
|---|---|---|---|
Net operating income (£m) | 177.4 | 122.6 | 45% |
Trading net revenue (£m) | 131.3 | 87.4 | 50% |
Investing net revenue (£m) | 19.9 | 16.8 | 19% |
Interest income (£m) | 23.4 | 16.1 | 46% |
Other operating income (£m) | 2.8 | 2.3 | 22% |
Profit / (loss) before tax (£m) | 49.6 | (2.0) | - |
Profit / (loss) before tax margin (%) | 28% | (2%) | 30ppts |
Basic earnings per share (pence) | 12.8 | (0.8) | - |
Ordinary dividend per share (pence) | 3.10 | 1.00 | 210% |
Note: Net operating income represents total revenue net of commissions and levies. Trading net revenue represents gross trading income net of rebates and levies. Investing net revenue represents stockbroking and related services revenue net of rebates. Profit / (loss) before tax margin % is calculated as profit before tax as a percentage of net operating income.
Financial highlights
• Net operating income of £177.4 million, up 45% year-on-year (H1 2024: £122.6 million), reflecting continued growth across the institutional segment and an increase in client trading activity.
• H1 2025 trading net revenue was £131.3 million, up 50% year-on-year (H1 2024: £87.4 million) with strong performance across both our institutional and retail segments.
• Investing net revenue was £19.9 million, up 19% year-on-year (H1 2024: £16.8 million), driven by a strong performance in international equities.
• Interest income of £23.4 million (H1 2024: £16.1 million), up 46%, driven by the continued benefit of elevated global interest rates driving income from client cash balances and a strong performance by our newly established Treasury Management and Capital Markets Division.
• Operating costs for H1 2025, excluding variable remuneration, were £111.4 million (H1 2024: £121.9 million), down 9%, as the Group maintains a sharp focus on costs to drive profit margin expansion.
• Regulatory total Own Funds Requirements (OFR) ratio of 433%1 (31 March 2024: 312%) and net available liquidity of £246.6 million (31 March 2024: £192.2 million).
• Significant increase in profitability year-on-year with profit before tax of £49.6 million, up from a prior year loss of £2.0 million and reflecting the combination of robust net operating income and disciplined cost management.
• Interim dividend up 210% to 3.10 pence per share (H1 2024: 1.00 pence).
1Amount includes yet to be verified half year profits, less proposed interim dividend.
Operational highlights
• Strengthened and established new key relationships, highlighted by securing recent partnerships with Revolut and ASB Bank in New Zealand.
• Client onboarding has begun with Revolut following a soft launch earlier in the year, with a steady rise in the number of clients actively trading.
• Recently announced partnership with ASB Bank to provide market-leading technology, customer service and execution via ASB-branded web and mobile platform, including full integration with ASB Bank’s technology stack.
• Continued focus on diversification, expansion and innovation to drive the business forward. B2B and institutional segment continues to be a key driver of our growth with a healthy pipeline of opportunities.
• Further enhancement of our service offering across platforms with the expansion of cash equities and options products, and Cash ISAs to be launched imminently on CMC Invest. Additional product upgrades are on track for delivery in H2 2025.
Outlook
• Management maintaining pragmatic approach to investment with a focus on profit margin expansion, while continuing to explore and invest in opportunities for incremental growth.
• Remain confident in delivering on guidance set out at the beginning of the year, with net operating income forecast to be in line with external market expectations.1
• Operating cost guidance for FY 2025 remains unchanged at £225 million, excluding variable remuneration and non-recurring charges.
1External market consensus for year ending 31 March 2025 is net operating income of £332.9 million.
Lord Cruddas, Chief Executive Officer, commented:
“I am delighted that CMC has delivered another strong performance in the first half, with pleasing results across our business driven by our commitment to technological innovation. Flagship partnerships with Revolut and ASB Bank highlight our success in the B2B space, and our diversified product offering, including the expansion of cash equities and options offerings, and the upcoming launch of cash ISAs in the UK, is deepening our relationship with our clients and supporting strong top line growth.
As we announced in the previous financial year, CMC has reached the peak of the investment cycle and whilst we continue to invest in the business, we are taking a disciplined approach, and we remain laser focused on driving further efficiencies across our global operations as we continue to leverage our scale and technology. We remain confident in meeting the guidance set earlier this year, with net operating income expected to be in line with market consensus, supported by a strong pipeline of B2B partnerships and ongoing product expansion and diversification.
My thanks to our dedicated team and clients for their continued trust and support, and we look forward to building on the successes of H1 in the remainder of this year.”
Webcast:
An analyst and investor presentation will be held on 21 November 2024 at 9:00am (UK time). Participants need to register using the link below.
CMC Markets PLC Half Year Results | SparkLive | LSEG
Forthcoming announcement dates:
23 January 2025: Q3 2025 Trading update
5 June 2025: FY 2025 Results
Enquiries
CMC Markets Plc
Albert Soleiman, Chief Financial Officer: investor.relations@cmcmarkets.com
Camarco
Geoffrey Pelham-Lane: cmc@camarco.co.uk / +44 (0) 7733 124 226
Jennifer Renwick: +44 (0) 7928 471 013
Alex Campbell: +44 (0) 7710 230 545
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.
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 and investing businesses. The Company 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 platform, enabling clients to trade and in invest in over 12,000 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, Singapore and the UK, access stockbroking services. More information is available at cmcmarkets.com/group.