TIDMCMCX
RNS Number : 2179M
CMC Markets Plc
20 January 2021
20 January 2021
CMC Markets Plc
Q3 2021 Trading Update
Continued strong performance underpinned by high client income
retention
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 October 2020 to 31 December 2020 ("Q3 2021" or the
"period").
Trading Update
CMC's continued investment in platform technology and risk
management, and its strategy of targeting high-quality premium and
professional clients has continued to underpin the strong
performance of the business over a sustained period of time.
In Q3 2021, the entire business has continued to perform very
well, with high active client numbers resulting in strong client
trading activity, although at lower levels than earlier in the
financial year. In addition, client income retention remained well
in excess of 80%, but below the levels reported for H1 2021, as
guided.
Our investment in platform technology continues to attract and
retain premium clients, with market leading functionality and
robust operational performance. This was especially evident during
the November Pfizer vaccine announcement when our platforms
remained resilient and performed very well. The business reported
no outages during this very volatile trading period.
Client acquisition levels remain high and the quality of this
year's new cohort of clients remain encouraging as they continue to
show similarly high value qualities to prior cohorts.
Following the continued strong performance, the Board is
confident that net operating income for the Full Year 2021 will be
at the upper end of the current market consensus(1) .
Peter Cruddas, Chief Executive Officer, commented:
"I'm delighted by our performance, and as we enter our final
financial reporting quarter, we are focusing on delivering on our
premium client strategy through technology, service and a resilient
trading platform. In addition, we have a healthy pipeline of
projects that will drive new revenue streams, which I will talk
more about in the next financial year.
I am very excited about the opportunities to continue to grow
and diversify this business on the back of our platform technology.
I have talked a lot in the past about investment in technology and
people, and this will continue to be a priority as we seek to
maintain and expand our competitive advantage.
We will do this through product expansion, our technology
expertise and our capability to deliver an enhanced user experience
across different asset classes. We have already proven we can do
this with our stockbroking business in Australia. This will further
help us attract and retain high value clients.
In addition, continued investment in our risk infrastructure is
delivering latency reduction and pricing and execution
efficiencies. This allows us to capture a higher percentage of our
premium client income especially during volatile market
conditions.
As a Group, we will continue to deliver underlying growth and
considerable value to shareholders, through strong results, an
attractive dividend policy, investment in the business, investment
in technology and investment in risk management infrastructure.
I am very positive about the outlook and strong momentum that is
underpinned by my incessant desire to keep investing in the
business through technology and quality staff."
Upcoming results
CMC expects to announce its full year pre-close trading update
on 8 April 2021.
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.
(1) As at 19 January 2021, the company compiled Full Year 2021
consensus, including 5 of the 6 covering analysts, is as
follows:
-- Net operating income of GBP376.6 million, ranging from GBP370.2 million to GBP387.5 million
-- Profit Before Tax of GBP197.2 million, ranging from GBP191.3 million to GBP206.3 million
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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