UK online broker CMC Markets Plc (LON:CMCX) today issued a trading update for the period from January 1, 2021 to March 24, 2021.

The company says its entire business has continued to perform very strongly during the period, with ongoing strength in the acquisition and retention of CFD and stockbroking active clients and higher levels of client trading activity versus regular trading periods. In addition, client income retention remained well in excess of 80%, but below the levels reported for H1 2021, as previously guided.

As a result of the strong performance, net operating income for the financial year ended 31 March 2021 (“FY 2021”) is expected to be slightly ahead of the upper end of the current range of consensus of £399.6 million, which, combined with continued cost control, is expected to provide positive operating leverage.

As at March 24, 2021, the company compiled FY 2021 consensus was as follows:

• Net operating income of £390.9 million, ranging from £387.5 million to £399.6 million
• Profit Before Tax of £210.6 million, ranging from £206.3 million to £217.7 million

CMC Markets continue to see ongoing high monthly active client numbers, which for the full year will be over 75,000. Client acquisition levels have remained high during the period driven by increased marketing expenditure. The quality of this year’s new cohort of clients remains encouraging as the clients continue to show similarly high value and longevity qualities to prior cohorts.

This builds the Board’s confidence that this new cohort of clients will contribute meaningful revenue streams for the Group into the next financial year and beyond, raising the Board’s expectations for FY 2022 to deliver net operating income in excess of £330 million.

Peter Cruddas, Chief Executive Officer, commented:

“I am delighted by the strong performance of the business so far during the last quarter of our financial year. 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.

Over the last 12 months, market volatility has driven up client activity across the industry. I am particularly pleased that our new clients are demonstrating similar behaviours to existing long-term, high value clients, which supports our longstanding strategy. Our client acquisition rates are very encouraging and reflect the advancements we have made in our technology, pricing and execution of trades.

Our continued investment in technology and people to support our expanding client base together with an exciting pipeline of projects give me confidence in the outlook for CMC.”