CMC Markets forecasts operating income of £280M for FY22
CMC Markets Plc (LON:CMCX), a leading provider of online trading and institutional platform technology solutions, today issued a trading update for the period from 1 January 2022 to 31 March 2022 ahead of its full year results.
The broker expects FY 2022 net operating income to be approximately £280 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 £288 million, down 14% year on year, whereas FY 2022 leveraged trading revenue is expected to be approximately £230 million, dow 34% from the preceding year.
CMC Markets says that Q4 was its strongest quarter of the year leaving net operating income at the top end of guidance at approximately £280 million. Active monthly trading client numbers continue to remain at similar levels as reported earlier in the year. CMC Markets’ 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 £173 million (FY 2021: £168 million). The increase primarily reflects higher personnel costs to deliver strategic objectives.
On 15 March 2022, the Company commenced a share buyback programme of up to £30 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.
CMC has this week delivered the initial internal launch of CMC Invest, a UK non-leveraged platform to its 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, CMC Markets will be launching a new investment platform in Singapore within a year, as well as considering two other jurisdictions for launch next year as CMC continues to diversify and expand its geographic footprint through technology, its leveraged institutional offering, and its non-leveraged platforms.
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.”