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CMC Markets lifts FY expectations after strong Q4

CMC Markets lifted its full-year guidance on Thursday following a “strong” fourth-quarter performance.
In an update for the period from 1 January to 24 March, the company said it has continued to perform “very strongly”, with ongoing strength in the acquisition and retention of CFD and stockbroking active clients and higher levels of client trading activity compared to regular trading periods.

Client income retention remained well above 80%, but below the levels reported for the first half of 2021.

As a result of the strong performance, it now expects operating income for the year to the end of March 2021 to be slightly ahead of the upper end of the current range of consensus of £399.6m.

“We 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,” CMC said. “As previously stated, 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.”

CMC said this new cohort of clients will contribute meaningful revenue streams into the next financial year and beyond, meaning it now expects to deliver net operating income in excess of £330m for FY 2022.

Chief executive Peter Cruddas said: “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.”

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