CMC Markets Reports Year-End Metrics, Profits Swell YoY
- CMC Markets has revealed a tranche of financial figures from its year ending March 31, having had a solid year despite the CHF fallout.
CMC Markets has reported its financial metrics for the fiscal year ending March 31, 2015, which was characterized by a staunch increase in revenues, according to a CMC statement.
On the whole, CMC Markets Group yielded an underlying profit (before tax) of $79.7 million, good for a 61% YoY gain. In addition, overall net retail clients grew by 11% YoY during the 2015 fiscal year, while trade numbers increased by 35%, helping fuel a turnover volume uplift of 20% YoY.
More specifically, a closer look at the financials revealed a net revenue increase of 18% YoY during the fiscal year to $220.7 million. This was tempered by tepid cost increases of 2% YoY to $141.0 million.
Indeed, by the end of March 2015, the CMC Markets’ capital ratio stood at 24% (301% pre CRD IV) with minimal debt and own funds of $216.5 million. Moreover, the group will pay a final dividend and distribute 50% post-tax profits, representing dividend growth of 33% YoY.
SNB Fallout and Future Outlook
The new fiscal year for CMC Markets has been far less eventful than the tail end of last year, given the rampant convulsions experienced at the hands of the Swiss National Banking (SNB) decision in January.
In particular, the decision by the SNB to abandon its currency peg with the euro did in fact impact CMC Markets’ results through client debt – the overall impact standing at $6.1 million.
Post CHF, April 2015 revenues and turnover volume at CMC Markets were up 50% and 52% respectively YoY from April 2014.
Finally, CMC Markets has also fortified its teams in France and Germany, hoping to open at least two new offices in this current financial year.
According to Peter Cruddas, Chief Executive, CMC Markets, in a recent statement on the year-end performance, “This is my second full year as CEO and I am very pleased with the Group’s performance. We have invested heavily in technology, which has delivered a market leading client offering and growth.
Despite the sudden decision by the SNB to unpeg the Swiss franc against the euro in January 2015 which resulted in extreme market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, we have remained strong where many of our competitors were adversely affected by the turmoil. Our strong Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term meant that we saw minimal impact from the SNB decision, and our strong balance sheet and capital ratio are increasingly attracting clients from competitors, as they ‘fly to safety’.
CMC Markets is in a good position to attract switchers and new business, our high service standards and Next Generation platform are attracting higher value clients. This can be seen through our early figures for April 2015, which show a 50 per cent increase in revenues, and a 52 per cent increase in turnover compared to the same period last year. On the back of this the Board have decided to prepare CMC Markets for a London Stock Exchange listing and we are appointing investment banks to assist in the process.”
“It has been an incredible two years and I love being back at the helm of the business. I would like to thank clients for their continued support and my team for their hard work and commitment. We are all looking forward to exciting times ahead,” he added.
CMC Markets has reported its financial metrics for the fiscal year ending March 31, 2015, which was characterized by a staunch increase in revenues, according to a CMC statement.
On the whole, CMC Markets Group yielded an underlying profit (before tax) of $79.7 million, good for a 61% YoY gain. In addition, overall net retail clients grew by 11% YoY during the 2015 fiscal year, while trade numbers increased by 35%, helping fuel a turnover volume uplift of 20% YoY.
More specifically, a closer look at the financials revealed a net revenue increase of 18% YoY during the fiscal year to $220.7 million. This was tempered by tepid cost increases of 2% YoY to $141.0 million.
Indeed, by the end of March 2015, the CMC Markets’ capital ratio stood at 24% (301% pre CRD IV) with minimal debt and own funds of $216.5 million. Moreover, the group will pay a final dividend and distribute 50% post-tax profits, representing dividend growth of 33% YoY.
SNB Fallout and Future Outlook
The new fiscal year for CMC Markets has been far less eventful than the tail end of last year, given the rampant convulsions experienced at the hands of the Swiss National Banking (SNB) decision in January.
In particular, the decision by the SNB to abandon its currency peg with the euro did in fact impact CMC Markets’ results through client debt – the overall impact standing at $6.1 million.
Post CHF, April 2015 revenues and turnover volume at CMC Markets were up 50% and 52% respectively YoY from April 2014.
Finally, CMC Markets has also fortified its teams in France and Germany, hoping to open at least two new offices in this current financial year.
According to Peter Cruddas, Chief Executive, CMC Markets, in a recent statement on the year-end performance, “This is my second full year as CEO and I am very pleased with the Group’s performance. We have invested heavily in technology, which has delivered a market leading client offering and growth.
Despite the sudden decision by the SNB to unpeg the Swiss franc against the euro in January 2015 which resulted in extreme market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, we have remained strong where many of our competitors were adversely affected by the turmoil. Our strong Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term meant that we saw minimal impact from the SNB decision, and our strong balance sheet and capital ratio are increasingly attracting clients from competitors, as they ‘fly to safety’.
CMC Markets is in a good position to attract switchers and new business, our high service standards and Next Generation platform are attracting higher value clients. This can be seen through our early figures for April 2015, which show a 50 per cent increase in revenues, and a 52 per cent increase in turnover compared to the same period last year. On the back of this the Board have decided to prepare CMC Markets for a London Stock Exchange listing and we are appointing investment banks to assist in the process.”
“It has been an incredible two years and I love being back at the helm of the business. I would like to thank clients for their continued support and my team for their hard work and commitment. We are all looking forward to exciting times ahead,” he added.