CMC Markets (LON: CMCX) released a trading update today (Wednesday), revealing its expectations of the net fiscal year 2024 operating income to exceed the top end of the previously guided range of between £290 million and £310 million.

CMC Raises Income Expectations

The bullish forecast emerged following the company’s strong performance in the third quarter of the ongoing fiscal year. In January, the company lifted its income forecast by £40 million and now expects to surpass that level.

“Following the strong trading performance seen in Q3, the positive momentum continued in the fourth quarter,” the broker stated. “We continue to see strength in the institutional and B2B business as the Group benefits from the long-term investments in this area. The Group has a strong pipeline of B2B partnerships some of which are in the advanced stages.”

Business Rebounds

CMC Markets posted weak figures for the first half of the ongoing fiscal year with a 20 percent year-on-year in its net operating revenue to £122.6 million. It further turned a pre-tax loss of £2 million for the six months with a negative basic earnings per share of 0.8 pence.

Following a weak half year, the company focused on turning its financials and announced a reduction of 17 percent of its workforce as a part of its “cost reduction and efficiency plans.”

According to the latest trading update, the London-headquartered broker now expects to end the fiscal year with operating costs in line with around £240 million guidance. However, the figure excludes variable remuneration and non-recurring items.

Further, CMC focused on its global with expanding its stock investment platform in Singapore. The platform is also available to traders in the United Kingdom and Australia.

“With actions taken as part of the cost reduction and efficiency plans outlined in February 2024, the Group continues to identify opportunities for further cost savings across the global business as we focus on improving profit margins,” the broker added.