CMC Markets to Beat Fiscal 2020 Operating Income Forecasts

An uptick in trading in the final quarter of the firm’s fiscal year has provided a boost.

2020 has provided solid momentum for trading providers so far, with many brokers reporting solid trading activity over the past couple of months. This Tuesday, CMC Markets Plc joined the chorus, announcing that it has seen a strong performance in the first two months of the year.

In particular, CMC Markets has issued a trading update for the period spanning from the 1st of January 2020 until the 28th of February 2020. Because of recent market conditions, the broker has seen heightened trading amongst its clients.

According to the online trading provider, the fourth quarter of fiscal 2020, which spans from January until the end of March this year, has started off well, and performance across the business has continued to be strong during the two-month period.

CMC Markets maintains momentum

Underlying net operating income performance has continued to maintain momentum so far in the final quarter, the company said in the statement, and the retention of client income continues to be higher than the first half of the fiscal year.

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Because of this solid performance, the Board of CMC Markets now expects to deliver net operating income ahead of market consensus for the year ended on the 31st of March, 2020.

As of the 28th of February 2020, the compiled full-year 2020 consensus sees net income coming in at £200.6 million, ranging from £199.0 million to £202.3 million. Profit before tax is also expected to be £53.2 million, ranging from £46.9 million to £56.7 million.

Commenting on the performance, Peter Cruddas, Chief Executive Officer said: “I am delighted that CMC’s strategy of targeting and retaining higher valued clients and our diversifying revenue base, alongside our ongoing success in retaining a higher percentage of client income, has continued to yield positive underlying performance throughout the second half of the year.”

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