CMC Markets announced its financial results for the financial year 2023 which ended on 31 March, revealing it has generated £288.4 million in net income, up by 2% from the previous year. The company noted that the number is online with guidance for the year.
The London-listed broker saw trading net revenue of £233.1 million for the year which increased 1% on yearly basis. However, revenue from investing dropped 21% £37.9 million. The company recorded interest income revenue of £13.9 million, up from £0.8 million in the previous year. Income from other sources remained steady at £3.5 million.
CMC Markets recorded £52.2 million in pre-tax profits. Compared to last year’s £ 91.5million, this was represented a 43% drop.
The basic earnings per share for FY 2023 stood at 14.7 pence, down by 40%.
The number of active clients saw a 9% decline on yearly basis at 58,737. However, the trading revenue per client increased to £3,968 by 11%.
In addition, the number of active investing clients also fell 11% to 218,310.
Lord Cruddas, Chief Executive Officer commented:
Peter Cruddas Source: LinkedIn
During the past year, we have made progress to refine and deliver our diversification strategy. We have improved our product range across our core trading CFD and spread bet businesses, offering our clients access to a wider range of financial instruments through our award-winning platforms. We have leveraged our existing technology to launch a new investment platform in the UK, with a Singapore platform launching imminently, as well as opening a new office in Dubai to support the rapid growth we are seeing in our institutional business.
Outlook
The broker noted that due to quiet market conditions in the first two and half months of FY 2024, client trading activity has fallen by 15-20% which is expected to impact its first quarter income. However, the company’s expectations of 30% net operating income growth from 2022 to 2025 remain unchanged.
Additionally, CMC Markets plans to enhance its product assortment in the current year. This initiative encompasses the inclusion of cash equities, index options, listed futures, cryptocurrencies, and a broader selection of investment products. Furthermore, the company will allocate resources to boost its institutional offering and upgrade the suite of products available.
Lord Cruddas added:
CMC is changing quickly.
Over the course of the next 12 months, we plan to introduce a new multi-asset platform capable of trading a much wider range of instruments. I look forward to updating you later this year on further progress.”
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
