CMC Markets PLC expects top-end profits as strong performance

() said it is confident that full-year profits will be at the upper end of market forecasts after trading remained strong in its third quarter.

The group continued to perform “very well” as a whole in the three months to end-December, 2020, the FTSE 250 firm said in a trading statement on Wednesday, with active client numbers staying “high” and resulting in client trading activity being “strong”, although at lower levels than earlier in the financial year.

CMC put the strong performance down to its ability to attract and retain “premium clients”, with a strong flow of newcomers showing similar qualities to prior cohorts of customers.

The proportion of income retained from client trades in the third quarter remained “well in excess of 80%”, but as expected was below the exceptional levels above the 100% reported in its first-half results.

All in all, this is expected to lead to net operating income for the year to March 31, 2021, coming in at the upper end of the current market consensus.

The company’s compiled average of analyst forecasts points to a net operating income of £376.6mln, with the top of the range being £387.5mln.

“I’m delighted by our performance, and as we enter our final financial reporting quarter, we are focusing on delivering on our premium client strategy through technology, service and a resilient trading platform,” said CMC chief executive Peter Cruddas in the statement.

“In addition, we have a healthy pipeline of projects that will drive new revenue streams, which I will talk more about in the next financial year. I am very excited about the opportunities to continue to grow and diversify this business on the back of our platform technology. I have talked a lot in the past about investment in technology and people, and this will continue to be a priority as we seek to maintain and expand our competitive advantage.”