CMC Markets PLC (LSE:CMCX, FRA:T8Q) shares surged over 16% to their highest in almost five years after reporting a strong improvement in profit for the second half of the year and forecasting further growth ahead as its institutional and business-to-business partnerships continued to expand.
In its first update since November, the trading platform operator posted preliminary results showing profit before tax of £101.3 million for the year to 31 March 2026, up 20% from a year earlier. This followed a 1% fall in first-half PBT, which reflected a £5.2 million Australian remediation charge.
Net operating income (NOI) rose 15% to £392.6 million, while EBITDA increased 14% to £117.8 million, with the two measures having been up 5% and down 5% in the first half respectively. Basic earnings per share jumped 22% to 27.5p.
Trading remained its largest business, with net trading revenue rising 16% to £289.5 million and accounting for almost three-quarters of group income, while investing revenue increased 30% to £57.8 million as the Australian stockbroking operation and institutional partnerships continued to grow.
The board proposed a final dividend of 8.3p per share, taking the full-year payout to 13.8p, up 21%.
CMC said growth was driven by continued momentum in institutional and B2B operations, including its neobank API partnership, which the market widely believes is likely to be with Revolut.
The Australian stockbroking business delivered record income, up 32% to A$140.3 million.
Chief executive Lord Cruddas called it "another year of exceptional delivery for CMC, against a second half defined by extreme volatility."
"This kind of volatility is often viewed as a tailwind for traditional D2C, or retail providers, which is broadly true," he added.
"However, CMC today operates a very different and diverse business model. With performance significantly driven by B2B and wholesale, we are providing critical market infrastructure to our global partner platforms and their underlying clients."
During the year, the group began rolling out its multi-asset platform, added 24/7 crypto and bullion trading capabilities and continued development of its 'Super App' strategy.
Looking ahead, CMC expects net operating income in the 2027 financial year to increase by at least 17% to between £460 million and £480 million, as key projects are launched, including partnerships with Westpac and ASB Bank, expansion of its neobank relationship and further development of digital asset infrastructure.
The shares rose 16.85% to 430p in early trading on Thursday, hitting their highest levels since August 2021.
Broker Jefferies said NOI was ahead of the City consensus at £393 million, up 15% YoY and 3% above expectations.
"However, costs were also well ahead, at £289 million, versus circa £250 million original guidance, bringing PBT down to £101 million versus £110 million consensus."
Panmure Liberum said it was a "solid full-year", with PBT below its estimate, "with the shortfall largely explained by the higher variable remuneration and continued investment in a number of major strategic programmes".
** UPDATE: Adds share price and broker comments **
