Spread betting firm CMC Markets Plc (LON:CMCX) has repeated its full year guidance for a decline in net operating income as regulators crack down on the industry.
In a trading update ahead of its annual results in June, the company said it had grown customer numbers during the year despite the impact of stricter rules on contract-for-difference (CFD) products.
CMC said revenue had been modestly higher during the second half of the financial year while costs remain broadly in line with first half.
The company’s shares plunged more than a third in December after the UK Financial Conduct Authority (FCA) announced tighter regulation for spread betting firms.
Subsequently, CMC was demoted from the FTSE 250 to the FTSE Small Cap listing this month.
The CMC noted the FCA’s consultation into spread betting closed on 7 March and the company has made an “extensive and thorough submission”.
German regulator BarFin also implemented new CFD rules last year and CMC said it has responded to the watchdog’s consultation, which closed in January.
In today’s trading statement, CMC said it was making further progress in its areas of strategic focus, particularly in its stockbroking partnership with Australia and New Zealand Banking Group (ANZ).
Under the deal, announced earlier this month, CMC will service more than 500,000 ANZ retail stockbroking clients under the ANZ Share Investing brand.
CMC said it was delivering on its partnership with ANZ in line with the projected timetable, including hiring key project staff and initiating IT development work.
Shraes fell 0.41% to 122.50p in morning trading.
Shore Capital said it now expects full year net operating income will fall in the range £155mln to £160mln, down from its current forecast of £168.9mln.
"We commented after CMC’s third quarter update on 26 January that the company would need a strong fourth quarter to meet our full year number so, following a quarter of very low volatility (against a very strong comparative), we are not entirely surprised that it has come in below this number."