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CMC Markets upgrades full-year targets following strong interims

The online trading platform now expects net operating incomes to reach £180mln in the full year, higher than analyst predictions of £170mln

CMC Markets Plc - CMC Markets upgrades full-year targets following strong interims
The company also hiked its interim dividend to 2.85p per share from 1.35p last year

Online trading platform CMC Markets Plc (LON:CMCX) has upgraded its net operating income (NOI) targets for the full-year following a strong performance in its interims.

For the six months ended 30 September, the group reported NOI of £102.3mln, up 45% year-on-year (YOY), while pre-tax profits surged 318% to £30.1mln.

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The increase was attributed to higher average revenues per client, which rose 45% in the year to £2,047 as a result of better customer retention, however, the number of active clients fell 7% YOY.

As a result of the improved performance, the company hiked its interim dividend to 2.85p per share from 1.35p last year.

Following what it said was “ongoing strong [contracts for difference] net revenue performance” at the start of its second half, CMC said it now expected its NOI for the full year to be in excess of £180mln, up from analyst prediction of £170mln.

“This time last year we had the uncertainty of regulatory change overhanging the sector with the client response to the changes in minimum margin levels unclear. A year on, we are seeing clients adapt, maintaining their interest in the products and the trading platforms we offer”, said CMC chief executive Peter Cruddas.

Analysts at Peel Hunt retained their ‘buy’ rating and 150p price target following the results, although added that there was “likely upside” to their target as a result of the upgraded forecasts.

Quick facts: CMC Markets PLC

Price: 333.2715 GBX

LSE:CMCX
Market: LSE
Market Cap: £968.88 m
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