CMC Markets PLC (LON:CMCX) increased its dividend 640% after profits for the spread-betting provider were boosted by high financial market volatility amid the coronavirus crisis.
A final dividend for the year of 12.18p per share has been declared, resulting in a total dividend of 15.03p, up from 2p paid the year before, as part of the group's policy of shares 50% of post-tax profit with shareholders.
Profit before tax came out at £98.7mln for the year to 31 March, up from £6.3mln a year ago and £60.1mln and £48.5mln in the previous two years.
Gross client income from contracts for difference (CFDs) at the start of the new financial year has been “around double” the levels seen last year, the company said, with strong levels of client income retention.
“The group has confidence in the underlying performance of the business when market activity becomes normalised, and in conjunction with further progress on its strategic initiatives, looks forward to continuing to generate business growth and value.”
Management also indicated that it does not anticipate any material changes to Australian regulation in the current financial year, but that non-variables costs are likely to increase as the group continues to invest in its B2B proposition.
Shares in the company jumped 16% to 231p on Thursday morning.