CMC Markets PLC (LON:CMC) said net operating income in the year to the end of March is set to be slightly above market forecasts.
The online trading platform operator said the entire business has continued to perform very strongly during 2021, with ongoing strength in the acquisition and retention of contracts for difference (CFD) and stockbroking active clients and higher levels of client trading activity versus regular trading periods. In addition, client income retention remained well in excess of 80% albeit below the levels reported for the first half of the current fiscal year. as previously guided.
The group continues to see ongoing high monthly active client numbers, which for the full year will be more than 75,000. Client acquisition levels have remained high this year driven by increased marketing expenditure. As previously stated, the quality of this year's new cohort of clients remains encouraging as the clients continue to show similarly high value and longevity qualities to prior cohorts.
With these additional high-quality customers on the books, the board is increasingly confident that net income operating in the fiscal year about to start will top £330mln.
“Our relentless focus on supporting clients with market-leading technology and service has fuelled record growth and puts us in a great position as we start the next financial year,” said Peter Cruddas, the chief executive of CMC Markets.
“Over the last 12 months, market volatility has driven up client activity across the industry. I am particularly pleased that our new clients are demonstrating similar behaviours to existing long-term, high-value clients, which supports our long-standing strategy. Our client acquisition rates are very encouraging and reflect the advancements we have made in our technology, pricing and execution of trades.
“Robust risk management continues to be fundamental to the ongoing success of the business and, together with ongoing refinement of our analytics and learnings from client behaviour, is a key competitive advantage,” he added.
“The resilience of our platform continues to be evident through very high uptime. Our ability to support increased trading activity, unobstructed through recent periods of heightened market volatility, has built trust with clients and embedded CMC as a key partner in fulfilling their trading ambitions.
“Our continued investment in technology and people to support our expanding client base together with an exciting pipeline of projects give me confidence in the outlook for CMC,” he concluded.