CMC Markets PLC (LSE:CMCX) reported half-year results in line with expectations, also keeping its guidance for the current year unchanged, and declared an interim dividend of 3.50p per share.
The online trading and investment broker said it remains on track for its three-year growth plans, with net operating income expected to grow 30% and expansion in profit margins expected from next year onwards.
Interim results confirmed the pre-close trading update last month, with net operating income reported up 21% to £153.5mln in the six months to 30 September 2022, while profit before tax rose 1% to £36.6mln.
Trading gross client income was said to have risen 22% to £154.9mln as trading client income retention rose to 83% from 80% a year ago and trading revenue per client jumped 36% to £2.56k despite active client numbers falling 7% to 50,199.
"We saw an acceleration in activity across FX and commodities in addition to the normal activity across our index flow during a period of heightened focus on monetary policy action around the globe and a pickup in market volatility and trading volumes,” said chief executive Lord (Peter) Cruddas.
Operating costs rose 28% to £106.3mln, excluding variable remuneration, or 29% to £115.6mln including as the company ploughed investment across its trading platforms and launched the CMC Invest investment platform in the UK.
“This move in the UK into self-directed investing marks a significant milestone for us and complements our already sector-leading stockbroking business in Australia,” said Cruddas.
He said the investing platform will see new product additions over the coming months, including ISAs, multi-currency accounts, mutual funds, and SIPPs, and then be followed by the launch of CMC Invest Singapore by the end of the financial year in March 2023, when the migration of the approximately 500,000 ANZ Share Investing client base to CMC Invest Australia is also set to be completed.
Further regional expansion in New Zealand and Canada also being considered.
The board has also concluded as part of a strategic view launched a year ago that shareholders' interests would not currently be best served by splitting the trading and investing business into two separate PLCs, due to the strong commercial and operational synergies between them.