CMC Markets (CMCX) , the online trading platform provider experienced a strong six months of trading, revising its full year income guidance upwards.
It told investors it is confident that net operating income will be above £170 million for the full year, and that greater operating leverage in the business will drive an increase in profits before tax.
For the six months ending 30 September 2019, CFD net trading revenue is expected to be £85m, up from £63m.
Stockbroking revenue is expected to increase to approximately £14m for the period, up from £5.5m, but it anticipates higher operating costs, excluding remuneration, for the period.
Shares in CMC Markets jumped 6.61% to 113p following the trading update
Peter Cruddas, Chief Executive Officer said: “This time last year we had the uncertainty of regulatory change hanging over the sector and the uncertainty of how clients would react to the changes in minimum margin levels.”
“A year on, we are seeing clients adapting to the new changes and still maintaining their interest in the products and the trading platforms we offer.”
Strong net trading revenue was driven by high value clients and growing income from its B2B technology solutions business.
Its stockbroking business performed well after various white label partnerships in Australia such as with ANZ Bank.
Mr. Cruddas said it was “an exciting area of the business” that he expects will continue to grow through more planned partnerships.
Investors will be anticipating the release of interim results on 21 November 2019.
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