CMC Markets has issued a pre-closing trading update on Thursday and has increased its financial year 2021 income expectations to £390.9 million, ranging from £387.5 million to £399.6 million.
With this update, the London-listed broker has upped its income expectations for the year twice. Earlier, it was expecting the net operating income to be £376.6 million, ranging from £370.2 million to £387.5 million.
Additionally, the brokerage upped its pre-tax profits’ expectation to £210.6 million, ranging from £206.3 million to £217.7 million.
CMC reported a revenue jump of 135 percent in the first half of the financial year with around £200 million and will report its annual figures in June.
“I am delighted by the strong performance of the business so far during the last quarter of our financial year,” said Peter Cruddas, CMC Markets CEO. “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.”
Higher Expectations for FY2022 as Well
The higher expectations resulted from the increased client activities as the broker focused on client acquisition and also increased its marketing budget. It is expecting to close the year with over 75,000 monthly active clients.
Moreover, the board of the CMC Markets is predicting that the company could generate a net operating income of over £330 million in the financial year 2022.
“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 longstanding strategy. Our client acquisition rates are very encouraging and reflect the advancements we have made in our technology, pricing and execution of trades.”