CMC Markets FY profit surges amid increased volatility

Online trading platform CMC Markets hiked its dividend on Thursday as it posted a surge in full-year profit and operating income, partly thanks to increased volatility amid the coronavirus outbreak.

In the year to the end of March 2020, pre-tax profit jumped to £98.7m from £6.3m in 2019, while net operating income pushed up 93% to £252m.

The company, which has not furloughed or reduced any of its permanent workforce, said contracts for difference (CFD) revenue per active client was up 81% to £3,750. CFD active clients increased by 3,894, or 7%. CMC said high market volatility amid the pandemic encouraged dormant clients to reactivate and new clients to onboard onto its platform.

Stockbroking net trading revenue rose 106% to £31.8m, driven by a combination of a full year of revenues for the ANZ Bank partnership, higher market volatility in the fourth quarter and successful product launches.

The 2020 dividend grew 640% to 15p a share.

Chief executive Peter Cruddas said: "The significant performance improvement in 2020 is a result of the group's unwavering focus on our strategic initiatives. This has delivered increased diversification of group revenues, improved CFD client income retention and an increased number of active clients. The growing contribution of B2B revenues is also particularly pleasing and will continue to be an important part of our strategy going forward."

At 0900 BST, the shares were up 14% at 227.22p.