CMC Markets swings to interim loss
Online trading platform CMC Markets said on Thursday that it swung to an interim loss in a "tough" market environment.
In the six months to 30 September, it swung to a pre-tax loss of £2m from a profit of £36.6m in the same period a year earlier.
The company said there has been a reduction in market volatility and client trading volumes during the period.
Net operating income fell 20% to £122.6m, trading net revenue was 32% lower at £87.4m and investing net revenue was also 20% lower, at £16.8m. CMC pointed to lower client activity and "the uncertain market conditions stemming from the inflationary and higher interest rate environment".
Chief executive Lord Cruddas said: "I am pleased with the resilience the business has demonstrated in the first six months of the year in what has been a tough market environment, with low volatility offering fewer opportunities for clients of our trading business.
"Despite the subdued market conditions, we have seen continued commitment from our existing clients and positive engagement in our institutional business."
CMC said full-year net operating income is expected to be between £250m and £280m.
"Whilst market conditions in October remained subdued, I remain confident in our ability to deliver on our communicated revenue guidance for FY 2024 and, as delivery of new initiatives remains on track, we expect to deliver net operating income in FY 2025 in line with current market consensus, based on more normalised trading conditions," said Cruddas.