Spreadbetter CMC Markets forecasts jump in annual earnings
Spread betting platform CMC Markets forecast a jump in annual earnings in a trading update issued this morning, reporting strong net trading revenue in the first half as it began to recover from the implementation of stricter regulations that hit its business last year.
CMC said it expects net trading revenue from its contracts for difference (CFD) business – which was hit hard by last year’s rule changes – to increase £22m to £85m for the six months ending 30 September.
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The group also expects pre-tax profits for the full year to increase, after they plunged nearly 90 per cent last year.
CMC chief executive Peter Cruddas said he was pleased with the group’s performance in the first half.
“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,” he said.
“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.”
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CMC’s shares rose over six per cent in morning trading to 112.4p.
The group’s first half results are due to be announced on 21 November.