CMC Markets (LSE: CMCX) released a trading update of its performance between October and December, which is the third quarter of the ongoing fiscal. It highlighted that client money and asset under administration on both of its leveraged and non-leveraged businesses remain close to record highs.
Further, monthly active clients acrosses CMC businesses remained similar to the levels of the first half of the fiscal year.
In the first six months of FY2022, the operating income of CMC dropped by 45 percent, while the pre-tax profits declined 74 percent. Though the number of leveraged clients in the period slipped by 9 percent, the non-leveraged active clients strengthened by 10 percent.
Business Moves
CMC is also considering completely separating its leveraged and non-leveraged businesses for ‘maximizing shareholder value’. Talks for the move have already been started, but they are still in the early stages.
The latest trading update further revealed that the trading company delivered sustained performance across both leveraged and non-leveraged operations in Q3. It has also continued to invest further in the development of its UK non-leveraged platform.
“I am pleased with the ongoing trends we’re seeing in client money, and physical share assets in Australia. In addition, the team is on track to launch our new UK investment platform in the first half of the calendar year,” said Lord Cruddas, CMC Markets’ CEO.
“I remain confident in the outlook for CMC as we make progress with our strategic initiatives as set out in our recent half-year results, and I look forward to updating the market further on these at our full-year results later this year.”
Earlier, the group also lowered its full-year expectations and is now eying to achieve a net operating income within the range of £250 million to £280 million in the financial year 2022.
CMC Markets (LSE: CMCX) released a trading update of its performance between October and December, which is the third quarter of the ongoing fiscal. It highlighted that client money and asset under administration on both of its leveraged and non-leveraged businesses remain close to record highs.
Further, monthly active clients acrosses CMC businesses remained similar to the levels of the first half of the fiscal year.
In the first six months of FY2022, the operating income of CMC dropped by 45 percent, while the pre-tax profits declined 74 percent. Though the number of leveraged clients in the period slipped by 9 percent, the non-leveraged active clients strengthened by 10 percent.
Business Moves
CMC is also considering completely separating its leveraged and non-leveraged businesses for ‘maximizing shareholder value’. Talks for the move have already been started, but they are still in the early stages.
The latest trading update further revealed that the trading company delivered sustained performance across both leveraged and non-leveraged operations in Q3. It has also continued to invest further in the development of its UK non-leveraged platform.
“I am pleased with the ongoing trends we’re seeing in client money, and physical share assets in Australia. In addition, the team is on track to launch our new UK investment platform in the first half of the calendar year,” said Lord Cruddas, CMC Markets’ CEO.
“I remain confident in the outlook for CMC as we make progress with our strategic initiatives as set out in our recent half-year results, and I look forward to updating the market further on these at our full-year results later this year.”
Earlier, the group also lowered its full-year expectations and is now eying to achieve a net operating income within the range of £250 million to £280 million in the financial year 2022.
Source: https://www.financemagnates.com/forex/brokers/cmc-markets-sees-near-record-client-money-in-q3/