
Final results for the year ended 31 March 2018
Strong growth driven by high value and institutional clients
Year ended
£ million (unless otherwise stated) | 31 March 2018 | 31 March 2017 | Variance % |
Net operating income | 187.1 | 160.8 | 16% |
Profit before tax | 60.1 | 48.5 | 24% |
Earnings per share (pence) | 17.3p | 13.7p | 26% |
Ordinary dividend per share (pence) | 8.9p | 8.9p | - |
Number of trades (million) | 68.4 | 62.7 | 9% |
Value of trades (£ billion) | 2,587 | 2,016 | 28% |
Active CFD and Spread bet clients (numbers) | 59,165 | 60,082 | (2%) |
Revenue per active client (£) | 2,964 | 2,517 | 18% |
Notes:
Net operating income represents total revenue after commissions payable to introducing partners and betting levies
Dividend per share paid or proposed relating to the financial year
Active clients represents those individual clients who have traded with or held a CFD or spread bet positions with the Group on at least one occasion during the financial year
Revenue per active client represents total trading revenue from CFD and spread bet active clients after deducting partner commissions and levies
Highlights
Increased client activity increasing net operating income to £187.1 million up £26.3 million (16%)
Growth in premium client numbers to 10% of active clients, overall active clients decreased 2%
Institutional business revenues increased by £8.7 million (38%) to £31.4 million
ANZ white label stockbroking transaction on track for delivery in September 2018
Proposed final ordinary dividend of 5.95 pence, maintaining prior full year ordinary dividend of 8.93p
Financial performance at the start of 2019 is broadly in line with prior year equivalent period
Regulatory update
European regulatory changes to retail CFDs to take effect from 1 August with the prohibition on sale of binary products in Europe from 2 July; this product generated £4.5 million of revenue in UK and Europe in FY18
Impact partially mitigated by ANZ white label stockbroking transaction and elective professional client opt up (on track to represent in excess of 40% of UK and European revenue)
Progress made on strategic initiatives
Established markets: maintained market leading position in Germany, grew market share in Australia and led the UK for client satisfaction
Geographic expansion: China education office opened in October, Middle East office planned for 2018
Digital: new framework rolled out targeting greater efficiencies, 59% of marketing spend now through digital channels
New products: FX Prime launched, CMC Pro released
Institutional: value of client trades up 50%
Analyst and Investor Presentation
A presentation will be held for equity analysts and investors today at 9.30 a.m. (BST).
A live audio webcast of the presentation will be available via the following link: http://webcasts.cmcmarkets.com/results/2018fullyear
Alternatively, you can dial into the presentation:
United Kingdom: 020 3059 5868 All other locations: + 44 20 3059 5868 Please quote “CMC Markets Full Year Results 2018" when prompted.
Annual Report and Financial Statements
A copy of the CMC Markets plc (the “Company”) Annual Report and Financial Statements for the year ending 31 March 2018 (the “2018 Annual Report and Financial statements”) is available within the Investor Relations section of the Company website http://www.cmcmarkets.com/group/results/annual-reports
Pursuant to Listing Rule 9.6.1 the “Company” has submitted the 2018 Annual Report to the National Storage Mechanism and will shortly be available for inspection www.hemscott.com/nsm.do
In compliance with The Disclosure and Transparency Rules (DTR) 6.3.5, the information in the document below is extracted from the Company’s 2018 Annual Report and Financial Statements. This material is not a substitute for reading the 2018 Annual Report and Financial Statements in full and any page numbers and cross references in the extracted information below refer to page numbers and cross-references in the 2018 Annual Report and Financial Statements.
Forthcoming announcement dates
Thursday 26 July | Q1 2019 trading update |
Thursday 27 September | Q2 2019 pre-close trading update |
Peter Cruddas, Chief Executive Officer commented:
The strategy of attracting and retaining experienced, high value and institutional clients through technology and service is delivering strong results for the Group. We have been delivering on our strategic initiatives and these are now clearly coming through in the financial performance, where we have delivered record statutory profit before tax of £60.1 million. Now we have clarity about the regulatory changes in Europe, and with CMC’s balanced portfolio of retail, professional and institutional clients across a breadth of growing geographies, we are confident that our technology and service-led strategy will continue to deliver profitable growth.
Enquiries
Camarco
Geoffrey Pelham-Lane
+44 (0)20 3757 4994
Ed Gascoigne-Pees
Jennifer Renwick