Small Hero

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

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