CMC Markets (LON: CMCX) provided a trading update on Friday, saying that it is expecting the net revenue income for the financial year 2022 to be approximately £280 million.
This figure is at the top end of the company’s earlier revenue guidance between the range of £250 million and £280 million after it was lowered from the initial estimation of more than £330 million.
The London-headquartered broker is expecting its annual gross leveraged client income to be approximately £288 million, which is 14 percent lower than the previous year.
For the leveraged trading business, it is expecting a 34 percent decline in revenue to around £230 million. The revenue from non-leveraged is expected to be approximately £48 million, which is 12 percent lower than the previous year.
In addition, the broker elaborated that Q4 was its best performing quarter for the financial year 2022. Moreover, it is expecting its operating costs to touch £173 million, which is higher than the previous year’s £168 million. It highlighted that increase in the figure represents higher personnel costs to deliver strategic objectives.
“I am delighted to report another year of strong performance both strategically and financially,” said Lord Cruddas, the CEO of CMC.
“Outside of the pandemic year (Financial year ending March 2021), this is a record net operating income result for the company. The performance reflects the ongoing success of our B2B technology partnerships and focus across our leveraged and non-leveraged businesses.”
Other Developments
Meanwhile, CMC has initiated a major share buyback program, allocating £30 million. It has already commenced the re-purchase with an aim to reduce its share capital.
Furthermore, the broker is exploring the idea of splitting its leveraged and non-leveraged businesses.
Lord Cruddas added: “This business continues to change as we look to utilize our technology to enter new markets and expand our non-leveraged offering. I look forward to updating investors as the strategy expands over both the short and long-term.”
