CMC Spreadbet Sees Marginal Uptick in Revenue, Profit

Two subsidiaries of CMC Markets plc: CMC Spreadbet and CMC Markets UK Holdings Limited have published their annual financial results for the fiscal year ending on March 31, 2020, showing dull performances compared to their parent.

The year turned out to be a healthy one for CMC Spreadbet as its revenue marginally increased by 2.3 percent to £17.95 million from the previous year’s 17.53 million.

Further, this resulted in a yearly profit of £1.4 million, up from £1.37 million in 2019, a year-on-year jump of 2.1 percent.

By the end of the fiscal year, the company was holding a net asset of £43.3 million, a jump from 2019’s £41.9 million.

The Companies House filing detailed that CMC Spreadbet is mainly focusing on high-value clients to minimize the regulations of the European Securities and Markets Authority (ESMA). Moreover, it highlighted that there will be minimal impact on its business post-Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term.

Coming to the CMC Markets UK Holdings, the company ended up at a loss of £2.45 million for the last fiscal year. Though, it incurred a loss of £2.98 million the previous year.

Being a holding company, its performance depends on the performance of its subsidiaries The filing outlined the impact of uncertainties due to the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic on its subsidiaries, along with the chances of downfall post-Brexit.

Additionally, it highlighted that to continue its European operations post-Brexit, the holding company formed another subsidiary in Germany.

The net asset of the company remained at £66.27 million by the end of the fiscal year.

The Group Is Going Strong

Meanwhile, the business of the parent CMC Markets is booming as it reported a 1,459 percent year-on-year increase in its pre-tax profits for the same period.

Furthermore, the group is expecting an excellent FY2021 as it believes that its net operating income for the year will exceed the forecasts.

In the regulatory filing, the company highlighted that it is trying to boost on a group level, rather than focusing on individual subsidiaries.