CMC Markets (CMCX) climbed sharply on Thursday after annual results showed higher profits and a stronger forward outlook, with shares closing up 17% at 430p as investors reacted to improved earnings and ambitious 2027 guidance.
For the year to 31 March, the trading platform reported pre tax profit of £101.3m, up 20% from £84.5m, while net operating income rose 15% to £392.6m, ahead of expectations, and earnings before interest, tax, depreciation and amortisation increased 14% to £117.8m, supported by elevated client activity across volatile markets.
Basic earnings per share rose 22% to 27.5p, while the pre tax margin improved to 25.8% from 24.8%, even though profit came in slightly below company compiled consensus.
Looking ahead, CMC said 2027 is set to be a defining period, forecasting net operating income growth of at least 17% to between £460m and £480m versus consensus of £385.5m, with operating costs expected around £280m as scale efficiencies build, signalling a clear step up in medium-term earnings power if execution holds.
The company also highlighted a shift in business mix, with institutional and B2B partnerships increasingly central to growth, including upcoming integrations with Westpac and ASB Bank, expansion of its neobank API partnership and entry into European certificates and warrants markets, marking a broader move beyond its traditional retail trading base into embedded distribution channels with larger client pools.
The Australian stockbroking arm delivered a standout performance, generating record net operating income of A$140.3m, up 32%, driven by stronger client activity and higher assets under administration, while the Westpac partnership alone is expected to bring access to around A$39bn in assets across roughly 500,000 trading accounts once fully rolled out.
CMC also raised its total dividend by 21% to 13.8p per share, underlining cash generation strength, while RBC Capital Markets lifted its price target to 460p from 400p, pointing to upgraded earnings forecasts and improved visibility from institutional partnerships feeding through into future growth.
Chief executive Lord Cruddas said the group has reached a turning point as its platform evolves beyond pure retail trading into a more diversified model supported by long-term partners and higher-quality recurring activity, with early momentum already visible in the new financial year.