CMC Markets soars on upbeat outlook after strong Q4
The onlinem trading firm raises full-year guidance on robust performance.
CMC Markets (LSE: CMCX) shares surged 13% on Wednesday after the spread betting company lifted its full-year outlook, buoyed by a positive fourth quarter.
The London-based firm now expects net operating income for the financial year ending March to exceed the top end of its previous £290 million to £310 million guided range, up from £288.4 million a year earlier.
Following a robust third quarter, CMC Markets stated the positive momentum continued into the final three months of the fiscal year. The company highlighted strength in its institutional and B2B business, benefiting from long-term investments in this area. It also cited a strong pipeline of B2B partnerships, with some in advanced stages.
Operating costs, excluding variable remuneration and non-recurring items, are anticipated to be around £240 million, in line with guidance. CMC Markets continues to identify cost-saving opportunities across its global operations as it aims to improve profit margins. In January, the company announced plans to cut around 200 jobs, approximately 17% of its workforce, as part of a cost review initiated in November last year.
The upbeat trading update comes ahead of CMC Markets' full-year results due on June 20. The company's shares have surged 105% year-to-date, reflecting investors' confidence in its performance.
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