CMC Markets, a London-based broker issued its pre-closing trading update and upped its FY2021 income expectations to £390.9 million. The income range is between £387.5 million to £399.6 million.
In the update, the broker upped its income expectations twice for the year. Earlier, the broker expected the net operating Income to be £376.6 million, ranging from £370.2 million to £387.5 million.
The broker also raised its pre-tax profits expectations to £210.6 million. The pre-tax expectation ranges from £206.3 million to £217.7 million.
They also reported a revenue jump of 135% in the first half of the financial year with approximately £200 million. The broker will report their annual figures in June.
CMC Markets’ CEO, Peter Cruddas, said the business’s strong performance during the last quarter of the financial year delighted him. He said their relentless focus on supporting clients with market-leading technology and service had fueled record growth. The rapid growth put them in a great positing as they start the next financial year.
Higher expectations for FY2022
The high expectations resulted from the increased client activities as CMC Markets focused on client acquisition and increased marketing budget. The broker is expecting to close the year with over 75,000 active clients every month.
The CMC Markets Board is also predicting the company could generate a net operating income of over £330 million in the financial year 2022.
According to the CEO, market volatility has driven up client activity across the industry over the last 12 months.
He said he was particularly pleased that their clients demonstrated similar behaviors to existing long-term high-value clients, supporting their long-term strategy.
He said their client acquisition rates were encouraging and reflected the advancements they made in their technology, pricing, and trade execution.