CMC Markets Publishes Full-Year 2022 Financial Results
CMC Markets Plc, a leading global provider of online trading and institutional platform technology, has reported financial results for the year ended 31 March 2022.
Highlights
Net operating income of £282 million is at the top end of guidance and a record performance outside of the pandemic restrictions.
Investment in growth initiatives is expected to result in a 30% increase in net operating income over the next three years. Benefits to be seen from 2023 and are set to deliver profit before tax margin expansion from 2024.
Leveraged net trading revenue of £229.6 million
Non-leveraged net trading revenue of £48 million
Leveraged gross client income of £288.5 million
Operating expenses have increased by 2% to £188 million, primarily due to higher personnel costs to support the ongoing strategic initiatives, partly offset by lower sales costs.
Profit before tax of £92 million (2020: £224 million).
Underlying liquidity remains strong. Regulatory OFR ratio of 489%. Net available liquidity improvement to £246 million (2021: £211 million).
The £30 million share buyback commenced on 15th March. As of 7th June, the Company has repurchased and cancelled 4,603,703 Ordinary Shares with nominal value of 25 pence for an aggregate purchase amount of £12.7 million.
Lord Cruddas, Chief Executive Officer commented: "I am delighted to report another year of impressive performance from both a strategic and financial standpoint. Excluding the exceptional COVID-19 impacted prior year, which due to market volatility saw unusually significant trading volumes, this is a record net operating income result for the Group.
Over the last year we have taken steps to define the strategic direction and diversification of the Group, building on our existing technology to launch a new investment platform that will unlock significant shareholder value and challenge the existing client transaction fee cost structures.
There is significant opportunity and growth potential in the self‑directing investment platform space, especially in the UK, not just for improved technology but also transaction costs and fees. We believe commissions, execution spreads and custodial fees are too high and too expensive for retail investors. We will utilise our platform technology, including pricing and execution, to drive down the transaction costs of investments for retail clients, just like we did in Australia, where we are the number two investment platform for retail investors.
The business is evolving. We continue to improve and grow our existing leveraged business whilst at the same time utilising our technology to enter new markets and expand our non-leveraged offering.
I look forward to providing further updates as the strategy expands over both the short and long-term."
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