CMC Markets Lifts FY2024 Income Forecast by £40 Million

<p>CMC Markets
Plc today (Monday) issued an upbeat trading update for its 2024 financial year
(FY24) ending 31 March 2024. The publicly listed (LSE: CMCX) retail broker
expects to achieve net operating income £40 million higher than previously
guided.</p><p>CMC Markets Upgrades
FY2024 Guidance </p><p>CMC Markets
delivered a strong performance in the third quarter of FY24, driven by an
improvement in market conditions and increased contribution from its B2B and
institutional business. The Group has benefited from its long-term investments
in this business area.</p><p>As a result
of the robust Q3 growth, CMC Markets now expects to generate FY24 net
operating income of between £290-310 million, raised from its previous <a href="https://www.financemagnates.com/forex/cmc-markets-lowers-fy24-outlook-shares-tumble/" target="_blank" rel="follow">guidance
of £250-280 million</a>. Then, the company cut its forecasts, which led to a decline in the stock price and investor confidence. At least, the current increase should slightly improve sentiment.</p><p>CMC Markets stated
that its core key performance indicators remain robust, including <a href="https://www.financemagnates.com/terms/c/client-money/">client money</a>,
assets under administration, and active clients across both its trading and
investing operations.</p><p>The Group's
FY2024 operating cost expectations, excluding variable remuneration, remain
unchanged at £240 million. CMC Markets will provide a further update at its pre-close
update on 9 April 2024.</p><p>Weaker Start to the Year and CFO Change</p><p>The rebound
in forecasts is particularly significant given that it follows <a href="https://www.financemagnates.com/forex/brokers/cmc-markets-ends-h1-with-a-loss-trading-revenue-tanks-32/" target="_blank" rel="follow">a weak H1 FY24</a>. The company reported a year-on-year decline of 20% in net operating
revenue, amounting to £122.6 million. This downturn was marked by a pre-tax
loss of £2 million and a negative basic earnings per share of 0.8 pence. The
trading net revenue, a major contributor to the total operating revenue,
witnessed a decrease of 32% to £87.4 million. </p><p>Amidst
these financial shifts, CMC Markets appointed <a href="https://www.financemagnates.com/executives/moves/cmc-markets-names-albert-soleiman-as-new-cfo/" target="_blank" rel="follow">Albert Soleiman as the new Chief
Financial Officer</a> in September 2023, succeeding Euan Marshall. Soleiman, who
has been with the company since 2005, brings a wealth of experience from his
previous roles within the firm, including the Tax Manager for Asia Pacific and the Group Head of Tax. His tenure at CMC Markets included the position of Head of
Client Asset Management. Soleiman's promotion is seen as a strategic move to
enhance business efficiencies and drive the company’s strategic vision.</p><p>In parallel
with these organizational changes, CMC Markets has expanded its offerings with
the launch of CMC Invest, its stock trading platform, <a href="https://www.financemagnates.com/forex/cmc-invest-the-stock-trading-platform-is-live-in-singapore/" target="_blank" rel="follow">in Singapore</a>. This move
followed the successful introduction of the platform in the United Kingdom and
Australia. CMC Invest aims to provide investors with comprehensive tools and
insights to navigate the financial landscape. </p>

This article was written by Damian Chmiel at www.financemagnates.com.