(Alliance News) - CMC Markets PLC on Thursday noted market improvement in August and September as it emphasised its focus on diversification.
For the half year that ended September 30, the London-based online trading company expects half-year net operating income to be around GBP153 million, up 21% versus GBP126.7 million a year ago.
The company said under its expansion plan, it aims to grow net operating income by 30% over the next three years.
Leveraged net trading revenue is anticipated to rise around 27% to GBP128 million from GBP101.0 million.
The company cited underlying market activity improvement in August and September. However, client leveraged assets under management at September 30 were at GBP530 million, down 4.8% from GBP557 million a year ago. "First half of [financial 2023] active leveraged clients are moderately lower compared to first half 2022, offset by an overall increase in activity," the company said.
Leveraged gross client income will be around GBP155 million, up 22% from GBP127 million.
Looking ahead, Chief Executive Officer Lord Cruddas said: "We are on a fast track to diversification, using our existing platform technology to win business to business and business to customer non-leveraged business. Our strategic growth plans are on track and set to deliver significant new business expansion as we introduce new products across our retail, institutional and stockbroking businesses."
The company will release its half-year results on November 16.
CMC Markets shares were 5.6% higher at 235.04 pence each in London on Thursday morning.
By Tom Budszus; tombudszus@alliancenews.com
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CMC Markets (CMCX)