CMC Markets Regulatory News (CMCX)

3 July 2020

CMC Markets Plc

Q1 2021 Trading Update

Continued strong trading performance

CMC Markets Plc ("CMC" or the "Group"), a leading global provider of online trading and institutional ("B2B") platform technology solutions, today issues a trading update for the period from 1 April 2020 to 30 June 2020 ("Q1 2021" or the "period"). 

Trading Update 

CMC started the financial year from a position of real strength, with its continued investment in technology and ongoing strategy of targeting high quality clients, resulting in a consistently strong performance over a sustained period of time. 

In Q1 2021, the entire business has continued to perform very well, with client trading activity remaining around double that of the same period in the prior year as stated on 11 June 2020 in our FY20 results. Client income retention for the period is materially higher than the 82% reported in H1 2020 and stockbroking net trading revenue also continues to benefit from the market conditions. 

As a result, net operating income for Q1 2021 is in excess of that reported for H1 2020 of £102.3 million. 

Our investment in technology continues to attract and retain clients, with market leading functionality and robust operational performance through these extremely high volume periods. Client acquisition and active client numbers remain at elevated levels. 

The Board is confident that, even in the event that more normalised client trading activity returns, with the strong underlying performance of the business, 2021 net operating income will exceed the upper end of current market consensus1. 

In light of this Q1 2021 update, CMC no longer intends to release the trading update scheduled for 30 July 2020. The Group is scheduled to release a H1 2021 pre-close trading update on Thursday 8 October 2020.

Forward looking statements

This trading update may include statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Group undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date such statements are published.

1 As at 2 July 2020, the Group compiled Full Year 2021 consensus is as follows:

· Net operating income of £245.9 million, ranging from £239.1 million to £255.5 million

· Profit Before Tax of £85.2 million, ranging from £75.8 million to £93.5 million

Enquiries

CMC Markets Plc investor.relations@cmcmarkets.com

Euan Marshall, Chief Financial Officer

Camarco +44 (0) 20 3757 4994

Geoffrey Pelham-Lane

Ed Gascoigne-Pees

Jennifer Renwick

Notes to Editors

CMC Markets plc ("CMC"), whose shares are listed on the London Stock Exchange under the ticker CMCX (LEI: 213800VB75KAZBFH5U07), was established in 1989 and is now one of the world's leading online financial trading businesses. The Group serves retail and institutional clients through regulated offices and branches in 12 countries, with a significant presence in the UK, Australia, Germany and Singapore. CMC Markets offers an award-winning, online and mobile trading platform, enabling clients to trade up to 10,000 financial instruments across shares, indices, foreign currencies, commodities and treasuries through contracts for difference ("CFDs"), financial spread bets (in the UK and Ireland only) and, in Australia, access stockbroking services. More information is available at http://www.cmcmarkets.com/group/