CMC Markets Regulatory News (CMCX)

3 April 2019

CMC Markets Plc

Trading Update

CMC Markets Plc (LSE:CMCX, "CMC" or the "Group"), a leading global provider of online trading, today issues a trading update for the financial year to 31 March 2019 ("FY 2019") ahead of its Full Year Results that are expected to be released on 6 June 2019. 

Overall performance in FY 2019 has been impacted by reduced client trading activity following the implementation of the ESMA intervention measures on 1 August 2018, compounded by challenging market conditions during much of Q4. As a result, CMC expects to report CFD and spread-bet revenue of c. £110 million for FY 2019, 37% lower than the prior year, and net operating income of c. £131 million.

The Group remains focused on tight cost controls, and expects operating costs for FY 2019 to be marginally lower year-on-year, slightly below previous guidance. 

Outlook

The impact of the new ESMA margin rules, which has resulted in retail clients trading less, utilising more of their cash to fund their margin requirements or needing to deposit more funds with CMC to trade at previous levels, is showing signs of stabilising. Since the introduction of the new rules, client money has remained strong, and active client and new client numbers have remained stable resulting in the Group having confidence in meeting the consensus FY 2020 outlook. We believe that the new ESMA regulations are good for this business and for the industry over the medium to long term.

Our enlarged stockbroking business in Australia, which migrated approximately 500,000 stockbroking client accounts as part of our ANZ Bank white label transaction at the end of H1, and the continued strength of our institutional business also provide confidence in the Group's outlook.

Full Year Results

CMC expects to report its Full Year Results for FY 2019 on 6 June 2019. There will be a presentation at 9.30am on 6 June 2019 for institutional investors and analysts at CMC's offices at 133 Houndsditch, London, EC3A 7BX, United Kingdom. Those wishing to attend should contact investor.relations@cmcmarkets.com.

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.

Enquiries

CMC Markets Plc +44 (0) 20 7170 8200

Grant Foley, Chief Operating and Financial Officer

Camarco +44 (0) 20 3757 4980

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 company serves retail and institutional clients through regulated offices and branches in 14 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/