CMC Markets’ stock dropped 18% today, hitting its lowest level since March 2024, as the UK-listed broker disappointed investors by not upgrading its full-year guidance.
CMC Markets told its stakeholders in a trading update that its business remains on track to achieve its annual net operating income in line with previous guidance. The broker broker reiterated confidence in meeting the cost guidance of nearly £225 million, excluding variable remuneration and non-recurring charges.
CMC Markets also confirmed that the release of its full-year results for FY 2025 is scheduled for June 5, 2025.
Many expected an upward revision ahead of its full-year results, but the company instead reaffirmed its previous forecast, in line with market expectations.
The disappointment overshadowed otherwise strong financials in 2024. CMC’s H1 net operating income jumped by 45% compared to the same period last year, reaching £177.4 million. This growth was fueled by a surge in client trading activity and expansion in the institutional segment. Trading net revenue saw an even more dramatic rise, climbing 50% to £131.3 million.
The group also reported a 46% boost in interest income, which hit £23.4 million, thanks to elevated global interest rates and a strong performance from its newly established Treasury Management and Capital Markets Division.
The results marked a turnaround for CMC, with profit before tax reaching £49.6 million—a sharp contrast to the £2 million loss reported in the same period last year. This improvement was supported by disciplined cost management, as operating expenses (excluding variable remuneration) fell 9% year-on-year to £111.4 million.
CMC has also rewarded shareholders with a 210% increase in its interim dividend, now standing at 3.10 pence per share.
The listed broker reported progress in its institutional and B2B strategy, highlighted by a new partnership with challenger bank Revolut and “a promising pipeline of opportunities.”
As part of the agreement, Revolut will offer some of CMC’s trading services through its app, with the underlying infrastructure provided by Cruddas’s company.
The alliance came as the FTSE 250 trading business, founded by Conservative peer Lord Cruddas, has recently diversified into areas such as traditional stockbroking.
Meanwhile, a partnership with ASB Bank in New Zealand will bring CMC’s technology to ASB-branded platforms, integrated with the bank’s systems. On the product side, the group continues to expand, with new offerings such as cash equities, options products, and the imminent launch of Cash ISAs on CMC Invest.
The CEO of CMC Markets said that cost control remains a priority, with operating expenses for the full year expected to stay at £225 million. “We’re seeing robust growth across our key segments, driven by our investments in technology, partnerships, and innovation. This is a clear validation of our approach to enhancing profitability while continuing to expand our offering.”
