The global provider of online trading CMC Markets Plc released its trading update for the first half of the financial year 2021, ending 30 September 2020.
The group gained momentum in 2020 and continued to build on it, bring strong performance across al areas of business. The performance was fueled by an ongoing focus on retaining and acquiring high value clients and diversification through its institutional B2B and stock broking business. The elevated volatility stemming from the Covid-19 pandemic also played a role, increasing client trading activity, further amplifying the positive impact of the Group’s strategic objectives.
Consequently, the CFD net trading revenue for the first half was £200 million with up by 135.3% YoY, compared to the previous year when it was £85.
Client income retention was also strong and well in excess of guidance of ‘above 80%’ because of the market conditions prevailing for much of H1 and continued improvements to the risk management strategy.
CMC Group’s stockbroking net revenue is expected to increase to around £26 million for H1 2021 (compared to £14 million in H1 2020), mainly due to the continued growth across the business, reflecting the strengthening of the ANZ Bank white label partnership, as well as more volatile markets leading to increased client trading activity.