CMC fiscal 2013 results show a 21% drop in revenue, as the scandal revolving around CEO Peter Cruddas took its toll.
Leading UK online broker CMC Markets has released its fiscal 2013 results (year-end March 31), alongside some interesting comments and admissions made by CMC Founder and CEO Peter Cruddas. Cruddas re-took the reigns as CEO at CMC back in January, replacing Doug Richards, as CMC’s poor results were becoming apparent.
The results were not stunning:
- Revenue was down 21% from the previous year, to £129 million ($200 million).
- Net loss before tax for the year was £2.8 million ($4.3 million), down from a pre-tax profit of £2.5 million ($3.8 million) last year.
Cruddas admitted to The Sunday Telegraph that CMC had suffered somewhat in the wake of allegations that Cruddas — who for a while served as the Conservative Party co-Treasurer — had offered access to David Cameron, the prime minister, and George Osborne, the chancellor, in return for donations, in what was termed the UK Cash-for-Access scandal. Although Cruddas was successful in a libel suit against the Telegraph, which the High Court found had been defamatory, the scandal did take its toll on CMC, with the company seeing about one-third of its employees leave.
(We had earlier reported that rival IG Group had picked up senior CMC exec Declan Bourke, to open a new Ireland office for IG.)
However all is not doom and gloom any more at CMC. Cruddas pointed out that the company has been doing better since year-end. CMC has net assets in excess of £100 million ($155 million), and is focused on building business on its new platform, particularly in the Far East and Australia.