CMC Markets PLC on Tuesday reported a drop in full-year profit, as it was hit by a 24% increase in operating expenses.

Shares in CMC fell by 5.8% to 159.80 pence in London on Tuesday, making it the index’s worst-performing stock in early morning trade. Over the past 12 months, the stock is down 38%.

The London-based online trading platform said total revenue increased to £288.4 million in the year ended March 31 from £281.9 million a year earlier.

Trading revenue increased to £233.1 million from £229.6 million, however investing revenue fell by 21% to £37.9 million from £48.0 million.

Pretax profit fell by 43% to £52.2 million from £91.5 million.

The fall came as CMC Markets’ operating expenses increased by 24% to £233.9 million as a result of ‘significant’ investment in technology, people, and product throughout the year along with the impact of the elevated inflationary environment seen across all regions, the company said.

CMC announced a final dividend of 3.90p, more than half of last years final dividend of 8.88p. This bought the full-year dividend to 7.4p, down 40% from 12.4p a year ago.

Looking ahead, CMC noted ‘quiet’ market conditions in the first two and a half months of financial 2024, which has resulted in client trading activity being down by 15% to 20%. This, in turn, is expected to negatively impact quarter one net operating income.

However, the company said that expectations of the underlying 30% net operating income growth from 2022 to 2025 remain unchanged.

‘We acknowledge the current uncertainty prevailing not only in the financial markets but also in various sectors and industries. Our experience in the past few years has reinforced the importance of being prepared for the unexpected and the extraordinary,’ CMC said.

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