CMC Markets PLC on Thursday maintains that it expects to deliver on guidance for the financial year, despite swinging to a loss in the first half due to poor market conditions.

For the six months ended September 30, the London-based online trading platform swung to a pretax loss of £2.0 million, from profit of £36.6 million a year prior. Loss per share was 0.8 pence, swung from earnings per share of 10.2p.

Net operating income was £122.6 million, down 20% from £153.5 million the previous year.

Trading net revenue was £87.4 million, down 32% from £128.4 million, while investing net revenue was £16.8 million, down 20% from £20.8 million. According to CMC Markets, both were impacted by lower client activity, as well as ‘uncertain’ market conditions stemming from an inflationary and higher interest rate environment.

Also damaging the firm’s returns were higher operating costs, which rose to £121.9 million from £106.3 million the previous year. These included a £5.3 million impairment for internally developed trading platforms, and cash equity offerings due to unfavourable conditions and operational delays.

Looking ahead, CMC Markets said that it expects full-year net operating income to be between £250 million and £280 million, with operating costs at £240 million.

Nevertheless, Chief Executive Officer Peter Crudas said that he still expects the firm to deliver on revenue guidance for the current financial year, and to deliver net operating income for financial 2025 in line with current market consensus.

Analyst consensus for annual net operating income is £265.3 million in financial 2024, and £302.6 million in financial 2025.

The firm declared an interim dividend of 1.00p, down 71% from 3.50p a year earlier.

CMC Markets shares were flat at 95.00 pence each in London on Thursday morning.

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