CMC Markets PLC on Monday said it plans to cut around 200 jobs, some 17% of its total workforce, as part of a cost review that was announced in November last year.
The London-based company operates an online trading platform for retail investors and financial institutions. Shares were up 13% to 149.44 pence early Monday in London, though they remain down 39% over the past year.
CMC said it expects to incur a one-off cost of about £2.5 million in financial year 2024, which ends on March 31. This is expected to produce annualised savings of £21 million starting from financial 2025, an 18% reduction in staff costs.
‘Cost reductions have been primarily achieved by merging support functions across multiple business lines, streamlining reporting lines and automating processes. The group will continue to seek opportunities to drive efficiencies and control costs while remaining committed to investing in growth opportunities and ensuring its technology remains market leading,’ CMC said.
Looking ahead, CMC said trading remains in line with expectations. It is on track for full-year net operating income of £290 million to £310 million. This would be up from £288.4 million in financial 2023.
The cost review was announced together with CMC’s half-year results. These showed a swing to pretax loss of £2.0 million from a £36.6 million profit a year before. Net operating income was £122.6 million, down 20% from £153.5 million.
CMC said it will provide a pre-close trading update on April 9.
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