CMC Markets PLC on Thursday raised its dividend after reporting double-digit growth following a recovery in client trading.
The London-based company is a provider of online trading and investment platforms spanning multiple asset classes, with a retail, professional and institutional offering.
In the year that ended March 31, pretax profit rose 21% to £63.3 million from £52.2 million the previous year.
Total revenue increased 11% to £359.7 million from £325.1 million.
Whilst trading net revenue increased 11% to £259.1 million, investing net revenue declined 10% to £34.0 million from £37.9 million, driven by a £2.9 million unfavourable foreign exchange movement from a weaker Australian dollar.
CMC increased the final dividend 87% to 7.3 pence per share from 3.9p. This brings the total dividend to 8.3p, up 12% from 7.4p paid last year.
The company boasts a strong balance sheet with cash and cash equivalents at £160.3 million, 9.6% higher than £146.2 held previously.
During the year, CMC set out to improve operational efficiency with an ongoing cost review programme ‘driving synergies across products and business lines’.
This included the centralisation of the Treasury Management Division and launch of a new system focused on efficient cash management, currency and liquidity optimisation.
Chief Executive Officer Peter Cruddas commented: ‘Over the past year, a recovery in client trading combined with our diversification strategy through business-to-business technology and an institutional first approach has delivered strong growth and opened up many opportunities for the company around the world.
‘This strategy, based on continuous product launches and multiple application connectivity through the CMC Markets Connect brand, means we are making great strides in a huge market segment of B2B and institutional business, with limited competition from our peers.’
Building on this strategy, CMC will this year launch a fully integrated multi-asset, multi-currency platform to connect B2B, institutional, as well as retail clients.
For financial 2025, management is guiding net operating income of between £320 million to £360 million on a cost base, excluding variable remuneration and non-recurring charges, of approximately £225 million. Net operating income stood at £332.8 million in financial 2024.
CMC Markets shares jumped 6.6% to 299.43 pence each in London on Thursday morning.
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