CMC Markets saw its share price soar by 30% on Thursday as the online trading business revealed a 640% dividend hike and a 1,459% increase in profit before tax.
In posting its final results for the full year ended 31st March 2020 – CMC Markets produced a stunning set of improvements. The combination of increases in trading volumes due to the market volatility as well as the realisation of its underlying growth strategy produced a highlight on an otherwise miserable day for the London markets.
Across a number of fronts – the business proved to the market that its long-term focus on sophisticated clients and various strategic initiatives were paying off:
- CFD active revenue per client increased by 81% to £3,750 (mostly due to client transaction costs)
- Stockbrocking net trading revenue up by 106% to £31.8m – due to a combination of product launches and and a full year’s worth of revenue through its ANZ Bank tie-up
It even had time to take Brexit in its stride – establishing a new German subsidiary to allow it to operate within the European Union.
At a time where many firms are cancelling or cutting their dividends, the 640% hike in 2020’s dividend (15p per share compared to 2p per share) goes to show the value that can still be found in these volatile times!
And it doesn’t look like the solid performance will be stopping anytime soon…
“The significant performance improvement in 2020 is a result of the Group’s unwavering focus on our strategic initiatives. This has delivered increased diversification of Group revenues, improved CFD client income retention and an increased number of active clients. The growing contribution of B2B revenues is also particularly pleasing and will continue to be an important part of our strategy going forward.
The heightened volatility and trading activity resulting from COVID-19 has continued into the first quarter of the financial year, and CMC continue to provide clients with market leading trading platforms and client service. I am also confident that, once the financial world returns to more normal conditions, the Group will continue to build on the underlying growth that was being displayed prior to the pandemic. This, in combination with our stable dividend policy and positive trading outlook, will enable CMC to continue to deliver considerable value to all of our stakeholders.”Peter Cruddas, CEO