CMC Markets reports 76% fall in profits, shares slide

Shares in CMC Markets fell on Thursday after the group revealed a 76% fall in profits.

The spread betting platform reported poor half-year results, blaming low market volatility and the introduction of new retail trading regulatory changes.

In the six months to the end of September, profits fell from £29.8 million a year earlier to £7.2 million.

The start of the second half of the year has seen an improvement in market conditions and higher client-trading.

The group’s chief executive, Peter Cruddas said in a statement: “Whilst trading in the first quarter outperformed the same period last year, as previously announced, the second quarter was particularly difficult.”

“Volatility was low, and unusually the majority of asset classes traded in tight ranges. This was further compounded by the impact of European regulatory change that came into force on 1 August. As a result, overall profit after tax was significantly lower than the same period last year.”

“The Group remains focused on future growth and diversification. In the second quarter, we successfully migrated 103 intermediaries, and over 500,000 clients to our stockbroking platform following the migration from ANZ Bank; this makes the stockbroking business a much more meaningful part of the overall Group. This will also provide a springboard for further growth in the APAC region.”

Shares in CMC Markets (LON: CMCX) are currently trading -4.22% at 113,60 (1034GMT).