REG - CMC Markets Plc - Cost reduction and efficiency plans

CMC MarketsAnnouncement

05/02/2024 07:00

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RNS Number : 0041C  CMC Markets Plc  05 February 2024

5 February 2024

CMC Markets Plc

 

Cost reduction and efficiency plans

 

CMC Markets Plc ("CMC" or the "Group"), a leading global provider of online
retail ("D2C") and institutional ("B2B") platform technology, today issues an
update on its cost reduction and efficiency plans.

 

Cost efficiency drive

 

In its interim results announcement on 16 November 2023, CMC indicated that
the business was reaching the peak of its investment cycle and a cost review
was planned for H2 focused on driving efficiency through its global
operations. The review has been successfully completed and as a result the
Group will be reducing global headcount by approximately 200 positions,
representing circa 17% of existing headcount.

 

CMC is expected to incur a one off, non-recurring cost of circa £2.5 million
in FY24 with estimated annualised savings of £21 million to be realised in
FY25, representing an 18% reduction against consensus staff costs.

 

The Group continues to focus on driving efficiencies and making structural
savings across its global operations.

 

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.

 

Trading remains in line with expectations and the Group is on track to deliver
net operating income of between £290-£310 million for FY24.

 

The next scheduled update to the market will be the FY24 pre-close update on 9
April 2024.

 

Enquiries

CMC Markets
Plc                                                                     investor.relations@cmcmarkets.com
(mailto:investor.relations@cmcmarkets.com)

Albert Soleiman, Chief Financial Officer

 

Camarco                                                                                                        +44
(0) 20 3757 4994

Geoffrey Pelham-Lane

Jennifer Renwick

MAR disclosure statement

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
("MAR"). Upon the publication of this announcement via Regulatory Information
Service ("RIS"), this inside information is considered to be in the public
domain.

Notes to Editors

 

CMC Markets Plc ("CMC"), whose shares are listed on the London Stock Exchange
under the ticker CMCX (LEI: 213800VB75KAZBFH5U07), was established in 1989 and
is now one of the world's leading online financial trading businesses. The
Company serves retail and institutional clients through regulated offices and
branches in 12 countries with a significant presence in the UK, Australia,
Germany and Singapore. CMC Markets offers an award-winning, online and mobile
trading platform, enabling clients to trade over 12,000 financial instruments
across shares, indices, foreign currencies, commodities and treasuries through
contracts for difference ("CFDs"), financial spread bets (in the UK and
Ireland only) and, in Australia, Singapore and the UK, access stockbroking
services. More information is available at http://www.cmcmarketsplc.com
(http://www.cmcmarketsplc.com/) .

 

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