REG - CMC Markets Plc - Interim Results
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RNS Number : 2891I CMC Markets Plc 20 November 2025
20 November 2025
CMC MARKETS PLC
("CMC" or the "Group")
Results for the period ended 30 September 2025
H1 performance ahead of market expectations.
10% upgrade to FY2026 NOI guidance.
Strong start to H2.
Transformational Westpac deal agreed.
Financial Performance
HY2026 HY2025 Change
Net operating income (£m) 186.2 177.4 5%
EBITDA (£m) 57.1 60.3 (5%)
Profit before tax (£m) 49.3 49.6 (1%)
Profit before tax margin (%) 26.5% 27.9% 1.4ppts
Basic earnings per share (pence) 13.3 12.8 4%
Ordinary dividend per share (pence) 5.5 3.1 77%
Net operating income represents total revenue net of commissions and levies.
Profit before tax margin % is calculated as profit before tax as a percentage
of net operating income.
Financial Highlights
· Net operating income up 5% to £186.2 million (HY2025: £177.4
million) with increases in net trading and investing revenues
· Record half-year for Australian stockbroking with net operating
income of A$65.9 million (HY2025: A$49.4 million), a 34% increase year-on-year
and supported by a 14% increase in AuA to approximately A$91 billion
· Total operating expenses were £136.5 million (HY2025: £123.9
million), reflecting a further £5.2 million provision for industry-wide
margin netting in Australia, concluding the remediation due on this matter.
Excluding this, costs remained well managed and in line with internal
expectations
· Profit before tax of £49.3 million (HY2025: £49.6 million) and
profit before tax margin of 26.5% (HY2025: 27.9%) remain robust and primarily
reflect impact of the Australian remediation charge
· Interim dividend of 5.5 pence per share (HY2025: 3.1 pence), up
77% year-on-year
Strategic & Operational Highlights
· Transformational Westpac partnership agreed, CMC's largest
institutional deal to date, providing fintech infrastructure, technology, and
execution services and further cementing our position as Australia's
second-largest stockbroker
· Westpac agreement expected to expand the Australian customer base
materially, and lift domestic trading volumes by approximately 45%, with
significant opportunity for further upside. Launch will be in approximately 12
months
· Neobank API partnership continues to mature, with exponential
account growth and rollout now live in over 30 European countries - many where
CMC has no physical presence - extending the Group's global reach and
demonstrating the distribution power of our API technology
· Further partnerships at an advanced stage with a major
international bank and UK retailer Currys, reinforcing CMC as the partner of
choice and highlighting the diversity and scalability of our technology with
blue-chip institutions
· New multi-asset platform set for December launch in the UK, with
other regions to follow. This will be followed by the rollout of our "Super
App," designed to unify TradFi and DeFi within a single, scalable platform -
marking the start of a three-phase development roadmap
· Robust product pipeline across trading, investing, and B2B
platforms, via API connectivity to broaden CMC's distribution reach, through
products and partnerships
· FY2026 operating expenses expected to be marginally ahead of
consensus(1), predominantly due to the Australian remediation
· Operating expenses include temporary dual-running costs as the
Group transitions key operational functions to lower cost jurisdictions,
supported by a partnership with a leading global outsourcing provider
· These initiatives are expected to deliver meaningful efficiency
gains, with lower overheads and improved profit margins expected to flow
through over the next 12 to 18 months
Outlook
· The Group enters the second half with strong momentum across all
three verticals, supported by solid client activity and a healthy pipeline of
B2B and D2C opportunities
· Third vertical advancing rapidly, with a successful live
blockchain-based tokenised share trade, an up to €300 million Commercial
Paper Programme, and the assignment of an investment-grade rating by Fitch -
all completed post-period end and demonstrating tangible progress in the
Group's digital asset and funding infrastructure
· Momentum has accelerated across the business, with record client
cash balances, rising activity levels and stronger performance metrics,
particularly seen across the institutional B2B and API space
· As a result - and following a strong start to H2, including the
significant growth of our neobank API business - the Group now expects net
operating income to be approximately 10% ahead of current market expectations
for FY2026(2)
Notes:
1 - Company compiled consensus for FY2026 operating expenses, excluding
variable remuneration, of £231.4 million.
2 - Company compiled consensus for FY2026 net operating income of £353.9
million.
CEO Statement
Solid H1 with strong tailwinds for H2
We are pleased to report a solid H1, with net operating income up 5% on HY2025
and strong growth coming through our retail and B2B divisions - both of which
have some really exciting opportunities. Retail client cash balances are at
record highs and growing exponentially, pointing to strong tailwinds for H2,
traditionally the strongest half of our financial year.
Our API partnerships are gaining momentum leading to accelerated account
opening, with hundreds of thousands of retail trading accounts being opened
over the last year and around 70% of these accounts from European countries
where we have no physical presence. These API partnerships demonstrate the
distribution power and scale of our API technology without the incremental
costs of procuring clients directly, through marketing and onboarding.
We have built a strong, extensive and extensible API platform which is now
starting to add real value to the business and will continue to be material
over the coming years.
The recent announcement of a major partnership with Australia's second largest
bank, Westpac, is expected to be the biggest partnership deal in our history
and similar to the ANZ transaction, we view this partnership as a
transformational opportunity, offering significant long-term growth potential
and upside.
Our Australian stockbroking business continues to go from
strength-to-strength, delivering record performance and firmly establishing
CMC as the country's second-largest stockbroker. The business now exceeds our
CFD operations in Australia in terms of income, client accounts and assets
under administration, and continues to grow at a significantly faster rate.
Following the Westpac integration, our retail footprint is expected to
approach two million accounts within the next year, laying the foundation for
a broader wealth and financial services proposition across the Group which
will be rolled out in the next 12 months.
In the UK, CMC Invest is at an advanced stage of contracting with a major
international bank - a significant milestone that strengthens our growing
institutional partnerships and demonstrates continued momentum in our B2B
strategy. Alongside this, we are excited to announce a partnership with
leading tech retailer Currys. We are working together to bring something
unique to the market, and we look forward to sharing more on both partnerships
in due course.
The success we are now seeing across all areas of the business is also
reflective of the investments we have made, the diversity of the organisation
and a strategic restructuring of the Group, undertaken over the past 12
months. We are now beginning to see the benefits of that work coming through.
A key part of this progress has been Project Telstar, the devolution plan I
have initiated, giving our regional heads greater autonomy to run their
offices more progressively, through more localised marketing and sales
control. This has been a major step forward and is without doubt contributing
to the success we are seeing today.
Each office can pick what products and platforms they want to offer their
clients in the region. Office heads can negotiate with institutions and B2B
clients' commercial terms, within financial and brand metrics. They can set
their own marketing budgets based on where they can drive growth. Each office
is then rewarded based on their success, profit margins and the value of the
business they bring to the Group.
However, the real point here is that each office feels liberated to do their
best for the company. It means they can take on local competition and match
them in marketing and they can respond quickly to new product launches, or
changes in regulations. Finance and Compliance has full transparency over each
office to ensure that controls are always in place. It has been liberating for
the business, and you can see that in our improved numbers today, and I
believe it will deliver strong growth in the coming years.
Web3 and Blockchain - The Third Vertical
As announced at our FY2025 results in June, we are pushing aggressively into
Web3 technology because of the pending decentralisation of financial markets
(DeFi) through product tokenisation, blockchain, multi-asset wallets and
stablecoin clearing and payments.
DeFi is going to redefine the financial markets allowing clients to seamlessly
trade thousands of financial products in real time, twenty-four hours a day,
365 days a year. Products will not just be limited to cryptocurrencies but all
major financial products, including shares, FX, commodities, indices and
options.
Settlement and clearing will be via clients' own multi-asset wallets and
trades will self-clear between clients as they trade with each other, real
time across blockchain. This is precisely the reason we acquired StrikeX - an
important investment in our own DeFi and Web3 infrastructure and capabilities.
Tokenised financial products are very similar to our current CFDs in that they
are fractional, off exchange, and multi-asset across one account. For CMC
because of our history and experience, tokenisation is effectively what we
already do through our CFD platforms. But the clearing, settlement and payment
structure will change.
Blockchain, multi-asset wallets, stablecoin payments and clearing is the piece
that StrikeX are building for us and already we are making great strides. In
October, CMC CapX, in partnership with StrikeX, successfully completed a live
test using blockchain technology to move company shares securely between
investors - all within existing UK regulations.
The trial proved that digital assets and traditional shares can work together
safely and efficiently. Whilst other companies are talking about what they
intend to do, we are doing it at CMC.
CMC will continue to expand its footprint into the tokenised finance space and
stablecoins are an initial crucial step to being able to move value seamlessly
24/7. At the same time, we are exploring potential partnerships with
blockchain companies and crypto exchanges as DeFi evolves. As with all our
products and services, it is important to note that tokenised products and our
multi-asset wallet will also be available for all our B2B partners via API, or
white label.
Stablecoins will play an important role in DeFi. To support our evolution and
expansion in this space we are expanding our Treasury Management division
through the establishment of an up to €300 million Commercial Paper
Programme.
While this initiative strengthens our ability to fund growth across all three
verticals, it is not exclusively linked to our DeFi expansion. Rather, it
represents a prudent step in diversifying our funding sources and optimising
balance sheet flexibility as the Group continues to scale.
We expect to enter the market imminently, with a short bookbuild period
preceding the initial round of funding. While the programme provides capacity
of up to €300 million, we do not anticipate issuing the full amount at the
outset. The overall cost to the Group is expected to be negligible, as a
result of our recent investment-grade rating, which is expected to reduce the
credit spread on future issuances and our Treasury Management team, which will
continue to actively optimise cash balances, ensuring proceeds are deployed
efficiently and productively.
In support of this initiative, Fitch Ratings has assigned CMC an
investment-grade rating of BBB- (long-term) and F3 (short-term), marking
another key milestone for the Group as we continue to strengthen our financial
and operational foundations.
We will update the markets at our year end results but, for now, our future is
BAU whilst positioning the business for tokenisation, blockchain, DeFi, and
getting ourselves ready for the major changes that are happening in the
financial markets and the way they will be traded in the future.
When the world goes DeFi, CMC will be ready.
The "Super App" Vision:
The enclosed statement highlights tangible businesses that are already
established, and businesses that are being established. But the vision is much
broader and powerful when you bring it all together via a "Super App", which
we are launching in three phases.
Phase one will see the release of our multi-asset platform, that we intend to
launch imminently. This will encompass traditional finance (TradFi) products,
including equities, derivatives, options, SIPPs, ISAs, wealth-solutions and
CFDs - all on one platform.
Phase two is where it gets really exciting as we plan the release of our
"Super App" which will include TradFi and DeFi products, with SIPPs and ISAs
sitting alongside tokenised products, stablecoins and CapX investing.
This is more than just trading products from one account. This is one
platform, every asset class - equities, derivatives, tokenised products and
wealth-solutions - all delivered via a service-led "Super App", designed and
built for the future.
Phase Three of our "Super App" will include payments and banking products, to
create an application that puts every corner of the financial universe at your
fingertips.
API and Future State
API connectivity is our platform for growth and expansion, because it is an
easy win for banks and brokers to offer our different products whilst we also
provide the technology infrastructure. All they have to do is seamlessly
connect their platform to ours via our API and access our different product
types. API connectivity is scalable and profitable for our partners and for
ourselves.
For example, one of our API client's turnover increased by over 1,000% in a
year, and we saw all that flow through the API connection. It was a new
business for the bank and new products for their clients and flows we would
not ordinarily have seen without our API capability.
The way to expand this business is through extensive, extensible API
distribution alongside our "Super App". Our API connections will continue to
be available across all our products and platforms and that includes our
future "Super App".
This is what sets us apart and it is a very scalable way to grow the business.
Having laid the foundations over many years, we are now seeing the results.
Lord Cruddas
20 November 2025
Webcast:
An analyst and investor presentation will be available on our website from
9.00am on 20th November:
https://www.cmcmarkets.com/group/investors/results-reports-and-presentations
(https://www.cmcmarkets.com/group/investors/results-reports-and-presentations)
Forthcoming announcement dates:
June 2026 FY2026 Results
Enquiries
CMC Markets Plc
John Cubbin, Interim Head of Finance
David Fineberg, Head of Strategic Partnerships
Matthew Lee, Investor Relations investor.relations@cmcmarkets.com (mailto:investor.relations@cmcmarkets.com)
Forward looking statements
This trading update may include statements that are forward looking in nature.
Forward looking statements involve known and unknown risks, assumptions,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Group to be materially different from any
future results, performance or achievements expressed or implied by such
forward looking statements. Except as required by the Listing Rules and
applicable law, the Group undertakes no obligation to update, revise or change
any forward-looking statements to reflect events or developments occurring
after the date such statements are published.
MAR disclosure statement
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
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 and investing
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 platform, enabling clients to trade and in invest in 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 https://www.cmcmarkets.com/group.
FINANCIAL REVIEW
Summary Update
CMC delivered a solid first half performance, with net operating income up 5%
to £186.2 million (HY2025: £177.4 million). The Group continued to
demonstrate strong operational momentum, underpinned by record client cash
balances, healthy client activity levels, and continued traction from its
expanding network of B2B partnerships. Performance in Australia was
particularly strong, with record half-year income from the stockbroking
business supported by double-digit growth in assets under administration,
turnover volume and active accounts.
Operating expenses increased year-on-year, primarily reflecting the £5.2
million remediation provision in Australia relating to an industry-wide margin
netting matter, taking the total charge to £9.5 million. Excluding this,
underlying costs remained well controlled and in line with internal
expectations.
The result of the above was profit before tax of £49.3 million (HY2025:
£49.6 million), with a margin of 26.5%, remaining robust despite the
Australian remediation charge. Profit after tax was £35.7 million (HY2025:
£35.3 million), reflecting the Group's strong underlying profitability and
ongoing cost discipline.
£m HY2026 HY2025 Change %
Trading and investing revenue 174.9 162.0 8%
Other revenue 1.8 2.8 (36%)
Interest income 20.0 23.4 (15%)
Total revenue 196.7 188.2 5%
Commissions and levies (10.6) (10.9) 3%
Net operating income 186.2 177.4 5%
Operating expenses (136.0) (123.7) (10%)
Impairment of intangible assets (0.5) (0.2) (107%)
Operating profit 49.7 53.5 (7%)
Loss on share of associate - (0.2) -
Reversal of impairment of investments in associate and gain on bargain 0.8 (2.3) -
purchase / (Impairment) of investments in associate
Finance costs (1.2) (1.4) 12%
Profit before taxation 49.3 49.6 (1%)
Taxation (13.6) (14.3) 5%
Profit after tax 35.7 35.3 1%
PBT margin 26.5% 27.9% 1.4ppts
Net operating income
Net operating income increased by 5% to £186.2 million (HY2025: £177.4
million), reflecting resilient performance across trading and exceptional
growth in the investing division.
Net trading revenue continues to represent the majority of Group income,
accounting for approximately 74% of the total (HY2025: 74%), while the
contribution from investing activities is accelerating as momentum builds,
particularly in our Australian stockbroking business.
£m HY2026 HY2025 Change %
Net trading revenue¹ 138.1 131.3 5%
Net investing revenue¹ 26.3 19.9 32%
Other revenue 1.8 2.8 (36%)
Interest income 20.0 23.4 (15%)
Net operating income 186.2 177.4 5%
1 - Net trading and net investing revenues represent trading and investing
revenues after deducting commissions and levies.
Trading performance
Net trading revenue rose 5% to £138.1 million (HY2025: £131.3 million),
supported by steady client activity and periods of healthy market volatility,
particularly across commodities and index products. The revised hedging
strategy introduced in FY2025 has continued to enhance earnings efficiency and
the volatility observed during the summer contributed to improved performance
across key products. The result underscores the depth and resilience of CMC's
trading franchise, with robust contributions from both retail and
institutional clients.
Investing performance
Net investing revenue increased 32% to £26.3 million (HY2025: £19.9
million), reflecting record performance in Australia and growing traction
across the Group's UK and international investing platforms.
The Australian business continues to deliver exceptional results, achieving a
record half, underpinned by strong client activity and record levels of assets
under administration, turnover and active accounts. Revenues from
international share trading, domestic brokerage and cryptocurrency all
increased materially, reflecting broad-based growth across the platform and a
diversification of the earnings base of the business. The continued expansion
of B2B partnerships - including the transformational agreement with Westpac
and the prior-year ASB Bank deal in New Zealand - positions the business for
sustained growth in the years ahead.
In the UK, the Cash ISA product has continued to gain strong traction,
attracting new customers to the platform, with assets under administration
peaking at over £300 million. The product serves as an effective gateway into
CMC's broader wealth proposition, including general investment accounts,
stocks and shares ISAs, and self-invested personal pensions. Further momentum
is expected in the second half of the year as the tax year-end approaches and
the Group launches its Junior ISA offering.
Interest income
Interest income decreased 15% to £20.0 million (HY2025: £23.4 million),
reflecting higher client interest payments during the period, primarily driven
by the rapid growth of our Cash ISA product. On a gross basis, underlying
interest earnings were higher year-on-year, supported by increased returns
from money market fund investments and active treasury management as well as
record client cash balances. The Group remains well positioned to generate
stable, diversified returns from both client and own funds, with the Treasury
Management and Capital Markets division focused on disciplined yield and
liquidity optimisation as market interest rates continue to moderate.
Operating expenses
Total operating expenses were £136.5 million (HY2025: £123.9 million), up
10% year-on-year, primarily reflecting a further £5.2 million provision for
margin-netting remediation in Australia. This brings the total provision for
this matter to £9.5 million, including £4.3 million recognised in FY2025,
with the remediation element now considered complete. Excluding this,
underlying costs remained well managed and in line with internal expectations,
reflecting continued cost discipline across the Group.
Net staff costs decreased 3% to £57.1 million (HY2025: £59.0 million), with
higher fixed staff costs offset by lower variable remuneration following the
adoption of a more prudent policy to accrue incentives only once performance
hurdles have been met.
Sales and marketing costs increased to £20.4 million (HY2025: £15.0
million), primarily reflecting the additional £5.2 million provision for
margin-netting remediation in Australia. Marketing expenses rose modestly
year-on-year as the Group continued to focus on more targeted and data-driven
campaigns.
IT remains the largest component of non-staff costs, increasing to £24.1
million (HY2025: £22.4 million), as the Group continued to invest in front
and back-office system enhancements. Legal and professional fees rose to
£10.2 million (HY2025: £7.0 million), reflecting higher advisory costs
linked to ongoing strategic initiatives and regulatory programmes.
A number of efficiency and technology projects are now nearing completion,
with temporary dual-running and project costs expected to unwind over time.
These initiatives are set to deliver meaningful operational efficiencies, with
lower overheads and improved profit margins beginning to flow through as key
programmes are completed, supporting enhanced operating leverage into FY2027.
Taxation
The total taxation charge for the period was £13.6 million (HY2025: £14.3
million), representing an effective tax rate of 27.5% (HY2025: 28.9%). The
effective rate for the period was broadly in line with expectations. The
Group's effective tax rate is higher than the UK statutory rate of 25.0% due
to the effect of profits being taxed in Australia and Germany where the tax
rate is higher than in the UK. The effective tax rate is expected to remain
around 28.0% for FY2026.
Profitability and earnings
Profit before tax was £49.3 million (HY2025: £49.6 million), with a profit
before tax margin of 26.5% (HY2025: 27.9%). The modest reduction year-on-year
primarily reflects the additional £5.2 million provision for industry-wide
margin netting remediation in Australia. Profit after tax was £35.7 million
(HY2025: £35.3 million), with basic earnings per share of 13.3 pence (HY2025:
12.8 pence). Underlying profitability remains strong, supported by disciplined
cost management, solid revenue growth across all three verticals, and
continued operating efficiency improvements.
Financial position
£m 30 September 2025 31 March 2025 Change %
Fixed assets 61.5 53.2 16%
Trade and other receivables 212.2 147.7 44%
Financial investments 84.0 111.0 (24%)
Amounts due from brokers 138.3 140.0 (1%)
Cash and cash equivalents 222.4 247.7 (10%)
Derivative financial instruments 38.8 24.5 59%
Other assets 10.2 7.9 28%
Total assets 767.4 732.0 5%
Trade and other payables 284.5 253.6 (12%)
Amount due to brokers 3.7 12.2 70%
Obligations under repurchase agreements - 7.5 -
Lease liabilities 19.8 14.3 (38%)
Derivative financial instruments 24.8 16.2 (54%)
Other liabilities 9.1 10.2 11%
Total liabilities 341.9 314.0 (9%)
Total equity 425.5 418.0 2%
Total equity and liabilities 767.4 732.0 5%
Fixed assets consist of intangible assets and property plant and
equipment, or PPE. Other assets include deferred tax assets, current tax
recoverable, other assets (exchange and vaults) and investments in
associates. Other liabilities include current tax payable, short-term
provisions, deferred tax liabilities and long term provisions.
Total assets increased 5% to £767.4 million (31 March 2025: £732.0 million),
reflecting higher receivables, partially offset by lower cash balances.
Fixed assets, which include intangible assets and property, plant and
equipment rose 16% to £61.5 million (31 March 2025: £53.2 million), as the
Group continued to invest in platform development and technology
infrastructure, including enhancements to its API connectivity and multi-asset
platform.
Financial investments were £84.0 million (31 March 2025: £111.0 million),
and were comprised of short-dated investment-grade corporate bonds and other
high-quality liquid assets as part of the Group's refined treasury strategy.
Trade and other receivables increased 44% to £212.2 million (31 March 2025:
£147.7 million), primarily reflecting higher client-related balances and the
timing of settlements around the period end.
Cash and cash equivalents decreased 10% to £222.4 million (31 March 2025:
£247.7 million) as a result of the reallocation of funds into financial
investments and client remediation payments made during the period. The Group
continues to maintain a strong liquidity position, with ample resources to
support regulatory and operational requirements.
On the liabilities side, total liabilities increased 9% to £341.9 million (31
March 2025: £314.0 million), largely due to higher trade and other payables
associated with increased client trading activity.
Total equity increased 2% to £425.5 million (31 March 2025: £418.0 million),
reflecting retained profits generated during the period, partially offset by
the payment of the final FY2025 dividend.
Capital resources
£m 30 September 2025 31 March 2025
Common equity tier 1 capital before regulatory adjustments(1) 418.0 412.4
Less: regulatory adjustments(2) (69.5) (48.7)
Common equity tier 1 capital after regulatory adjustments 348.5 363.7
Own funds requirements ("OFR")(3) 157.4 133.6
Total OFR ratio (%)(4) 221% 272%
1 - Total audited CET1 capital resources as at the end of the period.
2 - Regulatory adjustments include the deduction of intangible and deferred
tax assets.
3 - The minimum capital requirement in accordance with MIFIDPRU 4.3.
4 - The OFR ratio represents common equity tier 1 capital as a percentage of
OFR. CMC Markets plc has no additional tier 1 or tier 2 capital.
The Group's capital position remains robust, with total common equity tier 1
(CET1) capital before regulatory adjustments increasing to £418.0 million as
at 30 September 2025 (31 March 2025: £412.4 million). After regulatory
adjustments of £69.5 million (31 March 2025: £48.7 million), CET1 capital
stood at £348.5 million (31 March 2025: £363.7 million).
The Group's own funds requirement increased to £157.4 million (31 March 2025:
£133.6 million) and as a result, the total own funds ratio was 221% (31 March
2025: 272%), comfortably above the Group's regulatory minimum and
demonstrating a strong capital base and prudent risk management framework.
Liquidity
£m 30 September 2025 31 March 2025
Cash and cash equivalents 222.4 247.7
Amount due from brokers 138.3 140.0
Financial investments 267.9 111.0
Undrawn facility 55.0 55.0
Total Available Liquidity 683.6 553.7
Less: blocked cash (75.8) (74.0)
Less: initial margin requirement (128.0) (92.2)
Less: haircut on financial investments (108.3) (29.1)
Less: other encumbered financial investments (0.0) (8.7)
Less: illiquid financial investments (2.4) (1.0)
Less: undrawn facility (55.0) (55.0)
Total Unencumbered Liquid Assets 314.0 293.7
Blocked cash represents amounts required to meet local regulatory or exchange
requirements in individual Group entities.
The Group's available liquidity comprises assets that can be readily accessed
to meet additional funding needs, typically arising from changes in broker
margin requirements. The Group's liquidity position remains strong, with total
unencumbered liquid assets of £314.0 million as at 30 September 2025 (31
March 2025: £293.7 million). Cash and cash equivalents include title transfer
funds and a modest fall in Group funds.
In addition, the Group continues to maintain access to a £55.0 million
committed facility (31 March 2025: £55.0 million) to support liquidity and
margin requirements if required, alongside the newly established Commercial
Paper Programme, which further enhances funding flexibility.
Dividend
The Board has declared an interim dividend of 5.5 pence per share (HY2025: 3.1
pence), in line with the Group's policy to distribute 50% of after-tax
profits. This reflects the Board's continued confidence in the Group's
financial position, strategic progress, and long-term growth prospects.
Outlook
The Group enters the second half in a strong position, with momentum building
across all three verticals.
Operating efficiency initiatives continue to progress well, with several key
projects nearing completion. These are expected to deliver sustainable cost
and operational benefits over time, helping to offset the impact of temporary
dual-running and project-related expenditure.
Performance in the early weeks of the second half has been encouraging, with
key metrics tracking ahead of internal expectations. The Group is well
positioned to capture growth opportunities through its diversified model, and
full-year performance is now expected to exceed current market expectations by
approximately 10%.(1)
1 - Company compiled consensus for FY2026 net operating income of £353.9m.
PRINCIPAL RISKS AND UNCERTAINTIES
Details of the Group's approach to risk management and its principal risks and
uncertainties were set out on pages 20 to 24 of the 2025 Group Annual Report
and Financial Statements (available on the Group website
https://www.cmcmarketsplc.com).
During the six months to 30 September 2025, there have been no changes to the
overall principal risk listing. The Group continues to categorise its
principal risks into three categories: business and strategic risks; financial
risks; and operational risks.
Business change risk, Regulatory and compliance risk, and Information and data
security risk were the top principal risks considered in the 2025 Group Annual
Report and Financial Statements, and we continue to be exposed to those
areas.
The Group, through its global presence, faces a variety of regulations and
legislative requirements, which we are committed to meeting to a high
standard. Consumer Duty and Good Clients Outcome remain a key focus and we
continuously review and enhance our processes. We have made strong progress
remediating audit findings in our German subsidiary (GmbH), with key
deliverables achieved in line with the agreed plan and ongoing focus on
control maturity and stability of key functions. Following the successful
implementation of the Digital Operational Resilience Act (DORA) within CMC,
the Group is now progressing the second phase of enhancements focused on
embedding operational resilience principles and improving third-party
oversight. We are also working to align with the new Corporate Governance
Code, reinforcing our commitment to a strong and effective control
environment.
As we pursue strategic product and geographical diversification, business
change and project delivery risks remain naturally elevated. A number of
operational improvements were introduced during the period to enhance project
planning, prioritisation, and governance through the Project and Programme
Governance Committee (PPGC). Further to this, CMC is committed to developing
its third strategic vertical by developing DeFi functionality on blockchain
networks. Web3 technologies, with emphasis on decentralisation and
transparency, represent a natural evolution of our multi-asset and technology
strategy. Our risk management framework is also evolving in line with this to
ensure it can support the business strategy and growth, including strengthened
alignment between change governance and operational risk oversight.
Cyber risk remains a key focus area for CMC Markets given the firm's reliance
on technology and the growing sophistication of external threats across the
financial services sector. The overall risk level is assessed as amber,
reflecting the persistently elevated threat environment despite strong
internal control measures and positive performance against key risk
indicators. During the period, initiatives to strengthen resilience and
regulatory alignment have progressed materially. These include the phased
rollout of new two-factor authentication solutions across client-facing
platforms, enhanced ransomware preparedness, and the introduction of an
improved third-party risk management framework.
RESPONSIBILITY STATEMENT
The Directors listed below (being all the Directors of CMC Markets plc)
confirm that to the best of our knowledge, these condensed consolidated
financial statements have been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority and that the interim management report includes a
fair review of information required by DTR 4.2.7R and DTR 4.2.8R, namely:
· the interim management report includes a fair review of the
important events that have occurred during the first six months of the
financial year and their impact on the condensed consolidated financial
statements, together with a description of the principal risks and
uncertainties for the remaining six months of the financial year;
· and material related party transactions in the first six months
of the financial year and any material changes in the related-party
transactions described in the last annual report.
Neither the Group nor the Directors accept any liability to any person in
relation to the interim results for the half year ended 30 September 2025,
except to the extent that such liability could arise under English law.
Accordingly, any liability to a person who has demonstrated reliance on any
untrue or misleading statement or omission shall be determined in accordance
with Section 90A and Schedule 10A of the Financial Services and Markets Act
2000.
By order of the Board of Directors
Lord Cruddas
Chief Executive Officer
20 November 2025
CMC Markets plc Board of Directors
Executive Directors
Lord Peter Cruddas (Chief Executive Officer)
Laurence Booth (Head of Global Capital Markets)
Non-Executive Directors
Paul Wainscott (Chair)
Sarah Ing
Clare Francis
Stuart Manning
CONDENSED CONSOLIDATED INCOME STATEMENT
For the half year ended 30 September 2025
Half year ended
£ '000 Note 30 September 31 March 30 September
2025 2025 2024
Revenue 176,751 152,812 164,799
Interest income on own funds 9,342 8,995 9,536
Income on client funds 10,645 10,057 13,900
Total revenue 196,738 171,864 188,235
Introducing partner commissions and betting levies (10,557) (9,099) (10,883)
Net operating income 3 186,181 162,765 177,352
Operating expenses 4 (136,011) (126,415) (123,659)
Impairment of intangible assets 8 (483) (249) (233)
Operating profit 49,687 36,101 53,460
Share of results of associate - - (189)
Reversal of impairment of investments in associate and gain on bargain 11 811 - (2,328)
purchase / (Impairment) of investments in associate
Finance costs (1,206) (1,216) (1,374)
Profit before taxation 49,292 34,885 49,569
Taxation (13,568) (7,959) (14,308)
Profit for the period 35,724 26,926 35,261
Profit / (loss) attributable to:
Owners of CMC Markets plc 35,939 26,926 35,261
Non-controlling interests (215) - -
35,724 26,926 35,261
Earnings per share
Basic earnings per share (pence) 6 13.3 9.8 12.8
Diluted earnings per share (pence) 6 13.3 9.8 12.8
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the half year ended 30 September 2025
Half year ended
£ '000 30 September 31 March 30 September
2025 2025 2024
Profit for the period 35,724 26,926 35,261
Other comprehensive income / (expense):
Items that may be subsequently reclassified to income statement
Currency translation differences 2,280 (5,100) (1,672)
Changes in the fair value of debt instruments at fair value through other 214 (131) 166
comprehensive income, net of tax
Other comprehensive income / (expense) for the period 2,494 (5,231) (1,506)
Total comprehensive income for the period 38,218 21,695 33,755
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September 2025
£ '000 Note 30 September 2025 31 March 2025 30 September 2024
ASSETS
Non-current assets
Intangible assets 8 32,332 29,042 29,113
Property, plant and equipment 9 29,175 24,169 25,372
Deferred tax assets 7,700 5,328 6,869
Financial investments 14 18,204 30,399 22,121
Trade and other receivables 10 3,306 1,823 2,637
Total non-current assets 90,717 90,761 86,112
Current assets
Trade and other receivables 10 208,857 145,842 179,523
Derivative financial instruments 12 38,848 24,456 28,781
Current tax recoverable 2,517 2,679 2,282
Other assets 13 32 10 6,780
Financial investments 14 65,834 80,555 86,877
Amounts due from brokers 138,263 140,010 202,675
Cash and cash equivalents 15 222,392 247,665 174,055
Total current assets 676,743 641,217 680,973
TOTAL ASSETS 767,460 731,978 767,085
LIABILITIES
Current liabilities
Trade and other payables 16 284,400 253,581 297,626
Amounts due to brokers 3,720 12,239 560
Derivative financial instruments 12 24,841 16,160 5,629
Obligations under repurchase agreements 17 - 7,457 28,923
Lease liabilities 18 3,926 3,109 3,765
Current tax payable 968 1,832 3,991
Provisions 19 1,200 5,282 1,844
Total current liabilities 319,055 299,660 342,338
Non-current liabilities
Trade and other payables 16 4 4 -
Lease liabilities 18 15,916 11,233 10,579
Deferred tax liabilities 6,581 2,765 3,178
Provisions 19 368 349 8
Total non-current liabilities 22,869 14,351 13,765
TOTAL LIABILITIES 341,924 314,011 356,103
EQUITY
Share capital 70,573 70,573 70,573
Share premium 46,236 46,236 46,236
Capital redemption reserve 2,901 2,901 2,901
Own shares held in trust (24,364) (17,047) (11,149)
Other reserves (59,682) (62,176) (56,945)
Retained earnings 389,383 377,480 359,366
Capital and reserves attributable to owners of CMC Markets plc 425,047 417,967 410,982
Non-controlling interests 489 - -
Total equity 425,536 417,967 410,982
TOTAL EQUITY AND LIABILITIES 767,460 731,978 767,085
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the half year ended 30 September 2025
£ '000 Share capital Share premium Capital redemption reserve Own shares held in trust Other reserves Retained earnings Total Non-controlling interests Total equity
At 31 March 2024 70,573 46,236 2,901 (2,589) (55,439) 341,811 403,493 - 403,493
Profit for the period - - - - - 35,261 35,261 - 35,261
Currency translation differences - - - - (1,672) - (1,672) - (1,672)
Changes in the fair value of debt instruments at fair value through other - - - - 166 - 166 - 166
comprehensive income, net of tax
Total comprehensive income for the period - - - - (1,506) 35,261 33,755 - 33,755
Acquisition of own shares held in trust - - - (9,046) - - (9,046) - (9,046)
Utilisation of own shares held in trust - - - 486 - - 486 - 486
Share-based payments - - - - - 1,303 1,303 - 1,303
Tax on share-based payments - - - - - 1,167 1,167 1,167
Dividends - - - - - (20,176) (20,176) - (20,176)
At 30 September 2024 70,573 46,236 2,901 (11,149) (56,945) 359,366 410,982 - 410,982
At 30 September 2024 70,573 46,236 2,901 (11,149) (56,945) 359,366 410,982 - 410,982
Profit for the period - - - - - 26,926 26,926 - 26,926
Currency translation differences - - - - (5,100) - (5,100) - (5,100)
Changes in the fair value of debt instruments at fair value through other - - - - (131) - (131) - (131)
comprehensive income, net of tax
Total comprehensive income for the period - - - - (5,231) 26,926 21,695 - 21,695
Acquisition of own shares held in trust - - - (5,955) - - (5,955) - (5,955)
Utilisation of own shares held in trust - - - 57 - - 57 - 57
Share-based payments - - - - - 1,740 1,740 - 1,740
Tax on share-based payments - - - - - (2,024) (2,024) - (2,024)
Dividends - - - - - (8,528) (8,528) - (8,528)
At 31 March 2025 70,573 46,236 2,901 (17,047) (62,176) 377,480 417,967 - 417,967
£ '000 Share capital Share premium Capital redemption reserve Own shares held in trust Other reserves Retained earnings Total Non-controlling interests Total equity
At 31 March 2025 70,573 46,236 2,901 (17,047) (62,176) 377,480 417,967 - 417,967
Profit / (loss) for the period - - - - - 35,939 35,939 (215) 35,724
Currency translation differences - - - - 2,280 - 2,280 - 2,280
Changes in the fair value of debt instruments at fair value through other - - - - 214 - 214 - 214
comprehensive income, net of tax
Total comprehensive income / (expense) for the period - - - - 2,494 35,939 38,433 (215) 38,218
Acquisition of own shares held in trust - - - (13,665) - - (13,665) - (13,665)
Utilisation of own shares held in trust - - - 6,348 - - 6,348 - 6,348
Share-based payments - - - - - (1,773) (1,773) - (1,773)
Tax on share-based payments - - - - - 73 73 - 73
Non-controlling interests on acquisition of subsidiaries - - - - - - - 704 704
Dividends - - - - - (22,336) (22,336) - (22,336)
At 30 September 2025 70,573 46,236 2,901 (24,364) (59,682) 389,383 425,047 489 425,536
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the half year ended 30 September 2025
Half year ended
£ '000 Note 30 September 31 March 30 September
2025 2025 2024
Cash flows from operating activities
Cash generated from operations 20 7,025 106,215 52,218
Interest income 8,839 9,630 8,770
Income on client funds 10,684 10,593 13,988
Finance costs (1,210) (1,243) (1,343)
Tax paid (12,623) (11,014) (12,463)
Net cash generated from operating activities 12,715 114,181 61,170
Cash flows from investing activities
Purchase of property, plant and equipment (2,376) (1,312) (1,716)
Investment in intangible assets (3,822) (3,470) (2,603)
Net receipts on disposal / (payments on purchase) of financial investments 10,854 5,297 (37,549)
Net cash generated from / (used in) investing activities 4,656 515 (41,868)
Cash flows from financing activities
Principal elements of lease payments (1,697) (2,348) (2,710)
Net (payments) / proceeds on repurchase agreements (7,453) (21,439) 28,892
Acquisition of own shares (13,665) (5,955) (9,046)
Proceeds from exercise of employee share options 2,411 - -
Dividends paid (22,336) (8,528) (20,176)
Net cash used in financing activities (42,740) (38,270) (3,040)
Net (decrease) / increase in cash and cash equivalents (25,369) 76,426 16,262
Cash and cash equivalents at the beginning of the period 247,665 174,055 160,300
Effect of foreign exchange rate changes 96 (2,816) (2,507)
Cash and cash equivalents at the end of the period 15 222,392 247,665 174,055
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the half year ended 30 September 2025
1. Basis of preparation
Basis of accounting and accounting policies
The condensed consolidated financial statements have been prepared in
accordance with UK adopted International Accounting Standard 34, 'Interim
Financial Reporting' and the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority. The condensed consolidated
financial statements do not constitute statutory accounts within the meaning
of Section 434 of the Companies Act 2006. Within the notes to the condensed
consolidated financial statements, all current and comparative data covering
periods to (or as at) 30 September is unaudited.
The Group's statutory financial statements for the year ended 31 March 2025
have been prepared in accordance with UK-adopted international accounting
standards in conformity with the requirements of the Companies Act 2006 and
the disclosure guidance and transparency rules sourcebook of the United
Kingdom's Financial Conduct Authority. These financial statements have been
delivered to the Registrar of Companies. The auditors' opinion on those
financial statements was unqualified and did not contain a statement made
under Section 498 of the Companies Act 2006. The 31 March 2025 balances
presented in these condensed consolidated financial statements are from those
financial statements and are audited.
The accounting policies and methods of computation applied in these condensed
consolidated financial statements are consistent with those applied in the
Group's statutory financial statements for the year ended 31 March 2025. The
condensed consolidated financial statements should be read in conjunction with
the statutory financial statements for the year ended 31 March 2025.
The condensed consolidated financial statements have been prepared under the
historical cost convention, except in the case of financial instruments at
FVPL and financial instruments at FVOCI. The financial information is rounded
to the nearest thousand, except where otherwise indicated.
Future accounting developments
The following standards and amendments have been assessed as not having a
material impact at this time.
Effective from
Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of financial 1 January 2026
instruments
Annual improvements to IFRS - volume 11 1 January 2026
IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027
The impact of the following is under assessment - IFRS 18 "Presentation and
Disclosure in Financial Statements", which will become effective in the Group
financial statements for the year end 31 March 2028, subject to UK
endorsement.
Critical accounting judgements
The preparation of condensed consolidated financial statements in conformity
with IFRS requires the use of certain significant accounting judgements. The
areas involving a higher degree of judgement as at, or for the six months
ended, 30 September 2025 are:
· Contingent liabilities
A key judgement applied in preparing these financial statements is the
evaluation of the accounting treatment of the matters described in Note 23
(Contingent Liabilities). This includes the assessment of whether a present
obligation exists and where it does, estimating the likelihood, timing, and
amount of any associated outflows. In evaluating whether a provision is
required and can be reliably estimated, we consult relevant experts, where
necessary and continuously reassess our decisions. In the initial stages of
legal, tax and regulatory matters, it is often not possible to reliably
estimate the outcome, and in such cases, no provision is made. However, we
provide additional disclosures with further details on these matters.
· Intangible assets
A key judgement has been applied in recognising of customer relationship
intangible assets on the Group's Statement of Financial Position. At 30
September 2025, these had a net book amount of £9,068,000 (31 March 2025:
£8,745,000; 30 September 2024: £10,065,000). The Group applied the
recognition principles of IAS 38 "Intangible Assets" to account for these
assets and continues to measure them in accordance with this standard.
Key sources of estimation uncertainty
The preparation of condensed consolidated financial statements in accordance
with IFRS requires the use of certain significant accounting estimates. The
area involving a higher degree of estimation uncertainty as at, or for the six
months ended, 30 September 2025 is:
· Recoverable amount of the UK Invest cash-generating Unit (CGU)
Management undertakes a regular review of impairment indicators for its
non-current assets. As of 30 September 2025, indicators were identified
relating to the Group's UK Invest cash-generating unit (CGU). An impairment
test was conducted, assessing the recoverable amount based on the CGU's value
in use (VIU). This resulted in headroom above the net book amount, confirming
that no impairment was required (H2 2025: £nil; H1 2025: £nil).
Management performed sensitivity analyses on key assumptions, including
discount rate and terminal growth rate. No reasonably possible change in these
assumptions would result in the recoverable amount falling below the carrying
amount.
· Recoverable amount of Level 3 Financial assets
The Group's investment in a structured vehicle that provides indirect exposure
to common stock in Space Exploration Technologies Corp. (SpaceX) is classified
as a level 3 instrument. The valuation was derived with reference to publicly
available transaction prices, discounted to the lower price paid by the Group
to reflect inherent uncertainty in the valuation. Further adjustments were
made for illiquidity and other unobservable inputs, and significant changes in
these assumptions could materially impact the reported fair value.
Going concern
The Group actively manages and assessed the capital and liquidity requirements
of operating subsidiaries to ensure appropriate financial resources. The Group
has a broad range of products and a geographically diversified business.
Consequently, the Directors believe that the Group is well placed to manage
its business risks in the context of the current economic outlook.
Accordingly, the Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future, a period of not less than 12 months from the date of this report. They
therefore continue to adopt the going concern basis in preparing these
condensed consolidated financial statements.
Seasonality of operations
The Directors consider that given the impact of market volatility and the
growth in overseas business there is no predictable seasonality to the Group's
operations.
2. Segmental reporting
The Group's business consists of two segments, Trading and Investing, each
with distinct characteristics and client objectives.
Trading
The Group's core business involves online trading, enabling clients to trade a
broad array of financial instruments for short-term investment and hedging
purposes. These instruments include contracts for difference ("CFDs") and
financial spread betting across various assets, such as shares, indices,
foreign currencies, commodities, and treasuries. The Group also extends these
services to institutional partners through white label and introducing broker
arrangements. While CFDs are accessible globally, spread betting is available
exclusively in the UK and Ireland.
Additionally, the trading segment includes the Treasury Management and Capital
Markets Division that invests surplus liquidity to enhance yield.
Investing
To support clients' longer-term investment goals, the Group offers online
stockbroking services in Australia, the UK, and Singapore.
At the reporting date, management reviewed the appropriateness of the Group's
current operating segment disclosures and the information used by the Chief
Operating Decision Maker (CODM) to allocate resources and evaluate
performance. The Group's CODM is identified as the Board of Directors.
This segmentation aligns with the management information regularly presented
to the CODM. Revenue and operating expenses are attributed to the originating
segments, and the Group evaluates the financial performance of each segment
based on operating profit.
Half year ended 30 September 2025 Trading Investing Total
£ '000
Revenue 144,663 32,088 176,751
Interest income 14,547 5,440 19,987
Total revenue 159,210 37,528 196,738
Introducing partner commissions and betting levies (3,637) (6,920) (10,557)
Net operating income 155,573 30,608 186,181
Operating expenses (exc. depreciation and amortisation) (106,969) (22,161) (129,130)
Depreciation and amortisation (5,095) (1,786) (6,881)
Impairment of intangible assets 23 (506) (483)
Operating profit 43,532 6,155 49,687
Reversal of Impairment of investments in associate and gain on bargain 811 - 811
purchase
Finance costs (1,095) (111) (1,206)
Profit before taxation 43,248 6,044 49,292
Half year ended 31 March 2025 Trading Investing Total
£ '000
Revenue 122,944 29,868 152,812
Interest income 14,175 4,877 19,052
Total revenue 137,119 34,745 171,864
Introducing partner commissions and betting levies (3,138) (5,961) (9,099)
Net operating income 133,981 28,784 162,765
Operating expenses (exc. depreciation and amortisation) (98,995) (20,721) (119,716)
Depreciation and amortisation (4,020) (2,679) (6,699)
Impairment of intangible assets (23) (226) (249)
Operating profit 30,943 5,158 36,101
Finance costs (1,207) (9) (1,216)
Profit before taxation 29,736 5,149 34,885
Half year ended 30 September 2024 Trading Investing Total
£ '000
Revenue 138,157 26,642 164,799
Interest income 17,518 5,918 23,436
Total revenue 155,675 32,560 188,235
Introducing partner commissions and betting levies (4,104) (6,779) (10,883)
Net operating income 151,571 25,781 177,352
Operating expenses (exc. depreciation and amortisation) (94,171) (22,656) (116,827)
Depreciation and amortisation (4,990) (1,842) (6,832)
Impairment of intangible assets - (233) (233)
Operating profit 52,410 1,050 53,460
Share of results of associate (189) - (189)
Impairment of investments in associate (2,328) - (2,328)
Finance costs (1,371) (3) (1,374)
Profit before taxation 48,522 1,047 49,569
The measurement of net operating income for segmental analysis is consistent
with that in the income statement and is broken down by geographic location
below.
Half year ended
£ '000 30 September 31 March 30 September
2025 2025 2024
UK 42,425 52,722 51,871
Australia 59,025 51,733 57,455
Other countries 84,731 58,310 68,026
Total net operating income 186,181 162,765 177,352
The measurement of segment assets for segmental analysis is consistent with
that in the condensed consolidated statement of financial position. The total
of non-current assets other than deferred tax assets, broken down by location,
is shown below.
£ '000 30 September 31 March 30 September
2025 2025 2024
UK 47,273 59,052 51,671
Australia 27,207 19,329 22,126
Other countries 8,537 7,052 5,446
Total 83,017 85,433 79,243
3. Net operating income
Revenue Half year ended
£ '000 30 September 31 March 30 September
2025 2025 2024
Trading 141,713 120,764 135,405
Investing 33,202 30,552 26,637
Other 1,836 1,496 2,757
Total 176,751 152,812 164,799
Trading revenue represents CFD and Spread bet revenue (net of hedging costs)
and revenue generated from treasury operations accounted for in accordance
with IFRS 9 "Financial Instruments". Investing revenue represents stockbroking
revenue generated in Australia and investing revenue generated in other
regions accounted for in accordance with IFRS 15 "Revenue from Contracts with
Customers".
Interest income on own funds Half year ended
£ '000 30 September 31 March 30 September
2025 2025 2024
Bank and broker interest 6,691 6,930 7,312
Interest on financial investments 2,630 2,045 2,204
Other interest income 21 20 20
Total 9,342 8,995 9,536
Income on client funds Half year ended
£ '000 30 September 31 March 30 September
2025 2025 2024
Income on client funds 10,645 10,057 13,900
Total 10,645 10,057 13,900
Introducing partner commissions and betting levies Half year ended
£ '000 30 September 31 March 30 September
2025 2025 2024
Trading 3,637 3,138 4,104
Investing 6,920 5,961 6,779
Total 10,557 9,099 10,883
4. Operating expenses
Half year ended
£ '000 30 September 31 March 30 September
2025 2025 2024
Fixed remuneration 49,410 47,892 46,002
Variable remuneration 7,654 6,775 13,024
Net staff costs 57,064 54,667 59,026
IT costs 24,127 24,020 22,357
Sales and marketing 20,386 18,514 14,959
Premises 2,915 2,712 2,474
Legal and Professional fees 10,190 6,113 6,965
Regulatory fees 2,724 2,628 2,470
Depreciation and amortisation 6,881 6,698 6,833
Bank charges 3,334 2,443 1,925
Irrecoverable sales tax 3,053 3,462 2,674
Other 5,337 5,158 3,976
Operating expenses 136,011 126,415 123,659
The table above reflects the breakdown of operating expenses by the nature of
expense. It is shown net of amounts that have been capitalised.
5. Taxation
The effective tax rate for the six months ended 30 September 2025 was 27.5%
compared to the six months ended 30 September 2024 effective tax rate, which
was 28.9%. The Group's effective tax rate is higher than the UK statutory tax
rate of 25% due to the effect of profits being taxed in Australia and Germany
where the tax rate is higher than the UK rate and adjustments for discrete
items.
6. Earnings per share (EPS)
Basic EPS is calculated by dividing the earnings attributable to the equity
owners of the Company by the weighted average number of Ordinary Shares in
issue during each period, excluding those held in employee share trusts.
For diluted earnings per share, the weighted average number of Ordinary Shares
in issue, excluding those held in employee share trusts, is adjusted to assume
conversion vesting of all dilutive potential weighted average Ordinary Shares
and that vesting is satisfied by the issue of new Ordinary Shares.
Half year ended
30 September 31 March 30 September
2025 2025 2024
Earnings attributable to ordinary shareholders (£ '000) 35,939 26,926 35,261
Weighted average number of shares used in the calculation of basic earnings 270,799 274,684 275,778
per share ('000)
Dilutive effect of share options ('000) - - -
Weighted average number of shares used in the calculation of diluted earnings 270,799 274,684 275,778
per share ('000)
Basic earnings per share (p) 13.3 9.8 12.8
Diluted earnings per share (p) 13.3 9.8 12.8
For all periods presented, there are no potentially dilutive weighted average
Ordinary Shares in respect of share awards and options in issue, included in
the calculation of diluted EPS, as the Group does not expect to issue any new
shares to settle these share awards and options.
7. Dividends
Half year ended
£ '000 30 September 31 March 30 September
2025 2025 2024
Prior year final dividend of 8.3p per share 22,336 8,528 20,176
(31 March 2025: interim dividend of 3.1p,
30 September 2024: final dividend of 7.3p)
An interim dividend for 2026 of 5.5p per share, amounting to £14,833,000 has
been approved by the board but has not been included as a liability at 30
September 2025. The dividend will be paid on 8 January 2026 to those members
on the register at the close of business on 28 November 2025.
8. Intangible assets
£ '000 Goodwill Computer software Trade-marks and trading licences Client relation Crypto Assets under develop-ment Total
ships
currency assets
Cost 11,500 152,823 1,020 15,731 200 10,254 191,528
Accumulated amortisation and impairment (11,500) (140,914) (941) (5,666) - (3,394) (162,415)
Net book amount at 30 September 2024 - 11,909 79 10,065 200 6,860 29,113
Cost - 66,714 972 14,718 200 8,981 91,585
Accumulated amortisation and impairment - (52,015) (912) (5,973) (23) (3,620) (62,543)
Net book amount at 31 March 2025 - 14,699 60 8,745 177 5,361 29,042
Cost - 70,588 1,021 15,842 279 10,692 98,422
Accumulated amortisation and impairment - (54,252) (938) (6,774) - (4,126) (66,090)
Net book amount at 30 September 2025 - 16,336 83 9,068 279 6,566 32,332
£ '000 Goodwill Computer software Trade-marks and trading licences Client relation Crypto Assets under develop-ment Total
ships
currency assets
Net book amount at 31 March 2024 - 11,497 96 10,767 200 6,346 28,906
Additions - 132 - - - 2,471 2,603
Transfers - 1,734 - - - (1,734) -
Disposals - (94) - - - - (94)
Amortisation charge - (1,363) (17) (721) - - (2,101)
Impairment charge - - - - - (233) (233)
Foreign currency translation - 3 - 19 - 10 32
Net book amount at 30 September 2024 - 11,909 79 10,065 200 6,860 29,113
Additions - (1) - - - 3,471 3,470
Transfers - 4,436 - - - (4,436) -
Disposals - 3 - - - - 3
Amortisation charge - (1,431) (17) (701) - - (2,149)
Impairment charge - - - - (23) (226) (249)
Foreign currency translation - (217) (2) (619) - (308) (1,146)
Net book amount at 31 March 2025 - 14,699 60 8,745 177 5,361 29,042
Additions - 110 - 869 - 2,843 3,822
Transfers - 1,235 - - - (1,235) -
Business combinations - 1,897 41 - 79 - 2,017
Amortisation charge - (1,657) (18) (686) - - (2,361)
Impairment (charge) / reversal - - - - 23 (506) (483)
Foreign currency translation - 52 - 140 - 103 295
Net book amount at 30 September 2025 - 16,336 83 9,068 279 6,566 32,332
Computer software includes capital development costs of £26,487,000 relating
to the Group's Next Generation trading platform which has been fully
amortised.
Impairment
At 30 September 2025, impairment indicators were identified in relation to the
UK Invest CGU, and an impairment assessment was performed. No impairment loss
was recognised as the recoverable amount of the CGU exceeded its carrying
value. The recoverable amount for the UK Invest CGU was determined using a VIU
calculation. UK Invest was assessed as a standalone CGU, reflecting its
distinct user interface, brand and operating model.
The VIU calculation is based on the Group's Board-approved budget and
reforecasts covering the period from 1 October 2025 to 31 March 2028. These
forecasts reflect Management's best estimates of future business performance
and incorporate assumptions related to the execution of the Group's strategic
priorities, including the successful delivery of key B2B partnerships.
Forecast profitability for the CGU has been adjusted for non-cash items (such
as depreciation and amortisation) and expected capital expenditure. Cash flows
beyond the explicit thirty month forecast period were extrapolated over a
further seven years, reflecting a gradual progression to maturity. A terminal
growth rate of 2% has been applied thereafter, consistent with long-term
economic growth expectations in the UK - the sole market in which the CGU
operates. A pre-tax discount rate of 12% was applied in the VIU model.
Management performed sensitivity analyses on key assumptions, including
discount rate and terminal growth rate. No reasonably possible change in these
assumptions would result in the recoverable amount falling below the carrying
amount.
No impairment indicators were identified for any of the Group's other
intangible assets.
9. Property, plant and equipment
£ '000 Leasehold improvem-ents Furniture, fixtures and equipment Computer hardware Right-of-use assets Total
Cost 16,789 10,226 46,473 30,169 103,657
Accumulated depreciation (13,119) (8,878) (37,356) (18,932) (78,285)
Net book amount at 30 September 2024 3,670 1,348 9,117 11,237 25,372
Cost 16,102 3,518 22,057 30,198 71,875
Accumulated depreciation (12,896) (2,365) (13,908) (18,537) (47,706)
Net book amount at 31 March 2025 3,206 1,153 8,149 11,661 24,169
Cost 17,546 3,817 22,924 37,015 81,302
Accumulated depreciation (13,645) (2,578) (15,705) (20,199) (52,127)
Net book amount at 30 September 2025 3,901 1,239 7,219 16,816 29,175
£ '000 Leasehold improvem-ents Furniture, fixtures and equipment Computer hardware Right-of-use assets Total
Net book amount at 31 March 2024 4,071 1,129 10,108 13,238 28,546
Additions 296 423 997 3 1,719
Depreciation charge (654) (190) (1,975) (1,912) (4,731)
Foreign currency translation (43) (14) (13) (92) (162)
Net book amount at 30 September 2024 3,670 1,348 9,117 11,237 25,372
Additions 225 54 1,044 2,378 3,701
Depreciation charge (653) (199) (1,863) (1,835) (4,550)
Disposals - (28) (90) (2) (120)
Foreign currency translation (36) (22) (59) (117) (234)
Net book amount at 31 March 2025 3,206 1,153 8,149 11,661 24,169
Additions 1,365 252 759 7,000 9,376
Business combinations - - 1 - 1
Depreciation charge (685) (185) (1,707) (1,943) (4,520)
Foreign currency translation 15 19 17 98 149
Net book amount at 30 September 2025 3,901 1,239 7,219 16,816 29,175
10. Trade and other receivables
£ '000 30 September 31 March 30 September
2025 2025 2024
Current
Gross trade receivables 20,783 12,381 6,378
Less: Loss allowance (3,041) (3,136) (3,826)
Trade receivables 17,742 9,245 2,552
Prepayments 18,316 16,801 16,463
Accrued income 6,786 4,081 3,917
Stockbroking debtors 135,527 108,175 149,605
Other debtors and advances 30,486 7,540 6,986
208,857 145,842 179,523
Non-current
Other debtors 3,306 1,823 2,637
Total 212,163 147,665 182,160
Trade receivables primarily comprise amounts due from clients. These amounts
are short term and do not contain a significant financing element. The Group
recognises expected credit losses on its trade receivables. These are measured
using the simplified approach permitted by IFRS 9, which requires expected
lifetime losses to be recognised from the initial recognition of the
receivables. Amounts are written off when there is no reasonable expectation
of recovery of the amount.
Stockbroking debtors consist of amounts receivable in respect of equity
security transactions executed on behalf of clients. A corresponding balance
is included within trade and other payables (refer to Note 16). These balances
arise from the Group's application of trade date accounting and represent
amounts in the process of being cleared between the client and the exchange at
the period end.
11. Investments in associate and subsequent acquisition
during the six months ended 30 September 2025
The Group held a 33% stake in Strike X Technologies ("Strike X"), a customer
centric blockchain solutions business, which was acquired in June 2023 for a
cost of £2,800,000. During May 2025, the Group acquired a further 18% stake
in Strike X and 5 million Strike X ("STRX") tokens for a purchase
consideration of £1,000.
The assets and liabilities recognised as a result of the acquisition are as
follows:
£ '000 7 May 2025
Analysis of financial investments
Intangible assets 1,938
Property, plant and equipment 1
Trade and other receivables 78
Other assets 5
Trade and other payables (585)
Net identifiable assets acquired 1,437
Less: non-controlling interests (704)
Fair value of identifiable assets attributable to the Group 733
Add: Fair value of STRX tokens acquired as part of the transaction 79
Less: Consideration transferred (1)
Reversal of impairment of investments in associate and gain on bargain 811
purchase*
* Gain on bargain purchase amounted to £258,000.
12. Derivative financial instruments
30 September 2025 31 March 2025 30 September 2024
Assets Notional amount Net book Notional amount Net book Notional amount Net book
£m amount £m amount £m amount
£ '000 £ '000 £ '000
Held for trading
Client trading positions 454.7 36,121 291.8 24,418 304.9 28,781
Equity trading positions 46.3 2,727 - - - -
Held for hedging
Forward foreign exchange contracts - economic hedges - - 5.8 38 - -
Total 501.0 38,848 297.6 24,456 304.9 28,781
30 September 2025 31 March 2025 30 September 2024
Liabilities Notional amount Net book Notional amount Net book Notional amount Net book
£m amount £m amount £m amount
£ '000 £ '000 £ '000
Held for trading
Client trading positions 306.6 (22,371) 285.8 (11,061) 151.4 (5,629)
Equity trading positions 78.3 (2,446) 44.6 (5,099) - -
Held for hedging
Forward foreign exchange contracts - economic hedges 5.6 (24) - - - -
Total 390.5 (24,841) 330.4 (16,160) 151.4 (5,629)
The Group provides CFDs and portfolio management services to clients across
multiple jurisdictions, ensuring the segregation of client funds in compliance
with the regulations of each respective jurisdiction. In one jurisdiction, the
Group is prohibited from segregating unrealised client profits or losses
within the pooled segregated client money bank accounts. Instead, segregation
occurs only upon realisation of these profits or losses. Client trading
positions at the period end reflect the unrealised positions held by clients
at that time.
The fair value of derivative contracts are based on the market price of
comparable instruments at the balance sheet date. All derivative financial
instruments have a maturity of less than one year.
13. Other assets
Other assets are cryptocurrencies, which are owned and controlled by the Group
for the purpose of hedging the Group's exposure to clients' cryptocurrency
trading positions. As presented below, the Group holds cryptocurrencies on
exchange and in vault. Cryptocurrencies held in vaults are held in wallets
that have additional security features. Other assets are measured at fair
value less costs to sell. The fair value of cryptocurrencies is based on the
market price of these instruments as at the balance sheet date.
£ '000 30 September 31 March 30 September
2025 2025 2024
Exchange 32 10 5,869
Vaults - - 911
Total 32 10 6,780
14. Financial investments
£ '000 30 September 2025 31 March 2025 30 September 2024
Investment in debt instruments classified at FVOCI
UK Government securities 17,906 17,394 16,355
Corporate bonds 38,389 41,234 52,073
SUKUK Bonds - 3,824 -
Financial assets mandatorily measured at FVTPL
Corporate bonds 6,432 - 19,945
Credit-linked notes 15,795 19,170 20,000
Unlisted equity securities 2,409 958 2
Listed equity securities 3,107 28,374 623
Total 84,038 110,954 108,998
£ '000 30 September 2025 31 March 2025 30 September 2024
Analysis of financial investments
Non-current 18,204 30,399 22,121
Current 65,834 80,555 86,877
Total 84,038 110,954 108,998
The equity securities consisted of shares acquired to hedge client positions.
The expected credit loss held against financial instruments classified as
FVOCI is immaterial (31 March 2025: immaterial; 30 September 2024:
immaterial).
15. Cash and cash equivalents
£ '000 30 September 2025 31 March 2025 30 September 2024
Cash at bank and within money market funds 222,392 247,665 174,055
Total 222,392 247,665 174,055
Cash and cash equivalents include cash at bank, short-term deposits and highly
liquid investments such as money market funds with original maturities of
three months or less and are subject to an insignificant risk of changes in
value and are held to meet short-term cash commitments. The expected credit
loss held against cash and cash equivalent balances was immaterial (31 March
2025: immaterial; 30 September 2024: immaterial).
16. Trade and other payables
£ '000 30 September 2025 31 March 2025 30 September 2024
Current
Client payables 128,803 117,740 110,912
Tax and social security 2,730 502 1,020
Stockbroking creditors 120,599 99,629 133,217
Accruals and other creditors 26,971 35,710 32,477
Payables in respect of financial investments 5,297 - 20,000
284,400 253,581 297,626
Non-current
Accruals 4 4 -
Total 284,404 253,585 297,626
Stockbroking creditors represent the amount payable in respect of equity and
securities transactions executed on behalf of clients with a corresponding
balance included within trade and other receivables (note 10).
17. Obligations under repurchase agreements
There were no balances arising from repurchase transactions at 30 September
2025 (31 March 2025: £7.5 million, 30 September 2024: £28.9 million). The
Group pledged assets for repurchase agreements which are generally conducted
under terms that are usual and customary for standard securitised borrowing
contracts. The fair value of the collateral provided under these agreements at
31 March 2025 was £8.7 million and at 30 September 2024 was £31.8 million.
18. Lease liabilities
Half year ended
£ '000 30 September 2025 31 March 2025 30 September 2024
At the beginning of the period 14,342 14,344 16,915
Additions / modifications of new leases during the period 7,088 2,490 231
Interest expense 674 510 592
Lease payments made during the period (2,371) (2,858) (3,302)
Foreign currency translation 109 (144) (92)
At the end of the period 19,842 14,342 14,344
£ '000 30 September 2025 31 March 2025 30 September 2024
Analysis of lease liabilities
Non-current 15,916 11,233 10,579
Current 3,926 3,109 3,765
Total 19,842 14,342 14,344
19. Provisions
£ '000 Restructuring Property related Other Total
At the 31 March 2024 2,186 386 1,622 4,194
Additional provision - - 26 26
Utilisation of provision (2,186) (56) (13) (2,255)
Unutilised provision reversed - (73) - (73)
Translation - - (40) (40)
At the 30 September 2024 - 257 1,595 1,852
Additional provision 1,025 108 4,408 5,541
Utilisation of provision - - (34) (34)
Unutilised provision reversed - - (1,566) (1,566)
Translation - (16) (146) (162)
At the 31 March 2025 1,025 349 4,257 5,631
Additional provision 1,016 14 5,954 6,984
Utilisation of provision (1,605) - (9,534) (11,139)
Translation - 5 87 92
At the 30 September 2025 436 368 764 1,568
Restructuring
The restructuring provision relates to redundancies and exits announced during
the relevant half-year. The provision in place as at 31 March 2025 was fully
utilised during the period ended 30 September 2025 following the departure of
the affected members of staff.
Property related
The property-related provisions include dilapidation provisions. Dilapidation
provisions have been capitalised as part of cost of ROU assets and are
amortised over the term of the lease. These dilapidation provisions are
utilised as and when the Group vacates a property and expenditure is incurred
to restore the property to its original condition.
Other provisions
Other provisions include an amount in respect of customer remediation in
Australia, following an industry-wide regulatory review into margin netting.
Most of the provision has been utilised in the half year ended 30 September
2025, with affected customer accounts credited accordingly.
20. Cash generated from operations
Half year ended
£ '000 30 September 31 March 30 September
2025 2025 2024
Cash flows from operating activities
Profit before taxation 49,292 34,885 49,569
Adjustments for:
Interest income on own funds (9,342) (8,995) (9,536)
Income on client funds (10,645) (10,057) (13,900)
Finance costs 1,206 1,216 1,374
Depreciation 4,520 4,550 4,731
Amortisation and impairment of intangible assets 2,844 2,398 2,334
(Reversal of impairment of investments in associate and gain on bargain (811) - 2,328
purchase) / Impairment of investments in associate
Research and development tax credit - (566) -
Share of results of associate - - 189
Loss on disposal of property, plant and equipment - 108 94
Share-based payment 2,161 1,798 1,785
Fair value losses on financial investments at FVTPL (2,501) 53 -
Other non-cash movements including exchange rate movements 1,876 (1,042) 1,038
Changes in working capital:
(Increase) / decrease in trade and other receivables (62,682) 35,062 (16,970)
(Increase) / decrease in amounts due from / due to brokers (6,772) 74,344 19,785
(Increase) / decrease in other assets (17) 6,770 5,478
Decrease / (increase) in financial investments held for trading 23,816 (28,952) -
Increase / (decrease) in trade and other payables 23,960 (24,046) 4,820
(Increase) / decrease in net derivative financial instruments (5,711) 14,856 1,401
(Decrease) / increase in provisions (4,169) 3,833 (2,302)
Cash generated from operations 7,025 106,215 52,218
21. Fair value measurement disclosures
IFRS 13 "Fair Value Measurement" requires the Group to classify its financial
assets and liabilities according to a hierarchy that reflects the
observability of significant market inputs. The three levels of the fair value
hierarchy are defined below:
· Level 1 - quoted prices (unadjusted) in active markets for
identical assets or liabilities;
· Level 2 - inputs other than quoted prices included within level 1
that are observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices); or
· Level 3 - inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs).
30 September 2025
£ '000 Level 1 Level 2 Level 3 Total
Financial investments 21,000 60,629 2,409 84,038
Derivative financial instruments (current assets) - 38,848 - 38,848
Derivative financial instruments (current liabilities) - (24,841) - (24,841)
21,000 74,636 2,409 98,045
31 March 2025
£ '000 Level 1 Level 2 Level 3 Total
Financial investments 45,768 64,228 958 110,954
Derivative financial instruments (current assets) - 24,456 - 24,456
Derivative financial instruments (current liabilities) - (16,160) - (16,160)
45,768 72,524 958 119,250
30 September 2024
£ '000 Level 1 Level 2 Level 3 Total
Financial investments 16,978 92,018 2 108,998
Derivative financial instruments (current assets) - 28,781 - 28,781
Derivative financial instruments (current liabilities) - (5,629) - (5,629)
16,978 115,170 2 132,150
Valuation techniques
There have been no changes to the fair value hierarchy or valuation techniques
for any of the Group's financial instruments held at fair value in the period.
During the period, there were no transfers between levels (31 March 2025:
None, 30 September 2024: None).
Fair value of financial assets and liabilities measured at amortised cost
The fair value of the following financial assets and liabilities not held at
fair value approximates to their net book Amount:
· Cash and cash equivalents
· Amounts due from/to brokers
· Trade and other receivables (financial assets only)
· Trade and other payables (financial liabilities only)
· Obligations under repurchase agreements
Reconciliation of Level 3 Fair Value Measurements
The following table provides a reconciliation of movements in fair value
measurements categorised within Level 3 of the fair value hierarchy for each
class of assets:
Unlisted equity investments
Half year ended
£ '000 30 September 2025 31 March 2025 30 September 2024
At the beginning of the period 958 2 32
Purchases 1,451 795 -
Gains / (losses) recognised in the income statement - 161 (30)
At the end of the period 2,409 958 2
22. Related party transactions
The Group considers its key management personnel and persons connected with
them to be related parties. The Directors and members of the Executive
Committee are considered to be key management personnel for disclosure
purposes.
The basis of remuneration of key management personnel remains consistent with
that disclosed in the statutory financial statements for the Group as at and
for the year ended 31 March 2025.
There were no other transactions with key management personnel during the half
year ended 30 September 2025, other than those already reported in the annual
report and financial statements for the year ended 31 March 2025.
23. Contingent liabilities
The Group's geographical reach exposes it to a high degree of uncertainty
regarding the interpretation of local regulatory, tax and legal matters in
each territory in which it has operations. In addition, the Group is party to
various contractual relationships that could result in non-performance claims
and other contractual breaches and from time to time is involved in disputes
as part of the ordinary course of business.
In certain instances, legal disputes can have a significant financial
exposure, however the Group's manages these risks proactively to resolve
disputes and claims are usually resolved without any material loss. The Group
makes provision for claims where costs are likely to be incurred.
Where there are uncertainties regarding regulatory, tax and legal matters and
a provision has not been made, there are no contingent liabilities where the
Group considers any material adverse financial impact to be probable
Notice of class action lawsuit
One of the Group's operating entities in Australia continues to be the subject
of class action proceedings in the Federal Court of Australia, initiated in
May 2022. The proceedings relate to the acquisition of interests in CFDs and
binary products between November 2011 and April 2021 by retail clients who
suffered a loss. A further tranche of discovery from the Group was
completed in August 2025. A timetable has been set for further amendments to
the claim proposed by the Applicants, for the remainder of the calendar year
2025 and through to early 2026. Accordingly, at this time, the scope and
prospects of the claim are still being determined. It is not practicable at
this time to determine any estimate of potential financial impact, outflow, or
timing thereof.
Open tax enquiries
The Group has open routine tax enquiry in relation to its Canadian entity. The
potential outcome of these enquiries is ongoing and there is no certainty
whether there may be a financial cost to the Group.
24. Events after the reporting period
There were no significant events after the reporting period.
INDEPENDENT REVIEW REPORT TO CMC MARKETS PLC
Conclusion
We have been engaged by the CMC Markets plc (the "Group") to review the
condensed set of financial statements in the half-yearly financial report for
the six months ended 30 September 2025 which comprises the Condensed
Consolidated Income Statement, the Condensed Consolidated Statement of Other
Comprehensive Income, the Condensed Consolidated Statement of Financial
Position, the Condensed Consolidated Statement of Changes in Equity, the
Condensed Consolidated Statement of Cash Flows and the related notes 1 to 24.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2025 is not prepared,
in all material respects, in accordance with United Kingdom adopted
International Accounting Standard 34 and the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with United Kingdom-adopted International Accounting
Standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, "Interim Financial
Reporting" ("IAS 34").
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the Group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the Group a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the Group in accordance with ISRE (UK) 2410. Our
work has been undertaken so that we might state to the company those matters
we are required to state to it in an independent review report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Group, for our review work, for
this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
20 November 2025
Alternative performance measures
In presenting financial information, the Group includes certain measures that
are not mandated by IFRS, the Generally Accepted Accounting Principles under
which the Group prepares its reports. These measures align with those utilised
by management to evaluate underlying performance.
Net operating income
Total revenue net of rebates, levies and other variable costs directly
associated with revenue generation. It provides a useful measure of the income
retained by the Group from its core operations.
Half year ended
£ 'million Note 30 September 30 September
2025
2024
Net trading revenue 138.1 131.3
Net investing revenue 26.3 19.9
Other revenue 1.8 2.8
Interest income 20.0 23.4
Net operating income 3 186.2 177.4
EBITDA
Profit before tax adjusted for finance costs and certain non-cash items. It
provides a useful measure for assessing underlying profitability across
periods and with peers, as it focuses on the core earnings generated from
business operations, excluding the impact of financing decisions and non-cash
adjustments.
Half year ended
£ 'million Note 30 September 30 September
2025
2024
Profit before taxation 49.3 49.6
Finance costs 1.2 1.4
Depreciation and amortisation 6.9 6.8
Impairment of intangible assets 0.5 0.2
Impairment of investment in associates (0.8) 2.3
EBITDA 57.1 60.3
Profit before tax margin
Profit before tax expressed as a percentage of net operating income.
Half year ended
Percentage Note 30 September 30 September
2025
2024
Profit before taxation (£ 'million) 49.3 49.6
Net operating income (£ 'million) 3 186.2 177.4
Profit before tax margin 26.5% 27.9%
Net trading revenue
Gross trading revenue less attributable introductory partner commissions and
betting levies. This metric provides a clearer view of the underlying revenue
generated from trading activity that is directly attributable to the Group,
excluding variable costs linked to revenue generation. It is a useful measure
for assessing the profitability and performance of trading operations.
Half year ended
£ 'million Note 30 September 30 September
2025
2024
Trading revenue 3 141.7 135.4
Trading introducing partner commissions and betting levies 3 (3.6) (4.1)
Net trading revenue 138.1 131.3
Net investing revenue
Net investing revenue is defined as gross investing revenue less attributable
introductory partner commissions. This metric reflects the revenue from
investing activity that is retained by the Group after variable
partner-related costs. It is a useful measure for evaluating the underlying
performance and profitability of the Group's investing business.
Half year ended
£ 'million Note 30 September 30 September
2024
2025
Investing gross revenue 3 33.2 26.6
Investing introducing partner commissions 3 (6.9) (6.7)
Net investing revenue 26.3 19.9
Interest income
Total income earned from interest-bearing own assets and client funds. It
provides a useful measure of the contribution from treasury and cash
management activities, and can be an important driver of overall
profitability, particularly in varying interest rate environments.
Half year ended
£ 'million 30 September 30 September
2025
2024
Interest income on own funds 9.3 9.5
Income on client funds 10.7 13.9
Interest income 20.0 23.4
Reconciliation of total operating expenses
Total operating expenses includes operating expenses and any impairment of
intangible assets. It is a measure of total costs incurred by the Group.
Half year ended
£ 'million Note 30 September 30 September
2025
2024
Operating expenses 4 136.0 123.7
Impairment of intangible assets 8 0.5 0.2
Total operating expenses 136.5 123.9
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