UK's CMC Markets prelim FY profit rises on Institutional & B2B partnerships growth
UK's CMC Markets prelim FY profit rises on Institutional & B2B partnerships growth
Overview
UK online trading platform's preliminary FY2026 net operating income rose 15% yr/yr
Preliminary pretax profit for FY2026 rose 20%
Company proposed a 21% increase in full-year dividend to 13.8 pence per share
Outlook
CMC Markets expects FY2027 net operating income to rise at least 17% to £460-£480 mln
Company guides FY2027 operating costs (excl variable remuneration) at about £280 mln
Company expects to launch transformational Westpac and ASB Bank partnerships and expand multi-asset platform in next 12 months
Result Drivers
INSTITUTIONAL & B2B PARTNERSHIPS - Continued scaling of institutional and B2B partnerships, including strong momentum from the neobank API, drove income growth and earnings diversification
AUSTRALIAN STOCKBROKING - Record performance in the Australian stockbroking business, with net operating income up 32% yr/yr, supported by growth in client activity and assets under administration
MARKET VOLATILITY - Elevated market volatility, especially in commodities and precious metals, led to increased client trading activity and higher trading revenue
Company press release: ID:nRSD9386Ga
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Trading and investing revenue |
| GBP 372.9 mln |
|
FY Net Operating Income |
| GBP 392.6 mln |
|
FY Pretax Profit |
| GBP 101.3 mln |
|
FY Basic EPS |
| GBP 0.28 |
|
FY Dividend |
| GBP 0.138 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment banking & brokerage services peer group is "buy"
Wall Street's median 12-month price target for CMC Markets PLC is GBp277.50, about 24.6% below its June 3 closing price of GBp368.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)