UK's CMC Markets sees 2027 operating income above market view, shares surge (updated)
UPDATE 2-UK's CMC Markets sees 2027 operating income above market view, shares surge Adds further details, CEO quote in paragraph 4, adds graphic
June 4 (Reuters) - British trading platform CMC Markets CMCX.L forecast annual profit ahead of market views on Thursday, sending its shares up nearly 20%, as the group banks on a boost from its business partnerships and robust trading due to market volatility.
Global markets have whipsawed since the Iran war began, adding to uncertainty over trade, interest rates and living costs. CMC is also focusing on expanding its business-to-business segment, which serves institutional clients such as banks and offers access to larger client bases and higher margins.
"CMC today operates a very different and diverse business model. With performance significantly driven by B2B and wholesale, we are providing critical market infrastructure to our global partner platforms and their underlying clients," CEO Peter Cruddas said in a statement.
CMC shares were the top gainers on London's mid caps index, rising to their highest since July 2021.
PARTNERSHIP MOMENTUM
The company has partnered with Westpac WBC.AX and ASB Bank in Australia, its second-biggest market, for a stockbroking partnership and also provides its trading platform services to newer banks such as Revolut.
Jefferies analysts said CMC’s Australian deals should materially boost investment revenue as the group diversifies beyond pure trading.
CMC forecast net operating income between £460 million and £480 million for the year ending March 2027, above company-compiled analyst expectations of £385.5 million.
For fiscal 2026, pretax profit stood at £101.3 million, below expectations of £106.7 million, after a remediation charge incurred in Australia following an industry-wide regulatory review.
(Reporting by Simone Lobo in Bengaluru; Editing by Subhranshu Sahu and Louise Heavens)
((Simone.Lobo@thomsonreuters.com, +919920570373))