London based online trading firm CMC Markets plc (LON:CMCX) has issued a Trading Update for its fiscal Q1 of FY2025, indicating that Q1 performance was in line with expectations, with the company on track to achieve net operating income of between £320-360 million for the year. CMC has a March 31 fiscal year end, so Q1 of FY2025 are the calendar months of April-May-June 2024.
CMC reported that consistent with its FY24 results announcement made on 20 June, the Group traded in line with management’s expectations during the first quarter of FY25. Good progress is being made on CMC’s institutional and B2B strategy, as highlighted by the recent announcement of its partnership with Revolut and an encouraging pipeline of potential opportunities.
The initial onboarding of Revolut clients has commenced and some clients are now live and trading. Further details will be provided at CMC’s half year results in November, as the partnership picks up momentum and develops over the coming months. The company said that this exciting and important partnership reinforces CMC’s position as a market leader and innovator in the B2B fintech space through technology and its API ecosystem.
As outlined at the company’s full year announcement, management remains focused on opportunities to drive additional cost efficiencies and deliver margin expansion, particularly in the institutional and B2B space, where CMC sees growing profit margins.
Guidance remains unchanged with the expectation of net operating income of between £320-360 million in FY25 on a cost base, excluding variable remuneration and non-recurring charges, of approximately £225 million.
The CMC Markets H1 2025 pre-close trading update is scheduled to be released on 9 October 2024.
