LONDON, November 7, 2014 /PRNewswire/ --
- CMC Markets Group is on course to exceed last year's adjusted EBITDA of £52million
- New customer account applications up by 37% vs. 2013
- Clients have received cash rebates of £2.9 million since April 2014
CMC Markets plc. [http://www.cmcmarkets.com], one of the leading providers of financial spread betting and CFD trading, announces a strong performance for its first six months to 30 September 2014 and is on course to exceed last year's adjusted EBITDA of £52 million.
The Group's performance has remained strong with the Company announcing a record number of new clients, turnover and trades on its Next Generation platform. Volume turnover has increased by nearly 10% year on year and on the Next Generation platform, active clients and trade count are up by 19% and 30% respectively compared to last year.
The number of Next Generation account applications is up by 37% compared to last year (2013) and significantly, reactivation rates are in excess of 22%. The combination of the award-winning platform and intensified focus on client service is improving retention, reactivation and growth. This signals that despite periods of low volatility, the Company is gaining ground against its major competitors.
In addition, the Company has announced that over the last six months they have made cash rebates of £2.9 million to eligible clients. This cash rebate programme rewards active clients trading in high volumes and allows them the flexibility to withdraw the cash rebates earned or increase existing positions. This programme has contributed to helping improve the net client churn rate which is now at a positive 29% on the Next Generation platform. This paired with the significant client acquisition rate (37%) is reducing CMC Markets' dependency on market volatility for growth.
Based on the positive performance of its first six months, the Group is on course to exceed last year's adjusted EBITDA of £52 million, in spite of the record pay outs to clients through rebates.
Trading in October has continued to be strong; revenues and turnover for the month are 56% and 62% higher respectively than the same period last year. As at the end of October, the Group's capital ratio was 24% (296% pre CRD IV) and own cash was £128 million. As in the previous year, the Group will pay an interim dividend.
During the remainder of the financial year CMC Markets Group will continue its accelerated product development program to enhance the Next Generation platform and also has plans to launch new products. The Next Generation partner offering is also being launched to new and existing partners.
Commenting on the performance, Peter Cruddas, Chief Executive, said: "When I returned as CEO, I laid out a clear strategy; to get the Next Generation platform correctly positioned, to offer strong client retention and loyalty programmes and to create a premium service and trade execution with transparency at its heart. We needed to generate trust and loyalty amongst our client base and to work with them to improve our platform and service. We are well on the road to deliver our strategic transformation and that can be seen through our growing turnover and incredibly positive client churn. Achieving this during low levels of market volatility shows the sustainability of the business plan and the Next Generation platform. It is also testament to how hard everyone at CMC Markets has worked over the last year. ''
Notes to Editors
1. Earnings before interest, tax, depreciation and amortisation (EBITDA) is presented before any discretionary bonus charge
2. Rated Best Trading Platform Features based on highest user satisfaction among spread betters, CFD and FX traders in the Investment Trends 2014 UK Leveraged Trading Report.
CMC Markets is a leading global provider of financial spread betting and Contracts for Difference ("CFDs"), offering access to thousands of products across FX, indices, shares, commodities and treasuries. Since Peter Cruddas founded CMC Markets in 1989, the company now has offices in London, Paris, Milan, Madrid, Frankfurt, Oslo, Stockholm, Toronto, Sydney, Auckland, and Singapore, CMC Markets represents clients in 77 countries.
Spread bets and Contracts for Difference ("CFDs") are leveraged products and carry a high level of risk to your capital as prices may move rapidly against you. It is possible to lose more than your investment and you may be required to make further payments. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice.
CMC Markets UK Plc and CMC Spreadbet Plc (collectively known as CMC Markets) are authorised and regulated in the UK by the Financial Conduct Authority, reference numbers 173730 and 170627. For further information on CMC Markets please visit http://www.cmcmarkets.com
CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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SOURCE CMC Markets