CMC Markets posts jump in active clients as it says no hit likely from Brexit

Spreadbetting firm CMC Markets, which listed earlier this year, reported a rise in active clients and said it did not expect to take a hit from the UK’s decision to leave the European Union.

In its interim management statement for 1 April to 30 June, the company said it continues to make good progress against its strategic plan since the start of the year, with strong levels of active clients and client applications.

Active clients were up 13% compared to the same period last year, with solid growth in client applications and approved accounts. However, the value of client trades fell, particularly in the lead-up to the EU referendum, resulting in a small drop in revenue per active client compared to last year.

In addition, the group said no losses were incurred through the high levels of volatility around the EU referendum thanks to prudent risk management and “proactively managed” margins.

CMC added that the cost of restructuring its offices to continue to service European clients, should barriers be imposed on cross-border trading in the future, is not expected to materially affect its cost base.

Chief executive Peter Cruddas said: "The group continues to make progress on its five pillars for growth and we continue to attract high-quality clients through our focus on retention, service and technology.

“In line with the wider market, volumes were lower leading into the EU referendum as clients traded in smaller sizes. However, clients trade volumes have subsequently increased and improvements in underlying client metrics are very positive.”

At 1010 BST, shares were down 3% to 278.50p.