CMC Markets readies IPO

London-based spreadbetting company CMC Markets has announced its intention to offer shares via an initial public offering. .

The 550-person strong outfit didn't offer a price range for the initial public offering, although reports indicated it might be targetting a valuation of approximately £780m, somewhat less than the £1bn which some in the City had been bandying about as far back as last spring.

For the six months ending on 30 September, the company reported earnings before interest, taxes, depreciation and amortisation of £30.1m, up 72% on the same period of a year before.

"Continuing the trends the Group reported in its first half results, it has continued to see growth across its key metrics year on year. Market volatility in October and November was not as high as in August and September, but nevertheless the Group performed well, continued to make good progress across its areas of strategic focus and finished the third quarter on track to meet its full year expectations," the group said in a statement.

Total revenues in financial year 2015 hit £157.9m and the group said it was targetting total sales of £250m (before rebates) by the end of the financial year ending on 31 March 2020.

In recent years the group has "consistently" paid out annual dividends, with a payout ratio - which it will continue to target - of about 50% of consolidated annual post-tax profit.

For the six months ended on 30 September 2015 the firm also paid out a special dividend.

The first dividend payment following admission to trading, for the financial year ending on 31 March 2016, was to be paid in July 2016.