Broker CMC Markets released its key financial figures for the first half of fiscal year 2024, which showed a sharp decline in revenue.
Trading net revenue for the first half of the year fell 32% year-on-year to £87.4 million due to lower market volatility and client trading volumes.
Investing net revenue for the first half of FY2024 fell 20% to £16.8m compared to the first half of FY2023, primarily due to lower activity and adverse market conditions, FNG said.
Client trading assets under management decreased to £501 million in the period from £506 million in the first half of fiscal 2023. The number of active trading clients decreased by 7% to 46,832 in the first half of FY2024.
The Board has declared an interim dividend of 1.00 pence per share for the period (H1 2023 was 3.50 pence per share). This is in line with the dividend policy of 50% of profit after tax.
For the full year 2024, CMC Markets expects net operating income to be in the range of £250 million to £280 million and operating costs, excluding variable remuneration, to be £240 million.
"I am pleased with the resilience the business has shown in the first six months of the year in challenging market conditions, with low volatility providing fewer opportunities for clients of our trading business. Despite the challenging market conditions, we are seeing continued commitment from our existing clients and positive engagement in our institutional business," said Lord Cruddas, Chief Executive Officer.
"We continue to expand our trading offering, supported by the forthcoming launch of our options products, while the addition of cash equities to our institutional offering will allow us to broaden the services available to this valuable segment and help us attract new business. Our geographic diversification has also continued with the recent expansion of our Dubai office into the DIFC, giving us a strong foothold in one of the world's most exciting financial centers," he added.
Read also: Bithumb intends to list on the Korean stock exchange.
