Shares in UK online trading provider CMC Markets plc ( LON:CMCX ) soared on Monday, rising 23% as of press time in early afternoon trading.
Earlier today CMC Markets published its latest Trading Update for the 2024 financial year (CMC has a financial year end of March 31), indicating a sharp increase in expected revenue for the year after a disappointing first half (April-September 2023). .
Following previous guidance in a revenue range of £250-£280m for FY2024 following a first half (6 months to 30 September 2023) where CMC brought in just £122.6m in revenue – its lowest ever result from FY2020 – CMC has raised its Expected Revenue Rate for the year across the board to £290-£310m. Taking the midpoint of this range, this means that after a very good quarter for the end of Calendar 2023, CMC now expects second half FY2024 revenue of around £177m – almost 50% more than the previous semester.
That would mark CMC’s best quarter of revenue in more than three years.
In our last publicly traded FX/CFD broker review last week, we reported that CMC shares were down 53% in 2023. Today’s move alone helps bring that much of a return.
CMC Markets share price chart, last 12 months. Source: Google Finance.