The global online trading provider CMC Markets Plc published positive expectations for the last quarter of its 2020 fiscal year. This was due to higher client income in comparison to the first half of 2020 from April to September 2019.
Without providing exact figures, the group reported higher net operating income for Q3 ended on December 31, 2020. This impacted higher revenue per active client despite lower client income due to weaker market conditions.
The platform expects a full-year 2020 consensus at £187.5 million, ranging from £184.1 million to £189.3 million.
Profit Before Tax will come at £43.1 million ranging from £38.6 million to £45.5 million.
CMC continues to grow and diversify both its B2B and B2C businesses, according to CEO Peter Cruddas. He claims that their strong Q3 results are from “the right strategy for the business.”
According to Cruddas, CMC has the technology to attract experienced clients and institutional partners worldwide. Their “solid start” made the Board confident about its performance for the full year.
Broker Confidence Rises with CMC
The continuing decline is almost over – brokers reported increasing confidence from the end of 2019 to the start of 2020. According to New York’s quarterly Broker Confidence Index report, 13% of both commercial and residential brokers increased confidence in Q4.
Residential brokers’ confidence index scores rose 18% in the fourth quarter, reporting 6.87 out of 10. The figure was the first positive movement since January 2019.
Commercial brokers, on the other hand, had a more positive outlook. Their confidence increased by 22% quarter-over-quarter to 7.28.
Sustained economic growth and “historically low-interest rates” affected the increase, despite looming concerns over the upcoming American election. Leasing activity from tech firms and online-native businesses taking physical space also increased residential confidence.
Commercial brokers wait for movement on potential commercial rent control legislations. This could decline sales of commercial properties with retail space.
The study mentioned is an eight-question survey to measure brokers’ six-month forecasts. An index below 5 signals low confidence on the market.