CMC Markets Reports 33% Profit Surge in Full Year Results
Why we think this is good
The financial results for CMC Markets are largely positive, showing significant improvements in profitability and financial strength. The 33% increase in profit before tax to £84.5 million and the rise in basic EPS to 22.6p demonstrate strong financial performance. The company's cash position has also substantially improved, with cash and cash equivalents increasing to £247.7 million. While revenue growth was modest at 2%, the improvement in profit margins from 19.0% to 24.8% indicates enhanced operational efficiency. The increased dividend and positive outlook for FY 2026 further support a favorable view. However, it's important to note that the company faces some risks, including its venture into new technologies like DeFi and Web 3.0, as well as an ongoing class action lawsuit in Australia. These factors, combined with the modest revenue growth, prevent an extremely positive rating. Nonetheless, the overall financial health and strategic direction of the company appear robust, justifying a 'GOOD' sentiment score.
Key Points
- Profit before tax up 33% to £84.5 million
- Net operating income increased 2% to £340.1 million
- Basic EPS rose to 22.6p from 16.7p
- Cash and cash equivalents increased to £247.7 million
- Profit before tax margin improved to 24.8% from 19.0%
- Final dividend increased to 8.3 pence per share
- Investing in DeFi and Web 3.0 technologies for future growth
- Ongoing class action lawsuit in Australia poses potential risk
- Recent trading conditions supportive, providing momentum into FY 2026
Summary
CMC Markets has delivered a strong set of results for the year ended 31 March 2025. Profit before tax increased by 33% to £84.5 million, while net operating income grew by 2% to £340.1 million. The company's financial position strengthened significantly, with cash and cash equivalents rising to £247.7 million. Profitability improved, as evidenced by the increase in profit before tax margin to 24.8%. The company is investing in future growth areas, including DeFi and Web 3.0 technologies, which could drive long-term value. However, these new ventures also carry execution risks. The final dividend was increased to 8.3 pence per share, reflecting confidence in the company's financial health. While the overall picture is positive, investors should be aware of potential risks, including an ongoing class action lawsuit in Australia. Recent trading conditions have been supportive, providing good momentum into FY 2026.