CMC Markets Shares Plummet 27% On Profit Warning
Financial services company CMC Markets has lost over a quarter of its value in trading after it issued a profit warning and cut its guidance by up to £80 million.
Having previously upped its earnings outlook on several occasions in recent months, CMC Markets has now said it expects its annual earnings to come in at between £250million to £280million, a significant decrease from a previous forecast of in excess of £330million.
By the afternoon in London, the company’s share price was down approximately 27% as it said that market volatility had eased from the extreme levels experienced at the height of the pandemic. The stock was at its lowest level in over a year.
In the year to March 2021, the company had recorded a net operating income close to £410 million alongside record profits as its clients traded more on market volatility.
In a statement, CMC Markets said: “Reduced volatility in markets has resulted in lower trading activity across both the newly acquired and existing cohort of clients. Similar trends have been seen across our non-leveraged and leveraged businesses.”