CMC Markets Posts $53.5 Million in Profit on Cost CuttingTom Beardsworth
CMC Markets Plc, the U.K. spread-betting company, reported a pretax profit of 32.8 million pounds ($53.5 million) after a year of cost cutting.
Operating expenses at CMC, which specializes in financial spread betting, futures contracts and foreign-exchange trading products, fell 16 percent in the 12 months through March, the London-based company said in a statement today. That helped it return to profitability after posting a 4 million-pound loss the year earlier.
The company’s new trading platform “offers competitive pricing and automated trade execution,” Chief Executive Officer Peter Cruddas said in the statement. “Our results prove this has given us an edge in the industry today.”
Firms including CMC and London-based IG Group Holdings Plc let clients take positions in markets without buying or selling actual securities, currencies or futures. CMC boosted use through mobile devices, executing more than 1 million such trades in one month, it said.
The company cut 73 jobs in the last year, helping reduce staff costs by 8.4 million pounds, it said in an e-mail. Contract employee costs fell by more than half as the company neared the end of its trading platform development work.
Cruddas, a former treasurer of the Conservative Party in the U.K., founded CMC Markets 25 years ago and returned to run the company in January 2013.
CMC resumed dividends, paying 12 million pounds for the year, according to the statement.