5
February 2024
CMC Markets
Plc
Cost reduction and efficiency
plans
CMC Markets Plc ("CMC" or the
"Group"), a leading global provider of online retail ("D2C") and
institutional ("B2B") platform technology, today issues an update
on its cost reduction and efficiency plans.
Cost
efficiency drive
In its interim results
announcement on 16 November 2023, CMC indicated that the
business was reaching the peak of its investment cycle and a cost
review was planned for H2 focused on driving efficiency through its
global operations. The review has been successfully completed and
as a result the Group will be reducing global headcount by
approximately 200 positions, representing circa 17% of existing
headcount.
CMC is expected to incur a one off,
non-recurring cost of circa £2.5 million in FY24 with estimated
annualised savings of £21 million to be realised in FY25,
representing an 18% reduction against consensus staff
costs.
The Group continues to focus on
driving efficiencies and making structural savings across its
global operations.
Cost reductions have been primarily
achieved by merging support functions across multiple business
lines, streamlining reporting lines and automating
processes. The Group will continue to seek opportunities to
drive efficiencies and control costs while remaining committed to investing in growth opportunities and
ensuring its technology remains market leading.
Trading remains in line with
expectations and the Group is on track to deliver net operating
income of between £290-£310 million for FY24.
The next scheduled update to the
market will be the FY24 pre-close update on 9 April
2024.
Enquiries
CMC Markets
Plc investor.relations@cmcmarkets.com
Albert Soleiman, Chief Financial
Officer
Camarco +44
(0) 20 3757 4994
Geoffrey Pelham-Lane
Jennifer Renwick
MAR
disclosure statement
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation
("MAR"). Upon the publication of this announcement via Regulatory
Information Service ("RIS"), this inside information is considered
to be in the public domain.
Notes to Editors
CMC Markets Plc ("CMC"), whose
shares are listed on the London Stock Exchange under the ticker
CMCX (LEI: 213800VB75KAZBFH5U07), was established in 1989 and is
now one of the world's leading online financial trading businesses.
The Company serves retail and institutional clients through
regulated offices and branches in 12 countries with a significant
presence in the UK, Australia, Germany and Singapore. CMC Markets
offers an award-winning, online and mobile trading platform,
enabling clients to trade over 12,000 financial instruments across
shares, indices, foreign currencies, commodities and treasuries
through contracts for difference ("CFDs"), financial spread bets
(in the UK and Ireland only) and, in Australia, Singapore and the
UK, access stockbroking services. More information is available
at http://www.cmcmarketsplc.com.