5 days ago
Trading platform CMC Markets misses profit expectations, shares drop 18%
June 5 (Reuters) - British trading platform CMC Markets' (CMCX.L), opens new tab shares plunged nearly 18% after it reported annual pre-tax profit below market expectations on Thursday, hurt by higher-than-expected costs due to a one-time charge related to a regulatory review in Australia.
Adjusted pre-tax profit rose 33% to 84.5 million pounds ($114.64 million) for the year ended March 31, missing analysts' estimate of 90.6 million pounds, according to a company-compiled consensus.
CMC Markets said it took a one-time charge of 4.3 million pounds related to customer remediation in Australia, following an industry-wide regulatory review into margin netting - a form of risk management technique.
Shares fell as much as 17.8% to 233.5p, their lowest in more than six weeks.
CMC Markets, which provides trading services in more than 12,000 financial instruments, said deputy CEO David Fineberg will move into a newly created role of global head of strategic partnerships.
It also named Paul Wainscott, a current senior independent director, as its new non-executive chairman.
($1 = 0.7371 pounds)
