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Online trading brokerage CMC cut its dividend after reporting a slump in profit in the first half of the year as income fell after trading activity eased from pandemic highs.
For the six months ended 30 September 2021, pre-tax profit fell 75% to £9.6 million year-on-year as opreating income slipped 45% to £126.7 million.
H1 2022 leveraged net trading revenue fell 50% to £101.0 million from £200.4 million, owing to a 'decrease in market volatility resulting in lower client trading activity and client income retention reverting towards guided levels,' the company said.
The interim dividend was cut to 3.50 pence from 9.20 pence last year.
Looking ahead, the company reiterated its annual guidance, forecasting FY 2022 net operating income to be between £250-to-280 million.
'We continue to expect 2022 operating expenses excluding variable remuneration to be moderately higher year-on-year, with H2 2022 operating expenses excluding variable remuneration to be circa 6% higher than H1 2022 due to an expected pickup in marketing spend,' the company said.