REG - CMC Markets Plc - Preliminary Results
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RNS Number : 9386G CMC Markets Plc 04 June 2026
04 June 2026
CMC MARKETS PLC
("CMC" or the "Group")
Preliminary full year results for the period ended 31 March 2026
Net operating income up 15% and PBT up 20% with strong financial performance
and accelerated strategic delivery.
Scaling at pace through institutional and B2B partnerships.
Strong start and positive outlook for FY2027.
CMC Markets plc announces its preliminary results for the period ended 31
March 2026. The financial information contained in this document is unaudited
and does not constitute statutory accounts within the meaning of section 434
of the Companies Act 2006.
Financial Performance
FY2026 FY2025 Change
Net operating income (£m) 392.6 340.1 15%
EBITDA (£m) 117.8 103.4 14%
Profit before tax (£m) 101.3 84.5 20%
Profit before tax margin (%) 25.8% 24.8% 1.0ppts
Basic earnings per share (pence) 27.5 22.6 22%
Ordinary dividend per share (pence) 13.8 11.4 21%
Net operating income represents total revenue net of introducing partner
commissions and betting levies. Profit before tax margin % is calculated as
profit before tax as a percentage of net operating income.
Financial Highlights
· Net operating income of £392.6 million (FY2025: £340.1 million),
up 15% year-on-year and representing the Group's best performance on record
outside of the FY2021 Covid-impacted year.
· Institutional and B2B income continued to scale during the year,
supported by strong momentum from the neobank API partnership and ongoing
diversification of the Group's earnings base.
· Record performance in the Australian stockbroking business, with net
operating income of A$140.3 million (FY2025: A$106.3 million) up 32%
year-on-year, supported by continued growth in client activity and assets
under administration.
· CapX private market investments contributed approximately £2.4 million
of net trading income during the year, reflecting unrealised gains on
strategic equity holdings.
· EBITDA of £117.8 million (FY2025: £103.4 million), with strong
performance across the Group including Treasury Management and Capital Markets
which delivered disciplined yield and liquidity optimisation, including
approximately £5.5 million of treasury-related trading income.
· Profit before tax of £101.3 million (FY2025: £84.5 million), with
a profit before tax margin of 25.8% (FY2025: 24.8%) as stronger net operating
income was partially offset by the £5.2 million Australian remediation charge
recognised in the first half.
· Final dividend of 8.3 pence per share, bringing the full-year dividend
to 13.8 pence per share (FY2025: 11.4 pence), up 21% year-on-year.
Strategic & Operational Highlights
· Australian stockbroking partnerships with Westpac and ASB Bank
progressing well and on track for launch within next 12 months. Westpac
represents a transformational partnership, with approximately A$39 billion of
assets under administration across half a million share-trading accounts.
· Neobank API partnership delivered exceptional growth in new account
openings and trading activity, demonstrating scalable distribution through B2B
partnerships.
· Multi-asset platform rollout commenced, including 24/5 US equities and
24/7 crypto and bullion, forming the foundation of the Super App.
· Invest UK continued to progress a Tier 1 institutional partnership with
a major international bank and signed a partnership agreement with UK retailer
Currys, supporting the expansion of the Group's UK B2B footprint.
· Web3 and digital asset infrastructure advanced, with institutional-grade
capabilities for trading, custody, funding and withdrawal of digital assets
aligned to the Group's multi-asset platform and Super App architecture.
· Operating model continues to evolve, with a focus on cost discipline,
outsourcing and efficiency programmes to support scalability and operating
leverage over the medium-term.
Outlook
· The Group has reached a key inflection point, with institutional and B2B
partnerships providing access to large embedded client bases, enabling growth
at scale with strong capital efficiency and attractive margins.
· The next 12 months are expected to be a defining period for the
Group, with a number of significant initiatives scheduled to come online,
including:
o Launch of the transformational Westpac and ASB Bank partnerships
o Expansion of the neobank API partnership
o Continued rollout of the multi-asset platform and progression towards the
Super App
o Entry into European certificates and warrants market
o Ongoing development of tokenisation and digital asset infrastructure
o Strategic investments in major sponsorships, reinforcing brand presence
and supporting growth in the retail and D2C segment
· Management remains focused on cost discipline, with efficiency
programmes expected to support greater operating leverage over the
medium-term.
· The Group has made a positive start to FY2027, with net operating
income supported by continued momentum across institutional and B2B
partnerships, an increasingly diversified product offering and sustained
client activity.
· As a result, the Group expects FY2027 net operating income to
increase by at least 17% year-on-year to between £460 million and £480
million, with operating costs (excluding variable remuneration) of
approximately £280 million.
CEO Statement
FY2026 was another year of exceptional delivery for CMC, against a second half
defined by extreme volatility. We have had tariffs, wars, de-dollarisation
narratives, a parabolic move in gold and silver, persistent energy supply and
demand tensions, and AI-driven speculative behaviour, especially across
commodities.
This kind of volatility is often viewed as a tailwind for traditional D2C, or
retail providers, which is broadly true. However, CMC today operates a very
different and diverse business model. With performance significantly driven by
B2B and wholesale, we are providing critical market infrastructure to our
global partner platforms and their underlying clients.
It is vital, especially during extreme volatility, that our partners can rely
on us to deliver real-time pricing, liquidity, execution, risk management and
stability at scale - often across hundreds of thousands of partner clients.
Our partners' brand and reputation depend on our service.
Volatility does not simply drive activity - it tests the resilience, stability
and scalability of our technology and operating model. We are, in effect,
operating an exchange-level service to our partners.
During the most extreme volatility in FY2026, we continued to deliver strong
performance for our clients and partners. This is not incidental; we have the
experience and technology that has been built over many years and in the
second half of FY2026 this was tested to the extreme.
It therefore gives me great pride that against this volatile backdrop CMC has
delivered a strong financial performance whilst supporting our B2B and
institutional partners, and executing against the most ambitious product and
infrastructure programme in the Company's history, with acceleration on all
fronts:
· Multi-asset platform rollout commenced, forming the foundation of
the Super App
· Web3 and DeFi infrastructure advanced towards operational
capability
· Neobank API partnership saw strong and tangible results
· Invest UK continued to progress a Tier 1 institutional partnership
with a major international bank
· Australian stockbroking business' platform build for Westpac and
ASB Bank partnerships progressing well
· Performance significantly driven by B2B and wholesale highlighting the
increasing diversification of the earnings base and the strength of the
Group's institutional offering
· Financial performance remains strong with PBT up 20% and dividend
for the full year up 21%
These achievements are not isolated. They are the result of a strategy that
has been consistent for many years. Scale through partnerships has always been
the strategy - scaling partnerships, scaling technological infrastructure and
scaling CMC's presence within the global financial ecosystem.
We have positioned the business at the intersection of established financial
markets and the next generation of digital finance. Our ability to scale at
speed across products, partners and platforms - whilst maintaining
institutional-grade performance - has allowed us to occupy that position, and
it is a powerful place to operate.
Neobank API - Another Successful Scalable Growth Engine
Scale through technology underpins everything we are building at CMC, and
nowhere is this more evident than in our neobank API partnership.
During FY2026, we saw exceptional growth in account openings and trading
activity. Such level of activity demonstrates the strength and scale of our
B2B business model and our ability to support high-volume fintech partners
through our proprietary technology infrastructure.
Our B2B business model enables CMC to expand geographically and in a capital
efficient way reducing the need for significant marketing spend while
delivering faster payback and stronger margins than traditional market entry.
This is scalable growth with structural, long-term advantages for CMC.
CMC's Evolution - Scaling a Multi-Asset Financial Platform
The shape of the business continues to evolve at pace, with CMC becoming
increasingly diversified.
The Group delivered strong performances across its investing, institutional,
treasury and international businesses, each contributing meaningfully to Group
earnings and demonstrating the breadth of our growth engines.
This scalable technology infrastructure, product diversity, and distribution
means CMC should no longer be seen as a traditional retail CFD provider.
During the year we successfully launched the first iteration of our
multi-asset platform. This included out of hours trading with 24/5 US assets,
24/7 Crypto, 24/7 Bullion and Silver and our private equity marketplace - CMC
CapX.
Looking ahead, that momentum is set to continue. In FY2027, we will roll out
version two of the multi-asset platform, which will become the foundation for
our Super App.
Our securities issuance programme (warrants and certificates) is now live and
will scale across Europe, followed by Australia later in FY2027. Our options
offering will expand and roll out across our different offices throughout the
year, opening up new client segments.
Together, these initiatives will deepen client and partner engagement, broaden
our addressable market and further strengthen the quality of our earnings.
The Super App - Financial Infrastructure for the Future
As a reminder, the Super App is intended to become the primary financial
interface for clients and partners across our markets, bringing together
trading, investing, payments, and broader financial services into a single,
cohesive experience. One app. One ecosystem. One financial gateway.
However, the Super App represents more than an industry-leading product that
unifies the financial universe. It underpins CMC's new operating system for
how we build and deliver technology - a unified front end, delivered through
scalable and resilient backend services.
Early features will deliver visible benefits to our clients, but the deeper
value lies in the underlying technology architecture which under our ownership
and drive, will enable faster product expansion, broader distribution and
support long-term growth.
CMC's Super App is both a next-generation client platform and the engine that
will power our future scale.
Web3 and Defi - Positioning CMC for the Change
Digital assets and tokenised finance represent the next structural evolution
of global markets, and CMC is building the infrastructure required to
participate in that evolution responsibly.
During FY2026, we focused on developing the crypto capabilities necessary to
deliver a secure, regulated and institutional-grade experience for holding,
trading, funding and withdrawing digital assets across our platforms globally.
This is being implemented to the same high standards that underpins CMC's core
business.
Our crypto infrastructure is fully aligned with the Super App architecture and
will form a core component of our multi-asset ecosystem, integrating digital
assets alongside traditional financial markets.
CMC Invest - Record Performance & Landmark Partnerships
CMC Invest delivered another year of record performance. Key metrics reached
new highs across active investors, trading activity, new account growth and
assets under administration.
During the year, the Australian stockbroking business secured what I believe
to be our most significant B2B partnership to date - a white-label agreement
with Westpac. When complete, we will have approximately $130 billion of client
assets under administration, moving up from approximately $90 billion. This
deal has the potential to be transformational for the business and, is
expected to be even more significant than the landmark ANZ deal in 2021.
Alongside our previously announced partnership with ASB Bank in New Zealand,
both programmes are now progressing through the build phase, with launch
targeted during 2027.
But it's not just Australia that has seen significant milestones in the year.
Invest UK continued to progress a Tier 1 institutional partnership with a
major international bank to implement and operate a white-label investment and
savings platform, as well as signing a partnership agreement with UK retailer
Currys, supporting the expansion of the Group's UK B2B footprint.
Financial Performance & Dividend
CMC delivered another year of strong growth in FY2026 - our best year outside
of the FY2021 Covid-impacted results - with net operating income increasing to
£392.6 million (FY2025: £340.1 million), driven by high levels of client
activity, strong performance from our Australian stockbroking business and
continued momentum from our B2B and neobank API partnerships.
Profit before tax was £101.3 million (FY2025: £84.5 million), with a margin
of 25.8% (FY2025: 24.8%), representing a strong increase despite the further
provision for margin-netting in Australia announced in H1.
Alongside this growth, we continue to evolve our operating model, leveraging
outsourcing, offshore capabilities and technology to improve efficiency while
maintaining delivery across our strategic programmes.
The Board has proposed a final dividend of 8.3 pence, bringing the full-year
dividend to 13.8 pence and reflecting our continued policy of distributing 50%
of full-year profit to shareholders.
Outlook - Delivering Growth at Scale
CMC has reached a very exciting inflection point, and we now stand ready to
enter the next phase of growth, driven by the scale of the platform and
infrastructure we have built over recent years.
Our institutional strategy has created a more diversified, scalable and
resilient business model, supported by long-term partnerships, embedded
distribution and high-quality recurring client activity. We have a clear
competitive advantage in this space, built on reputation, delivery, experience
and, frankly, a lack of meaningful competition.
These partnerships give us access to vast client ecosystems that we can scale
efficiently. This has already been demonstrated through our neobank
partnership, which has delivered exceptional account growth, and in Australia
where we have built the second largest stockbroker following the
transformational ANZ partnership.
Importantly, the scale and profitability of this institutional platform now
also allows us to increase investment back into D2C and retail growth. Through
our new brand identity, enhanced onboarding, expanded product capability,
multi-asset platform rollout and strategic sponsorship investments, we are
positioning CMC for the next phase of retail client acquisition and engagement
globally.
The next 12 months are expected to be a defining period for the Group, with
Westpac and ASB Bank expected to come online, continued rollout of our Super
App, further expansion of our neobank partnership and ongoing momentum across
both our investing and retail platforms.
As founder and majority shareholder, my interests remain firmly aligned with
all shareholders. I have never sold a share since IPO, and I have no plans to
sell any for the foreseeable future. I am building this business for the next
decade - and we are building it together.
I truly believe we are fundamentally different from other listed companies in
our sector - a business built on technology and delivering that technology at
scale. The next chapter for CMC is just beginning.
Lord Cruddas
04 June 2026
Webcast:
An analyst and investor presentation will be available on our website from
09.00am on 04 June 2026:
https://www.cmcmarkets.com/group/investors/results-reports-and-presentations
(https://www.cmcmarkets.com/group/investors/results-reports-and-presentations)
Forthcoming announcement dates:
November 2026
HY2027 Results
Enquiries
CMC Markets Plc
David Fineberg, Head of Strategic Partnerships
Matthew Lee, Investor Relations
investor.relations@cmcmarkets.com
(mailto:investor.relations@cmcmarkets.com)
Audited accounts
The financial information contained in this announcement is currently
unaudited and does not constitute statutory accounts within the meaning of
section 434 of the Companies Act 2006. The Group expects the audit process to
be completed shortly and intends to publish its audited Annual Report and
Accounts no later than 19 June 2026.
Forward looking statements
This trading update may include statements that are forward looking in nature.
Forward looking statements involve known and unknown risks, assumptions,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Group to be materially different from any
future results, performance or achievements expressed or implied by such
forward looking statements. Except as required by the Listing Rules and
applicable law, the Group undertakes no obligation to update, revise or change
any forward-looking statements to reflect events or developments occurring
after the date such statements are published.
MAR disclosure statement
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
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 and investing
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 platform, enabling clients to trade and in invest in 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 https://www.cmcmarkets.com/group.
FINANCIAL REVIEW
CMC delivered another year of strong financial and operational performance,
with net operating income increasing 15% to £392.6 million (FY2025: £340.1
million). Performance was driven by continued scaling of institutional and B2B
partnerships, elevated client activity levels and record performance from the
Australian stockbroking business.
Strong financial performance was accompanied by significant progress against a
number of strategic initiatives during the year, including rollout of the
multi-asset platform, continued development of the Super App architecture and
expansion of the Group's institutional and B2B footprint. The Australian
stockbroking business continued to deliver exceptional growth in assets under
administration, turnover and active accounts during the year.
Operating expenses increased year-on-year, reflecting higher variable
remuneration associated with the Group's stronger financial performance,
continued investment in strategic growth initiatives and the previously
announced remediation provision in Australia relating to an industry-wide
margin netting matter.
The result of the above was profit before tax of £101.3 million (FY2025:
£84.5 million), with a margin of 25.8% (FY2025: 24.8%). Profit after tax
increased to £73.7 million (FY2025: £62.2 million), reflecting the Group's
strong underlying profitability.
£m FY2026 FY2025 Change %
Trading and investing revenue 372.9 313.3 19%
Other revenue 3.9 4.3 (9)%
Interest income 41.9 42.5 (1)%
Total revenue 418.7 360.1 16%
Introducing partner commissions and betting levies (25.6) (20.0) (28)%
Interest expense (0.5) - (100)%
Net operating income 392.6 340.1 15%
Operating expenses (288.8) (250.1) (15)%
Impairment of intangible assets (0.5) (0.5) 0%
Operating profit 103.3 89.6 15%
Loss on share of associate - (0.2) 100%
Reversal of impairment of investments in associate and gain on bargain 0.8 (2.3) 135%
purchase / (Impairment) of investments in associate
Finance costs (2.8) (2.6) (8)%
Profit before taxation 101.3 84.5 20%
Taxation (27.6) (22.3) (24)%
Profit after tax 73.7 62.2 19%
Profit before tax margin 25.8% 24.8% 1.0ppts
Net operating income
Net operating income increased 15% to £392.6 million (FY2025: £340.1
million), supported by higher trading and investing revenues, increased
contribution from institutional and B2B channels and resilient treasury income
despite the lower interest rate environment.
Net trading revenue continued to represent the majority of Group income,
accounting for approximately 74% of the total while the contribution from
investing activities continued to increase, supported by record performance in
the Australian stockbroking business and growing traction across the Group's
investing platforms.
£m FY2026 FY2025 Change %
Net trading revenue¹ 289.5 248.9 16%
Net investing revenue¹ 57.8 44.4 30%
Other revenue 3.9 4.3 (9)%
Net Interest income 41.4 42.5 (3)%
Net operating income 392.6 340.1 15%
1 - Net trading and net investing revenues represent trading and investing
revenues after deducting introducing partner commissions and betting levies.
Trading performance
Net trading revenue increased 16% to £289.5 million (FY2025: £248.9
million), reflecting elevated levels of client activity and periods of
heightened market volatility during the year, particularly across commodities,
indices and precious metals.
The second half of FY2026 saw significant market dislocation driven by
geopolitical tensions, macroeconomic uncertainty and sharp moves across
commodity markets, including parabolic price action in gold and silver. These
conditions materially increased demand on the Group's pricing, liquidity,
execution and risk management infrastructure.
The elevated volatility and increased client positioning, particularly in
bullion products, resulted in higher prime broker margin requirements
associated with hedging activity and increased liquidity utilisation across
the Group. Liquidity resources and exposures were actively managed throughout
the period through enhanced monitoring, funding actions and risk mitigation
measures, with the Group remaining above all regulatory liquidity
requirements.
The Group continued to deliver stable platform performance and execution
throughout these periods of heightened volatility, supporting both retail and
institutional clients across elevated trading volumes. The resilience of the
Group's technology infrastructure and operating model remains central to its
institutional and B2B offering, where partners rely on CMC to provide
real-time pricing, liquidity and risk management at scale.
Investing performance
Net investing revenue increased 30% to £57.8 million (FY2025: £44.4
million), reflecting continued scaling of the Group's investing operations and
another record contribution from the Australian stockbroking business.
Australia remained a key growth engine during FY2026, with higher client
engagement, increased trading volumes and continued growth in assets under
administration driving performance across the platform. International
equities, domestic brokerage and cryptocurrency revenues all delivered strong
growth during the year, highlighting the increasing breadth of the offering
and diversification of revenues.
The transformational Westpac partnership continued to progress through the
build and integration phase during the year and remains on track for launch in
2027. Alongside the previously announced ASB Bank partnership in New Zealand,
these relationships are expected to materially increase the scale of the
Group's investing platform over time.
During the year, Invest UK continued to progress a Tier 1 institutional
partnership with a major international bank to implement and operate a
white-label investment and savings platform. Alongside this, we announced a
partnership with leading tech retailer Currys where we are working together to
bring something unique to the market. We look forward to sharing more on both
partnerships in due course.
Net interest income
Net interest income decreased 3% to £41.4 million (FY2025: £42.5 million),
representing a resilient outcome against a declining interest rate
environment.
Operating expenses
Operating expenses increased 15% to £288.8 million (FY2025: £250.1 million),
reflecting continued investment across strategic growth initiatives,
development of the Group's technology infrastructure and the previously
announced £5.2 million remediation provision in Australia relating to an
industry-wide margin netting matter.
The increase in costs during the year also reflected investment in a number of
major strategic programmes, including the multi-asset platform rollout, Super
App architecture, institutional and B2B integrations and the build and
implementation of large-scale partnerships such as Westpac.
Net staff costs increased 9% to £124.3 million (FY2025: £113.7 million),
with higher variable remuneration reflecting achievement of performance
hurdles following sustained elevated performance across the Group.
Sales and marketing costs increased to £40.8 million (FY2025: £33.5
million), primarily reflecting the aforementioned £5.2 million provision for
margin-netting remediation in Australia. Marketing expenses rose modestly
year-on-year as the Group continued to focus on more targeted and data-driven
campaigns.
IT remains the largest component of non-staff costs, increasing to £50.9
million (FY2025: £46.4 million), as the Group continues to invest in front
and back-office system enhancements. Legal and professional fees rose to
£21.6 million (FY2025: £13.1 million), reflecting higher advisory costs
linked to ongoing strategic initiatives and regulatory programmes.
Ongoing cost initiatives are expected to deliver meaningful operational
efficiencies over time, supporting lower overheads and improved profit margins
as key programmes mature. However, a number of these initiatives require
upfront investment and the associated costs to achieve are reflected in the
Group's FY2027 operating expense guidance of approximately £280 million,
excluding variable remuneration. This also includes continued investment in
the build-out of the multi-asset platform, Super App architecture,
institutional integrations and broader technology infrastructure supporting
future scale.
Taxation
The taxation charge for FY2026 was £27.6 million (FY2025: £22.3 million),
representing an effective tax rate of 27.2% (FY2025: 26.4%). The effective tax
rate remained above the UK statutory corporation tax rate of 25.0%, primarily
reflecting the geographic mix of profits generated during the year, including
Australia, where corporate tax rates are higher than in the UK.
Profitability
Profit before taxation increased 20% to £101.3 million (FY2025: £84.5
million), with a profit before tax margin of 25.8% (FY2025: 24.8%). The
increase reflects strong revenue growth across trading and investing
activities and increasing contribution from institutional and B2B channels,
partially offset by continued investment in strategic growth initiatives and
the Australian remediation provision recognised during the year.
Profit after tax increased 19% to £73.7 million (FY2025: £62.2 million),
with basic earnings per share increasing to 27.5 pence (FY2025: 22.6 pence).
The Group's profitability continues to benefit from an increasingly
diversified earnings base and scalable technology infrastructure supporting
growth across multiple business verticals.
Financial position
£m 31 March 2026 31 March 2025 Change %
Fixed assets 65.0 53.2 22%
Trade and other receivables 189.6 147.7 28%
Secured financing 3.7 - 100%
Derivative financial instruments 30.6 24.5 25%
Financial investments 126.8 111.0 14%
Amounts due from brokers 288.0 140.0 106%
Cash and cash equivalents 276.5 247.7 12%
Other assets 26.7 7.9 238%
Total assets 1,006.9 732.0 38%
Trade and other payables 388.9 253.6 (53)%
Amount due to brokers 8.7 12.2 29%
Derivative financial instruments 13.9 16.2 14%
Secured borrowings 55.7 7.5 (643)%
Borrowings 46.8 - (100)%
Lease liabilities 21.6 14.3 (51)%
Other liabilities 14.1 10.2 (38)%
Total liabilities 549.7 314.0 (76)%
Total equity 457.2 418.0 9%
Total equity and liabilities 1,006.9 732.0 38%
Fixed assets consist of intangible assets and property plant and
equipment, or PPE. Other assets include deferred tax assets, current tax
recoverable, other assets (exchange and vaults) and investments in
associates. Other liabilities include current tax payable, short-term
provisions, deferred tax liabilities and long term provisions.
Total assets increased 38% to £1,006.9 million (31 March 2025: £732.0
million), primarily reflecting higher client trading activity during the
period, resulting in increased broker balances, receivables and associated
settlement balances.
Fixed assets increased 22% to £65.0 million (31 March 2025: £53.2 million)
as a result of the Group's continued investment in technology infrastructure,
platform development and API connectivity.
Financial investments increased to £126.8 million (31 March 2025: £111.0
million), comprising short-dated investment-grade corporate bonds and other
treasury investments, alongside Level 3 financial investments held by the
Group.
Cash and cash equivalents increased 12% to £276.5 million (31 March 2025:
£247.7 million), supported by strong underlying cash generation and higher
client balances.
Total liabilities increased to £549.7 million (31 March 2025: £314.0
million), reflecting higher client-related balances, increased broker
payables, collateralised borrowings associated with Prime Finance activities
and utilisation of the Commercial Paper Programme during the year.
Total equity increased 9% to £457.2 million (31 March 2025: £418.0 million),
reflecting retained profits generated during the year, partially offset by
dividend payments.
Capital resources
£m 31 March 2026 31 March 2025(5)
Common equity tier 1 ('CET1') capital before regulatory adjustments(1) 457.1 418.0
Less: regulatory adjustments(2) (66.8) (54.2)
CET1 capital after regulatory adjustments 390.3 363.7
Own funds requirements ("OFR")(3) 133.8 133.6
CET1 ratio (%)(4) 292% 272%
1 - Includes unaudited profits for the year. 31 March 2026 figure does not
include Non-controlling interests of £0.1 million.
2 - Includes a deduction for the final dividend pending payment.
3 - The minimum capital requirement in accordance with MIFIDPRU 4.3.
4 - The CET1 ratio represents CET1 capital as a percentage of OFR. CMC Markets
plc has no additional tier 1 or tier 2 capital.
5 - The presentation of CET1 capital for 31 March 2025 has been restated in
order to align CET1 capital before regulatory adjustments to the balance
sheet.
The Group's capital position remains robust, with CET1 capital before
regulatory adjustments increasing to £457.1 million as at 31 March 2026 (31
March 2025: £418.0 million). After regulatory adjustments of £66.8 million
(31 March 2025: £54.2 million), CET1 capital stood at £390.3 million (31
March 2025: £363.7 million).
The Group's own funds requirement remained constant at £133.8 million (31
March 2025: £133.6 million) and as a result, the CET1 ratio increased to 292%
(31 March 2025: 272%), comfortably above the Group's regulatory minimum and
internal risk appetite thresholds and demonstrating a strong capital base and
prudent risk management framework.
Liquidity
£m 31 March 2026 31 March 2025
Cash and cash equivalents 276.5 247.7
Amount due from brokers 288.0 140.0
Financial investments 126.8 111.0
Client inventory 6.3 -
Undrawn facility 55.0 55.0
Less: blocked cash(1) (76.8) (74.0)
Less: initial margin requirement (231.4) (92.2)
Less: internal haircut on financial investments (19.9) (29.1)
Less: other encumbered financial investments(2) (58.4) (8.7)
Less: illiquid financial investments (11.1) (1.0)
Less: undrawn facility (55.0) (55.0)
Total Unencumbered Liquid Assets 300.1 293.6
1 - Blocked cash represents amounts required to meet local regulatory or
exchange requirements in individual Group entities.
2 - Other encumbered financial investments 31 March 2025 figure has been
restated to £(8.7)m from £(8.8)m due to a rounding misstatement in the prior
year accounts.
The Group's available liquidity comprises assets that can be readily accessed
to meet funding needs, typically arising from changes in broker margin
requirements. The Group's liquidity position remains strong, with total
unencumbered liquid assets of £300.1 million as at 31 March 2026 (31 March
2025: £293.6 million). Cash and cash equivalents include title transfer funds
and proceeds from the issuance of commercial paper.
The Group continues to maintain access to a £55.0 million committed facility
(31 March 2025: £55.0 million) to support liquidity and margin requirements
if required, alongside the newly established Commercial Paper Programme, which
further enhances funding flexibility.
Dividend
The Board has proposed a final dividend of 8.3 pence per share, bringing the
total dividend for FY2026 to 13.8 pence per share (FY2025: 11.4 pence), up 21%
year-on-year and consistent with the Group's policy of returning 50% of
after-tax profits to shareholders.
The proposed distribution reflects the Group's strong financial performance,
robust capital position and confidence in the long-term growth opportunity,
particularly across the institutional business.
Outlook
The Group enters FY2027 with strong momentum, supported by an increasingly
diversified earnings base and significant contribution from institutional and
B2B partnerships.
The next 12 months are expected represent an important year for the Group,
with a number of major strategic initiatives scheduled to come online,
including the launch of the Westpac and ASB Bank partnerships, further
development of the multi-asset platform and Super App, expansion of the
neobank API partnership and ongoing rollout of digital asset and tokenisation
capabilities.
Trading in the opening weeks of FY2027 has been encouraging, with healthy
client activity levels and strong performance across institutional and B2B
channels.
As a result, the Group expects to achieve net operating income for FY2027 of
between £460 million and £480 million, with operating costs, excluding
variable remuneration, of approximately £280 million.
PRINCIPAL RISKS AND UNCERTAINTIES
Our Risk Management Framework provides a consistent approach to identifying,
mitigating, and managing risks, which is essential to achieving our strategic
objectives and supports the Board in its oversight of principal risks and
internal controls.
Given the nature of our business and the financial, market and regulatory
environments in which we operate, we are naturally exposed to strategic,
financial and operational risks. While it is not possible to eliminate all
risks, effective risk management ensures they are managed to an acceptable
level.
To support the Board in discharging its risk oversight responsibilities, we
have an Enterprise Risk Management ("ERM") Framework in place. This framework
aligns risk identification, mitigation and management with our risk appetite
and sets out the processes by which risks are identified, assessed, monitored
and escalated across the Group. It is regularly reviewed - along with our risk
tooling and resources - to ensure it remains effective, in line with market
practices and regulatory expectations.
Governance and oversight
The Board retains overall responsibility for the Group's risk management
framework, principal risks and internal control environment. It is supported
by the Group Risk Committee ("GRC") and the Group Audit Committee ("GAC"),
each of which has distinct roles within the governance structure.
The Group Risk Committee supports the Board in:
· Monitor, review and advise the Board on the Group's overall risk
appetite, tolerance and strategy alongside current and prospective risk
exposures.
· Monitor and review the effectiveness of the Group's risk management
framework, including the identification, assessment and mitigation of
principal and emerging risks.
· Monitor the ability of the Group's risk management framework to
identify the risk facing the Group to ensure a robust assessment of the
emerging and principal risks has been undertaken.
The Group Audit Committee supports the Board in:
· Overseeing the integrity of financial reporting and disclosures,
including risk-related disclosures in the Annual Report.
· Reviewing the effectiveness of the Group's internal control
environment, particularly in relation to financial reporting, legal and
compliance risks.
· Overseeing the Internal Audit function, including approval of the
audit plan and the review of findings relating to risk management and
controls.
· Providing independent assurance to the Board on the adequacy and
effectiveness of internal controls and risk management processes.
The activities and outputs of both Committees are reported to the Board and
are further detailed in the respective Group Risk Committee and Group Audit
Committee reports within the Annual Report.
Risk management is a core responsibility of all colleagues, with oversight
provided by Management and Board Committees, as well as the Group Risk and
Compliance functions.
The ERM framework follows the Three Lines Model, ensuring clear risk ownership
and accountability:
· First Line: Business teams, overseen by regional and executive
management, are responsible for identifying, assessing and managing risks and
implementing effective controls within their areas.
· Second Line: Group Risk and Compliance provide oversight and
guidance.
· Third Line: Internal Audit provides independent assurance over the
effectiveness of risk management and internal controls. The Group outsources
Internal Audit to Grant Thornton.
The Board has implemented a governance structure suited to an online financial
services group, aligned with our strategic objectives and product offerings.
This structure is regularly reviewed, with any material changes requiring
Board approval. Additionally, we conduct root cause analysis to enhance
processes, improve resilience and embed strong corporate governance practices
across the Group.
Risk culture
We foster a risk culture that emphasises accountability and proactive risk
management. Responsibility for managing risk sits with everyone across the
Group. Within the Group's global structure, each CMC legal entity and
geographic region overseen by the legal entity Board, is accountable for
ensuring the enterprise risk management is adhered to and emerging risks
raised in accordance with the Group's risk management framework.
Our second line of defence, led by the Risk Team, plays a key role in
embedding this culture. Their responsibilities include communicating,
educating and providing guidance on the ERM framework, and overseeing the Risk
and Control Assessment ("RACA") process, which forms the foundation of our
bottom-up risk assessment.
The RACA process supports a comprehensive understanding of risks and controls
at the operational and business process level. By enabling self-review of
risks and controls, as well as the oversight and escalation of issues where
necessary, it allows risk and control owners to identify any gaps in the risk
environment and address control weaknesses.
Each risk identified through the RACA process is assessed based on both the
potential impact (magnitude of effect) and the likelihood (probability of
occurrence) of the risk materialising. Impact assessments consider a range of
factors, including financial, regulatory, client, operational and reputational
impacts, while likelihood assessments consider the expected frequency or
probability of occurrence over the relevant assessment period.
Risks are assessed on both an inherent basis (before controls) and a residual
basis (after considering the effectiveness of controls), allowing the Group to
evaluate the effectiveness of its mitigation strategies and prioritise risk
management actions.
The assessment of risks considers different time horizons, including
short-term, medium-term and longer-term risks, to ensure that both immediate
and emerging risks are appropriately identified and managed. This includes
consideration of risks arising from changes in the external environment,
business strategy and market conditions.
Risk appetite and principal risks
Our risk appetite defines the level and types of risks we are willing to
accept in pursuit of our strategic objectives. This is assessed as part of our
Risk Appetite Statement, which integrates risk tolerances across the
organisation. Risk appetite is fundamental to effective risk, capital and
liquidity management, ensuring appropriate risk control and positive client
outcomes. The Board oversees capital and liquidity annually via the approval
of the Group ICARA with each legal entity Board responsible for overseeing
capital, liquidity and risk management within its entity, ensuring local risk
exposures remain aligned with the Group's Enterprise Risk Management Framework
and approved risk appetite.
The Board oversees and considers the annual assessment of emerging and
principal risks, which is conducted by senior management. This assessment
evaluates the potential impact of these risks on the Group's business model,
performance, capital, and liquidity. The identification of principal risks is
informed by both bottom-up risk assessments (including RACAs) and top-down
assessments performed by senior management, ensuring a comprehensive view of
the Group's risk profile. Outputs from these assessments are aggregated and
reported through the Executive Risk Committee and the Group Risk Committee,
which provide oversight, challenge and recommendation to the Board on the
Group's risk profile and principal risks.
These risks are monitored through key risk indicators ("KRIs") and are linked
to our risk appetite. KRIs provide both forward-looking and backward-looking
indicators of risk exposure and are calibrated to reflect thresholds aligned
to the Group's risk appetite, enabling timely escalation where risks approach
or exceed defined limits. We also consider reputational and regulatory
implications, client impact and broader market effects.
The Group's principal risks are closely linked to its strategic objectives,
business model and key performance indicators. Financial risks are reflected
in measures such as revenue, profitability, capital and liquidity metrics,
while strategic and operational risks are linked to indicators such as client
activity, platform performance and operational resilience. These linkages are
considered by the Board when assessing the Group's performance, financial
position and long-term viability, including in the preparation of financial
statements, significant accounting judgements and estimates, going concern
assessments and the viability statement.
In identifying and assessing principal risks, the Group considers risks
arising across its value chain, including dependencies on key third parties
such as prime brokers, liquidity providers, technology partners, outsourcing
arrangements and strategic investments, as well as legal and litigation risks
where these represent material exposures to the Group. These third-party and
external risks are assessed as part of the Group's risk management processes
and are incorporated into the principal risk assessment where they represent
material exposures to the business.
Principal risks are those risks that the Board considers to be the most
significant to the Group's business model, strategy, financial performance,
solvency, capital, liquidity, legal and reputation. These are selected from
the broader risk universe based on their potential magnitude of impact,
likelihood of occurrence and strategic significance, including the extent to
which they could threaten the delivery of the Group's objectives or result in
significant value erosion.
The Group maintains a focused set of principal risks which are reviewed by the
Board at least annually to ensure they remain aligned to the evolving risk
profile of the business.
Our principal risks are outlined in the following pages. These have been
streamlined from the prior year to provide greater clarity and focus, while
maintaining a comprehensive view of the key exposures facing the business.
The Board has reviewed the effectiveness of the Group's risk management and
internal control systems during the year and is satisfied that they remain
effective and aligned with the Group's risk appetite. This assessment is
supported by ongoing monitoring through key risk indicators, internal audit
and compliance reviews, and incident reporting. While operational incidents
and control weaknesses were identified during the year, these were addressed
through established governance processes, including root cause analysis and
remediation actions. Overall, the level of residual risk across the Group's
principal risks remains within the Board's risk appetite, with targeted
enhancements underway in areas such as project governance, control
documentation and risk monitoring.
Emerging Risks
The Board has carried out a robust assessment of the Group's emerging risks as
part of its overall risk management framework. Emerging risks are those risks
that are not yet fully understood or quantified but may have the potential to
impact the Group's strategy, business model or future performance.
Emerging risks are identified through a combination of bottom-up and top-down
processes, including the RACA process, horizon scanning, regulatory monitoring
and regular review by senior management and the Executive Risk Committee.
These risks are reported to and reviewed by the Group Risk Committee and the
Board on a periodic basis.
In assessing emerging risks, the Group considers their potential impact,
likelihood and time horizon, as well as the conditions under which they may
crystallise and evolve into principal risks. Where emerging risks increase in
significance or become more certain, they may be incorporated into the Group's
principal risk framework.
Year-on-year changes
Our principal risks are outlined in the following pages. During the year, the
Group undertook a comprehensive review of its principal risk framework and
risk universe to ensure continued alignment with the Group's strategy,
business model and external environment.
This review confirmed that the principal risks and associated risk appetite
remain appropriate, with no material changes to the Group's risk appetite
during the year.
No principal risks were added or removed during the year; however, the
presentation and articulation of risks have been refined to improve clarity,
reduce overlap and better reflect the Group's current operating model and
strategic priorities.
As part of this process, the Group also reviewed and enhanced its key risk
indicators ("KRIs") to ensure they remain relevant, appropriately calibrated
and provide effective monitoring of risk exposures against the approved risk
appetite.
Business and strategic risks | Risks arising from the nature of our business,
strategy and operating model
Emerging risks
We continue to see emerging trends from demographic and social shifts,
including evolving customer expectations and behavioural trends. These include
growing demand for self-directed investing, interest in digital assets such as
crypto and increasing appetite for wealth management solutions. As part of our
strategy, we aim to design and deliver products that are aligned to these
global changes while ensuring they are appropriately governed, risk-managed
and commercially viable.
These trends may impact the Group's competitive position and growth strategy
over the medium to long term. They may become principal risks where the Group
is unable to adapt its strategy, product offering or operating model in
response to changing client needs.
As the Group transitions from a spread bet firm to a global multi-asset
platform it has strategic , transaction and technological risks in ensuring it
prioritises the correct areas of focus. Failure to align people, strategic and
talent investment with future global revenue pools and changing client needs
will create inherent risk. There is risk that initiatives do not scale into
strategic projects.
Strategic risk
Key risk description Key mitigations and controls
The risk that our ability to execute our business strategy is impacted by We manage strategic risk through:
internal decisions or external factors. This includes risks associated with
defining, prioritising and delivering strategic initiatives, as well as · Governance & Oversight - Strong challenge and oversight from
potential reputational damage affecting market perception, client trust and independent Non-Executive Directors.
regulatory relationships.
· Strategic Alignment - Ensuring all significant initiatives align with
Risk exposure and appetite the corporate strategy.
We are exposed to, and have appetite for strategic risk through the execution · Risk Assessment - Evaluating risks associated with strategic
of our strategic initiatives where there is a risk of failing to successfully initiatives before execution.
deliver what we set out to achieve. As part of our strategic risk, we are also
exposed to potential damage to our brand and reputation with the market, · Accountability & Ownership - Assigning clear responsibility for
clients and regulators. Failure to manage reputational risks could delivery and risk mitigation through legal entity and regional reporting
significantly impact our ability to implement our strategic plan. During the lines.
year, enhanced focus on our key strategic priorities has strengthened how we
deliver on our strategic goals. · Product & Initiative Governance - Requiring Board approval for all
strategic initiatives.
Risk profile
These measures ensure a structured approach to strategic
· Likelihood: Medium.
decision-making and risk management.
· Time horizon: Medium to long term, aligned to delivery of strategic
initiatives.
· Potential impact: Failure to effectively prioritise and execute
strategic initiatives could result in reduced revenue growth, loss of market
share, inefficient allocation of resources and increased cost base. In more
severe scenarios, this may lead to reputational damage, reduced client
acquisition and retention, and diminished investor confidence.
· Circumstances / triggers: This risk may crystallise during
periods of significant organisational change, high volume of concurrent
projects, resource constraints, or where there is ineffective prioritisation,
governance or delivery of key initiatives.
Financial risks | Risks arising from our exposure to market movements,
liquidity, credit and capital management
Emerging risks
Geopolitical and macroeconomic developments, including the ongoing conflict in
Ukraine and tensions in the Middle East, may impact the Group through
increased market volatility and uncertainty. While periods of volatility can
be beneficial to trading activity, they may also lead to increased margin
requirements, funding pressures and heightened risk exposures.
These risks are monitored through margin levels, market risk limits,
counterparty exposures and capital adequacy. They are most relevant over the
short to medium term and may become principal risks where sustained volatility
or adverse market conditions materially impact the Group's financial
performance, liquidity or capital position.
Market Risk
Key risk description Key mitigations and controls
The risk that the value of our residual portfolio decreases due to market We manage market risk through:
fluctuations, including price movements, interest rates and foreign exchange
rate changes. · Real-Time Exposure Management - Trading risk management monitors and
controls inherited exposures from clients in real-time within Board-approved
Risk exposure and appetite limits.
As an online trading provider acting as principal to clients across different · Market-Making in Liquid Instruments - Primarily acting as a market
markets, we are exposed to financial risks arising from market movements. We maker in highly liquid financial instruments, enabling efficient risk
have appetite to retain some market risk, balanced with a low appetite for reduction via prime broker arrangements.
liquidity and capital risk, to ensure effective risk management and financial
stability. · Stress Testing & Scenario Analysis - Conducting regular stress
testing to assess financial and capital adequacy impacts from severe market
Risk profile events.
· Likelihood: Medium to high. · Liquidity & Funding Monitoring - Actively managing market
risk with close oversight of funding requirements to maintain liquidity
· Time horizon: Short term, driven by daily market movements. stability.
· Potential impact: Adverse market movements may result in losses on · Model Risk Management - Model risk is the potential for adverse
the Group's residual exposure, increased hedging costs and margin consequences from decisions based on incorrect or misused model outputs and
requirements, and volatility in financial performance. In extreme but reporting. Our market risk models have undergone independent review of model
plausible scenarios, this could lead to significant P&L impacts and governance in 2026. Artificial intelligence models, especially those that are
increased capital and liquidity demands. adaptive or externally sourced, present elevated risk such as bias, lack of
transparency and unintended outcomes.
· Circumstances / triggers: Most relevant during periods of heightened
market volatility, rapid price movements, geopolitical events or market These measures ensure we effectively manage market risk while maintaining
dislocations. financial resilience.
Liquidity Risk
Key risk description Key mitigations and controls
The risk that we have insufficient liquidity to meet our financial obligations We minimise liquidity risk through:
as they fall due, or can only secure required liquidity at excessive cost.
This includes funding margin requirements, failed settlements or market events · Liquidity Modelling & Stress Testing - Regular forward-looking
that impact liquidity availability. liquidity forecasting under both normal and stressed conditions to ensure
obligations can be met.
Risk exposure and appetite
· Legal Entity Board Oversight - responsible for liquidity and capital
We are exposed to liquidity risk through our core business activities, ratios with escalation to GRC/Board
including funding margin requirements for hedging strategies and managing
unfunded commitments in the matched principal business. We have a low appetite · High-Quality Liquid Assets & Funding Diversification -
for liquidity risk and maintain a robust framework to ensure we remain Maintaining unencumbered, high-quality liquid assets and diversified funding
well-funded under both normal and stressed conditions. sources.
Risk profile · Contingency Planning - Establishing liquidity facilities, contingency
funding levers, and wind-down strategies where necessary.
· Likelihood: Medium.
· Market Condition Monitoring - Assessing liquidity impacts of significant
· Time horizon: Short to medium term, particularly under stressed market moves to ensure resilience.
conditions.
· External Funding Sources - Implementation of a commercial paper
· Potential impact: Insufficient liquidity could result in an programme and financial rating to increase diversity of financing options.
inability to meet financial obligations, increased funding costs or forced
deleveraging of positions. In severe scenarios, this could lead to regulatory For our Invest and Exchange-Traded Business, additional controls include:
breaches, restriction of business activities or reputational damage.
· Offering only liquid assets based on an asset suitability
· Circumstances / triggers: This risk may crystallise during assessment.
periods of extreme market volatility, rapid increases in margin requirements,
concentrated client exposures or significant outflows. · Producing daily cash position reports covering surplus
liquidity, unencumbered liquidity, and short-term forecasts.
· Global growth and new business lines increase organisational
complexity and increase liquidity inefficiencies. · Conducting stress testing to ensure sufficient liquidity for
business continuity over a 15-month horizon.
Credit and Counterparty Risk
Key risk description Key mitigations and controls
The risk of financial loss arising from a counterparty failing to meet its We manage credit and counterparty risk through:
obligations as they fall due, including exposure to both clients and financial
institutions. · Margin Requirements & Risk-Based Controls - Applying a
tiered margin structure to manage riskier positions and utilising liquidation
Risk exposure and appetite features when client total equity falls below predefined thresholds.
We are exposed to credit and counterparty risk through our client trading · Guaranteed Stop Loss Orders - Offering clients risk
activities and relationships with financial institutions. We have a moderate management tools to prevent debt accumulation.
appetite for such exposures and actively manage them through stringent
controls and mitigants to minimise potential losses. · Credit Risk Modelling & Stress Testing - Setting limits
and using potential credit risk exposure models to quantify and stress-test
Risk profile client credit risk across CFDs and Spread Bets.
· Likelihood: Low to medium. · Counterparty Creditworthiness Reviews - Conducting at least
annual assessments of counterparties' financial stability.
· Time horizon: Short to medium term.
· Diversification & Concentration Risk Management -
· Potential impact: Counterparty default or client failure to Engaging with multiple prime brokers ("PBs") per asset class to reduce
meet obligations could result in financial losses and increased capital concentration risk.
requirements. In extreme cases, this could lead to contagion effects across
counterparties or impact liquidity. · Investment-Grade Counterparty Standards - Preferring to work
with counterparties holding investment-grade credit ratings, with daily
· Circumstances / triggers: Heightened during periods of market exposure monitoring.
stress, where client losses increase rapidly, or where counterparties
experience financial deterioration. Concentration risk or reliance on a · Intermediary Limits & Oversight - Setting and monitoring
limited number of counterparties may further increase exposure. intermediary limits daily, with escalation procedures for large exposures.
These measures ensure credit and counterparty risks are actively managed to
protect the firm's financial stability.
Capital and Solvency Risk
Key risk description Key mitigations and controls
The risk that we do not maintain sufficient capital to meet regulatory We minimise capital and solvency risk through:
requirements, absorb financial shocks or support business growth. This
includes risks arising from market volatility, regulatory changes and adverse · Capital Planning & Forecasting - Regular stress testing and
business performance impacting capital adequacy. scenario analysis to assess capital adequacy under adverse conditions.
Risk exposure and appetite · Regulatory Compliance - Maintaining capital levels above regulatory
minima and engaging pro-actively with regulators on capital requirements.
As a regulated financial institution, we are required to hold sufficient
capital to meet both regulatory and internal thresholds. We have a low · Liquidity & Risk Management - Ensuring adequate liquidity to
appetite for breaching capital requirements or operating with insufficient absorb market shocks and financial stress.
buffers. Effective capital management ensures our financial stability and
resilience under stress scenarios. · Robust Governance - Ongoing monitoring by senior management and the
Board to ensure capital strength and strategic alignment.
Risk profile
· Likelihood: Low.
· Time horizon: Medium term, but sensitive to short-term shocks.
· Potential impact: Insufficient capital could limit the Group's
ability to absorb losses, meet regulatory requirements or support growth.
· Circumstances / triggers: This risk may crystallise following
sustained adverse financial performance, significant market events, or changes
in regulatory capital requirements.
· Global complexity: More legal CMC entities in increased geographies means
capital is less efficient.
Operational risks | Risks arising from our people, processes, systems and
external service providers
Emerging risks
We monitor emerging regulatory developments and technological advancements,
including artificial intelligence, broader digital disruption, digital assets
and tokenisation.
These risks may impact operational resilience, regulatory compliance and data
security over the medium term, and may become principal risks where control
gaps, evolving cyber threats or regulatory changes materially affect
operations or client outcomes.
The risk of increased cyber-attacks, AI-enabled fraud and malicious
exploitation of technology vulnerabilities is increasingly evident.
Financial Crime Risk
Key risk description Key mitigations and controls
The risk of money laundering, terrorist financing, sanctions violations, We mitigate financial crime risk through:
bribery, corruption and failures in Know Your Customer ("KYC") procedures,
which could lead to regulatory penalties, financial losses or reputational · Risk-Based KYC & Due Diligence - Applying rigorous KYC procedures,
damage. including Enhanced Due Diligence ("EDD") for higher-risk clients such as
Politically Exposed Persons ("PEPs").
Risk exposure and appetite
· Ongoing Monitoring & Surveillance - Maintaining risk-based
As a financial institution handling significant volumes of client data, money transaction monitoring and customer activity surveillance systems.
and assets, we are exposed to financial crime risks, including money
laundering and market abuse. The short-term nature of some client · Suspicious Activity Reporting - Enhancing procedures for detecting and
relationships further heightens this exposure. We have a low appetite for reporting suspicious activity to law enforcement and regulators.
financial crime and implement robust preventative and detective controls to
mitigate these risks. We continuously enhance our framework through process · Market Abuse Prevention - Strengthening controls to mitigate risks
improvements, system investments and staff training. from repeat offenders of market abuse.
Risk profile · Sanctions & Restrictions Management - Maintaining a restricted list
of individuals and entities, with systems to block transactions that breach
· Likelihood: Low given control framework, but increasing in line with regulatory guidelines.
external threat environment.
· Risk Classification - Classifying customers and entities at onboarding
· Time horizon: Ongoing. to assess financial crime risks effectively.
· Potential impact: Failures in financial crime controls could These measures ensure compliance with financial crime regulations and protect
result in regulatory enforcement, financial penalties, business restrictions the integrity of our business.
and significant reputational damage. There may also be operational impacts
from remediation activity and increased regulatory scrutiny.
· Circumstances/triggers: Elevated during periods of high client
onboarding volumes, expansion into new jurisdictions, or where control
weaknesses arise (e.g. system issues, backlogs or inconsistent processes).
Information Security and Technology Risk
Key risk description Key mitigations and controls
The risk of data breaches, unauthorised access, system outages and technology We minimise these risks through:
failures, including non-compliance with security and regulatory requirements.
This encompasses client, employee and proprietary data, as well as critical · Data Security & Access Controls - Enforcing least privileged
systems, hardware and networks. access, regular system access reviews, and data classification to protect
sensitive information. Physical security measures prevent unauthorised access
Risk exposure and appetite to buildings and sensitive areas.
As a fintech company, we are exposed to significant information security and · Technology Resilience & Monitoring - Regular resilience testing,
technology risks. We have a low appetite for data loss, misuse or system incident response exercises and disaster recovery arrangements are in place to
failures that impact operations or client services, and we mitigate these validate the effectiveness of controls and ensure the Group can respond to and
through robust preventative and detective controls. recover from disruptions.
Risk profile · System Stability & Incident Response - Ensuring IT
production support, proactive system capacity planning, and contingency
· Likelihood: Low to Medium. measures to prevent and remediate failures.
· Time horizon: Ongoing. These measures ensure the confidentiality, integrity, and availability of our
systems and data, safeguarding clients, employees, and business operations.
· Potential impact: Cyber incidents or technology failures could lead to
data breaches, loss of sensitive information, system outages and disruption to
client services. In severe scenarios, this may result in regulatory action,
financial losses and reputational damage.
· Circumstances / triggers: Heightened by increasing cyber threat
activity, reliance on third-party systems, and the introduction of new
technologies or products. Risks may crystallise through external attacks (e.g.
phishing, ransomware, DDoS) or internal system failures.
Compliance Risk
Key risk description Key mitigations and controls
The risk of failing to comply with legal and regulatory obligations, which We minimise compliance risk through:
could result in financial penalties, reputational damage, or operational
restrictions, including obligations under Consumer Duty are material risks for · Risk-Based Regulatory Interpretation - Applying a proportionate,
CMC. risk-based approach to interpreting and implementing regulatory requirements.
Risk exposure and appetite · Resourcing & Expertise - Ensuring compliance teams are
adequately staffed, trained, and supervised, with a specific focus on Consumer
We operate in a highly regulated environment across multiple jurisdictions, Duty and customer outcomes.
exposing ourselves to compliance and regulatory risk. We have a low appetite
for failing to meet regulatory or legislative obligations and are committed to · Regulatory Horizon Scanning - Monitoring and assessing new regulations
full compliance with applicable laws and regulations, including the Consumer and legislation to evaluate business impact.
Duty requirements to ensure fair outcomes for customers.
· Regional Compliance Oversight - Conducting thorough regulatory
Risk profile analysis to ensure adherence across jurisdictions, particularly for new
initiatives.
· Likelihood: Medium.
· Advisory & Monitoring Frameworks - Providing technical guidance to
· Time horizon: Medium term. the business, alongside comprehensive monitoring, surveillance, and policy
enforcement.
· Potential impact: Failure to comply with regulatory obligations
could result in fines, enforcement actions, business restrictions and · Regulatory Engagement - Maintaining strong relationships with regulators
reputational damage. It may also lead to increased regulatory scrutiny and and proactively planning for regulatory changes, including engagement on
operational disruption. Consumer Duty expectations and compliance standards.
· Circumstances / triggers: This risk is elevated during periods of · Local Board Oversight - Regional management and Boards are
regulatory change, expansion into new markets, or where there is complexity in responsible for ensuring all local compliance and regulatory standards are
interpreting or implementing regulatory requirements. Increased focus from met. This includes management oversight of the suitability and execution of
regulators (e.g. Consumer Duty, DORA) may also heighten exposure. products to clients. This is overseen by compliance with an expectation that
are issues are raised directly to GRC and GAC for further consideration by the
Board.
Legal Risk
Key risk description Key mitigations and controls
The risk of financial loss, regulatory consequences or reputational damage We manage legal and litigation risk through:
arising from legal proceedings, disputes or failure to comply with contractual
or legal obligations. This includes exposure to litigation from clients, · Legal Oversight & Governance - Dedicated legal function providing
counterparties or third parties, as well as risks arising from evolving legal advice and oversight on legal and contractual matters, with escalation to
frameworks across jurisdictions. Legal risk is a material risk for CMC. senior management, GRC, GAC and the Board where appropriate.
Risk exposure and appetite · External Legal Support - Engagement with external legal advisers on
complex or material matters, including ongoing litigation and regulatory
As a global financial services provider, we are exposed to legal and issues.
litigation risk through our client relationships, product offerings and
operations across multiple jurisdictions. This includes the risk of claims · Contractual Controls - Standardised legal documentation and review
relating to historical or current business practices, contractual disputes or processes to ensure clarity of obligations and to minimise contractual risk.
regulatory matters.
· Regulatory & Legal Monitoring - Ongoing monitoring of legal and
We have low appetite for legal risk, particularly where it may result in regulatory developments across jurisdictions to assess potential impacts on
significant financial loss, regulatory sanction or reputational damage. We the business.
seek to minimise exposure through robust legal management, governance and
oversight. · Litigation Management - Active management of legal proceedings, including
assessment of potential exposures, provisioning where appropriate and regular
Risk profile reporting to senior management and the Board.
· Likelihood: Low to Medium. · Risk & Control Framework Integration - Inclusion of legal oversight
within the Group's principal management framework, including escalation
· Time horizon: Medium to long term. through GRC, GAC to the Board.
· Potential impact: Adverse legal outcomes could result in
financial losses (including damages, settlements and legal costs), increased
regulatory scrutiny and reputational damage. In severe cases, this may impact
capital position, business operations or client relationships.
· Circumstances / triggers: This risk may crystallise in the
event of adverse legal judgments, escalation of existing disputes, regulatory
investigations, or where historical business practices are challenged. Legal
exposure may increase during periods of regulatory change or where there is
heightened industry litigation activity.
Operational Risk (Residual / Overarching)
Key risk description Key mitigations and controls
The residual risk of financial loss, disruption or reputational damage arising We manage operational risk through:
from failures in processes, systems, people or external events that are not
captured within the specific operational risk categories above. · Process & System Controls - Automating key processes, optimising
workflows, and implementing robust IT security measures.
Risk exposure and appetite
· Incident & Risk Management - A structured incident response
We are exposed to operational risk as a growth company operating in a highly framework, continuous monitoring, and risk escalation procedures.
regulated and technology-driven environment. We have a low appetite for
operational failures that could cause material financial, reputational, or · Regulatory Compliance - Regular audits, internal control reviews,
regulatory impact. and staff training to reinforce risk awareness.
Risk profile · Governance & Oversight - Active risk management by senior
leadership and Board committees to ensure resilience and accountability.
· Likelihood: Medium.
· Time horizon: Ongoing.
· Potential impact: Failures in processes, systems or people
could result in financial losses, business disruption or reputational damage.
While individual events may be contained, systemic issues could have broader
operational and financial implications.
· Circumstances / triggers: This risk may crystallise through
breakdowns in internal processes, system failures, human error or external
events. It may also arise where risks are not fully captured within specific
operational risk categories or where multiple risk factors interact.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the year ended 31 March 2026
£ '000 Note 31 March 2026 31 March 2025
Revenue 3 376,756 317,611
Interest income on own funds 3 18,835 18,531
Income on client funds 3 23,076 23,957
Total revenue 418,667 360,099
Introducing partner commissions and betting levies 4 (25,595) (19,982)
Interest expense 5 (492) -
Net operating income 392,580 340,117
Operating expenses 6 (288,692) (250,074)
Impairment of intangible assets 10 (534) (482)
Operating profit 103,354 89,561
Share of results of associate 14 - (189)
Reversal of impairment of investments in associate and gain on bargain 14 811 (2,328)
purchase / (Impairment) of investments in associate
Finance costs (2,822) (2,590)
Profit before taxation 101,343 84,454
Taxation 7 (27,594) (22,267)
Profit for the year 73,749 62,187
Profit / (loss) attributable to:
Owners of CMC Markets plc 74,355 62,187
Non-controlling interests (606) -
73,749 62,187
Earnings per share
Basic earnings per share (pence) 8 27.5p 22.6p
Diluted earnings per share (pence) 8 27.5p 22.6p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2026
£ '000 31 March 2026 31 March 2025
Profit for the year 73,749 62,187
Other comprehensive income / (expense):
Items that may be subsequently reclassified to income statement
Currency translation differences 8,142 (6,772)
Changes in the fair value of debt instruments at fair value through other (40) 35
comprehensive income, net of tax
Other comprehensive income / (expense) for the year 8,102 (6,737)
Total comprehensive income for the year 81,851 55,450
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2026
£ '000 Note 31 March 2026 31 March 2025
Non-current assets
Intangible assets 10 36,628 29,042
Property, plant and equipment 11 28,406 24,169
Deferred tax assets 12,229 5,328
Investments in associate 14 - -
Financial investments 17 11,067 30,399
Trade and other receivables 12 2,629 1,823
Total non-current assets 90,959 90,761
Current assets
Trade and other receivables 12 186,946 145,842
Secured financing 13 3,672 -
Derivative financial instruments 15 30,584 24,456
Other assets 16 18 10
Financial investments 17 115,716 80,555
Amount due from brokers 287,950 140,010
Cash and cash equivalents 18 276,517 247,665
Current tax recoverable 14,503 2,679
Total current assets 915,906 641,217
TOTAL ASSETS 1,006,865 731,978
Current liabilities
Trade and other payables 19 388,869 253,581
Amounts due to brokers 8,719 12,239
Derivative financial instruments 15 13,854 16,160
Secured borrowings 20 55,667 7,457
Borrowings 21 46,777 -
Lease liabilities 22 4,152 3,109
Current tax payable 3,175 1,832
Provisions 23 1,008 5,282
Total current liabilities 522,221 299,660
Non-current liabilities
Trade and other payables 19 4 4
Lease liabilities 22 17,478 11,233
Deferred tax liabilities 9,602 2,765
Provisions 23 384 349
Total non-current liabilities 27,468 14,351
TOTAL LIABILITIES 549,689 314,011
EQUITY
Share capital 70,573 70,573
Share premium 46,236 46,236
Capital redemption reserve 2,901 2,901
Own shares held in trust (24,400) (17,047)
Other reserves (54,074) (62,176)
Retained earnings 415,842 377,480
Capital and reserves attributable to owners of CMC Markets plc 457,078 417,967
Non-controlling interests 98 -
Total equity 457,176 417,967
TOTAL EQUITY AND LIABILITIES 1,006,865 731,978
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2026
£ '000 Note Share capital Share premium Capital redemption reserve Own shares held in trust Other reserves Retained earnings Total Non-controlling interests Total equity
At 1 April 2024 70,573 46,236 2,901 (2,589) (55,439) 341,811 403,493 - 403,493
Profit for the period - - - - - 62,187 62,187 - 62,187
Currency translation differences - - - - (6,772) - (6,772) - (6,772)
Changes in the fair value of debt instruments at fair value through other - - - - 35 - 35 - 35
comprehensive income, net of tax
Total comprehensive income for the period - - - - (6,737) 62,187 55,450 - 55,450
Acquisition of own shares held in trust - - - (15,001) - - (15,001) - (15,001)
Utilisation of own shares held in trust - - - 543 - - 543 - 543
Share-based payments - - - - - 3,043 3,043 - 3,043
Tax on share-based payments - - - - - (857) (857) - (857)
Dividends 9 - - - - - (28,704) (28,704) - (28,704)
At 31 March 2025 70,573 46,236 2,901 (17,047) (62,176) 377,480 417,967 - 417,967
Profit / (loss) for the period - - - - - 74,355 74,355 (606) 73,749
Currency translation differences - - - - 8,142 - 8,142 - 8,142
Changes in the fair value of debt instruments at fair value through other - - - - (40) - (40) - (40)
comprehensive income, net of tax
Total comprehensive income for the period - - - - 8,102 74,355 82,457 (606) 81,851
Acquisition of own shares held in trust - - - (13,797) - - (13,797) - (13,797)
Utilisation of own shares held in trust - - - 6,444 - - 6,444 - 6,444
Share-based payments - - - - - 95 95 - 95
Tax on share-based payments - - - - - 1,097 1,097 - 1,097
Non-controlling interests on acquisition of subsidiaries - - - - - - - 704 704
Dividends 9 - - - - - (37,185) (37,185) - (37,185)
At 31 March 2026 70,573 46,236 2,901 (24,400) (54,074) 415,842 457,078 98 457,176
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2026
£ '000 Note 31 March 2026 31 March 2025
Cash flows from operating activities
Cash generated from operations 24 47,052 158,433
Interest income 18,281 18,400
Income on client funds 23,392 24,581
Interest expense (476) -
Finance costs (2,658) (2,586)
Tax paid (36,559) (23,477)
Net cash generated from operating activities 49,032 175,351
Cash flows from investing activities
Purchase of property, plant and equipment (3,292) (3,028)
Investment in intangible assets 10 (9,760) (6,073)
Net payments on purchase of financial investments - (32,252)
Net cash used in investing activities (13,052) (41,353)
Cash flows from financing activities
Principal elements of lease payments (3,633) (5,058)
Net proceeds on borrowings 46,613 -
Net (payments) / proceeds on secured borrowings (7,457) 7,453
Proceeds from exercise of employee share options 2,411 -
Acquisition of own shares (13,797) (15,001)
Dividends paid 9 (37,185) (28,704)
Net cash used in financing activities (13,048) (41,310)
Net increase in cash and cash equivalents 22,932 92,688
Cash and cash equivalents at the beginning of the year 247,665 160,300
Effect of foreign exchange rate changes 5,920 (5,323)
Cash and cash equivalents at the end of the year 18 276,517 247,665
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the full year ended 31 March 2026
1. General information and basis of preparation
Corporate information
CMC Markets plc (the "Company") is a public company limited by shares
incorporated in the United Kingdom and domiciled in England and Wales under
the Companies Act 2006. The address of the parent company's registered office
is 133 Houndsditch, London, EC3A 7BX, United Kingdom.
The nature of the operations and principal activities of CMC Markets plc and
its subsidiaries (collectively the "Group") is set out in note 2 of the
Company Financial Statements.
Functional and presentation currency
Items included in the Financial Statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates (the "functional currency"). The Group's financial statements
are presented in sterling ("£"), which is the Company's functional and the
Group's presentation currency.
Going concern
The Directors have prepared the Financial Statements on a going concern basis,
which requires the Directors to have a reasonable expectation that the Group
has adequate resources to continue in operational existence for a period of at
least 12 months from the date of approval of the Financial Statements.
The Group has considerable financial resources, a broad range of products and
a geographically diversified business. Consequently, the Directors believe
that the Group is well placed to manage its business risks in the context of
the current economic outlook.
Accordingly, the Directors have reasonable expectation that the Group has
adequate resources for the period of at least 12 months from the date of
approval of the Financial Statements and believe it is appropriate to adopt
the going concern basis in preparing the Financial Statements.
Basis of preparation
The condensed consolidated Financial Statements of the Group have been
prepared in accordance with UK-adopted International Accounting Standards in
conformity with the requirements of the Companies Act 2006 and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
The Financial Statements have been prepared in accordance with the going
concern basis, under the historical cost convention, except in the case of
financial instruments at fair value through profit or loss ("FVPL") and
financial instruments at fair value through other comprehensive income
("FVOCI"). The financial information is rounded to the nearest thousand except
where otherwise indicated.
The Group's accounting policies which relate to the Financial Statements as a
whole are set out below. Where an accounting policy relates specifically to a
note, the related accounting policy is set out within that note. All policies
have been consistently applied to all the years presented unless stated
otherwise, except for the adoption of the new or revised standards.
The Financial Statements presented are at and for the years ended 31 March
2026 and 31 March 2025 which are referred to as FY2026 and FY2025
respectively.
Application of new and revised accounting standards
No new standards and interpretations were adopted by the Group during the
current year.
Standards issued by the IASB not effective for the current year and not early
adopted by the Group
The following standards and amendments have been assessed as not having a
material impact at this time.
Effective from
Amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates 1 January 2025
Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial 1 January 2026
Instruments
Annual improvements to IFRS - volume 11 1 January 2026
IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027
The impact of the following is under assessment - IFRS 18 "Presentation and
Disclosure in Financial Statements", which will become effective in the Group
Financial Statements for the year end 31 March 2028.
The Group does not intend to adopt any of these new standards or amendments
early.
Foreign currencies
Transactions denominated in currencies other than the functional currency are
recorded at the rates of exchange prevailing on the date of the transaction.
At each balance sheet date, monetary assets and liabilities that are
denominated in foreign currencies are retranslated at the rates prevailing on
the balance sheet date. Gains and losses arising on retranslation are included
in the income statement for the year, except for exchange differences arising
on non-monetary assets and liabilities where the changes in fair value are
recognised directly in equity.
On consolidation, the assets and liabilities of the Group's overseas
operations are translated at exchange rates prevailing on the balance sheet
date. Income and expense items are translated at the average exchange rates
applicable to the relevant year. Exchange differences arising, if any, are
classified as equity and transferred to the translation reserve.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of consolidated Financial Statements in conformity with IFRS
requires the use of certain significant accounting judgement or estimation.
The Directors believe that the assumptions applied at 31 March 2026 and 2025
are appropriate and therefore present the Group's financial position and
results fairly.
The areas involving a higher degree of judgement or estimation are:
Area Estimation uncertainty Judgements Note
Intangible assets Recoverable amount of the UK Invest cash-generating unit Customer relationships 10
Financial investments Valuation of Level 3 financial instruments n/a 17
Provisions Measurement of customer remediation provision (For FY2025 only) n/a 23
Contingent liabilities n/a Assessment of legal and regulatory matters 26
2. Segmental reporting
Accounting policy
The Group's segmental information is presented in line with the internal
reporting provided to the Chief Operating Decision Maker, identified as the
Group's Board, for the purpose of allocating resources and evaluating
performance.
Operating segments that do not meet the quantitative thresholds under IFRS 8
"Operating Segments" are aggregated. Segments are reviewed annually.
The accounting policies of the reportable segments are the same as the Group's
accounting policies.
The Group's business consists of two segments, Trading and Investing, each
with distinct characteristics and client objectives.
Trading
The Group's core business involves online trading, enabling clients to trade a
broad array of financial instruments for short-term investment and hedging
purposes. These instruments include contracts for difference ("CFDs") and
financial spread betting across various assets, such as shares, indices,
foreign currencies, commodities and treasuries. The Group also extends these
services to institutional partners through white label and introducing broker
arrangements. While CFDs are accessible globally, spread betting is available
exclusively in the UK and Ireland.
Additionally, the trading segment includes the income generated by the
Treasury Management Division that invests surplus liquidity to enhance yield
and income generated by the CapX Division that offers investment opportunities
including share placings, IPOs and private equity.
Investing
To support clients' longer-term investment goals, the Group offers online
stockbroking services in Australia and other investing services in the UK, the
USA and Singapore.
Year ended 31 March 2026 Trading Investing Total
£ '000
Revenue 304,450 72,306 376,756
Interest income on own funds 16,326 2,509 18,835
Income on client funds 12,918 10,158 23,076
Total revenue 333,694 84,973 418,667
Introducing partner commissions and betting levies (11,085) (14,510) (25,595)
Interest expense (492) - (492)
Net operating income 322,117 70,463 392,580
Operating expenses (exc. depreciation and amortisation) (227,285) (47,453) (274,738)
Depreciation and amortisation (9,386) (4,568) (13,954)
Impairment of intangible assets (534) - (534)
Operating profit 84,911 18,442 103,353
Reversal of Impairment of investments in associate and gain on bargain 811 - 811
purchase
Finance costs (2,495) (327) (2,822)
Profit before taxation 83,228 18,115 101,343
Taxation (21,248) (6,346) (27,594)
Profit for the year 61,980 11,769 73,749
Year ended 31 March 2025 Trading Investing Total
£ '000
Revenue 261,101 56,510 317,611
Interest income on own funds 17,152 1,379 18,531
Income on client funds 14,541 9,416 23,957
Total revenue 292,794 67,305 360,099
Introducing partner commissions and betting levies (7,242) (12,740) (19,982)
Interest expense - - -
Net operating income 285,552 54,565 340,117
Operating expenses (exc. depreciation and amortisation) (193,166) (43,377) (236,543)
Depreciation and amortisation (9,010) (4,521) (13,531)
Impairment of intangible assets (482) - (482)
Operating profit 82,894 6,667 89,561
Share of results of associate (189) - (189)
Impairment of investments in associate (2,328) - (2,328)
Finance costs (2,578) (12) (2,590)
Profit before taxation 77,799 6,655 84,454
Taxation (19,712) (2,555) (22,267)
Profit for the year 58,087 4,100 62,187
Transactions between reportable segments are limited to transfer pricing
arrangements, which are conducted on an arm's length basis and in line with
the Group's transfer pricing policy. These transactions primarily relate to
shared services, technology infrastructure and intellectual property and are
reflected in segment results accordingly.
There are no asymmetrical allocations between reportable segments. All
inter-segment charges are applied consistently across segments and are fully
eliminated on consolidation.
Segment assets and liabilities are not disclosed because they are not reported
to, or reviewed by, the Chief Operating Decision Maker.
Information on major customers
No single customer contributed 10% or more to the Group's revenue in either
FY2026 or FY2025.
Net operating income by geography
The measurement of net operating income for segmental analysis is consistent
with that in the income statement and is broken down by geographic location
below.
£ '000 31 March 2026 31 March 2025
(Restated)
UK 133,367 103,789
Australia 115,222 109,188
Other countries 143,991 127,140
Total net operating income 392,580 340,117
Non-current assets by geography
The measurement of segment assets for segmental analysis is consistent with
that in the balance sheet. The total of non-current assets other than deferred
tax assets, broken down by location of the assets, is shown below:
£ '000 31 March 2026 31 March 2025
UK 39,238 59,052
Australia 28,434 19,329
Other countries 11,058 7,052
Total 78,730 85,433
3. Total revenue
Accounting policy
Revenue
Revenue represents the fair value of consideration received or receivable for
the provision of online financial services, net of client rebates and
value-added tax, and excludes intra-group transactions.
The Group primarily earns revenue from commissions, spreads and financing
income arising from its stockbroking activities and from acting as a market
maker for spread bets and CFDs. Revenue is presented net of the impact of any
hedge arrangements the Group undertakes to manage market risk.
Trading - CFDs and spread bets
Revenue from CFDs and spread bets includes:
· fees for commission and funding charges on opening, holding and
closing positions; spreads; and fair value gains/losses on client trading; and
· deductions for commissions, funding charges, spreads and fair value
gains/losses from hedging activities.
These items are recognised in line with IFRS 9 "Financial Instruments" and
IFRS 13 "Fair Value Measurement". Commission income is recognised when trades
are placed, and funding charges when positions are held at 5:00pm New York
time. Unrealised gains/losses from daily valuations and realised gains/losses
from closed positions are included in revenue.
Trading - Treasury management division
The Group's treasury management division actively manages the Group's
liquidity portfolio to enhance yields on surplus funds. This includes the
deployment of Group capital into fixed income securities and derivatives,
within a controlled risk framework, to generate additional returns while
preserving capital and maintaining appropriate liquidity levels.
These activities are accounted for in accordance with IFRS 9 "Financial
Instruments" and IFRS 13 "Fair Value Measurement". FX derivatives and other
financial instruments held for trading are classified and measured at FVPL,
with realised and unrealised gains and losses recognised in the income
statement in the period incurred.
Trading - CapX division
The Group's CapX Division operates as a capital markets intermediary,
providing investment opportunities including share placings, initial public
offerings ("IPOs"), and private equity transactions. In the course of these
activities, the Group may acquire equity instruments directly from issuers or
through intermediaries, at a negotiated price, for the purpose of resale to
institutional, corporate, or private clients.
These transactions are accounted for in accordance with IFRS 9 "Financial
Instruments", IAS 32 "Financial Instruments: Presentation", and IFRS 13 "Fair
Value Measurement". Equity securities acquired principally for resale in the
near term are classified as financial assets held for trading and are measured
at FVPL, with realised and unrealised gains and losses recognised in the
income statement in the period in which they arise.
Investing - revenue from contracts with customers
Investing revenue is recognised in accordance with IFRS 15 "Revenue from
Contracts with Customers". Revenue is recognised when, or as, the Group
satisfies its performance obligations by transferring the promised services to
clients, in an amount that reflects the consideration to which the Group
expects to be entitled in exchange for those services.
Investing revenue comprises brokerage fees, option trading commissions,
foreign exchange conversion fees and subscription fees.
Brokerage fees and option trading commissions and Foreign exchange conversion
fees are recognised at the point in time when the relevant trade is executed /
foreign exchange conversion service is provided to the client, as this is when
the Group's performance obligation to arrange or facilitate the transaction is
satisfied.
Other revenue
Other revenue includes income from financial information services, dormancy
fees, balance conversions, corporate brokerage, and client exchange fees.
Interest income on own funds
This comprises income earned on the Group's own cash balances, investments in
money market funds and debt instruments, and funds held with brokers. In
addition, the Company generates interest income through the provision of
secured financing arrangements to clients. Interest is recognised using the
effective interest rate method.
Income on client funds
Income from segregated client funds, net of amounts paid to clients on their
free cash balances, is recognised in revenue.
Revenue
£ '000 31 March 2026 31 March 2025
Trading 300,770 256,169
Investing 72,305 57,189
Other 3,681 4,253
Total 376,756 317,611
Interest income on own funds
£ '000 31 March 2026 31 March 2025
Bank and broker interest 14,686 14,242
Interest on financial investments 4,102 4,249
Other interest income 47 40
Total 18,835 18,531
Income on client funds
£ '000 31 March 2026 31 March 2025
Income on client funds 23,076 23,957
Total 23,076 23,957
4. Introducing partner commissions and betting levies
Accounting policy
Introducing partner commissions and betting levies are gross trading and
investing revenue earned from clients in the period the associated revenue is
earned. Betting levies are payable on net gains from spread betting and
countdowns products.
£ '000 31 March 2026 31 March 2025
Trading 11,085 7,242
Investing 14,510 12,740
Total 25,595 19,982
5. Interest expense
Accounting policy
Interest expense comprises of interest costs arising from obligations under
repurchase agreements ("repos") and financing arrangements with prime brokers
("PBs").
Under repo arrangements, the difference between the sale price and the agreed
repurchase price is treated as interest expense and recognised over the term
of the agreement. Where securities are pledged or collateralised with prime
brokers to obtain financing, the related costs are recognised as interest
expense over the period in which the financing is utilised.
£ '000 31 March 2026 31 March 2025
Interest paid on secured borrowings (492) -
Total (492) -
6. Operating expenses
£ '000 31 March 2026 31 March 2025
Fixed remuneration(1) 97,982 93,894
Variable remuneration(1) 26,283 19,799
Net staff costs 124,265 113,693
IT costs 50,880 46,377
Sales and marketing 40,797 33,473
Premises 5,888 5,186
Legal and Professional fees 21,575 13,078
Regulatory fees 6,023 5,098
Depreciation and amortisation 13,954 13,531
Bank charges 6,760 4,368
Irrecoverable sales tax 7,721 6,136
Other 11,651 9,134
289,514 250,074
Capitalised internal software development costs (822) -
Total 288,692 250,074
(1) Net of capitalised internal software development costs.
The above presentation reflects the breakdown of operating expenses by nature
of expense.
Net foreign exchange losses
Net foreign exchange losses during the year totalled £958,000, reported
within Other Operating expenses (FY2025: gains of £630,000, reported within
Other revenue).
7. Taxation
£ '000 31 March 2026 31 March 2025
Analysis of charge for the year
Current tax:
Current tax on profit for the year 28,009 24,394
Adjustments in respect of previous years (1,270) (1,517)
Total current tax 26,739 22,877
Deferred tax:
Origination and reversal of temporary differences 135 (1,726)
Adjustments in respect of previous years 720 1,116
Total deferred tax 855 (610)
Total tax 27,594 22,267
The standard rate of UK corporation tax charged was 25% with effect from 1
April 2023. Taxation outside the UK is calculated at the rates prevailing in
the respective jurisdictions. The effective tax rate for FY2026 was 27.23%
(FY2025: 26.37%) and differs from the standard rate of corporation tax of 25%
(FY2025: 25%).
£ '000 31 March 2026 31 March 2025
Profit before taxation 101,343 84,454
Profit multiplied by the standard rate of corporation tax in the UK of 25% 25,336 21,114
(FY2025: 25%)
Adjustment in respect of foreign tax rates 2,001 897
Adjustments in respect of previous years (550) (401)
Income not subject to tax (210) (19)
Expenses not deductible for tax purposes (99) 372
Unrecognised tax losses 1,264 63
Other differences (148) 241
Total 27,594 22,267
£ '000 31 March 2026 31 March 2025
Tax on items recognised directly in equity
Tax (credit)/charge on share-based payments (1,097) 857
8. Earnings per share (EPS)
Basic earnings per share ("EPS") is calculated by dividing the earnings
attributable to the equity owners of the Company by the weighted average
number of Ordinary Shares in issue during each year excluding those held in
employee share trusts. For diluted earnings per share, the weighted average
number of Ordinary Shares in issue, excluding those held in employee share
trusts, is adjusted to assume conversion vesting of all dilutive potential
weighted average Ordinary Shares and that vesting is satisfied by the issue of
new Ordinary Shares.
31 March 2026 31 March 2025
Earnings attributable to ordinary shareholders (£ '000) 74,355 62,187
Weighted average number of shares used in the calculation of basic earnings 270,255 275,233
per share ('000)
Dilutive effect of share options ('000) - -
Weighted average number of shares used in the calculation of diluted earnings 270,255 275,233
per share ('000)
Basic earnings per share (pence) 27.5p 22.6p
Diluted earnings per share (pence) 27.5p 22.6p
For FY2026, there are no (FY2025: no) potentially dilutive weighted average
Ordinary Shares in respect of share awards and options in issue, included in
the calculation of diluted EPS, as the Group does not expect to issue any new
shares to settle these share awards and options.
9. Dividends
£ '000 31 March 2026 31 March 2025
Declared and paid in each year
Final dividend for 2025 at 8.3p per share (2024: 7.30p) 22,336 20,176
Interim dividend for 2026 at 5.5p per share (2025: 3.10p) 14,849 8,528
Total dividend paid 37,185 28,704
The final dividend for 2026 of 8.3 pence per share, amounting to £22.3
million, was proposed by the Board on 3 June 2026 and has not been included as
a liability at 31 March 2026. The dividend will be paid on 14 August 2026,
following approval at the Company's Annual General Meeting, to those members
on the register at the close of business on 10 July 2026. The dividends paid
or declared in relation to the financial year are set out below:
31 March 2026 31 March 2025 Pence
Pence
Declared per share
Interim dividend 5.5 3.1
Final dividend 8.3 8.3
Total dividend per share 13.8 11.4
10. Intangible assets
Critical accounting judgements
Customer relationships
A key judgement has been applied in recognising of customer relationship
intangible assets on the Group's statement of financial position. At 31 March
2026 these had a carrying amount of £8.8 million (31 March 2025: £8.7
million). The Group applied the recognition principles of IAS 38 "Intangible
Assets" to account for these assets and continues to measure them in
accordance with this standard.
Key sources of estimation uncertainty
Recoverable amount of the UK Invest cash-generating unit
Management undertakes a regular review of impairment indicators for its
non-current assets. As of 31 March 2026, indicators were identified relating
to the Group's UK Invest cash-generating unit ("CGU"). An impairment test was
conducted, assessing the recoverable amount based on the CGU's value in use
("VIU"). This resulted in headroom above the carrying amount, confirming that
no impairment was required.
Accounting policy
Computer software (purchased and developed)
Purchased software is recognised as an intangible asset at cost when acquired.
Costs associated with maintaining computer software are recognised as an
expense as incurred. Costs directly attributable to internally developed
software are recognised as an intangible asset only if all of the following
conditions are met:
· it is technically feasible to complete the software so that it will
be available for use;
· management intends to complete the software and use it;
· there is an ability to use the software;
· it can be demonstrated how the software will generate probable
future economic benefits;
· adequate technical, financial and other resources to complete the
development and to use the software are available; and
· the expenditure attributable to the software during its development
can be reliably measured. Where the above conditions are not met, costs are
expensed as incurred.
Costs which have been recognised as an asset are amortised on a straight-line
basis over the asset's estimated useful life from the point at which the asset
is ready to use.
Trademarks and trading licences
Trademarks and trading licences that are separately acquired are capitalised
at cost and those acquired from a business combination are capitalised at the
fair value at the date of acquisition.
Client relationships
The fair value attributable to client relationships acquired through a
business combination is included as an intangible asset and amortised over the
estimated useful life on a straight-line basis. The fair value of client
relationships is calculated at the date of acquisition on the basis of the
expected future cash flows to be generated from that asset. Separate values
are not attributed to internally generated client relationships.
Intangible assets are amortised on a straight-line basis within the income
statement using the following useful economic lives:
Item Amortisation Policy
Computer software (purchased and developed) 3 to 10 years or life of license
Trademarks and trading licenses 10 to 20 years
Client relationships 10 to 14 years
Useful lives are also examined on an annual basis and adjustments, where
applicable, are made on a prospective basis. Assets under development are
transferred to the relevant intangible asset class and amortised over their
useful lives from the point at which the asset is ready to use. At each
reporting date, all intangible assets are reviewed for indicators of
impairment. Assets under development are tested for impairment annually.
Cryptocurrency assets held as intangible assets
The Group holds cryptocurrency assets that are not held for sale in the
ordinary course of business and therefore are measured in accordance with IAS
38 "Intangible Assets". The assets are originally recognised at cost and are
subsequently remeasured at cost under the cost method. These cryptocurrency
assets, subject to periodic review, are considered to have indefinite lives
and as such are not subject to amortisation. The assets are tested for
impairment on a periodic basis with any impairment being recognised in the
Consolidated Income Statement.
£ '000 Goodwill Computer software Trade-marks and trading licences Customer relation- Crypto Assets under develop-ment Total
ships
currency assets
Cost
1 April 2024 11,500 151,048 1,019 15,705 200 9,507 188,979
Additions - 131 - - - 5,942 6,073
Transfers - 6,170 - - - (6,170) -
Disposals (11,500) (89,007) (12) - - - (100,519)
Foreign currency translation - (1,628) (35) (987) - (298) (2,948)
31 March 2025 - 66,714 972 14,718 200 8,981 91,585
Additions - 186 6 869 - 8,699 9,760
Transfers - 5,951 - - - (5,951) -
Business combinations - 2,103 45 - 79 - 2,227
Disposals - (17,299) - - - - (17,299)
Foreign currency translation - 1,987 40 1,163 - 484 3,674
31 March 2026 - 59,642 1,063 16,750 279 12,213 89,947
Accumulated amortisation and impairment
1 April 2024 (11,500) (139,551) (923) (4,938) - (3,161) (160,073)
Charge for the year - (2,794) (34) (1,422) - - (4,250)
Impairment - - - - (23) (459) (482)
Disposals 11,500 88,916 12 - - - 100,428
Foreign currency translation - 1,414 33 387 - - 1,834
31 March 2025 - (52,015) (912) (5,973) (23) (3,620) (62,543)
Business combinations - (208) (2) - - - (21 0)
Charge for the year - (3,487) (31) (1,475) - - (4,993)
Impairment - - - - (3) (534) (537)
Disposals - 17,287 - - - - 17,287
Foreign currency translation - (1,734) 40 (549) - - (2,323)
31 March 2026 - (40,157) (985) (7,997) (26) (4,154) (53,319)
Carrying amount
31 March 2025 - 14,699 60 8,745 177 5,361 29,042
31 March 2026 - 19,485 78 8,753 253 8,059 36,628
Disposals
The disposals during the year consisted primarily of historic software and
other intangible assets that have fully amortised, are no longer being used
and are no longer providing any further economic benefits to the Group.
Research and development costs
Research and development expenses for the year totalled £705,000 (31 March
2025: £695,000).
Client relationships
Client relationships include the AUD$25 million transaction with ANZ to
transition its portfolio of Share Investing clients to CMC. As at 31 March
2026, the carrying amount of this asset was £8.0 million, with 5.5 years
remaining in its amortisation period. Other client relationships have a
carrying amount of £0.8 million.
Impairment of intangible assets
At 31 March 2026, impairment indicators were identified in relation to the
Group's UK Invest CGU, and an impairment assessment was performed. No
impairment loss was recognised as the recoverable amount of the CGU exceeded
its carrying value (31 March 2025: £nil). The recoverable amount for the UK
Invest CGU was determined using a VIU calculation.
During the year, management reviewed and updated the Group's CGUs to ensure
they remained aligned with how cash flows are generated. Consistent with its
prior year treatment, UK Invest was assessed as a standalone CGU, reflecting
its distinct user interface, brand and operating model.
The VIU calculation is based on the Group's Board-approved budget covering the
period from 1 April 2026 to 31 March 2029, allocated to the UK Invest CGU.
Given the growth expected, the forecast has been extrapolated beyond the
three-year Board-approved budget to arrive at a five-year explicit forecast.
These forecasts reflect management's best estimates of future business
performance and incorporate assumptions related to the execution of the
Group's strategic priorities, including the successful delivery of key B2B
partnerships.
Forecast profitability for the CGU has been adjusted for non-cash items (such
as depreciation and amortisation) and expected capital expenditure. Cash flows
beyond the five-year forecast period have been increased over years six to
ten, reflecting a gradual progression to maturity. A terminal growth rate of
2% has been applied thereafter, consistent with long-term economic growth
expectations in the UK - the sole market in which the CGU operates. A pre-tax
discount rate of 15.9% was applied in the VIU model.
The VIU calculation is most sensitive to assumptions around forecast
profitability and the discount rate. Sensitivity analysis shows that when the
terminal period is calculated after the five-year forecast, the VIU would
still comfortably exceed the carrying amount of the CGU. The discount rate
would need to increase to 30.2% for the VIU to equal the carrying amount of
the CGU. Based on this analysis, Management is satisfied that reasonable
movements in key variables, when adjusted independently, would not cause the
carrying amount to exceed the recoverable amount.
11. Property, plant and equipment
Accounting policy
Property, plant and equipment ("PPE") is stated at cost less accumulated
depreciation and any recognised impairment loss. Cost includes the original
purchase price of the asset and the costs attributable to bringing the asset
to its working condition for its intended use. Depreciation is provided on all
PPE at rates calculated to write off the cost, less estimated residual value
based on prices prevailing at the balance sheet date, of each asset on a
straight-line basis over its expected useful life as follows:
Item Depreciation Policy
Furniture, fixtures and equipment 5 years
Computer hardware 5 years
Leasehold improvements Life of lease
The useful lives and residual values of the assets are assessed annually and
may be adjusted depending on a number of factors. In reassessing asset lives,
factors such as technological innovation, product lifecycles and maintenance
programmes are taken into account. Residual value assessments consider issues
such as future market conditions, the remaining life of the asset and
projected disposal values. Consideration is also given to the extent of
current profits and losses on the disposal of similar assets.
The gain or loss arising on the disposal or retirement of an asset is
determined as the difference between the sales proceeds and the carrying
amount of the asset and is recognised in the income statement.
Right-of-use assets
Upon recognition of a lease liability (see note 22 for further details), the
Group recognises a corresponding right-of-use asset. The asset is initially
measured at the amount of the lease liability, adjusted for any initial direct
costs incurred, lease incentives received or paid, and estimated restoration
costs where applicable.
Right-of-use assets are depreciated on a straight-line basis over the lease
term.
At each reporting date, all items of PPE, including right-of-use assets, are
reviewed for indicators of impairment, but no material impairment loss was
identified (FY2025: Immaterial).
£ '000 Leasehold improvem-ents Furniture, fixtures and equipment Computer hardware Right-of-use assets Total
Cost 1 April 2024 16,542 9,829 45,502 30,320 102,193
Additions 521 477 2,041 2,381 5,420
Disposals (645) (6,659) (25,180) (1,812) (34,296)
Foreign currency translation (316) (129) (306) (691) (1,442)
31 March 2025 16,102 3,518 22,057 30,198 71,875
Additions 1,565 314 1,413 9,484 12,776
Business combinations - - 14 - 14
Disposals (32) (295) (429) (723) (1,479)
Foreign currency translation 359 124 373 1,129 1,985
31 March 2026 17,994 3,661 23,428 40,088 85,171
Accumulated depreciation 1 April 2024 (12,471) (8,700) (35,394) (17,082) (73,647)
Charge for the year (1,307) (389) (3,838) (3,747) (9,281)
Disposals 645 6,631 25,090 1,810 34,176
Foreign currency translation 237 93 234 482 1,046
31 March 2025 (12,896) (2,365) (13,908) (18,537) (47,706)
Charge for the year (1,204) (393) (3,349) (4,012) (8,958)
Business combinations - - 13 - 13
Disposals 1 328 320 543 1,192
Foreign currency translation (278) (102) (310) (590) (1,280)
31 March 2026 (14,377) (2,532) (17,260) (22,596) (56,765)
Carrying amount
31 March 2025 3,206 1,153 8,149 11,661 24,169
31 March 2026 3,617 1,129 6,168 17,492 28,406
Disposals
The disposals during FY2025 consisted primarily of historical items that have
fully depreciated, are no longer being used and are no longer providing any
further economic benefits to the Group.
12. Trade and other receivables
Accounting policy
Trade and other receivables are measured at amortised cost less loss
allowances.
The Group recognises a loss allowance for trade receivables based on lifetime
expected credit losses, estimated using a provision matrix that considers the
customer's country and days past due. A 100% loss allowance is applied to
balances over 90 days past due, reflecting historical non-recovery.
Professional clients permitted to trade on pre-defined credit limits that have
exceeded their credit limit, will be assessed individually, to consider the
specific circumstances of the debtor, to make a judgement on the potential
risk of non-recovery.
£ '000 31 March 2026 31 March 2025
Current
Gross trade receivables 31,520 12,381
Less: Loss allowance (3,100) (3,136)
Trade receivables 28,420 9,245
Prepayments 19,901 16,801
Accrued income 5,344 4,081
Stockbroking debtors 120,601 108,175
Other debtors and advances 12,680 7,540
186,946 145,842
Non-current
Other debtors 2,629 1,823
Total 189,575 147,665
Stockbroking debtors represent the amount receivable in respect of equity
security transactions executed on behalf of clients with a corresponding
balance included within trade and other payables (note 19).
At 31 March 2026, the Group has lease receivables amounting to £631,000 (31
March 2025: £716,000). The Group is an intermediate lessor on these leases
and has recognised finance income of £38,000 during FY 2026 (FY 2025:
£40,000).
13. Secured Financing
Accounting policy
The Group borrows securities from clients and provides cash collateral.
Securities received by the Group under these arrangements are not recognised
on the Consolidated Statement of Financial Position.
Cash collateral provided in connection with these arrangements is recognised
as a financial asset where the Group has a contractual right to recover the
collateral upon return of the borrowed securities. Such balances are measured
at amortised cost in accordance with IFRS 9 "Financial Instruments", as the
objective is to hold the asset to collect contractual cash flows representing
principal and financing income.
The Group recognises expected credit losses ("ECL") on secured financing
measured at amortised cost in accordance with IFRS 9.
£ '000 31 March 2026 31 March 2025
Amounts due under secured financing arrangements 3,672 -
Total 3,672 -
The expected credit loss held against secured financing as at 31 March 2026
was immaterial.
14. Investments in associate and subsequent acquisition
Accounting policy
An associate is an undertaking in which the Group has a long-term equity
interest and over which it has the power to exercise significant influence.
The Group's interest in the net assets of associates is reported in
investments in the statement of financial position and its interest in their
results is included in the income statement. Investments in associates are
initially recorded at cost. Investments in associates are reviewed for
impairment whenever events or circumstances indicate that the carrying amount
may not be recoverable.
The Group held a 33% stake in Strike X Technologies ("Strike X"), a
customer-centric blockchain solutions business, which was acquired in June
2023 for a cost of £2,800,000. In May 2025, the Group acquired a further 18%
stake in Strike X and 5 million Strike X ("STRX") tokens for a purchase
consideration of £1,000.
The assets and liabilities recognised as a result of the acquisition are as
follows:
£ '000 7 May 2025
Analysis of financial investments
Intangible assets 1,938
Property, plant and equipment 1
Trade and other receivables 78
Other assets 5
Trade and other payables (585)
Net identifiable assets acquired 1,437
Less: non-controlling interests (49%) (704)
Fair value of identifiable assets attributable to the Group 733
Add: Fair value of STRX tokens acquired as part of the transaction 79
Less: Consideration transferred (1)
Reversal of impairment of investments in associate and gain on bargain 811
purchase*
* The gain on bargain purchase amounted to £258,000, representing the
excess of the fair value of the identified net assets acquired over the sum of
the non-controlling interest, the fair value of the previously held investment
in the associate, and the consideration transferred.
15. Derivative financial instruments
Accounting policy
Derivative financial instruments, including index, commodity and foreign
exchange contracts, are classified as fair value through profit or loss under
IFRS 9 "Financial Instruments" unless designated as accounting hedges.
Derivatives are initially recognised at fair value, with subsequent changes in
fair value and settlement gains or losses recognised in the income statement
unless hedge accounting is applied.
For accounting hedges, the Group documents the relationship between hedging
instruments and hedged items at inception, along with the risk management
objectives and strategy. Effectiveness is assessed both at inception and on an
ongoing basis to ensure the hedge remains highly effective. There is no
accounting hedge for 31 March 2026 (31 March 2025: None).
Derivatives are categorised as follows:
· Held for trading: Used to economically hedge client positions.
These are measured at fair value with gains or losses recognised in revenue.
· Held for hedging: Used to manage foreign exchange risk on monetary
assets, liabilities, financial commitments or forecast transactions. Where
hedge accounting is not applied, fair value changes are recognised in
operating costs.
31 March 2026 31 March 2025
Assets Notional Net book Notional Net book
amount amount amount amount
£m £ '000 £m £ '000
Held for trading
Client trading positions 314.6 29,577 291.8 24,418
Equity trading positions(1) 17.5 956 - -
Held for hedging
Foreign exchange contracts 5.7 51 5.8 38
Total 337.8 30,584 297.6 24,456
(1) Positions used to hedge client equity CFD exposures, which remained open
at year end as part of the Group's risk management strategy.
31 March 2026 31 March 2025
Liabilities Notional Net book Notional Net book
amount amount amount amount
£m £ '000 £m £ '000
Held for trading
Client trading positions 233.1 (10,082) 285.8 (11,061)
Equity trading positions(1) 52.0 (3,772) 44.6 (5,099)
Total 285.1 (13,854) 330.4 (16,160)
(1) Positions used to hedge client equity CFD exposures, which remained open
at year end as part of the Group's risk management strategy.
16. Other assets
Accounting policy
Other assets are cryptocurrencies, which are owned and controlled by the Group
for the purpose of hedging the Group's exposure to clients' cryptocurrency
trading positions and facilitate other cryptocurrency related transactions
with clients.
Other assets are measured at fair value less costs to sell, which
cryptocurrencies is based on the market price of these instruments as at the
balance sheet date. Management exercised judgement in applying the measurement
principles of IFRS 13 "Fair Value Measurement" in accounting for these assets.
£ '000 31 March 2026 31 March 2025
Exchange 18 10
Total 18 10
17. Financial investments
Accounting policy
Financial investments
Debt instruments that meet the "solely payments of principal and interest"
("SPPI") criteria and are held within a business model to collect and sell
cash flows are measured at FVOCI. These include UK government securities and
corporate bonds. Interest income is recognised in profit or loss using the
effective interest method. Gains and losses are recognised in OCI and
reclassified to the income statement on derecognition.
Certain corporate bonds and credit-linked notes held do not meet the SPPI
requirements and are measured at FVPL, with changes in fair value recognised
in the income statement.
Equity investments and preference stock are measured at FVPL, with changes
recognised in the income statement.
Expected credit losses on financial investments are recognised in the income
statement. For instruments measured at FVOCI, related impacts are also
recognised in OCI.
£ '000 31 March 2026 31 March 2025
Investment in debt instruments classified at FVOCI
UK government securities 35,567 17,394
Corporate bonds 27,033 35,460
Sukuk bonds - 3,824
Financial assets mandatory measured at FVPL
Credit-linked notes - 19,170
Corporate bonds 10,079 5,774
Unlisted equity securities 11,067 957
Listed equity securities 4,483 28,375
Listed preference stock 38,554 -
Total 126,783 110,954
£ '000 31 March 2026 31 March 2025
Analysis of financial investments
Non-current 11,067 30,399
Current 115,716 80,555
Total 126,783 110,954
UK government securities
UK government securities are held for liquidity management and regulatory
purposes. The effective interest rates of UK government securities held at the
year-end range from 0.91% to 2.04% (31 March 2025: 2.34%). The expected credit
losses are immaterial as at 31 March 2026 (31 March 2025: immaterial).
Corporate and sukuk bonds
The Group's corporate bond holdings form part of its treasury management
strategy. The bonds primarily consist of high-grade, short-term traded debt
instruments. The effective interest rates of corporate bonds held at the
year-end range from 0.62% to 5.89% (31 March 2025: 3.46% to 8.36%). The
expected credit losses are immaterial as at 31 March 2026 (31 March 2025:
immaterial).
Credit-linked notes (FY2025 only)
The Group holds a portfolio of credit-linked notes. These are structured fixed
income instruments that provide exposure to the credit risk of a specific
entity and form part of the Group's treasury management strategy.
Unlisted equity securities
The Group also holds unlisted equity investments as part of its CapX business,
primarily consisting of shares in a structured vehicle that provides indirect
exposure to common stock in Space Exploration Technologies Corp. ("SpaceX").
In addition, the Group holds stock of Payward Inc. and stock of Blockratize
Inc. as part of its CapX business.
Listed preference stock and equity securities
The Group acquired preference stock in Strategy Inc. as part of the Group's
treasury management strategy.
The equity securities held as at 31 March 2025 consisted of shares acquired to
hedge client positions. This included an investment of £21.2 million in De La
Rue plc, representing 9.2% of its market capitalisation. The holding was used
to fully hedge a derivative position provided to an institutional client as
part of the Group's liquidity services and, as such, did not result in direct
market exposure for the Group. The holding was fully sold in the year ended 31
March 2026.
18. Cash and cash equivalents
Accounting policy
Cash and cash equivalents include cash at bank, short-term deposits and highly
liquid investments such as money market funds with original maturities of
three months or less and are subject to an insignificant risk of changes in
value and are held to meet short-term cash commitments.
£ '000 31 March 2026 31 March 2025
Cash at bank and within money market funds 276,517 247,665
Total 276,517 247,665
The expected credit loss held against cash and cash equivalents as at 31 March
2026 was immaterial (31 March 2025: immaterial).
Movements in net cash
£ '000 1 April Cash flow New and modified lease Foreign exchange adjustments 31 March 2025
2024
Lease liabilities (16,915) 5,058 (2,721) 236 (14,342)
Secured borrowings - (7,453) - (4) (7,457)
Total liabilities from financing activities (16,915) (2,395) (2,721) 232 (21,799)
Cash and cash equivalents 160,300 92,688 - (5,323) 247,665
Net cash 143,385 90,293 (2,721) (5,091) 225,866
£ '000 1 April Cash flow New and modified lease Foreign exchange adjustments 31 March 2026
2025
Lease liabilities (14,342) 3,633 (10,326) (595) (21,630)
Secured borrowings (7,457) 7,457 - - -
Borrowings - (46,613) - (164) (46,777)
Total liabilities from financing activities (21,799) (35,523) (10,326) (759) (68,407)
Cash and cash equivalents 247,665 22,932 - 5,920 276,517
Net cash 225,866 (12,591) (10,326) 5,161 208,110
19. Trade and other payables
£ '000 31 March 2026 31 March 2025
Current
Client payables 239,026 117,740
Tax and social security 1,508 502
Stockbroking creditors 105,578 99,629
Accruals and other creditors 42,757 35,710
388,869 253,581
Non-current
Other creditors 4 4
Total 388,873 253,585
Stockbroking creditors represent the amount payable in respect of equity and
securities transactions executed on behalf of clients with a corresponding
balance included within trade and other receivables (note 12).
20. Secured borrowings
Accounting policy
The Group participates in securities lending arrangements whereby it lends
securities, including both its own holdings and securities borrowed from
clients, to prime brokers ("PBs") to facilitate trading activities. These
arrangements are accounted for in accordance with IFRS 9 "Financial
Instruments". Own securities loaned are generally not derecognised from the
statement of financial position where the Group retains substantially all the
risks and rewards of ownership. The securities continue to be measured in
accordance with their original classification, and the rights to receive the
securities back at the end of the lending term are retained.
Cash collateral received in respect of securities lending transactions is
recognised as a financial liability, reflecting the obligation to return
equivalent cash upon termination of the arrangement. The fair value of the
securities lent under these agreements at 31 March 2026 was £44.3 million (31
March 2025: £nil).
Obligations under repurchase agreements are accounted for in accordance with
IFRS 9 "Financial Instruments". The securities are measured at amortised cost.
The securities sold remain on the balance sheet, with a corresponding
liability recognised for the cash received. The difference between the sale
and repurchase price is recognised as interest expense over the term of the
agreement using the effective interest method.
The fair values of repurchase agreements approximate their carrying amounts,
as the balances are either short-dated or subject to variable rates that align
with current market rates. The Group pledges assets for repurchase agreements
which are generally conducted under terms that are usual and customary for
standard securitised borrowing contracts. The fair value of the collateral
provided under these agreements at 31 March 2026 was £13.5 million (31 March
2025: £8.7 million)
£ '000 31 March 2026 31 March 2025
Amounts due to PBs under secured lending arrangements 44,319 -
Obligations under repurchase agreements 11,348 7,457
Total 55,667 7,457
21. Borrowings
Accounting policy
Commercial paper issued by the Group is recognised as a financial liability in
accordance with IFRS 9 "Financial Instruments" and is initially measured at
fair value net of directly attributable transaction costs. Following initial
recognition, commercial paper is measured at amortised cost using the
effective interest method. Interest expense is recognised within finance costs
in the Consolidated Income Statement over the term of the instrument so as to
produce a constant periodic rate of interest on the outstanding liability.
£ '000 31 March 2026 31 March 2025
Commercial paper 46,777 -
Total 46,777 -
At 31 March 2026, the remaining maturity duration of outstanding commercial
papers ranged from 8 to 16 days and a weighted average interest rate of 3.4%.
Bank loans
In March 2026, the syndicated revolving credit facility was renewed at a level
of £55.0 million (31 March 2025: £55.0 million) where £27.5 million had a
maturity date of March 2027 and £27.5 million had a maturity date of March
2029.
This facility can only be used to meet broker margin requirements of the
Group. The rate of interest payable on any loans is the aggregate of the
applicable margin and SONIA. Other fees such as commitment fees, legal fees
and arrangement fees are also payable on this facility.
No amount was outstanding on this facility at 31 March 2026 (31 March 2025:
£nil).
22. Lease liabilities
Accounting policy
At the inception of a contract, the Group assesses whether the contract
contains a lease.
At the commencement of a lease, the Group recognises a lease liability and a
corresponding right-of-use asset. The lease liability is initially measured at
the present value of the remaining lease payments, discounted using the
Group's incremental borrowing rate if the rate implicit in the lease is not
readily available. The right-of-use asset is initially measured at the amount
of the lease liability, adjusted for any upfront payments, direct costs and
restoration obligations, less any lease incentives received.
The lease liability is subsequently remeasured when there are changes to
future lease payments or to the assessment of extension, termination or
purchase options. When such a remeasurement occurs, a corresponding adjustment
is made to the right-of-use asset.
Where the Group is reasonably certain to exercise a break option, only the
lease payments up to the break date are included in the lease liability.
The Group has elected not to recognise lease liabilities and right-of-use
assets for leases with a term of 12 months or less, or for leases of low-value
assets (defined as items with a value of less than £5,000). For these leases,
payments are recognised as an expense in the income statement on a
straight-line basis over the lease term. As an intermediate lessor, the Group
accounts for head leases and sub-leases separately. Sub-leases of vehicles are
classified as finance leases, with lease receivables recognised at the net
investment value. Finance income is recognised to produce a constant rate of
return over the lease term.
The Group leases several assets including leasehold properties and computer
hardware to meet its operational business requirements. The average lease term
is 3.6 years (31 March 2025: 2.3 years).
The movements in lease liabilities during the year were as follows:
Year ended
£ '000 31 March 2026 31 March 2025
At the beginning of the period 14,342 16,915
Additions / modifications of new leases during the period 10,326 2,721
Interest expense 1,524 1,102
Lease payments made during the period (5,157) (6,160)
Foreign currency translation 595 (236)
At the end of the period 21,630 14,342
£ '000 31 March 2026 31 March 2025
Analysis of lease liabilities
Non-current 4,152 11,233
Current 17,478 3,109
Total 21,630 14,342
The lease payments for FY 2026 relating to short-term leases amounted to
£521,000 (FY 2025: £607,000).
23. Provisions
£ '000 Employee related Property related Other Total
At the 1 April 2024 2,186 386 1,622 4,194
Additional provision 1,025 108 4,434 5,567
Utilisation of provision (2,186) (56) (47) (2,289)
Unutilised provision reversed - (73) (1,566) (1,639)
Currency translation - (16) (186) (202)
At the 31 March 2025 1,025 349 4,257 5,631
Additional provision 1,464 14 6,286 7,764
Utilisation of provision (1,994) - (10,122) (12,116)
Currency translation (1) 21 93 113
At the 31 March 2026 494 384 514 1,392
Employee related provisions
The employee related provisions represent the redundancy payments and other
employee compensation payments.
Property related provisions
The property-related provisions include dilapidation provisions. Dilapidation
provisions have been capitalised as part of the cost of ROU assets and are
amortised over the term of the lease. These dilapidation provisions are
utilised as and when the Group vacates a property and expenditure is incurred
to restore the property to its original condition.
Other provisions
During the year ended 31 March 2025, the Group utilised £10.1 million of
previously recognised provisions for the remediation of historic margin
discounting practices in one of its Australian operating entities, following
engagement with the Australian Securities and Investments Commission ("ASIC").
A residual provision of £0.3m remains outstanding for customers whom the
company was unable to contact.
24. Cash generated from operations
Year ended
£ '000 31 March 2026 31 March 2025
Cash flows from operating activities
Profit before taxation 101,343 84,454
Adjustments for:
Interest income (18,835) (18,531)
Income on client funds (23,076) (23,957)
Interest expense 492 -
Finance costs 2,822 2,590
Depreciation 8,958 9,281
Amortisation and impairment of intangible assets 5,530 4,732
Impairment of investments in associate - 2,328
Research and development tax credit (325) (566)
(Reversal of impairment of investments in associate and gain on bargain (811) -
purchase) / Impairment of investments in associate
Share of results of associate - 189
Loss on disposal of property, plant and equipment 101 202
Other non-cash movements including exchange rate movements 769 (4)
Share-based payment 4,119 3,583
Fair value losses on financial investments at FVPL (8,125) 53
Changes in working capital:
Decrease/(increase) in trade and other receivables (40,396) 18,092
Decrease/(increase) in amounts due from/due to brokers (151,460) 94,129
Decrease/(increase) in other assets (3) 12,248
Increase in financial investments held for trading (7,208) (28,952)
(Increase)/decrease in trade and other payables 133,978 (19,226)
(Increase)/decrease in secured financing (3,672) -
Increase in secured borrowings 55,651 -
Decrease/(increase) in net derivative financial instruments (8,434) 16,257
Increase in provisions (4,366) 1,531
Cash generated from operations 47,052 158,433
25. Fair value measurement disclosures
IFRS 13 "Fair Value Measurement" requires the Group to classify its financial
assets and liabilities according to a hierarchy that reflects the
observability of significant market inputs. The three levels of the fair value
hierarchy are defined below:
· Level 1 - quoted prices (unadjusted) in active markets for
identical assets or liabilities;
· Level 2 - inputs other than quoted prices included within level 1
that are observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices); or
· Level 3 - inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs).
31 March 2026
£ '000 Carrying value Level 1 Level 2 Level 3 Total fair value
Financial assets
Financial investments 126,782 78,604 37,112 11,067 126,782
Derivative financial instruments 30,533 - 30,533 - 30,533
Total financial assets 157,315 78,604 67,645 11,067 157,315
Financial liabilities
Derivative financial instruments (13,803) - (13, 707) (96) (13,803)
Total financial liabilities (13,803) - (13,707) (96) (13,803)
31 March 2025
£'000 Carrying value Level 1 Level 2 Level 3 Total fair value
Financial assets
Financial investments 110,954 45,768 64,228 958 110,954
Derivative financial instruments 24,456 - 24,456 - 24,456
Total financial assets 135,410 45,768 88,684 958 135,410
Financial liabilities
Derivative financial instruments (16,160) - (16,160) - (16,160)
Total financial liabilities (16,160) - (16,160) - (16,160)
Valuation techniques
There have been no changes to the fair value hierarchy or valuation techniques
for any of the Group's financial instruments held at fair value in the period.
During the period, there were no transfers between levels (31 March 2025:
none). Specific valuation techniques used to value Level 2 and Level 3
instruments include:
Corporate bonds
Corporate bonds held by the Group are valued using market prices sourced from
independent pricing services. These prices reflect recent trading activity but
are classified as Level 2 due to the lower volume and frequency of observable
market transactions.
Credit-linked notes (FY2025 only)
Credit-linked notes are valued based on market prices obtained from
independent pricing services. As these prices are not from actively traded
markets but rely on observable inputs, they are also classified as Level 2
instruments.
Unlisted equity investments
The financial investments categorised as Level 3 consist of unlisted equity
investments the Group holds in a structured vehicle that provides indirect
exposure to common stock in Space Exploration Technologies Corp. ("SpaceX")
with a fair value of £8.4 million. In addition, the Group holds stock of
Payward Inc. and stock of Blockratize Inc. with a fair value of £1.1 million
and £1.5 million respectively.
The total fair value of the Group's investments in Level 3 instruments at the
reporting date was £11.1 million. A 10% change in the underlying valuation of
these instruments would result in a corresponding change in fair value of
approximately £1.1 million.
These investments are classified as a Level 3 instrument within the IFRS 13
fair value hierarchy due to the absence of quoted market prices and the use of
significant unobservable inputs in the valuation.
The fair value of these investments has been determined with reference to the
price at which the Group entered into the latest transaction involving the
investments, which management considers to represent the most reliable
indicator of fair value at the reporting date in the absence of observable
market data.
Derivative financial instruments
The fair value of derivative financial assets and liabilities is determined
using quoted market prices or dealer quotes for similar instruments. The fair
value of forward foreign exchange contracts is calculated using quoted forward
exchange rates at the balance sheet date, with the resulting amount discounted
back to present value. These instruments are classified within Level 2 of the
fair value hierarchy, as inputs other than quoted prices are observable for
the asset or liability, either directly or indirectly.
Reconciliation of Level 3 Fair Value Measurements
The following table provides a reconciliation of movements in fair value
measurements categorised within Level 3 of the fair value hierarchy for
financial assets and liabilities:
Financial assets Year ended
£ '000 31 March 2026 31 March 2025
At 1 April 2025 958 32
Purchases 4,310 795
Gains / (losses) recognised in the income statement 5,799 131
At 31 March 2026 11,067 958
Financial liabilities Year ended
£ '000 31 March 2026 31 March 2025
At 1 April 2025 - -
New transactions (96) -
At 31 March 2026 (96) -
Fair value of financial assets and liabilities measured at amortised cost
The fair value of the following financial assets and liabilities not held at
fair value approximates to their net book Amount:
· Cash and cash equivalents
· Amounts due from/to brokers
· Secured financing
· Trade and other receivables (financial assets only)
· Borroeings
· Secured borrowings
· Trade and other payables (financial liabilities only)
26. Contingent liabilities
Critical accounting judgements
Assessment of legal and regulatory matters
A key judgement applied in preparing these Financial Statements is the
evaluation of the accounting treatment of the contingent liabilities described
below. This includes the assessment of whether a present obligation exists
and, where it does, estimating the likelihood, timing and amount of any
associated outflows. In evaluating whether a provision is required and can be
reliably estimated, the Group consults relevant experts where necessary and
continuously reassess its decisions. In the initial stages of legal, tax and
regulatory matters, it is often not possible to reliably estimate the outcome,
and in such cases, no provision is made.
The Group geographical reach exposes it to a high degree of uncertainty
regarding the interpretation of local regulatory, tax and legal matters in
each territory in which it has operations. In addition, the Group is party to
various contractual relationships that could result in non-performance claims
and other contractual breaches and from time to time is involved in disputes
as part of the ordinary course of business.
In certain instances, legal disputes can result in significant financial
exposure; however, the Group manages these risks proactively to resolve
disputes and claims are usually resolved without any material loss. The Group
makes provision for claims where costs are likely to be incurred.
Where there are uncertainties regarding regulatory, tax and legal matters and
a provision has not been made, there are no contingent liabilities where the
Group considers any material adverse financial impact to be probable.
Notice of class action lawsuit
One of the Group's operating entities in Australia continues to be the subject
of class action proceedings in the Federal Court of Australia, initiated in
May 2022. The proceedings relate to the acquisition of interests in CFDs and
binary products between November 2011 and April 2021 by retail clients who
suffered a loss. A further amendment to the claim was filed in March 2026,
resulting in the refinement of the claim period now being May 2016 to April
2021, removal of certain existing causes of action and the addition of new
causes of action. In March 2026, the Court ordered further discovery of CMC
and a timetable through to trial, with trial commencing in October 2027. At
present, it is not possible to determine the potential outcome, and it is
therefore not possible to disclose a reliable estimate of the financial
effect.
Open tax enquiries
The Group has open tax enquiries in relation to its European and American
operations which are routine in nature. The potential outcome of these
enquiries is unclear and there is no certainty whether there may be a
financial cost to the Group.
27. Events after the reporting period
European medium-term note programme
Subsequent to the reporting date, the Group commenced arrangements for a
proposed debt issuance of approximately £200 million. The main drivers are to
provide more stable funding for the Group and a £100m regulatory capital
benefit. The Commercial Paper programme and Revolving Credit Facility would be
retained. The transaction remained subject to Board approval and completion of
documentation at the date of authorisation of these financial statements.
Accordingly, no amounts have been recognised in the financial statements in
respect of this matter.
ALTERNATIVE PERFORMANCE MEASURES
In presenting financial information, the Group includes certain measures that
are not mandated by IFRS, the Generally Accepted Accounting Principles under
which the Group prepares its reports. These measures align with those utilised
by management to evaluate underlying performance.
(a) Net trading revenue
Gross trading revenue less attributable introductory partner commissions and
betting levies. This metric provides a clearer view of the underlying revenue
generated from trading activity that is directly attributable to the Group,
excluding variable costs linked to revenue generation. It is a useful measure
for assessing the profitability and performance of trading operations.
Year ended
£ '000 Note 31 March 2026 31 March 2025
Trading revenue 3 300,770 256,169
Trading introducing partner commissions and betting levies 3 (11,085) (7,242)
Net trading revenue 289,685 248,927
(b) Net investing revenue
Net investing revenue is defined as gross investing revenue less attributable
introductory partner commissions. This metric reflects the revenue from
investing activity that is retained by the Group after variable
partner-related costs. It is a useful measure for evaluating the underlying
performance and profitability of the Group's investing business.
Year ended
£ '000 Note 31 March 2026 31 March 2025
Investing gross revenue 3 72,305 57,189
Investing introducing partner commissions 3 (14,510) (12,740)
Net investing revenue 57,795 44,449
(c) Interest income and Net interest income
Interest income represents the total income earned from interest-bearing own
assets and client funds. It provides a useful measure of the contribution from
treasury and cash management activities, and can be an important driver of
overall profitability, particularly in varying interest rate environments.
Year ended
£ '000 31 March 2026 31 March 2025
Interest income on own funds 18,835 18,531
Income on client funds 23,076 23,957
Interest income 41,911 42,488
Interest expense (492) -
Net Interest income 41,419 42,488
(d) Net operating income
Total revenue net of rebates, levies and other variable costs directly
associated with revenue generation. It provides a useful measure of the income
retained by the Group from its core operations.
Year ended
£ '000 Note 31 March 2026 31 March 2025
Net trading revenue 289,685 248,927
Net investing revenue 57,795 44,449
Interest income 41,419 42,488
Other revenue 3,681 4,253
Net operating income 3 392,580 340,117
(e) Trading revenue per client
Net trading revenue divided by the number of active trading clients. It
provides a useful measure of client value and business efficiency, helping to
assess the average revenue generated per client and track changes in client
behaviour or product performance over time.
Year ended
£ '000 31 March 2026 31 March 2025
Net trading revenue (£'000) (a) 289,685 248,927
Active clients 55,081 52,290
Trading revenue per client - £ 5,259 4,761
(f) EBITDA
Profit before tax adjusted for finance costs and certain non-cash items. It
provides a useful measure for assessing underlying profitability across
periods and with peers, as it focuses on the core earnings generated from
business operations, excluding the impact of financing decisions and non-cash
adjustments.
Year ended
£ '000 31 March 2026 31 March 2025
Profit before taxation 101,343 84,454
Finance costs 2,822 2,590
Depreciation and amortisation 13,954 13,531
Impairment of intangible assets 534 482
(Reversal of impairment of investments in associate and gain on bargain (811) 2,328
purchase) / Impairment of investments in associate
EBITDA 117,842 103,385
(g) Profit before tax margin
Profit before tax expressed as a percentage of net operating income.
Year ended
Note 31 March 2026 31 March 2025
Profit before taxation (£'000) 101,343 84,454
Net operating income (£'000) 3 392,580 340,117
Profit before tax margin (%) 25.8% 24.8%
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