CMC Markets launches £30m share buyback for investors after the trading platform’s pandemic-fuelled profit surge
- CMC has launched previously announced £30m share buyback for investors
- Group’s operating income more than doubled to £410m in year to March 2021
CMC Markets has launched the share buyback scheme for investors it unveiled last month.
The trading platform group said it plans to buy up to £30million worth of shares by the end of June, with up to 29.07million shares set to be repurchased.0
The company has previously said that the return of excess capital to shareholders will not affect the group’s dividend policy, which remains unchanged.
In charge: Peter Cruddas is the boss of CMC Markets and a member of the House of Lords
The firm’s full-year guidance also remains unchanged.
CMC added: ‘The Company has appointed RBC Europe Limited (“RBC”) to manage the Buyback Programme on its behalf.
‘Any purchases made during closed periods, shall be made independently of and uninfluenced by the Company.’
CMC Markets shares have fallen today and were down 2.21 per cent or 5.50p to 243.50p.
A year ago the group’s share price was 435.00p, having fallen by over 44 per cent in the past year.
During the pandemic CMC Markets posted record profits amid a surge in spread betting and online trading in stocks.
In the year to March 2021, the group saw its operating income more than double to £410million, while pre-tax profit jumped from £99million to £224million.
Boss Peter Cruddas, who founded the group, is its chief executive and owns a stake of over 60 per cent in the firm, took home a £55million dividend payout for the period. Cruddas is also a member of the House of Lords.