CMC Markets’ Cruddas Remains Bullish on Company Prospects Post-Brexit

Much of the UK and financial services industry is splintered on its outlook following the Brexit referendum and the country’s inevitable schism with the economic bloc – however CMC Markets (LON:CMCX) sees grounds for optimism in light of a recent aftermath that has blunted the group’s business.

After engineering the most successful initial public offering (IPO) earlier this year, CMC Markets’ (LON:CMCX) share prices have not been rewarding shareholders. Since peaking at an all-time high of over $364.6 (£293.6) per share, the group’s share prices have given up a large portion if its earlier gains, which has been over a third since September alone – shares have since dwindled to $249.4 (£194.3) per share, or -33.8%.

Not All Doom and Gloom

However, its not all doom and gloom for the group, even as many financial venues look to close the doors on their UK business. CEO Peter Cruddas, an outspoken proponent of a Brexit from the EU, sees the move as a net positive for business at the retail brokerage, despite early pains.

Revenues at the group have been in , largely a product of volatility eliciting caution from investors. The markets have seen no shortage of drivers in H2 2016, with the Brexit vote and the US Election taking center stage in the minds of traders.

Nobody however is more optimistic moving forward than Mr. Cruddas, who owns a 62.5% stake in CMC Markets. Chief Executive Cruddas said the revenue fall was due to a slump in client trading, driven by retail investors scared that volatility around the shock vote in June’s referendum would spark chaos similar to that around the Swiss franc last year. Still, with much of the Brexit chaos in the rear view mirror, the future does hold promise, according to Cruddas.

“After the result…clients sat on the sidelines, we kept our margins high. We pretty much lost a month to it. Brexit hasn’t caused the downturn in our business. It was the run-up to the referendum. It is industry-wide,” noted Mr. Cruddas in a recent statement.

“We are not that focused on the share price. Whilst it is painful to see the share price not perform and the company not hit numbers…we will stick to our strategy. Medium and long-term we think the referendum is going to generate good business for us. Client money is up, new accounts are up. The stuff we’re doing is working,” he added.

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