Final Results

About this update from Cmc Markets Plc

[{"type":"text","content":"\n \n 05 June 2025 \n   \n CMC MARKETS PLC \n (\"CMC\" or the \"Group\" ) \n   \n Results for the year ended 31 March 2025 \n   \n Underlying EBITDA of £103.4 million, up 12%, PBT of £84.5 million and advancing Web 3.0 strategy with launch of third vertical \n   \n Three vertical future state \n ·      CMC's success has been driven by a two vertical model, combining our Direct-to-Consumer (D2C) platform with our B2B institutional-grade Platform Technology as a Service (PTAS) \n ·      The rise of Web 3.0 technologies, including decentralised finance and tokenisation represents a structural shift in global finance and is the future state \n ·      In response, we are launching a third strategic vertical: Decentralised Finance (DeFi) and Web 3.0 capabilities, designed to position CMC at the forefront of the next generation of financial services \n ·      Key initiatives already delivered include the launch of 24/7 crypto trading, enhanced digital asset treasury and payment capabilities, and the post-year-end acquisition of StrikeX, bringing native blockchain expertise and infrastructure in-house \n ·      Our product pipeline is active and ambitious, with further expansion of 24/7 trading, the development of a multi-asset wallet, and tokenised access to financial products \n ·      Three vertical model is the future of CMC, underpinning the next phase of growth and enabling us to become the go-to multi asset platform across Web 3.0 and Traditional Finance (TradFi) \n FY 2025 Financial Performance \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net operating income (£m) \n \n \n 340.1 \n \n \n 332.8 \n \n \n 2% \n \n \n \n \n Underlying EBITDA (£m) \n \n \n 103.4 \n \n \n 92.7 \n \n \n 12% \n \n \n \n \n Profit before tax (£m) \n \n \n 84.5 \n \n \n 63.3 \n \n \n 33% \n \n \n \n \n Profit before tax margin (%) \n \n \n 24.8 \n \n \n 19.0 \n \n \n 5.8ppts \n \n \n \n \n Basic earnings per share (pence) \n \n \n 22.6 \n \n \n 16.7 \n \n \n 35% \n \n \n \n \n Ordinary dividend per share (pence) \n \n \n 11.4 \n \n \n 8.3 \n \n \n 37% \n \n \n \n \n Net operating income represents total revenue net of commissions and levies. Profit before tax margin % is calculated as profit before tax as a percentage of net operating income. \n   \n ·      Record net operating income of AU$106.3 million (FY 2024: AU$85.1 million) in Australian stockbroking, with double-digit growth in active clients and new accounts \n ·      Interest income of £42.5 million (FY 2024: £35.0 million) is up 21%, driven in part by strong performance from our Treasury Management and Capital Markets division \n ·      Underlying EBITDA up 12% year-on-year to £103.4 million (FY 2024: £92.7 million), reflecting strong underlying profitability alongside improved operating leverage \n ·      Profit before tax of £84.5 million (FY 2024: £63.3 million), with margin of 24.8% (FY 2024: 19.0%) reflecting robust net operating income, disciplined cost management and lower one-off charges \n ·      Operating expenses, excluding variable remuneration, were £230.2 million (FY 2024: £237.9 million) as the Group maintains a focus on delivering margin expansion \n ·      Non-recurring charge of £4.3 million relating to customer remediation in Australia following an industry-wide review into margin netting - provision expected to be fully utilised in FY 2026 \n ·      Final dividend of 8.3 pence per share (FY 2024: 7.3 pence) taking dividend for the full year to 11.4 pence per share (FY 2024: 8.3 pence), up 37% year-on-year \n FY 2025 Operational and Strategic Highlights \n ·      Major agreements with Revolut and ASB Bank have solidified CMC's role as a premier technology partner in banking and fintech, with Revolut set to expand into new geographies in FY 2026 - paving the way for even greater global reach \n ·      Launch of 24/7 crypto trading has unlocked an additional 104 trading days per year, supporting vision of round-the-clock market access and strengthening position in digital asset infrastructure \n ·      UK Cash ISA product is performing strongly, attracting record levels of client inflows and enhancing our D2C investment offering \n ·      Significantly expanded our product set, now offering listed and fractional futures and options \n ·      Established new Bermuda office, expanding trading, investment, and digital asset services, and growing our global footprint \n ·      CMC CapX, our capital markets platform launched in 2022, has rapidly become a leading force in UK public market fundraising, whilst also building a robust presence in private capital markets \n ·      Reinforced leadership team with several senior hires, bringing further expertise to drive the next phase of our growth \n ·      Post-period end acquired majority 51% stake in StrikeX, cementing CMC's position as a leader in blockchain technology and tokenised financial products, supporting the development of our third vertical \n Outlook \n ·      The rollout of our three vertical model across D2C, PTAS, and DeFi positions the Group to capture opportunities across both traditional and decentralised financial markets \n ·      Our strategic vision remains firmly on track, with continued investment in digital assets, multi-asset trading, and global platform expansion underpinning long-term growth \n ·      CMC remains self-funded, enabling disciplined investment in technology, international scale, and next-generation financial products, without reliance on external capital \n ·      Recent trading conditions have also been supportive, providing good momentum into FY 2026 \n ·      This strategy, anchored by our robust D2C and PTAS verticals, and strengthened by ongoing investment in DeFi, will drive sustained operational performance and long-term value creation for shareholders \n CEO Statement \n Under my leadership, and particularly since our IPO in 2016, CMC has had a clear, focused strategy for growth as a technology-driven, multi-asset, multi-platform, financial services provider - delivering results today, whilst investing for the future and shaping the industry of tomorrow. \n Today, CMC is the go-to business for multi-asset, investment products and platform technology built on two core verticals: \n ·      Platform Technology as a Service (PTAS): Institutional-grade trading platform technology and execution services to (B2B and B2B2C) through our open API and white-label solutions, deriving higher turnover and profits through scale and distribution. \n ·      Direct to Consumer (D2C): Offering a best-in-class multi-asset trading experience, incorporating platform technology, products, educational resources, liquidity and execution services. \n This two vertical approach enables us to access a broad diverse global client base spanning institutional, professional, retail traders and investors, ensuring deep liquidity and varied revenue streams. Our global ambition is to provide 24/7 execution, liquidity, investing and trading access across multiple platforms. \n However, Web 3.0 technologies, with its emphasis on decentralisation, user ownership, and transparency, is reshaping how financial products are structured, accessed, managed and traded, particularly through the influence of Decentralised Finance (DeFi), tokenisation, and blockchain-based systems. Web 3.0 is a natural extension of everything we already do - just more efficient, more accessible, and more scalable. \n The advent of Web 3.0 technologies has necessitated the development of our third vertical: DeFi functionality on blockchain networks. This is a move that positions CMC to take advantage of the structural changes we are seeing in the financial ecosystem in the years to come. \n \n Web 3.0 is the natural evolution for CMC and is driving the launch of our third vertical  \n ·      Always On: 24/7, Borderless, Timeless \n o  Web 3.0 markets don't sleep. They align with CMC's vision for continuous access across global multi-asset classes and enables seamless participation regardless of geography, time zone, or banking infrastructure. \n ·      Self-Custody & Digital Ownership \n o  Web 3.0 will empower our clients to own, manage and trade their assets directly, with no third-party custody required - integration of cold storage wallets and DeFi infrastructure will enable clients to hold assets safely and independently. \n ·      On-/Off-Ramp Infrastructure: \n o  Clients can fund and withdraw in digital currencies, enabling seamless access to Web 3.0 markets and unlocking borderless trading. In turn, this will create new spread-based revenue and supports CMC's role as a digital gateway. \n ·      One-Click Trading Across Chains \n o  Users can trade any asset, across any chain, with a single click. Our smart wallet will abstract away all the complexity - gas fees, bridging, routing - and delivers a clean, all-in net price. \n ·      Tokenisation of Everything \n o  From equities to real estate, tokenisation turns illiquid, inaccessible assets into tradeable, divisible tokens. This will enable fractional ownership, enhanced liquidity, and broader inclusion across both retail and institutional audiences. \n ·      Integrated Payments & Instant Settlement \n o  CMC's treasury model is crypto-native: digital asset settlement, on-chain clearing, and spread opportunities when converting between fiat and crypto. We are developing a single wallet that lets clients deposit, withdraw, and pay in crypto, fiat, or tokenised assets, seamlessly. One interface, fully integrated across on-chain and traditional rails. \n ·      Programmability & Smart Contracts \n o  Execution logic, yield strategies, and even fund access can be automated and auditable via smart contracts. This will reduce reliance on intermediaries, enhances transparency, and cuts cost-to-serve. \n Web 3.0 is not optional - it is inevitable \n Web 3.0 will transform traditional investing products by introducing tokenised assets, DeFi platforms, and DeFi models that enhance accessibility, reduce costs and offer new opportunities. The convergence of Traditional Finance (TradFi) and DeFi looks to a future where hybrid models dominate, blending Web 3.0's innovation with traditional stability. \n DeFi infrastructure is the tech stack that makes transparent, and permissionless financial services possible, supporting everything from centralised exchanges to yield farming. As the lines between asset classes and products blur, CMC will sit at the centre of this transformation - with technology that empowers, educates and unlocks value for clients and shareholders. \n The advent of Web 3.0 is inevitable. With the launch of our third vertical and strategic investments in this space, CMC is positioned firmly at the heart of this major transformation. \n DeFi and the three vertical future state \n For decades, CMC has been at the fore of innovation, pioneering online trading in the 1990's and now, we are leading the way once again with DeFi - unlocking the power of blockchain, tokenisation, and decentralised markets for our global client base. \n Our strategic investment in StrikeX is a cornerstone of our vision. By securing a 51% controlling stake, completed in May 2025, we are not only accelerating our DeFi ambitions but also bringing native blockchain talent directly in-house. StrikeX's expertise in tokenisation, DeFi wallet custody, and digital asset execution is matched by its team of blockchain innovators who are now part of the CMC family. This investment goes beyond technology - it strengthens our internal capabilities and enables us to build a bridge between traditional and decentralised financial ecosystems. \n Web 3.0 is an ecosystem that never sleeps, and I firmly believe that the future of trading is 24/7, with round-the-clock market access becoming the new global standard. In FY 2025 we launched weekend crypto trading, adding an extra 104 trading days to our trading year. This is a central part of my broader vision for the business where clients can access global markets seamlessly, anywhere, anytime and without restriction. We are actively implementing 24/7 access for a wide range of asset classes, including major indices, commodities, and equities - a shift which represents a transformation in how financial markets are accessed and traded. \n To further support our expansion, we are enhancing our Digital Asset Treasury & Payments infrastructure, which is now fully crypto-native. This enables real-time digital asset settlement and on-chain clearing. Our infrastructure also allows clients to deposit and withdraw in major digital currencies like USDT, BTC, and ETH, enhancing liquidity and facilitating borderless market access. This foundation is crucial for unlocking the full potential of DeFi and ensuring that CMC remains a gateway for digital assets on a global scale. \n Looking further into the future, we are developing a Multi-Asset Wallet - a unified platform where clients can seamlessly manage both traditional and digital assets. This wallet will integrate cash, equities, crypto, ETFs, funds, and tokenised assets under one interface, offering real-time settlement, 24/7 access, and true market fluidity. At CMC we intend to deliver a single, secure gateway to the entire financial ecosystem, providing clients with unmatched accessibility and control over their investments. \n The introduction of our third vertical - DeFi functionality - will mark a significant step forward. Whilst this will be transformational for the business; it is also a natural extension of everything we do, designed to be more efficient, accessible, and scalable. Alongside our established strengths in D2C and PTAS, DeFi represents the future of this business and the next exciting phase of our growth and development. \n Embracing the financial revolution \n As we enter FY 2026, CMC stands as a well-capitalised, highly cash-generative business with the vision, technology, strategy, and leadership to deliver the next phase of growth. Our two vertical model has firmly established us as a leader in multi-asset trading and technology solutions. Now, with the introduction of our third vertical, in the form of DeFi functionality, I am positioning CMC to lead the next wave of innovation. \n I have dedicated most of my life to ensuring that CMC remains at the forefront of financial technology and that commitment is stronger than ever - I am fully focused and energised on ensuring we stay ahead in a rapidly evolving financial landscape. I am, and always will be, 100% dedicated to this business and I have no plans to ever retire, or to sell any of my shares. \n With my clear vision and the talented team around me, I am confident CMC will continue to cement its status as a global leader and world-class financial technology business in the years to come with me at the helm. \n With all the opportunities ahead of us, I am more confident and excited than ever before. \n   \n Lord Cruddas \n 5 June 2025 \n \n \n   \n Webcast: \n An analyst and investor presentation will be held on 5 June 2025 at 9:00am UK time. Participants need to register using the link below. \n   \n CMC Markets plc Full Year Results | SparkLive | LSEG \n   \n   \n Forthcoming announcement dates: \n November 2025                                                                    HY 2026 Results \n   \n Enquiries \n CMC Markets Plc                                                                                               \n Dave Fineberg, Deputy CEO \n Matthew Lee, Investor Relations                                            investor.relations@cmcmarkets .com \n Camarco                                                                                                                \n Geoffrey Pelham-Lane                                                           [email protected] \n +44 (0) 7733 124 226 \n Jennifer Renwick                                                                   +44 (0) 7928 471 013 \n Alex Campbell                                                                       +44 (0) 7710 230 545 \n   \n Forward looking statements \n 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. \n Notes to Editors \n 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. \n \n \n   \n FINANCIAL REVIEW \n The significant investment made across our platforms over recent years, along with our institutional-first approach and focus on high-value retail clients, has resulted in continued strong financial performance across our businesses. \n Summary \n FY 2025 was another year of strong results, with us reporting a statutory profit before tax of £84.5 million for FY 2025 - an increase of 33% from the £62.2 million we reported in FY 2024 - aided by increased interest income, reduced commissions and levies, and the non-recurrence of impairment charges on intangible assets. \n Net operating income increased by 2% to £340.1 million (FY 2024: £332.8 million) but was impacted by periods of weaker trading revenue early in the second half of the year, which was partly offset by a rebound in performance towards the end of the year, in part as a result of a revised hedging strategy we implemented in late January as well as increased volatility. The slightly weakened trading performance was partially offset by strong stockbroking revenues, demonstrating the benefits of our dual-track investing and trading model, which will allow us to generate sustainable and reliable returns in all market conditions. \n We close the year in a position of continued financial strength, with no debt, a strong capital base, and robust liquidity, underpinned by high cash generation. Our focus on delivering our strategic priorities positions us for sustained growth, enabling us to generate attractive returns for shareholders while delivering benefits to our wider stakeholders. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trading and investing revenue \n \n \n 313.3 \n \n \n 320.1 \n \n \n (2%) \n \n \n \n \n Other revenue \n \n \n 4.3 \n \n \n 4.7 \n \n \n (9%) \n \n \n \n \n Interest income \n \n \n 42.5 \n \n \n 35.0 \n \n \n 21% \n \n \n \n \n Total revenue \n \n \n 360.1 \n \n \n 359.8 \n \n \n - \n \n \n \n \n Commissions and levies \n \n \n (20.0) \n \n \n (27.0) \n \n \n (26%) \n \n \n \n \n Net operating income \n \n \n 340.1 \n \n \n 332.8 \n \n \n 2% \n \n \n \n \n Operating expenses \n \n \n (250.0) \n \n \n (254.9) \n \n \n (2%) \n \n \n \n \n Impairment of intangible assets \n \n \n (0.5) \n \n \n (12.3) \n \n \n (96%) \n \n \n \n \n Operating profit \n \n \n 89.6 \n \n \n 65.6 \n \n \n 37% \n \n \n \n \n Loss on share of associate \n \n \n (0.2) \n \n \n (0.3) \n \n \n (33%) \n \n \n \n \n Impairment of associate \n \n \n (2.3) \n \n \n - \n \n \n n/a \n \n \n \n \n Finance costs \n \n \n (2.6) \n \n \n (2.0) \n \n \n 30% \n \n \n \n \n Profit before taxation \n \n \n 84.5 \n \n \n 63.3 \n \n \n 33% \n \n \n \n \n Taxation \n \n \n (22.3) \n \n \n (16.4) \n \n \n 36% \n \n \n \n \n Profit after tax \n \n \n 62.2 \n \n \n 46.9 \n \n \n 33% \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n PBT margin \n \n \n 24.8% \n \n \n 19.0% \n \n \n 5.8ppts \n \n \n \n \n   \n \n \n   \n Net operating income \n Net operating income increased by 2% to £340.1 million (FY 2024: £332.8 million). Trading net revenue continues to make up the majority of net operating income at 73% of the total, although is down year on year from 78% as we continue to benefit from the growth in our investing businesses, higher interest income and a reduction in commission and levies. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trading net revenue¹ \n \n \n 248.9 \n \n \n 259.1 \n \n \n (4%) \n \n \n \n \n Investing net revenue¹ \n \n \n 44.4 \n \n \n 34.0 \n \n \n 31% \n \n \n \n \n Other revenue \n \n \n 4.3 \n \n \n 4.7 \n \n \n (9%) \n \n \n \n \n Interest income \n \n \n 42.5 \n \n \n 35.0 \n \n \n 21% \n \n \n \n \n Net operating income \n \n \n 340.1 \n \n \n 332.8 \n \n \n 2% \n \n \n \n \n 1 - Trading and investing net revenue represent trading and investing revenue after deducting commissions and levies. \n Trading performance \n Our trading business continues to make up the majority of our revenue. The trading business consists of direct-to-consumer offering, which comprises of retail and professional traders as well as a business-to-business offering. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Direct-to-consumer (D2C) \n \n \n 149.1 \n \n \n 170.0 \n \n \n (12%) \n \n \n \n \n Platform as a service (B2B and B2B2C) \n \n \n 99.8 \n \n \n 89.1 \n \n \n 12% \n \n \n \n \n Trading revenue \n \n \n 248.9 \n \n \n 259.1 \n \n \n (4%) \n \n \n \n \n Where we use external hedges to manage client positions, these are netted against revenue in accordance with our accounting policy. Given our significant use of internal hedging, the net cost of hedging cannot be attributed to individual clients. Instead, these costs, along with other unallocatable expenses, have been proportionately allocated between customer types. \n We have continued to focus on expanding our Platform-as-a-Service offering, including progress in our white-labelled proposition, most notably through our partnership with Revolut. In recent years, we have taken a more selective approach to direct-to-consumer trading, scaling back marketing investment in this area - particularly for retail clients - as we focused on more professional clients. However, looking ahead to FY 2026, we see strong potential to reaccelerate growth in the retail segment. This will be supported by key initiatives such as our new partnership with TradingView - the world's largest charting platform and social trading network, used by over 100 million traders and investors globally - as well as the launch of our Bermudan operation. \n Our trading revenue is primarily driven by two factors: turnover - the total notional volume of client trades from which we earn spreads, fees and commissions - and client income retention, which reflects the proportion of this income that we convert into revenue. Our business model remains anchored in robust risk management. In the fourth quarter, we implemented a revised market risk appetite, increasing our overall risk tolerance following a detailed review. Under this updated framework, we continue to benefit from natural hedging, with external hedging now applied more selectively, targeting specific asset classes or exposures outside defined limits. This change is expected to be earnings-accretive by lowering hedging costs, though it may lead to increased earnings volatility. \n Investing performance \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Direct-to-consumer (D2C) \n \n \n 32.9 \n \n \n 24.4 \n \n \n 35% \n \n \n \n \n Platform as a service (B2B and B2B2C) \n \n \n 11.5 \n \n \n 9.6 \n \n \n 20% \n \n \n \n \n Investing revenue \n \n \n 44.4 \n \n \n 34.0 \n \n \n 31% \n \n \n \n \n Our investing revenues continue to be dominated by our direct-to-consumer offering in Australia, where we are the country's second-largest operator, only behind CommSec (part of Commonwealth Bank). This is primarily delivered under the CMC Invest brand but also via a white-labelled offering. \n FY 2025 was a year of record performance for our Invest business. Active investors increased to 238,656, up 13% year-on-year (31 March 2024: 211,576). Revenue growth was supported by strong momentum in international share and cryptocurrency trading. Whilst assets under administration were down 7% to £37.5 billion (31 March 2024: £40.5 billion), this was driven primarily by exchange rate movements. On a constant currency basis, assets under administration were down 1%. \n During the year, we signed an agreement with ASB Bank, one of the largest banks in New Zealand, to provide a white-labelled investment offering. Although the platform is not expected to be fully operational until late FY 2026, the combination of ASB Bank's extensive customer base and our technological expertise is expected to strengthen our footprint in the Australia and New Zealand market and generate additional revenue. \n Beyond Australia, we also operate direct retail investment offerings in Singapore (launched in 2023) and the UK (launched in 2022). While both currently contribute a small proportion of retail revenue, they are showing encouraging growth. These markets present attractive long-term opportunities, and we remain confident in their potential. \n In the UK, the cash ISA product launched during the year has gained meaningful traction despite minimal marketing. By bringing customers onto the platform, we aim to highlight our broader investment proposition, including general investment accounts, stocks and shares ISAs, and self-invested personal pensions. Uptake of these products is expected to increase as interest rates decline. \n Interest income \n Interest income accounted for 12% of total revenue in FY 2025, up from 10% in FY 2024, as we continued to benefit from high levels of client balances and improved the management of, and returns on, our own funds. \n During the year, we focused on enhancing returns on our own balances through the newly established Treasury Management and Capital Markets Division, as interest rates began to ease from recent highs. This resulted in a 65% increase in income on own funds, rising to £18.5 million (FY 2024: £11.2 million). Given the reduction in interest rates during the year and the softer near-term outlook, this remains a priority area to ensure our balance sheet is delivering optimal returns. \n Net interest income on client balances increased marginally to £24.0 million (FY 2024: £23.8 million), aided by continued high levels of segregated client balances which totalled £694.9 million as at 31 March 2025 (31 March 2024: £542.0 million), which are off balance sheet. \n Operating expense \n Operating expenses decreased by 2% year-on-year to £250.0 million (FY 2024: £254.9 million), reflecting modest reductions in staff costs, occupational expenses and sales and marketing, which helped offset an increase in information technology costs. We continue to maintain a strong focus on cost discipline, ensuring operational leverage is maximised. \n Staff costs remain the largest component of operating expenses. Including variable remuneration, staff costs declined by 4% to £113.7 million (FY 2024: £118.5 million). Fixed remuneration fell by 7% to £93.9 million (FY 2024: £101.5 million), reflecting the redundancies made at the end of the prior year. This reduction was partially offset by a 16% increase in variable remuneration, which rose to £19.8 million (FY 2024: £17.0 million), in line with improved performance outcomes. \n We continue to manage headcount carefully, with the average number of employees over the year reducing to 1,068 (FY 2024: 1,181). This has been achieved while continuing to invest in key areas of the business. While the salary inflation pressures experienced in FY 2024 have eased, we continue to face cost headwinds, including the impact of changes to employer National Insurance contributions in the UK. \n Non-staff costs declined slightly year-on-year. As a fintech business, information technology remains the largest component of our non-staff costs, which increased by 17% to £46.4 million (FY 2024: £39.7 million) as the Group continued to invest in enhancing and supporting its front- and back-office systems. \n Sales and marketing expenses fell by 6% to £33.5 million (FY 2024: £35.6 million), reflecting a shift towards more targeted marketing campaigns. Looking ahead to FY 2026, we intend to increase marketing investment as part of our growth strategy, particularly in the retail segment. \n Operating expenses for FY 2025 include a one-off charge of £4.3 million relating to customer remediation in Australia, following an industry-wide regulatory review into margin netting. This provision is expected to be fully utilised in FY 2026, with affected customer accounts credited accordingly. \n As we enter FY 2026, we will maintain a disciplined approach to cost management to ensure our operating model remains appropriately sized to support the business. Further opportunities are expected to emerge to reduce the underlying cost base, while continuing to invest in areas that support growth and drive operational efficiency. The focus will remain on both staff and non-staff costs, including ensuring we have the right talent in the right locations. This will include an expansion of offshore capabilities to reduce reliance on higher-cost locations. In parallel, we will look to rationalise non-staff expenditure through improved supplier negotiations, consolidation and a greater focus on value for money. These efficiencies will allow resources to be redirected into strategic growth areas. \n Impairment of intangible assets \n Our impairment charge on intangible assets reduced significantly from £12.3 million in the prior year to £0.5 million in the current year, as the one-off charge previously recognised in relation to our CMC Invest platform did not recur. \n Investments in associate \n In September 2024, we fully wrote down our investment in StrikeX, a customer-centric blockchain solutions business acquired in June 2023. This accounting adjustment reflected the ongoing financial performance of the investment and the continued operating losses incurred. \n Despite this, we remain supportive of Strike X and its strategic objectives, and continue to see long-term value in its underlying technology as part of our decentralised finance build-out. In May 2025, we increased our shareholding in Strike X to 51% following an agreement with its existing shareholders. As a result, we assumed control of the business, allowing for deeper integration and strengthening its ability to leverage Strike X's blockchain capabilities as it develops crypto and tokenisation solutions. \n Taxation \n Our total taxation for FY 2025 was £22.3 million (FY 2024: £16.5 million), which equates to an effective tax rate of 26.4%, up from 26.0% in FY 2024. \n Profitability and earnings \n The combination of the above factors drove a 33% increase in profit before tax to £84.5 million (FY 2024: £63.3 million) and earnings per share (both basic and diluted) to 22.6 pence (FY 2024: 16.7 pence). This also translated to an increased profit before tax margin of 24.8% (FY 2024: 19.0%), as we continued to benefit from enhanced operational leverage. \n Financial position \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fixed assets \n \n \n 53.2 \n \n \n 57.5 \n \n \n (7%) \n \n \n \n \n Trade and other receivables \n \n \n 147.7 \n \n \n 164.8 \n \n \n (10%) \n \n \n \n \n Financial investments \n \n \n 111.0 \n \n \n 50.9 \n \n \n 118% \n \n \n \n \n Amounts due from brokers \n \n \n 140.0 \n \n \n 228.9 \n \n \n (39%) \n \n \n \n \n Cash and cash equivalents \n \n \n 247.7 \n \n \n 160.3 \n \n \n 55% \n \n \n \n \n Other assets \n \n \n 32.4 \n \n \n 54.5 \n \n \n (41%) \n \n \n \n \n Total assets \n \n \n 732.0 \n \n \n 716.9 \n \n \n 2% \n \n \n \n \n Trade and other payables \n \n \n 253.6 \n \n \n 272.8 \n \n \n (7%) \n \n \n \n \n Amount due to brokers \n \n \n 12.2 \n \n \n 7.0 \n \n \n 74% \n \n \n \n \n Obligations under repurchase agreements \n \n \n 7.5 \n \n \n - \n \n \n n/a \n \n \n \n \n Lease liabilities \n \n \n 14.3 \n \n \n 16.9 \n \n \n (15%) \n \n \n \n \n Other liabilities \n \n \n 26.4 \n \n \n 16.7 \n \n \n 58% \n \n \n \n \n Total liabilities \n \n \n 314.0 \n \n \n 313.4 \n \n \n - \n \n \n \n \n Total equity \n \n \n 418.0 \n \n \n 403.5 \n \n \n 4% \n \n \n \n \n Total equity and liabilities \n \n \n 732.0 \n \n \n 716.9 \n \n \n 2% \n \n \n \n \n Fixed assets declined by 7% since the year-end, reflecting our progression beyond the peak of our recent investment cycle. Amortisation and depreciation now exceed capitalised expenditure, although we continue to allocate resources to maintain and enhance our product and platform capabilities. \n Financial investments increased by 118% to £111.0 million (31 March 2024: £50.9 million), driven by a rise in equity positions to support client trading activity and a strategic shift towards investment-grade corporate bonds, the majority of which are short-dated. This new investment strategy, developed by our Treasury Management and Capital Markets Division, aims to generate improved yields relative to traditional cash holdings and government securities. \n Despite the increased allocation to financial investments, we also reported a 55% rise in cash and cash equivalents to £247.7 million (31 March 2024: £160.3 million), reflecting our strong cash generation and a reduction in amounts due from brokers as we undertook less external hedging. \n Other assets decreased from £54.5 million to £32.4 million, primarily due to a £12.2 million reduction in crypto-assets. These had previously been used to hedge client positions but were disposed of following a revision to our hedging strategy. \n \n \n   \n Regulatory capital \n The Group and its UK-regulated subsidiaries fall within the scope of the FCA's Investment Firms Prudential Regime (\"IFPR\"), with the Group's German subsidiary, CMC Markets Germany GmbH, subject to the provisions of the Investment Firms Regulation and Directive (\"IFR/IFD\"). \n Our total capital resources increased to £363.7 million (2024: £340.1 million), with increases in retained earnings for the year being partly offset by the proposed final dividend distribution. At 31 March 2025, we had a total OFR ratio of 272% (2024: 312%). The decline in the OFR ratio was due to an increase in own fund requirements to £133.6 million (2024: £109.0 million). The following table summarises our capital adequacy position at the year-end. \n Group own funds resources and requirements \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Common equity tier 1 capital before regulatory adjustments 1 \n \n \n 412.4 \n \n \n 383.1 \n \n \n \n \n Less: regulatory adjustments 2 \n \n \n (48.7) \n \n \n (43.0) \n \n \n \n \n Common equity tier 1 capital after regulatory adjustments \n \n \n 363.7 \n \n \n 340.1 \n \n \n \n \n Own funds requirements (\"OFR\") 3 \n \n \n 133.6 \n \n \n 109.0 \n \n \n \n \n Total OFR ratio (%) 4 \n \n \n 272% \n \n \n 312% \n \n \n \n \n   \n 1 - Total audited CET1 capital resources as at the end of the financial year of £435.0 million, less proposed dividends. 2 - Regulatory adjustments include the deduction of deferred tax assets. Deferred tax assets are the net of assets and liabilities shown in note 8 of the financial statements. 3 - The minimum capital requirement in accordance with MIFIDPRU 4.3. 4 - The OFR ratio represents common equity tier 1 capital as a percentage of OFR. CMC Markets plc has no additional tier 1 or tier 2 capital. \n Liquidity and funding \n Funding \n Our primary source of funding is equity, which includes our equity capital resources, retained profits and any unrealised gains or losses on open hedging positions. \n We also receive title transfer funds (\"TTFs\") from professional clients and eligible counterparties (as defined in the FCA Handbook) under a title transfer collateral agreement (\"TTCA\"). Under these agreements, full ownership of such funds is unconditionally transferred to us. Clients are not required to sign a TTCA to be treated as a professional client; in these cases, funds remain segregated. We consider TTCAs to be an ancillary source of funding. All cash received from segregated clients is excluded. \n In addition, we have access to a committed facility of up to £55.0 million, available to fund margins posted at brokers to support our trading activities. The facility consists of a one-year term facility of £27.5 million (2024: £27.5 million) and a three-year term facility of £27.5 million (2024: £27.5 million). The maximum amount available at any time is dependent upon initial margin requirements at brokers and margin received from clients. There was no drawdown on the facility as at 31 March 2025 (2024: £nil). \n Liquid assets \n We have deployed our funding to support our business activities and to maintain appropriate buffers of liquid assets. Funds deployed to support the business primarily consist of margins maintained with our brokers to support trading activity, and \"blocked cash\" held in subsidiaries to meet local regulatory and exchange requirements. Liquid assets are held to meet future liquidity needs, serve as a contingency, and satisfy regulatory requirements. \n Our Total Unencumbered Liquid Assets (\"TULA\") include cash and cash equivalents, funds in excess of margin requirements held with brokers, and financial investments after haircuts. \n \n \n   \n Group funding sources and liquid assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n 418.0 \n \n \n 403.5 \n \n \n \n \n Obligations under repurchase agreements \n \n \n 7.5 \n \n \n - \n \n \n \n \n Own funds requirements (\"OFR\") \n \n \n 117.7 \n \n \n 119.6 \n \n \n \n \n Total Available Funding \n \n \n 543.2 \n \n \n 523.1 \n \n \n \n \n Less: non-current assets net of liabilities \n \n \n (47.0) \n \n \n (53.4) \n \n \n \n \n Less: Other non-liquid assets net of liabilities \n \n \n 1.5 \n \n \n (29.6) \n \n \n \n \n Less: blocked cash \n \n \n (74.0) \n \n \n (68.5) \n \n \n \n \n Less: initial margin requirement at brokers \n \n \n (92.2) \n \n \n (184.7) \n \n \n \n \n Less: hair cuts on financial investments \n \n \n (29.1) \n \n \n (4.6) \n \n \n \n \n Less: Other encumbered financial investments \n \n \n (8.8) \n \n \n - \n \n \n \n \n Total Unencumbered Liquid Assets \n \n \n 293.6 \n \n \n 182.3 \n \n \n \n \n   \n Dividend \n The Board has proposed a final dividend of 8.3 pence, in addition to the 3.1 pence we paid as an interim dividend, reflecting our policy of paying out 50% of full-year profit. We continue to maintain this policy based on our strong cash generation and our commitment to rewarding shareholders and returning excess capital as part of our capital allocation strategy. This approach is balanced with a focus on ensuring capital stability to support ongoing investment and regulatory requirements. \n Outlook \n We enter FY 2026 from a position of continued strength, with strong capital and liquidity foundations, no debt, and a proven, diversified business model that allows us to generate consistent performance in a range of conditions. \n In trading, our revised risk appetite and hedging strategy are expected to enhance earnings efficiency, while renewed investment in retail - including our partnership with TradingView - will support growth in this segment. \n In investing, we expect continued momentum in Australia and New Zealand, driven by scale, product innovation and new partnerships, including the upcoming ASB Bank launch. In the UK, the outlook remains encouraging, offering attractive long-term potential. \n We will maintain tight cost control while continuing to invest in growth, operational efficiency and platform capability. Our strong balance sheet and active capital management give us flexibility to pursue opportunities while delivering value to shareholders. \n \n \n \n PRINCIPAL RISKS \n Our Risk Management Framework provides a consistent approach to identifying, mitigating, and managing risks, which is essential to achieving our strategic objectives. 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. \n 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. It is regularly reviewed-along with our risk tooling and resources-to ensure it remains effective, in line with market practices and regulatory expectations. \n Governance and oversight \n The Board, through the Group Risk Committee, is responsible for defining and overseeing our risk strategy. Key responsibilities include: \n ·      Monitor, review and advise the Board on the Group's overall risk appetite, tolerance and strategy alongside current and prospective risk exposures. \n ·      Monitor and review the effectiveness of the Group's risk management and internal control systems. \n ·      Monitor the adequacy, effectiveness, design and implementation of the Group's processes and procedures to manage risk and the internal control framework and carry out a review of its effectiveness. \n ·      Monitor the ability of the Group's risk management and internal control systems to identify the risk facing the Group and ensure that a robust assessment of the emerging and principal risks has been undertaken. \n 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. \n The ERM framework follows the Three Lines Model, ensuring clear risk ownership and accountability: \n ·      First Line: Business teams manage and implement controls. \n ·      Second Line: Group Risk and Compliance provide oversight and guidance. \n ·      Third Line: Internal Audit provides independent assurance. \n 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 changes requiring Board approval. Additionally, we conduct root cause analysis to enhance processes, improve resilience and embed strong corporate governance practices across the Group. \n Risk culture \n We foster a risk culture that emphasises accountability and proactive risk management. Responsibility for managing risk sits with everyone across the Group. \n 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. \n 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. \n Risk appetite and principal risks \n 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. \n 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. These risks are monitored through key risk indicators (\"KRIs\") and are linked to our risk appetite. We also consider reputational and regulatory implications, client impact and broader market effects. \n \nOur 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. \n Business and strategic risks | Risks arising from the nature of our business, strategy and operating model \n Emerging risks \n We 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 changes while ensuring they are appropriately governed, risk-managed and commercially viable. \n \n \n \n \n Strategic risk \n \n \n \n \n \n \n \n Key risk description \n The risk that our ability to execute our business strategy is impacted by internal decisions or external factors. This includes risks associated with defining and delivering strategic initiatives, as well as potential reputational damage affecting market perception, client trust and regulatory relationships. \n Risk exposure and appetite \n We are exposed to, and have appetite for strategic risk through the execution of our strategic initiatives where there is a risk of failing to successfully deliver what we set out to achieve. \n \nAs part of our strategic risk, we are also exposed to potential damage to our brand and reputation with the market, clients and regulators. Failure to manage reputational risks could significantly impact our ability to implement our strategic plan. \n \nDuring the year, enhanced focus on our key strategic priorities has strengthened how we deliver on our strategic goals. \n   \n \n \n Key mitigations and controls \n We manage strategic risk through: \n ·      Governance & Oversight - Strong challenge and oversight from independent Non-Executive Directors. \n ·      Strategic Alignment - Ensuring all significant initiatives align with the corporate strategy. \n ·      Risk Assessment - Evaluating risks associated with strategic initiatives before execution. \n ·      Accountability & Ownership - Assigning clear responsibility for delivery and risk mitigation. \n ·      Product & Initiative Governance - Requiring Board approval for all material products and strategic initiatives. \n ·      These measures ensure a structured approach to strategic decision-making and risk management. \n   \n \n \n \n \n   \n \n \n   \n Financial risks | Risks arising from our exposure to market movements, liquidity, credit and capital management \n Emerging risks \n Geopolitical and macroeconomic developments are a potential emerging risk that could materially impact the business, although broader market volatility is typically beneficial. In response, we monitor our client margin, market risk limits, broker exposures and entity-level capital as well as our strategic plans to ensure we remain within risk appetite. \n \n \n \n \n Market risk \n \n \n \n \n \n \n \n Key risk description \n The risk that the value of our residual portfolio decreases due to market fluctuations, including price movements, interest rates and foreign exchange rate changes. \n Risk exposure and appetite \n As an online trading provider acting as principal to clients across different markets, we are exposed to financial risks arising from market movements. We have appetite to retain some market risk, balanced with a low appetite for liquidity and capital risk, to ensure effective risk management and financial stability. \n   \n \n \n Key mitigations and controls \n We manage market risk through: \n ·      Real-Time Exposure Management - Trading risk management monitors and controls inherited exposures from clients in real-time within Board-approved limits. \n ·      Market-Making in Liquid Instruments - Primarily acting as a market maker in highly liquid financial instruments, enabling efficient risk reduction via prime broker arrangements. \n ·      Stress Testing & Scenario Analysis - Conducting regular stress testing to assess financial and capital adequacy impacts from severe market events. \n ·      Liquidity & Funding Monitoring - Actively managing market risk with close oversight of funding requirements to maintain liquidity stability. \n ·      These measures ensure we effectively manage market risk while maintaining financial resilience. \n \n \n \n \n   \n \n \n \n \n Liquidity risk \n \n \n \n \n \n \n \n Key risk description \n The risk that we have insufficient liquidity to meet our financial obligations as they fall due, or can only secure required liquidity at excessive cost. This includes funding margin requirements, failed settlements or market events that impact liquidity availability. \n Risk exposure and appetite \n We are exposed to liquidity risk through our core business activities, including funding margin requirements for hedging strategies and managing unfunded commitments in the matched principal business. We have a low appetite for liquidity risk and maintain a robust framework to ensure we remain well-funded under both normal and stressed conditions. \n   \n \n \n Key mitigations and controls \n We minimise liquidity risk through: \n ·      Liquidity Modelling & Stress Testing - Regular forward-looking liquidity forecasting under both normal and stressed conditions to ensure obligations can be met. \n ·      High-Quality Liquid Assets & Funding Diversification - Maintaining unencumbered, high-quality liquid assets and diversified funding sources. \n ·      Contingency Planning - Establishing liquidity facilities, contingency funding levers, and wind-down strategies where necessary. \n ·      Market Condition Monitoring - Assessing liquidity impacts of significant market moves to ensure resilience. \n ·      For our Matched Principal and Exchange-Traded Business, additional controls include: \n ·      Offering only liquid assets based on an asset suitability assessment. \n ·      Producing daily cash position reports covering surplus liquidity, unencumbered liquidity, and short-term forecasts. \n ·      Conducting stress testing to ensure sufficient liquidity for business continuity over a 15-month horizon. \n \n \n \n \n   \n   \n   \n \n \n \n \n Credit and counterparty risk \n \n \n \n \n Key risk description \n The risk of financial loss arising from a counterparty failing to meet its obligations as they fall due, including exposure to both clients and financial institutions. \n Risk exposure and appetite \n We are exposed to credit and counterparty risk through our client trading activities and relationships with financial institutions. We have a moderate appetite for such exposures and actively manage them through stringent controls and mitigants to minimise potential losses. \n   \n \n \n Key mitigations and controls \n We manage credit and counterparty risk through: \n ·      Margin Requirements & Risk-Based Controls - Applying a tiered margin structure to manage riskier positions and utilising liquidation features when client total equity falls below predefined thresholds. \n ·      Guaranteed Stop Loss Orders - Offering clients risk management tools to prevent debt accumulation. \n ·      Credit Risk Modelling & Stress Testing - Setting limits and using potential credit risk exposure models to quantify and stress-test client credit risk across CFDs and Spread Bets. \n ·      Counterparty Creditworthiness Reviews - Conducting at least annual assessments of counterparties' financial stability. \n ·      Diversification & Concentration Risk Management - Engaging with multiple prime brokers (\"PBs\") per asset class to reduce concentration risk. \n ·      Investment-Grade Counterparty Standards - Preferring to work with counterparties holding investment-grade credit ratings, with daily exposure monitoring. \n ·      Intermediary Limits & Oversight - Setting and monitoring intermediary limits daily, with escalation procedures for large exposures. \n ·      These measures ensure credit and counterparty risks are actively managed to protect the firm's financial stability. \n \n \n \n \n   \n \n \n \n \n Capital and solvency risk \n \n \n \n \n Key risk description \n The risk that we do not maintain sufficient capital to meet regulatory requirements, absorb financial shocks or support business growth. This includes risks arising from market volatility, regulatory changes and adverse business performance impacting capital adequacy. \n Risk exposure and appetite \n As a regulated financial institution, we are required to hold sufficient capital to meet both regulatory and internal thresholds. We have a low appetite for breaching capital requirements or operating with insufficient buffers. Effective capital management ensures our financial stability and resilience under stress scenarios. \n \n \n Key mitigations and controls \n We minimise capital and solvency risk through: \n ·      Capital Planning & Forecasting - Regular stress testing and scenario analysis to assess capital adequacy under adverse conditions. \n ·      Regulatory Compliance - Maintaining capital levels above regulatory minima and engaging proactively with regulators on capital requirements. \n ·      Liquidity & Risk Management - Ensuring adequate liquidity to absorb market shocks and financial stress. \n ·      Robust Governance - Ongoing monitoring by senior management and the Board to ensure capital strength and strategic alignment. \n \n \n \n \n   \n \n \n   \n Operational risks | Risks arising from our people, processes, systems and external service providers \n Emerging risks \n We monitor emerging regulatory developments and technological advancements, including the rise of artificial intelligence and broader digital disruption. These trends have the potential to reshape how financial services are delivered and consumed. As part of our strategy, we aim to adapt our platforms, processes and product offerings to remain compliant, competitive and aligned to evolving client expectations. \n \n \n \n \n Financial crime \n \n \n \n \n Key risk description \n The risk of money laundering, terrorist financing, sanctions violations, bribery, corruption and failures in Know Your Customer (\"KYC\") procedures, which could lead to regulatory penalties, financial losses or reputational damage. \n Risk exposure and appetite \n As a financial institution handling significant volumes of client data, money and assets, we are exposed to financial crime risks, including money laundering and market abuse. The short-term nature of some client relationships further heightens this exposure. We have a low appetite for financial crime and implement robust preventative and detective controls to mitigate these risks. We continuously enhance our framework through process improvements, system investments and staff training. \n \n \n Key mitigations and controls \n We mitigate financial crime risk through: \n ·      Risk-Based KYC & Due Diligence - Applying rigorous KYC procedures, including Enhanced Due Diligence (\"EDD\") for higher-risk clients such as Politically Exposed Persons (\"PEPs\"). \n ·      Ongoing Monitoring & Surveillance - Maintaining risk-based transaction monitoring and customer activity surveillance systems. \n ·      Suspicious Activity Reporting - Enhancing procedures for detecting and reporting suspicious activity to law enforcement and regulators. \n ·      Market Abuse Prevention - Strengthening controls to mitigate risks from repeat offenders of market abuse. \n ·      Sanctions & Restrictions Management - Maintaining a restricted list of individuals and entities, with systems to block transactions that breach regulatory guidelines. \n ·      Risk Classification - Classifying customers and entities at onboarding to assess financial crime risks effectively. \n ·      These measures ensure compliance with financial crime regulations and protect the integrity of our business. \n \n \n \n \n   \n \n \n \n \n Information security and technology risk \n \n \n \n \n Key risk description \n The risk of data breaches, unauthorised access, system outages and technology failures, including non-compliance with security and regulatory requirements. This encompasses client, employee and proprietary data, as well as critical systems, hardware and networks. \n Risk exposure and appetite \n As a fintech company, we are exposed to significant information security and technology risks. We have a low appetite for data loss, misuse or system failures that impact operations or client services, and we mitigate these through robust preventative and detective controls. \n \n \n Key mitigations and controls \n We minimise these risks through: \n ·      Data Security & Access Controls - Enforcing least privileged access, regular system access reviews, and data classification to protect sensitive information. Physical security measures prevent unauthorised access to buildings and sensitive areas. \n ·      Technology Resilience & Monitoring - Investing in a robust technology stack, systemic monitoring tools to detect downtime or performance issues, and maintaining scalable infrastructure to accommodate growth and fluctuations. \n ·      System Stability & Incident Response - Ensuring IT production support, proactive system capacity planning, and contingency measures to prevent and remediate failures. \n ·      These measures ensure the confidentiality, integrity, and availability of our systems and data, safeguarding clients, employees, and business operations. \n \n \n \n \n   \n \n \n \n \n Compliance risk \n \n \n \n \n Key risk description \n The risk of failing to comply with legal and regulatory obligations, which could result in financial penalties, reputational damage, or operational restrictions, including obligations under Consumer Duty. \n Risk exposure and appetite \n We operate in a highly regulated environment across multiple jurisdictions, exposing ourselves to compliance and regulatory risk. We have a low appetite for failing to meet regulatory or legislative obligations and are committed to full compliance with applicable laws and regulations, including the Consumer Duty requirements to ensure fair outcomes for customers. \n \n \n Key mitigations and controls \n We minimise compliance risk through: \n ·      Risk-Based Regulatory Interpretation - Applying a proportionate, risk-based approach to interpreting and implementing regulatory requirements. \n ·      Resourcing & Expertise - Ensuring compliance teams are adequately staffed, trained, and supervised, with a specific focus on Consumer Duty and customer outcomes. \n ·      Regulatory Horizon Scanning - Monitoring and assessing new regulations and legislation to evaluate business impact. \n ·      Regional Compliance Oversight - Conducting thorough regulatory analysis to ensure adherence across jurisdictions, particularly for new initiatives. \n ·      Advisory & Monitoring Frameworks - Providing technical guidance to the business, alongside comprehensive monitoring, surveillance, and policy enforcement. \n ·      Regulatory Engagement - Maintaining strong relationships with regulators and proactively planning for regulatory changes, including engagement on Consumer Duty expectations and compliance standards. \n \n \n \n \n   \n \n \n \n \n Operational risk \n \n \n \n \n \n \n \n Key risk description \n The risk of financial loss, business disruption, or reputational damage due to inadequate or failed processes, systems, people, or external events. This includes fraud, cyber threats, IT failures, and regulatory non-compliance. \n Risk exposure and appetite \n We are exposed to operational risk as a fintech company operating in a highly regulated and technology-driven environment. We have a low appetite for operational failures that could cause material financial, reputational, or regulatory impact. \n \n \n Key mitigations and controls \n We manage operational risk through: \n ·      Process & System Controls - Automating key processes, optimising workflows, and implementing robust IT security measures. \n ·      Incident & Risk Management - A structured incident response framework, continuous monitoring, and risk escalation procedures. \n ·      Regulatory Compliance - Regular audits, internal control reviews, and staff training to reinforce risk awareness. \n ·      Governance & Oversight - Active risk management by senior leadership and Board committees to ensure resilience and accountability. \n \n \n \n \n   \n \n \n   \n DIRECTORS' STATEMENT PURSUANT TO THE FCA'S DISCLOSURE GUIDANCE AND TRANSPARENCY RULES \n The directors are required by the Disclosure Guidance and Transparency Rules to include a management report containing a fair review of the business and a description of the principal risks and uncertainties facing the Group.  \n Each of the directors, whose names and functions are listed below, confirm to the best of their knowledge that: \n ·      the Group Financial Statements contained in the 2025 Annual Report and Financial Statements have been prepared in accordance with UK-adopted international accounting standards give a true and fair view of the assets, liabilities and financial position and results of the Group and parent company and of the profit of the Group;  \n ·      the Strategic Report contained in the 2025 Annual Report and Financial Statements includes a fair review of the development and performance of the business and the position of the parent company and the Group, together with a description of the principal risks and uncertainties that they face; and \n ·      the 2025 Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy. \n   \n CMC Markets plc Board of Directors \n James Richards (Independent Chairman) \n Lord Peter Cruddas (Chief Executive Officer) \n Paul Wainscott (Senior Independent Director) \n Sarah Ing (Non-Executive Director) \n Clare Francis (Non-Executive Director) \n David Fineberg (Deputy CEO) \n Laurence Booth (Head of Capital Markets) \n Matthew Lewis (Head of ANZ) \n   \n   \n \n   \n   \n   \n Consolidated income statement \n For the year ended 31 March 2025 \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue \n \n \n 3 \n \n \n 317,611 \n \n \n 324,702 \n \n \n \n \n Interest income on own funds \n \n \n 3 \n \n \n  18,531 \n \n \n 11,246 \n \n \n \n \n Income on client funds \n \n \n 3 \n \n \n 23,957 \n \n \n 23,797 \n \n \n \n \n Total revenue \n \n \n \n \n \n  360,099 \n \n \n 359,745 \n \n \n \n \n Introducing partner commissions and betting levies \n \n \n 4 \n \n \n (19,982) \n \n \n (26,962) \n \n \n \n \n Net operating income \n \n \n \n \n \n  340,117 \n \n \n 332,783 \n \n \n \n \n Operating expenses \n \n \n 5 \n \n \n (250,074) \n \n \n (254,894) \n \n \n \n \n Impairment of intangible assets \n \n \n 12 \n \n \n (482) \n \n \n (12,322) \n \n \n \n \n Operating profit \n \n \n \n \n \n  89,561 \n \n \n 65,567 \n \n \n \n \n Share of results of associate \n \n \n 14 \n \n \n (189) \n \n \n (283) \n \n \n \n \n Impairment of investments in associate \n \n \n 14 \n \n \n (2,328) \n \n \n - \n \n \n \n \n Finance costs \n \n \n 7 \n \n \n (2,590) \n \n \n (1,951) \n \n \n \n \n Profit before taxation \n \n \n \n \n \n  84,454 \n \n \n 63,333 \n \n \n \n \n Taxation \n \n \n 9 \n \n \n (22,267) \n \n \n (16,447) \n \n \n \n \n Profit for the year attributable to owners of the parent \n \n \n \n \n \n  62,187 \n \n \n 46,886 \n \n \n \n \n Earnings per share \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic earnings per share \n \n \n 10 \n \n \n 22.6p \n \n \n 16.7p \n \n \n \n \n Diluted earnings per share \n \n \n 10 \n \n \n 22.6p \n \n \n 16.7p \n \n \n \n \n \n \n \n \n \n \n \n   \n   \n \n   \n   \n   \n Consolidated statement of comprehensive income \n For the year ended 31 March 2025 \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit for the year \n \n \n \n \n \n 62,187 \n \n \n 46,886 \n \n \n \n \n Other comprehensive expense \n \n \n \n \n \n \n \n \n \n \n \n \n \n Items that may be subsequently reclassified to income statement: \n \n \n 26 \n \n \n \n \n \n \n \n \n \n \n Gains recycled from equity to the income statement \n \n \n 26 \n \n \n - \n \n \n 237 \n \n \n \n \n Currency translation differences \n \n \n 26 \n \n \n (6,772) \n \n \n (5,285) \n \n \n \n \n \nChanges in the fair value of debt instruments at fair value through other comprehensive income, net of tax \n \n \n 26 \n \n \n  35 \n \n \n 144 \n \n \n \n \n Other comprehensive expense for the year \n \n \n \n \n \n (6,737) \n \n \n (4,904) \n \n \n \n \n Total comprehensive income for the year attributable to owners of the parent \n \n \n \n \n \n  55,450 \n \n \n 41,982 \n \n \n \n \n \n \n \n \n \n \n \n   \n   \n \n   \n Consolidated statement of financial position \n As at 31 March 2025 \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Intangible assets \n \n \n 12 \n \n \n  29,042 \n \n \n 28,906 \n \n \n \n \n Property, plant and equipment \n \n \n 13 \n \n \n  24,169 \n \n \n 28,546 \n \n \n \n \n Deferred tax assets \n \n \n 9 \n \n \n  5,328 \n \n \n 6,177 \n \n \n \n \n Investments in associate \n \n \n 14 \n \n \n  - \n \n \n 2,517 \n \n \n \n \n Financial investments \n \n \n 15 \n \n \n  30,399 \n \n \n 32 \n \n \n \n \n Trade and other receivables \n \n \n 16 \n \n \n  1,823 \n \n \n 2,753 \n \n \n \n \n Total non-current assets \n \n \n \n \n \n  90,761 \n \n \n 68,931 \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other receivables \n \n \n 16 \n \n \n  145,842 \n \n \n 162,056 \n \n \n \n \n Derivative financial instruments \n \n \n 17 \n \n \n  24,456 \n \n \n 31,627 \n \n \n \n \n Current tax recoverable \n \n \n \n \n \n  2,679 \n \n \n 1,917 \n \n \n \n \n Other assets \n \n \n 18 \n \n \n  10 \n \n \n 12,258 \n \n \n \n \n Financial investments \n \n \n 15 \n \n \n  80,555 \n \n \n 50,889 \n \n \n \n \n Amounts due from brokers \n \n \n \n \n \n  140,010 \n \n \n 228,882 \n \n \n \n \n Cash and cash equivalents \n \n \n 19 \n \n \n  247,665 \n \n \n 160,300 \n \n \n \n \n Total current assets \n \n \n \n \n \n  641,217 \n \n \n 647,929 \n \n \n \n \n Total assets \n \n \n \n \n \n  731,978 \n \n \n 716,860 \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 20 \n \n \n  253,581 \n \n \n 272,811 \n \n \n \n \n Amounts due to brokers \n \n \n \n \n \n  12,239 \n \n \n 6,982 \n \n \n \n \n Derivative financial instruments \n \n \n \n \n \n  16,160 \n \n \n 7,074 \n \n \n \n \n Obligations under repurchase agreements \n \n \n 21 \n \n \n  7,457 \n \n \n - \n \n \n \n \n Lease liabilities \n \n \n 22 \n \n \n  3,109 \n \n \n 4,915 \n \n \n \n \n Current tax payable \n \n \n \n \n \n  1,832 \n \n \n 2,147 \n \n \n \n \n Provisions \n \n \n 23 \n \n \n  5,282 \n \n \n 3,937 \n \n \n \n \n Total current liabilities \n \n \n \n \n \n  299,660 \n \n \n 297,866 \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 20 \n \n \n 4 \n \n \n - \n \n \n \n \n Lease liabilities \n \n \n 22 \n \n \n  11,233 \n \n \n 12,000 \n \n \n \n \n Deferred tax liabilities \n \n \n 9 \n \n \n  2,765 \n \n \n 3,244 \n \n \n \n \n Provisions \n \n \n 23 \n \n \n  349 \n \n \n 257 \n \n \n \n \n Total non-current liabilities \n \n \n \n \n \n  14,351 \n \n \n 15,501 \n \n \n \n \n Total liabilities \n \n \n \n \n \n  314,011 \n \n \n 313,367 \n \n \n \n \n Equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n 24 \n \n \n  70,573 \n \n \n 70,573 \n \n \n \n \n Share premium \n \n \n \n \n \n  46,236 \n \n \n 46,236 \n \n \n \n \n Capital redemption reserve \n \n \n \n \n \n  2,901 \n \n \n 2,901 \n \n \n \n \n Own shares held in trust \n \n \n 25 \n \n \n (17,047) \n \n \n (2,589) \n \n \n \n \n Other reserves \n \n \n 26 \n \n \n (62,176) \n \n \n (55,439) \n \n \n \n \n Retained earnings \n \n \n \n \n \n  377,480 \n \n \n 341,811 \n \n \n \n \n Total equity \n \n \n \n \n \n  417,967 \n \n \n 403,493 \n \n \n \n \n Total equity and liabilities \n \n \n \n \n \n  731,978 \n \n \n 716,860 \n \n \n \n \n   \n   \n   \n The financial statements were approved by the Board of Directors on 5 June 2025 and signed on its behalf by: \n   \n   \n   \n   \n   \n Lord Cruddas \n Chief Executive Officer \n   \n   \n \n   \n   \n Consolidated statement of changes in equity \n For the year ended 31 March 2025 \n   \n \n \n \n \n   \n \n \n Note \n \n \n Share \n capital \n £'000 \n \n \n Share \n premium \n £'000 \n \n \n Capital \n redemption \n reserve \n £'000 \n \n \n Own shares \n held in trust \n £'000 \n \n \n Other \n reserves \n £'000 \n \n \n Retained \n earnings \n £'000 \n \n \n Total \n equity \n £'000 \n \n \n \n \n At 1 April 2023 \n \n \n \n \n \n 70,573 \n \n \n 46,236 \n \n \n 2,901 \n \n \n (1,509) \n \n \n (50,535) \n \n \n 306,349 \n \n \n 374,015 \n \n \n \n \n Profit for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 46,886 \n \n \n 46,886 \n \n \n \n \n Gains recycled from equity to the income statement \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 237 \n \n \n \n \n \n 237 \n \n \n \n \n Currency translation differences \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (5,285) \n \n \n - \n \n \n (5,285) \n \n \n \n \n Changes in the fair value of debt instruments at fair value through other comprehensive income, net of tax \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 144 \n \n \n -- \n \n \n 144 \n \n \n \n \n Total comprehensive income for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (4,904) \n \n \n 46,886 \n \n \n 41,982 \n \n \n \n \n Acquisition of own shares held in trust \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n (1,788) \n \n \n - \n \n \n - \n \n \n (1,788) \n \n \n \n \n Utilisation of own shares held in trust \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n 708 \n \n \n - \n \n \n - \n \n \n 708 \n \n \n \n \n Share-based payments \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1,388 \n \n \n 1,388 \n \n \n \n \n Tax on share-based payments \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 876 \n \n \n 876 \n \n \n \n \n Dividends \n \n \n 11 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (13,688) \n \n \n (13,688) \n \n \n \n \n At 31 March 2024 \n \n \n \n \n \n 70,573 \n \n \n 46,236 \n \n \n 2,901 \n \n \n (2,589) \n \n \n (55,439) \n \n \n 341,811 \n \n \n 403,493 \n \n \n \n \n Profit for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 62,187 \n \n \n 62,187 \n \n \n \n \n Currency translation differences \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (6,772) \n \n \n - \n \n \n (6,772) \n \n \n \n \n Changes in the fair value of debt instruments at fair value through other comprehensive income, net of tax \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 35 \n \n \n - \n \n \n 35 \n \n \n \n \n Total comprehensive income for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (6,737) \n \n \n 62,187 \n \n \n 55,450 \n \n \n \n \n Acquisition of own shares held in trust \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n (15,001) \n \n \n - \n \n \n - \n \n \n (15,001) \n \n \n \n \n Utilisation of own shares held in trust \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n 543 \n \n \n - \n \n \n - \n \n \n 543 \n \n \n \n \n Share-based payments \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 3,043 \n \n \n 3,043 \n \n \n \n \n Tax on share-based payments \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (857) \n \n \n (857) \n \n \n \n \n Dividends \n \n \n 11 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (28,704) \n \n \n (28,704) \n \n \n \n \n At 31 March 2025 \n \n \n \n \n \n 70,573 \n \n \n 46,236 \n \n \n 2,901 \n \n \n (17,047) \n \n \n (62,176) \n \n \n 377,480 \n \n \n 417,967 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n   \n   \n \n   \n Consolidated statement of cash flows \n For the year ended 31 March 2025 \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash generated from operations \n \n \n 27 \n \n \n 158,433 \n \n \n 57,139 \n \n \n \n \n Interest income \n \n \n \n \n \n 18,400 \n \n \n 9,702 \n \n \n \n \n Income on client funds \n \n \n \n \n \n 24,581 \n \n \n 23,797 \n \n \n \n \n Finance costs \n \n \n \n \n \n (2,586) \n \n \n (1,951) \n \n \n \n \n Tax paid \n \n \n \n \n \n (23,477) \n \n \n (8,602) \n \n \n \n \n Net cash generated from operating activities \n \n \n \n \n \n 175,351 \n \n \n 80,085 \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Purchase of property, plant and equipment \n \n \n \n \n \n (3,028) \n \n \n (7,632) \n \n \n \n \n Investment in intangible assets \n \n \n 12 \n \n \n (6,073) \n \n \n (12,244) \n \n \n \n \n Net payment on purchase of financial investments* \n \n \n \n \n \n (32,252) \n \n \n (18,896) \n \n \n \n \n Investment in associates \n \n \n 14 \n \n \n - \n \n \n (2,800) \n \n \n \n \n Net cash used in investing activities \n \n \n \n \n \n (41,353) \n \n \n (41,572) \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Principal elements of lease payments \n \n \n \n \n \n (5,058) \n \n \n (5,531) \n \n \n \n \n Net proceeds on repurchase agreements \n \n \n \n \n \n 7,453 \n \n \n - \n \n \n \n \n Acquisition of own shares \n \n \n \n \n \n (15,001) \n \n \n (1,788) \n \n \n \n \n Dividends paid \n \n \n 11 \n \n \n (28,704) \n \n \n (13,688) \n \n \n \n \n Net cash used in financing activities \n \n \n \n \n \n (41,310) \n \n \n (21,007) \n \n \n \n \n Net increase in cash and cash equivalents \n \n \n \n \n \n 92,688 \n \n \n 17,506 \n \n \n \n \n Cash and cash equivalents at the beginning of the year \n \n \n \n \n \n 160,300 \n \n \n 146,218 \n \n \n \n \n Effect of foreign exchange rate changes \n \n \n \n \n \n (5,323) \n \n \n (3,424) \n \n \n \n \n Cash and cash equivalents at the end of the year \n \n \n 19 \n \n \n 247,665 \n \n \n 160,300 \n \n \n \n \n   \n * To maintain consistency with the current period, comparative figures have been restated to reflect the net amount of purchases and proceeds from the maturity of financial investments \n   \n   \n \n   \n   \n Notes to the consolidated financial statements \n For the year ended 31 March 2025 \n   \n 1.     General information and basis of preparation \n   \n Corporate information \n 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 shown on page 128 of the 2025 Annual Report and Accounts. \n   \n The nature of the operations and principal activities of CMC Markets plc and its subsidiaries (collectively the \"Group\") are set out in note 2 of the Company financial statements. \n   \n Functional and presentation currency \n 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. \n   \n Going concern \n 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. \n   \n 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. \n   \n Accordingly, the Directors have reasonable expectation that the Group has adequate resources for that 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. \n   \n Basis of preparation \n The 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. \n   \n 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. \n   \n 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. \n   \n The financial statements presented are at and for the years ended 31 March 2025 and 31 March 2024 which are referred to as FY 2025 and FY 2024 respectively. \n   \n Application of new and revised accounting standards \n The following amendments and interpretations became effective during the year. Their adoption has not had any significant impact on the Group. \n   \n   \n \n \n \n \n \n \n \n \n \n \n Effective from \n \n \n \n \n IFRS 16 \n \n \n Leases (amendments) \n \n \n 1 January 2024 \n \n \n \n \n IAS 1 \n \n \n Presentation of Financial Statements (amendments) \n \n \n 1 January 2024 \n \n \n \n \n IAS 7 \n \n \n Statement of Cash Flows (amendments) \n \n \n 1 January 2024 \n \n \n \n \n IFRS 7 \n \n \n Financial Instruments: Disclosures (amendment) \n \n \n 1 January 2024 \n \n \n \n \n   \n   \n   \n Standards issued by the IASB not effective for the current year and not early adopted by the Group \n   \n The following standards and amendments have been assessed as not having a material impact at this time. \n   \n \n \n \n \n \n \n \n Effective from \n \n \n \n \n Amendments to IAS 21 - Lack of Exchangeability \n \n \n 1 January 2025 \n \n \n \n \n Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instrument \n \n \n 1 January 2026 \n \n \n \n \n Annual improvements to IFRS - volume 11 \n \n \n 1 January 2026 \n \n \n \n \n IFRS 19 Subsidiaries without Public Accountability: Disclosures \n \n \n 1 January 2027 \n \n \n \n \n   \n 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, subject to UK endorsement. \n   \n The Group does not intend to adopt any of these new standards or amendment early. \n   \n Foreign currencies \n 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. \n   \n 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. \n   \n Critical accounting judgements and key sources of estimation uncertainty \n The preparation of condensed 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 2025 and 2024  are appropriate and therefore present the Group's financial position and results fairly. \n   \n The areas involving a higher degree of judgement or estimation are: \n \n \n \n \n Area \n \n \n Estimation uncertainty \n \n \n Judgements \n \n \n Further details \n \n \n \n \n Intangible assets \n \n \n Recoverable amount of the UK Invest cash generating unit \n \n \n Customer relationships \n \n \n Note 12 \n \n \n \n \n Provisions \n \n \n Measurement of customer remediation provision (FY 2025 only) \n \n \n n/a \n \n \n Note 23 \n \n \n \n \n Other assets \n \n \n n/a \n \n \n Accounting for cryptocurrencies \n (FY 2024 only) \n \n \n Note 18 \n \n \n \n \n Contingent liabilities \n \n \n n/a \n \n \n Assessment of legal and regulatory matters \n \n \n Note 32 \n \n \n \n \n   \n 2.     Segmental reporting \n   \n \n \n \n \n Accounting policy \n 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. \n   \n Operating segments that do not meet the quantitative thresholds under IFRS 8 \"Operating Segments\" are aggregated. Segments are reviewed annually. \n The accounting policies of the reportable segments are the same as the Group's accounting policies. \n   \n The Group's business consists of two segments, Trading and Investing, each with distinct characteristics and client objectives. \n   \n \n \n \n \n   \n Trading \n 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. \n   \n Additionally, the trading segment includes the Treasury Management and Capital Markets Division that invests surplus liquidity to enhance yield. \n   \n Investing \n To support clients' longer-term investment goals, the Group offers online stockbroking services in Australia, the UK, the USA and Singapore. \n   \n \n \n \n \n   \n \n \n Years ended 31 March 2025 \n \n \n \n \n   \n \n \n Trading \n £'000 \n \n \n Investing \n £'000 \n \n \n Total \n £'000 \n \n \n \n \n Revenue \n \n \n  261,101 \n \n \n 56,510 \n \n \n 317,611 \n \n \n \n \n Interest income \n \n \n 31,693 \n \n \n 10,795 \n \n \n 42,488 \n \n \n \n \n Total revenue \n \n \n 292,794 \n \n \n 67,305 \n \n \n 360,099 \n \n \n \n \n Introducing partner commissions and betting levies \n \n \n (7,242) \n \n \n (12,740) \n \n \n (19,982) \n \n \n \n \n Net operating income \n \n \n 285,552 \n \n \n 54,565 \n \n \n 340,117 \n \n \n \n \n Operating expenses (exc. depreciation and amortisation) \n \n \n (193,166) \n \n \n (43,377) \n \n \n (236,543) \n \n \n \n \n Depreciation and amortisation \n \n \n (9,010) \n \n \n (4,521) \n \n \n (13,531) \n \n \n \n \n Impairment of intangible assets \n \n \n (482) \n \n \n - \n \n \n (482) \n \n \n \n \n Operating profit \n \n \n 82,894 \n \n \n 6,667 \n \n \n 89,561 \n \n \n \n \n Share of results of associates and joint ventures \n \n \n (2,517) \n \n \n - \n \n \n (2,517) \n \n \n \n \n Finance costs \n \n \n (2,578) \n \n \n (12) \n \n \n (2,590) \n \n \n \n \n Profit before taxation \n \n \n 77,799 \n \n \n 6,655 \n \n \n 84,454 \n \n \n \n \n   \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue \n \n \n 279,018 \n \n \n 45,684 \n \n \n 324,702 \n \n \n \n \n Interest income \n \n \n 24,053 \n \n \n 10,990 \n \n \n 35,043 \n \n \n \n \n Total revenue \n \n \n 303,071 \n \n \n 56,674 \n \n \n 359,745 \n \n \n \n \n Introducing partner commissions and betting levies \n \n \n (15,233) \n \n \n (11,729) \n \n \n (26,962) \n \n \n \n \n Net operating income \n \n \n 287,838 \n \n \n 44,945 \n \n \n 332,783 \n \n \n \n \n Operating expenses (exc. depreciation and amortisation) \n \n \n (189,915) \n \n \n (49,878) \n \n \n (239,793) \n \n \n \n \n Depreciation and amortisation \n \n \n (10,612) \n \n \n (4,489) \n \n \n (15,101) \n \n \n \n \n Impairment of intangible assets \n \n \n (2,298) \n \n \n (10,024) \n \n \n (12,322) \n \n \n \n \n Operating profit/(loss) \n \n \n 85,013 \n \n \n (19,446) \n \n \n 65,567 \n \n \n \n \n Share of results of associates and joint ventures \n \n \n (283) \n \n \n - \n \n \n (283) \n \n \n \n \n Finance costs \n \n \n (1,947) \n \n \n (4) \n \n \n (1,951) \n \n \n \n \n Profit/(loss) before taxation \n \n \n 82,783 \n \n \n (19,450) \n \n \n 63,333 \n \n \n \n \n   \n 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. \n   \n There are no asymmetrical allocations between reportable segments. All inter-segment charges are applied consistently across segments and are fully eliminated on consolidation. \n   \n Segment assets and liabilities are not disclosed because they are not reported to, or reviewed by, the Chief Operating Decision Maker. \n   \n Information about major customers \n No single customers contributed 10 per cent or more to the Group's revenue in either FY 2025 or FY 2024. \n   \n Net operating income by geography \n 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. \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n UK \n \n \n 104,593 \n \n \n 92,332 \n \n \n \n \n Australia \n \n \n 109,188 \n \n \n 109,425 \n \n \n \n \n Other countries \n \n \n 126,336 \n \n \n 131,026 \n \n \n \n \n Total \n \n \n 340,117 \n \n \n 332,783 \n \n \n \n \n   \n Non-current assets by geography \n 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: \n   \n   \n \n \n \n \n   \n \n \n 31 March 2025 \n £'000 \n \n \n 31 March 2024 \n £'000 \n \n \n \n \n UK \n \n \n  59,052 \n \n \n 32,981 \n \n \n \n \n Australia \n \n \n  19,329 \n \n \n 23,405 \n \n \n \n \n Other countries \n \n \n  7,052 \n \n \n 6,368 \n \n \n \n \n Total \n \n \n  85,433 \n \n \n 62,754 \n \n \n \n \n   \n   \n 3.     Revenue \n   \n \n \n \n \n Accounting policy \n Revenue \n 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. \n \nThe 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. \n   \n Trading - CFDs and spread bets \n Revenue from CFDs and spread bets includes: \n ·      Fees for commission and funding charges on opening, holding and closing positions; spreads; and fair value gains/losses on client trading. \n ·      Deductions for commissions, funding charges, spreads and fair value gains/losses from hedging activities. \n   \n 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 5:00 pm New York time. Unrealised gains/losses from daily valuations and realised gains/losses from closed positions are included in revenue. \n   \n Investing - stockbroking revenue from contracts with customers \n Stockbroking revenue is recognised in accordance with IFRS 15 \"Revenue from Contracts with Customers\" when performance obligations are satisfied, typically when services are delivered to clients. \n   \n Other revenue \n Other revenue includes income from financial information services, dormancy fees, balance conversions, corporate brokerage, capital markets activity and client exchange fees. It is recognised in accordance with IFRS 15 \"Revenue from Contracts with Customers\" when the related performance obligations are satisfied. \n   \n Interest income \n Interest is recognised using the effective interest rate method. \n Interest income from segregated client funds, net of amounts paid to clients on their free cash balances, is recognised in revenue. \n   \n \n \n \n \n   \n Revenue \n   \n \n \n \n \n   \n \n \n Year ended 31 March \n \n \n \n \n   \n \n \n 2025 \n £'000 \n \n \n 2024 \n £'000 \n \n \n \n \n Trading \n \n \n  256,169 \n \n \n 274,309 \n \n \n \n \n Investing \n \n \n 57,189 \n \n \n 45,684 \n \n \n \n \n Other \n \n \n 4,253 \n \n \n 4,709 \n \n \n \n \n Total \n \n \n 317,611 \n \n \n 324,702 \n \n \n \n \n   \n Within trading revenue is net gains or net losses on financial assets or financial liabilities measured at FVTPL. All net gains or losses arose from financial assets subject to mandatorily measured at FVTPL which totalled £2,494,000 (FY 2024: £633,000). \n   \n Interest income on own funds \n   \n \n \n \n \n   \n \n \n Year ended 31 March \n \n \n \n \n   \n \n \n 2025 \n £'000 \n \n \n 2024 \n £'000 \n \n \n \n \n Bank and broker interest \n \n \n  14,242 \n \n \n 9,661 \n \n \n \n \n Interest on financial investments \n \n \n  4,249 \n \n \n 1,556 \n \n \n \n \n Other interest income \n \n \n  40 \n \n \n 29 \n \n \n \n \n Total \n \n \n  18,531 \n \n \n 11,246 \n \n \n \n \n   \n Interest income on client funds \n   \n \n \n \n \n   \n \n \n Year ended 31 March \n \n \n \n \n   \n \n \n 2025 \n £'000 \n \n \n 2024 \n £'000 \n \n \n \n \n Interest income on client funds \n \n \n  23,957 \n \n \n 23,797 \n \n \n \n \n Total \n \n \n 23,957 \n \n \n 23,797 \n \n \n \n \n   \n \n \n   \n   \n 4.     Introducing partner commissions and betting levies \n   \n \n \n \n \n Accounting policy \n Introducing partner commissions and betting levies are recognised as deductions from total revenue in the period the associated revenue is earned. Betting levies are payable on net gains from spread betting and countdowns products. \n \n \n \n \n   \n   \n \n \n \n \n   \n \n \n Year ended 31 March \n \n \n \n \n   \n \n \n 2025 \n £'000 \n \n \n 2024 \n £'000 \n \n \n \n \n Trading \n \n \n 7,242 \n \n \n 15,233 \n \n \n \n \n Investing \n \n \n 12,740 \n \n \n 11,729 \n \n \n \n \n Total \n \n \n 19,982 \n \n \n 26,962 \n \n \n \n \n   \n 5.     Operating expenses \n   \n \n \n \n \n   \n \n \n   \n \n \n Year ended 31 March \n \n \n \n \n &nbs...

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