In Q1 2022, CMC has continued to perform well. Although it is still early in the year, overall monthly active client numbers remain at similar levels as reported in 2021, which were up around a third from pre-pandemic levels. As previously stated, whilst client trading activity has moderated from average FY 2021 levels our latest client cohort continues to show characteristics similar to those of clients onboarded over prior years. In addition, client income retention remained in excess of 80%, but below the levels reported for FY 2021, as previously guided. Q1 2022 operating costs track moderately higher year over year as guided due to a higher headcount, specifically talent for our new non-leveraged investment platform.
The Group continues to have confidence in the robust underlying performance of the business and in conjunction with further progress on its strategic initiatives, including the ongoing development of the non-leveraged investment platform, looks forward to continuing to generate long-term business growth and value. As a result, the Board remains confident in achieving net operating income in excess of £330 million for FY 2022.
Lord Cruddas, Chief Executive Officer, commented:
“I’m pleased with our start to this financial year following a record FY 2021. The team is focused on continuing to provide an excellent service to our clients, both in terms of uptime and providing an innovative, market-leading platform.
I remain confident in the outlook for CMC as we continue to make progress with our strategic initiatives as set out in our recent full year results and I look forward to updating the market further on these at our half year results later this year.”
Forward looking statements
This trading update may include statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Group undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date such statements are published.