(Alliance News) - CMC Markets PLC on Monday said it plans to cut around 200 jobs, some 17% of its total workforce, as part of a cost review that was announced in November last year.

The London-based company operates an online trading platform for retail investors and financial institutions. Shares were up 13% to 149.44 pence early Monday in London, though they remain down 39% over the past year.

CMC said it expects to incur a one-off cost of about GBP2.5 million in financial year 2024, which ends on March 31. This is expected to produce annualised savings of GBP21 million starting from financial 2025, an 18% reduction in staff costs.

"Cost reductions have been primarily achieved by merging support functions across multiple business lines, streamlining reporting lines and automating processes. The group will continue to seek opportunities to drive efficiencies and control costs while remaining committed to investing in growth opportunities and ensuring its technology remains market leading," CMC said.

Looking ahead, CMC said trading remains in line with expectations. It is on track for full-year net operating income of GBP290 million to GBP310 million. This would be up from GBP288.4 million in financial 2023.

The cost review was announced together with CMC's half-year results. These showed a swing to pretax loss of GBP2.0 million from a GBP36.6 million profit a year before. Net operating income was GBP122.6 million, down 20% from GBP153.5 million.

CMC said it will provide a pre-close trading update on April 9.

By Tom Waite, Alliance News editor

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