Founder Peter Cruddas signals £1bn float after CMC storms into profit
Cruddas unveiled pre-tax profits of £32.8 million in the year to 31 March
CMC Markets founder Peter Cruddas today flagged up a £1 billion float as he put his spread betting firm back into the black.
The former Conservative co-treasurer, who resigned from the party two years ago after a cash-for-access sting, unveiled pre-tax profits of £32.8 million in the year to 31 March, turning around a £4 million loss in the prior year.
His 500 staff will split a bumper windfall, and Cruddas, who owns 90 per cent of the firm with investment bank Goldman Sachs holding the balance, is paying a £12 million dividend, CMC’s first since 2008.
Hackney-born Cruddas, 60, who left school at 15 and founded the company with £10,000 in 1989, returned as chief executive early last year, having stepped back to become chairman.
Although CMC still lags a long way behind market leader IG Group, its improved performance could pave the way for a £1 billion stock-market float.
Cruddas said. “I am very open-minded about this. I am not against floating the company. We have turned it around and we are in very good shape. Actually, we don’t really need the money.
“Having a £50 million injection probably wouldn’t change much, it wouldn’t speed up expansion, there is only so much you can do. But I think we will float in the next three years.”
He committed himself to the company for the next decade but overhauled the culture by banning working from home and scrapping free fresh fruit in the office.
“Honestly, I wish I had come back sooner because I absolutely love it here,” he told the Evening Standard. “I think it was difficult for anybody else to run this company when I own 90 per cent. I started it so I felt that I could do a better job.”
Cruddas won a libel action against the Sunday Times after it accused him of offering access to David Cameron and George Osborne in return for donations to the Tory party. The newspaper is appealing. More volatile market conditions — such as last year’s “taper tantrum” over the US ending its money-printing programme — have helped spread-betting firms as clients gamble on swings in currencies and stock markets.
For the first time, CMC executed over one million trades via mobile devices in a single month. The firm, which competes with IG for staff, is looking to recruit another 100 people over the next 18 months as it develops more offices overseas.
CMC’s operating income increased by 14 per cent to £122 million after it cut trading costs for clients and invested in its Next Generation trading platform. It has £117 million in cash on the balance sheet.
- 1 Michelle Rodriguez: Fast & Furious actor apologises after telling 'minorities' to stop taking on 'white' roles
- 2 Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face the death penalty
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 Robert Mugabe eats a zoo for 'obscene' 91st birthday party
- 5 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
Michelle Rodriguez: Fast & Furious actor apologises after telling 'minorities' to stop taking on 'white' roles
Boris Nemtsov shot dead: Putin critic may have been murdered by Islamic extremists, says president-led committee
British are sexually uptight, dirty and drink too much – according to Spanish book
Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face the death penalty
PornHub turns masturbation into energy in bid to save the planet
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...