Strife in the spreadbetting market saw Peter Cruddas’s CMC Markets issue a profit warning that sent the shares spinning further downwards.
Cruddas, the former co-treasurer of the Tory Party, floated CMC in February 2016 at a price of 240p per share.
That netted him more than £200 million which has helped buy yachts, lavish homes, and make various charitable and political donations.
Today the stock fell 6% to 78p, which leaves the company valued at just £225 million. Cruddas still holds 62% of the stock.
CMC said tougher regulations had led to “reduced client trading activity”, which means spreadbetting income for the year will be about £110 million, 37% lower than expected.
Broker Peel Hunt said “weak conditions persist” and cut profit forecasts by £1.3 million to £6 million.
The firm also said chief operating and financial officer Grant Foley is leaving after six years to “pursue other opportunities”.
Industry watchers think that, while times are tough, CMC is likely to be strong enough to survive a shake-out that could see smaller players disappear.
It has expanded into Australia, offering stockbroking services that should help offset turmoil in London.
