CMC Markets, the business led by former Tory party co-treasurer Peter Cruddas, is enjoying a pandemic trading boom that sees profits soar.
The City firm made £141 million in the half year, as new clients keen to trade volatile markets by chasing tech and pharma shares invested from their sofas.
That profit was up 369% on a year ago, with revenues rising 126% to £231 million. That allows for a huge jump in the dividend to 9.2p a share. Cruddas gets £16 million from that divi to add to a fortune of around £750 million.
Cruddas said of lockdown: “The natural assumption is that there are some businesses that are going to benefit and some that are not. Plainly we are benefitting.”
On the results Cruddas admitted, “there is no doubt that there is pandemic volatility in the numbers”, but points out that CMC was doing well even before Covid.
He said he will pay full tax on his dividend windfall. He owns 60% of the firm – other shareholders include Schroders, JP Morgan and Legal & General.
Cruddas reckons only around 20 of 300 London staff are coming into the office. Those staff are doing well in lockdown. Costs including “variable remuneration” – that’s bonuses – are up 25% to £89 million. CMC took no government support money, Cruddas notes.
While his relations with the Tory party are perhaps now strained, he said he still backs Boris Johnson. He declined to criticise the “green industrial revolution” unveiled by the Prime Minister yesterday, claiming he hadn’t read much about it.
He is comfortable with the move to ban sales of petrol cars from 2030, saying, “I will cycle”.
Cruddas quit as co-treasurer following cash for access allegations.
CMC shares today rose 5p to 400p, which leaves the business valued at £1.2 billion
