CMC announces a loss for the year 2011

[tar]

CMC announces a 19 m pounds loss for the year 2011 compared to only 9 million for the previous year , revenue up 6% to 162 M pounds , active clients nearly unchanged +0.2% , volume ( number of trades ) down 12% , customer assets up 6% .

http://www.cmcmarketsplc.com/content/documents/cmcmarketsplc_results_2011.pdf

http://www.cmcmarketsplc.com/group-results/consolidated-income-statement

 

[gle101]

CMC announces a 19 m pounds loss for the year 2011 compared to only 9 million for the previous year , revenue up 6% to 162 M pounds , active clients nearly unchanged +0.2% , volume ( number of trades ) down 12% , customer assets up 6% .

http://www.cmcmarketsplc.com/content/documents/cmcmarketsplc_results_2011.pdf

http://www.cmcmarketsplc.com/group-results/consolidated-income-statement

Yes it is a very tough industry indeed, but I am starting to believe they will succeed in their aim of becoming a leading player when it comes to spread betting. The other have to watch out that is for certain. I guess they have invested a huge sum of money in the CMC next-gen platform and the way they are marketing it is quite impressing.

 

[Black Swan]

CMC announces a 19 m pounds loss for the year 2011 compared to only 9 million for the previous year , revenue up 6% to 162 M pounds , active clients nearly unchanged +0.2% , volume ( number of trades ) down 12% , customer assets up 6% .

http://www.cmcmarketsplc.com/content/documents/cmcmarketsplc_results_2011.pdf

http://www.cmcmarketsplc.com/group-results/consolidated-income-statement

You do realise who owns the company and therefore who actually takes the loss?

"Loss for the year attributable to owners of the Company- (19.4) (9.2)".

CMC is not a "public company", given the fact that their two principal owners can carry what is, to all intents the small loss, theres not too much 'capital' to make out of this report.

I would suggest that the "investment in intangible assets" has hit the profitability together with the purchase of; plant, equipment and property. In short a headquarters move is always an expensive procedure and similarly the cost of new gen in all it guises and the foundations put in place to roll out more developments.

The combined balance sheet is strong.

 

[Ross Spur]

Yes it is a very tough industry indeed, but I am starting to believe they will succeed in their aim of becoming a leading player when it comes to spread betting. The other have to watch out that is for certain. I guess they have invested a huge sum of money in the CMC next-gen platform and the way they are marketing it is quite impressing.

I'm less than impressed so far, as they seemed to have launched it before it was finished and cut off existing Investor Edition clients (which included Level 2) without warning, let alone arrange an alternative provider.

 

[gle101]

I'm less than impressed so far, as they seemed to have launched it before it was finished and cut off existing Investor Edition clients (which included Level 2) without warning, let alone arrange an alternative provider.

I think you have to give them time to get things in order. A tremendous lot work and money have been put down in the new platform. If I can get this kind of spread, combined with no re-quotes and trade rejections (hopefully no slippage on stops), I am more than willing to put up with some initially glitches.

 

[Black Swan]

I think you have to give them time to get things in order. A tremendous lot work have been put down in the new platform. If I can get this kind of spread, combined with no re-quotes and trade rejections (hopefully no slippage on stops), I am more than willing to put up with some initially glitches.

We are en masse a pretty stupid impatient lot, we see new apps, new platforms, new innovations and collectively have no idea as to the cost, time and effort that is required to provide them or the quality of the dedicated folk at CMC 'towers' who produce them.

We moan about 0.2% cost of spread, fills lagging by micro seconds, charts being dark, candles being rounded and shadowed..none of which affects your profitability and if it does you're trading in the wrong way man..no ifs no buts..

CMC have gone through huge one off changes and have plotted a fairly radical new course. The one off intangible cost 'hit' is there in black and white. No translation required..

Right I'm off to sweat August out in the gym, been a while since I had a losing month, (all my own work and fault, no 'broker blame' from this bloke) Haven't taken a trade yet in September..roll on Monday..

 

[gle101]

We are en masse a pretty stupid impatient lot, we see new apps, new platforms, new innovations and collectively have no idea as to the cost, time and effort that is required to provide them or the quality of the dedicated folk at CMC 'towers' who produce them.

We moan about 0.2% cost of spread, fills lagging by micro seconds, charts being dark, candles being rounded and shadowed..none of which affects your profitability and if it does you're trading in the wrong way man..no ifs no buts..

CMC have gone through huge one off changes and have plotted a fairly radical new course. The one off intangible cost 'hit' is there in black and white. No translation required..

Right I'm off to sweat August out in the gym, been a while since I had a losing month, (all my own work and fault, no 'broker blame' from this bloke) Haven't taken a trade yet in September..roll on Monday..

Yes I agree, but along with the clients the bars have been raised when it comes to the service of SB providers.

Yes sweat it out! September is a new month.

 

[tar]

Yes it is a very tough industry indeed, but I am starting to believe they will succeed in their aim of becoming a leading player when it comes to spread betting. The other have to watch out that is for certain. I guess they have invested a huge sum of money in the CMC next-gen platform and the way they are marketing it is quite impressing.

They are one of the leaders , here you can see active clients comparison table , check ( UK and Ireland ) ...

 

[gle101]

They are one of the leaders , here you can see active clients comparison table , check ( UK and Ireland ) ...

Comparison table, compared to what?

 

[tar]

comparison table, compared to what?

CMC's active clients y/y

 

[gle101]

They are one of the leaders , here you can see active clients comparison table , check ( UK and Ireland ) ...

OK, is this table active SB clients or CFD's or both?

 

[tar]

OK, is this table active SB clients or CFD's or both?

both

 

[gle101]

both

Yes, I think the SB part is not a big portion of the client base. This is evidently going to change.

 

[Ross Spur]

We are en masse a pretty stupid impatient lot, we see new apps, new platforms, new innovations and collectively have no idea as to the cost, time and effort that is required to provide them or the quality of the dedicated folk at CMC 'towers' who produce them.

We moan about 0.2% cost of spread, fills lagging by micro seconds, charts being dark, candles being rounded and shadowed..none of which affects your profitability and if it does you're trading in the wrong way man..no ifs no buts..

I can't see any way of trading in which spread, execution speed and chart usability don't affect profitability.

 

[Truth Seeker]

Ross

Ignore black swan, he's on the CMC payroll. He does nothing but run to CMC's defence, sucks up to the CEO so much it's sickening (have received PM's from other members here who have noticed this too). Share your experiences on my new thread created for all of us who spread bet and take it seriously.
http://www.trade2win.com/boards/spr...ad-spread-bet-fills-here-research-needed.html

Obviously black swan and his merry band of Cretins are not welcome there.

 

[scose-no-doubt]

The loss is mainly due to launching next gen. i.e advertising etc and the effect that the new platform has had on the value of the old ones in terms if intrinsic and realisable value. That's the big write down - obsolescence of the old shizen. Any internally generated goodwill value re next gen over and above development costs wont show on the BS so we have no idea of the net effect as of yet. Probably never will.

 

[Black Swan]

The loss is mainly due to launching next gen. i.e advertising etc and the effect that the new platform has had on the value of the old ones in terms if intrinsic and realisable value. That's the big write down - obsolescence of the old shizen. Any internally generated goodwill value re next gen over and above development costs wont show on the BS so we have no idea of the net effect as of yet. Probably never will.

I refer the honourable gentleman to the answer given in post three of this thread..

 

[tar]

The loss is mainly due to launching next gen. i.e advertising etc and the effect that the new platform has had on the value of the old ones in terms if intrinsic and realisable value. That's the big write down - obsolescence of the old shizen. Any internally generated goodwill value re next gen over and above development costs wont show on the BS so we have no idea of the net effect as of yet. Probably never will.

I am more interested in volume and active clients numbers to measure the success of the new platform , should give it a couple of years though ...

 

[scose-no-doubt]

Why did you call the thread announces a loss then lol

 

[tar]

Why did you call the thread announces a loss then lol

because they did , cant post financial results without mentioning this ...