CMC Markets, the financial trading firm founded by the UK Conservative Party co-treasurer Peter Cruddas, has nearly doubled its pre-tax loss as it wrote off technology investment costs for the year to March 2011.
CMC, which provides spread betting and contracts for difference trading to retail customers, made a pre-tax loss of £23.7 million in the year, up from £13 million in the previous year.
The increased losses relate to the write-off of £12.3 million on its previous technology platform, MarketMaker, and spreading the cost of investment in its new platform, CMC Tracker, according to a report in The Telegraph.
CMC also invested £23.7 million in the year on a move to new London headquarters, a new data centre and other fixed assets, the report says. The pre-tax loss came despite a 7% increase in group revenue to £160.7 million.
The company, however, was upbeat and said in a statement: “We are very proud of what we managed to achieve in the year to 31 March 2011. Against a very weak market environment for retail trading, we not only achieved an improvement in our underlying financial results but we delivered on the very key milestones in our next generation change programme, launching what we believe to be the future of online trading and investing.
“We also maintained our global active customer base despite conservative marketing and sales investment in comparison to our competitors due to our focus this year on investment in our technology, product and platforms.”
CMC Markets was founded in 1989 by Cruddas with a £10,000 investment. It is majority owned by Cruddas and his family and has offices across Asia and Europe. Embracing the e-channel at an early stage in its development, CMC Markets launched an online forex trading platform in 1996. Last month it expanded the reach of its new CMC Tracker platform to Australian investors.