CMC Markets Has Launched a Share Buyback Program Worth £30 Million

The program went into action immediately.

It intends to buy back 29,071,747 common shares.

CMC Markets (LON: CMCX) stated on Tuesday that it has begun its share repurchase program with a £30 million allocation. This action was done to lower the company's share capital.

“The Buyback Programme will begin immediately and will be completed no later than June 30, 2023, subject to continuous regulatory clearance,” the broker said.

Furthermore, CMC has said that the maximum total number of shares it is attempting to buy back is 29,071,747 ordinary shares. RBC Europe Limited has already been engaged to conduct the Buyback Programme on its behalf.

Plans for the Future

The London-based broker initially announced its desire to create such a scheme on March 2, but its fate was then contingent on regulatory clearance.

“Given the Company's strong financial position and continuous investment in the business, the Board has decided to return surplus cash to shareholders via the buyback of ordinary shares,” CMC previously said.

The repurchase program is being considered by the firm as part of a regular balanced approach to shareholder returns, in addition to the present dividend policy, which remains unaltered. It did, however, emphasize that the company's full-year financial projections would remain intact.

Previously, the broker reduced its revenue forecast from more than £330 million to between £250 million and £280 million.

CMC is a London-based broker with globally regulated activities. Its services include forex trading, contracts for difference, and spread betting. Furthermore, it is creating a new UK investment D2C and B2B platform, which will include investment products and actual shares, among other things.

Aside from the repurchase program, the corporation is thinking of separating its leveraged and non-leveraged divisions. The board feels it is in the best interests of shareholders, although discussions are still in the early stages.

Previously, the broker reduced its revenue forecast from more than £330 million to between £250 million and £280 million.

CMC is a London-based broker with globally regulated activities. Its services include forex trading, contracts for difference, and spread betting. Furthermore, it is creating a new UK investment D2C and B2B platform, which will include investment products and actual shares, among other things.

Aside from the repurchase program, the corporation is thinking of separating its leveraged and non-leveraged divisions. The board feels it is in the best interests of shareholders, although discussions are still in the early stages.