Lord Cruddas loses £20 million as shares in CMC Markets plummet 10%
Big hit: Tory colleague Lord Cruddas
Tory colleague Lord Cruddas saw £20m disappear from his wealth as shares in his spread betting company plummeted.
In a gloomy stock market update, CMC Markets said it expects a drop in full-year earnings after subdued customer trading in August.
Shares in the company fell 9.7 per cent, or 11.8p, to 110.2p, taking the value of the combined 62 per cent stake held by Cruddas and his wife Fiona down £20m to £190m.
The stock is now at a four-year low, down 80 percent since its peak during the pandemic, when trading boomed.
Trading platforms are facing a slowdown in client activity as market volatility has eased from peaks during last year’s Russian invasion of Ukraine and the Covid-19 pandemic.
The company said it expects full-year profits of £250m to £280m – lower than the £288.4m it posted last year.
Analysts from Peel Hunt said, “This is clearly disappointing and a further reminder that CMC can suffer from periods of subdued trading activity.”