Tory peer Lord Cruddas in line for £6m in dividends ahead of break-up of his trading and stockbroking firm CMC Markets
Conservative peer Lord Cruddas is in line to pocket over £6million in dividends from his trading and stockbroking firm CMC Markets ahead of its proposed break-up.
Cruddas, 68, and his wife Fiona own nearly 60 per cent of the FTSE 250 group and will be in line for a £6.1million payment after it announced an interim dividend of 3.5p per share in its half-year results.
However, that was less than the 9.2p paid a year ago as profits collapsed amid a decline in activity.
Payout: Lord Cruddas (pictured) and wife Fiona own nearly 60% of CMC and will be line for a £6.1m payment after it announced an interim dividend of 3.5p per share in its half-year results
The payout came as Cruddas backed splitting CMC into a retail-focused trading platform and a leveraged operation, which offers customers the riskier spread betting services that made his fortune.
Dividing the business was a ‘no-brainer’, Cruddas said, adding that the retail investment platform may well have a different name to separate it from CMC’s association with spread betting.
While the company has yet to make a final decision on the plans, it said this week it was conducting an ‘exploratory review’ due to conclude next June.
Cruddas said a split will help unlock ‘significant value’ within the group.
CMC shares tumbled 10.5 per cent, or 28.5p, to an 18-month low of 243p yesterday after profits crashed 74 per cent year-on-year to £36million in the six months to the end of September.