The Tory peer Lord Cruddas has suggested he is open to shifting the listing of his online trading empire to New York if London’s ailing stock market fails to recover.
Lord Cruddas, a former Conservative donor, said a switch for CMC Markets was not on the cards currently but might be considered in “a year or two” if London does not close the valuation gap with the US market.
He said: “We would list in the US if we could get a higher multiple but there’s so much going on here we wouldn’t have the time [to explore it].
“I’m actually quite confident that the UK markets will recover. If you look at our multiple, it’s reasonable. It should be higher, if you put us in the bracket of fintech businesses.
“We’ll get our value from the UK market but everything’s on the table. We’re here to do business and we’re here to drive shareholder value so everything is up for grabs.”
Exodus of companies
The UK stock market has suffered an exodus of companies moving their listing overseas to attract higher valuations.
Tarmac-owner CRH, Flutter Entertainment and plumbing group Wolseley have all gone stateside in recent months. UK chip designer Arm also opted for a US listing because of the higher valuations.
CMC’s shares have nearly doubled in price over the past 12 months but US-listed rivals attract even higher prices, with shares valued at 2.5 times above CMC on a multiple earnings basis.
The group has moved away from its UK spread betting roots to become a global online trading platform with a large presence in Australia and Singapore.
Lord Cruddas, who owns 65pc of CMC, said the recent £5.4bn bid proposal for Hargreaves Lansdown showed signs of recovery for London’s moribund stock market.
He said if London failed to rebound a relisting option could be explored “a year or two years down the line”.
“Everything is up for grabs,” he added.
Shares in CMC jumped nearly 6pc on Thursday after it reported a 21pc rise in profits before tax to £63m.
CMC unveiled a major deal with Revolut on Wednesday to connect their two online apps and platforms for customers to trade more.
Lord Cruddas, 70, last donated to the Conservatives three years ago and sits in the House of Lords, meaning he is unable to vote in the general election.
He said he hoped the Conservatives would win the election but added he had no major concerns about a Labour government.
He said: “I’m an entrepreneur. I’m a businessman. This company has operated under Labour governments and under Conservative governments and under coalition governments. It’s water off a duck’s back to me. I’ll get on with it.”