CMC Markets returns to a profit after difficult year for Cruddas

CMC Markets, the trading platform founded by disgraced former Tory co-treasurer Peter Cruddas, has recorded its first annual profit in three years due to increased market volatility.

The value of trades placed with the spread betting company rose 64 per cent in the last year according to documents filed with Companies House, leading to a profit after tax of £2.5m, up from last year's £19.4m loss.

CMC's performance is a boost to executive chairman Cruddas, who was forced to resign his position with the Conservatives in March following accusations that he was offering meetings with David Cameron in exchange for donations to the party. He is now taking legal action, saying the facts were "distorted" by a series of newspaper articles.

"The last three years have seen turbulent times in the financial markets and we have weathered the storm very well," Cruddas, who founded CMC in 1989, said.

"All of this was achieved on the back of huge investment in our next generation trading platform and spread commission reductions."

Cruddas announced plans to float the company, whose investors include Goldman Sachs, in 2006, although no developments were announced in the latest report.