Plus500 reveals growth, launches share buy-back programme
Plus500 has revealed an increase in revenue during the second quarter, while the company has also announced the launch of a new share buyback programme.
The company saw a 9% year-on-year drop for the first quarter of 2017 with revenue of $77.5m (€69.3m/£60.2m), but said at its AGM that the second quarter had been stronger and profit margins were maintained.
Plus500 also announced a programme to buy back up to $10m of its shares.
The programme will run until August 31 and the maximum number of shares that may be acquired is 11,488,837, which represents 10% of the company's issued share capital.
Asaf Elimelech, chief executive of Plus500, said: “We are pleased to announce the start of a share buyback programme, which will be funded from our significant cash resources.
“Together with the substantial dividend payments due to be paid in July, our cash generative business model is enabling us to provide good shareholder returns despite current regulatory uncertainties.”
The company said it is waiting for the outcome of the FCA consultation, which at the end of last year proposed rule changes for firms selling (CFD) products to retail customers, and said that this could affect its results for the second half of 2017.
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