TIDMPLUS
RNS Number : 7904P
Plus500 Limited
14 February 2023
14 February 2023
Plus500 Ltd.
("Plus500", the "Company" or together with its subsidiaries the
"Group")
Preliminary Unaudited Results for the year ended 31 December
2022
Another excellent performance in FY 2022, driving growth and
reinforcing our financial position
Additional $100m shareholder returns announced today, increasing
returns to shareholders in respect of FY 2022 to more than
$270m
Plus500, a global multi-asset fintech group operating
proprietary technology-based trading platforms , today announces
its unaudited preliminary results for the year ended 31 December
2022.
Financial Highlights :
FY 2022* FY 2021 Change %
Revenue $832.6m $718.7m 16%
--------- ------- --------
EBITDA $453.8m $387.1m 17%
--------- ------- --------
EBITDA Margin % 55% 54% 2%
--------- ------- --------
$ 930 .
Cash balance at year end 2 m $749.5m 2 4 %
--------- ------- --------
*Unaudited
Key Headlines:
Excellent performance achieved, well ahead of market
expectations[1] at the beginning of FY 2022, driving strong revenue
and EBITDA growth:
-- Powered by the Group's proven business model and market-leading proprietary technology
-- Plus500's on-going ability to attract and retain higher value, long term customers evidenced by:
o 87% of OTC [2] revenue derived from Group's customers trading
for more than a year
o Consistently strong levels of Customer Income ([3])
o Record annual ARPU ([4]) achieved during the year
-- The Group reached another major commercial milestone, with over 24 million worldwide customers now registered on its trading platforms since inception, providing significant potential value for Plus500 over time, through utilisation of new proprietary retention, activation and monetisation technologies
-- Customer deposits increased to $2.3 billion (FY 2021: $2.1
billion), with average deposit per Active Customer ([5]) growing to
a record high of approximately $ 8,000 (FY 2021: approximately $
5,000 ), highlighting on-going customer loyalty and confidence in
Plus500
-- In FY 2022, over 85% of the Group's OTC revenue was generated from customers which used Plus500's OTC platform on mobile or tablet devices and over 82% of OTC customer trades took place on mobile or tablet devices
Significant progress made in accessing the substantial
institutional opportunity in the US futures market:
-- New B2B business line with major revenue opportunity - in
addition to Plus500's long-standing proprietary B2C technologies
and offering, the Group has established a new commercial model,
business vertical and strategic position developed by the Group as
market infrastructure provider, delivering execution, clearing and
brokerage services for institutional clients
-- Outstanding achievement in FY 2022 in becoming a full
clearing firm member of the CME Group exchanges and the Minneapolis
Grain Exchange (MGEX). This extensive range of clearing
capabilities will help to deliver the substantial potential
opportunity for Plus500 in the US futures market
Major headway achieved in accessing the sizeable and growing US
futures retail trading market:
-- 'TradeSniper', an intuitive new proprietary trading platform, launched in Q3 2022
-- Provides a highly differentiated, technology-based
proposition for Plus500 in the futures retail market
-- 'TradeSniper' enables a fully holistic solution for
onboarding, depositing and trading, as well as new payment methods
- these features are now available for the first time for customers
in the US futures market
Further delivery against global strategic growth
opportunities:
-- Access to the substantial Japanese retail trading market,
through acquisition of a regulated entity in Japan
o Integration on track, with further additions made to high
quality local management team
-- In February 2023, obtained new regulatory licence from the
Dubai Financial Services Authority (DFSA) in the high growth market
of the UAE
-- Obtained new regulatory licence in Estonia, to act as an
additional foundation to the Group's business across Europe in its
OTC product offering
-- 'Plus500 Invest', the Group's proprietary share dealing
platform, rolled out in mobile applications and in new countries
across Europe, with new equities added to this product offering
On-going development and enhancement of the Group's marketing
approach:
-- Continued investment in Plus500's diversified marketing
approach to drive brand awareness in key markets, supported by
long-standing and valuable global marketing and advertising
partners
-- Further optimisation in the performance of the Company's proprietary marketing technologies
-- New technological retention initiatives developed and launched, including premium service, demonstrating the Group's continued focus on high value customers
-- Launch of major global advertising campaign, featuring actor Kiefer Sutherland
-- Multi-year global partnership established with the NBA Chicago Bulls
Significant advances in a number of key areas of product
development - in particular '+Insights' launch:
-- '+Insights' is Plus500's big-data, analytical tool designed
to provide its OTC customers with access to real-time and
historical trends, based on the Group's registered customer
base
-- Enables customers to view previously undisclosed and uniquely
filtered data points and information
-- Provides a unique, tailored experience for customers -
available as a complementary service for OTC customers across
Plus500's web app, iOS and Android applications
Plus500's reinforced financial position enables continued
investment in growth and shareholder returns:
-- Cash balances of $9 30 . 2 m as at 31 December 2022 (31 December 2021: $749.5m)
-- No debts or loans since the Company ' s inception
-- Continued strong Operating cash conversion[6] in FY 2022 of 112% (FY 2021: 99%)
Continued focus and improvements on governance, sustainability,
social responsibility and investor engagement:
-- New Independent Non-Executive Director appointed, further
expanding the range of the Board's experience and expertise and
diversifying its gender composition, leading to 50% female
representation within the Board
-- Adopted enhanced level of disclosure relating to the Group's
approach to various ESG matters, including a detailed TCFD[7]
report to be embedded within Plus500's Annual Report for FY
2022
-- Continued focus on customer care and protection, also through
the launch of Plus500's Trading Academy and '+Insights'
-- Entrepreneurial and high-performance organisational culture
drives further improvements of employee development, attraction and
retention, through training, learning, community engagement,
welfare, wellbeing and career progression
-- Capital Markets Day was hosted by the Company's Chair of the
Board and management team in September 2022, providing information
on key elements of Plus500's investment case, business model and
major growth opportunities for the Group
Further substantial returns delivered to shareholders, reaching
$270.2m, representing 7 3 % of FY 2022 net profits:
-- Includes distribution of final and special share buybacks and
dividends announced today of $100 .0 m
-- Share buyback programmes in respect of FY 2022 of $180.2m, comprising:
o Final buyback programme, announced today, to purchase up to
$42.4m of the Company's shares
o Special buyback programme, announced today, to purchase up to
$27.6m of the Company's shares
o Interim buyback programme of $60.2m, announced on 17 August
2022, of which $53.0m has been completed as at 13 February 2023
o Special buyback programme of $50.0m, announced on 13 April
2022, and fully completed
-- Dividend payments in respect of FY 2022 of $90.0m ($0.947 2 per share), comprising:
o Final dividend of $20.0m, $0.215 6 per share, announced today,
to be distributed in July 2023
o Special dividend of $10.0m, $0.1078 per share, announced
today, to be distributed in July 2023
o Interim dividend of $60.0m, $0.6238 per share, distributed in
November 2022
-- Company policy is to return at least 50% of net profits to
shareholders through share buyback programmes and dividends on a
half-yearly basis, with at least 50% of this distribution being
made by way of share buybacks. The Board will also consider
executing special share buyback programmes, or other distributions,
on a half yearly basis
The Board remains confident about the Group's future
prospects:
-- Board's confidence based on Plus500's reinforced financial
position and its significant progress against key strategic
objectives over recent years
o Highlighted by the Group generating accumulated EBITDA of
approximately $1.4 billion since new strategic roadmap initiated in
FY 2020, to evolve into a global multi-asset fintech group
-- The Board continues to expect that Plus500 will deliver
sustainable growth over the medium to long term
-- For FY 2023, the Board expects Plus500's performance to be in
line with current market expectations [8]
David Zruia, Chief Executive Officer, commented:
"Plus500 continues to outperform, delivering an excellent set of
results in 2022, well ahead of market expectations at the beginning
of the year. Our performance was again driven by Plus500's unique
proprietary technology stack proposition, which underpins our
on-going ability to attract and retain higher value customers over
the long term. We are in an extremely exciting strategic and
commercial position, with multiple potential growth opportunities
available, particularly in the US futures market, which will
continue to drive our growth as a global multi-asset fintech group.
With further organic investments and targeted acquisitions, we are
confident that Plus500 remains well-positioned to deliver
sustainable growth over the medium to long-term."
For further details
Plus500 Ltd.
Elad Even-Chen, Chief Financial +972 4 8189503
Officer +44 7825 189088
Rob Gurner, Head of Investor ir@Plus500.com
Relations
Brunswick
Charles Pretzlik, Partner +44 20 3128 8549
Paul Durman, Partner plus500@brunswickgroup.com
Investor and analyst audiocast:
Plus500 will host an audiocast for investors and analysts at
9.00 a.m. UK time today, which can be accessed via the following
link:
https://www.investis-live.com/plus500/63c6964dd426f40c0030a657/gdvju
. The audiocast can also be accessed by dialing +44 20 3 936 2999
and using the following access code: 796658. The presentation
materials and a recording of the audiocast will be available at
https://investors.plus500.com/Reports/Presentation .
About Plus500
Plus500 is a global multi-asset fintech group operating
proprietary technology-based trading platforms. Plus500 offers
customers a range of trading products, including OTC
("Over-the-Counter" products, namely Contracts for Difference
(CFDs)), share dealing, as well as futures and options on
futures.
The Group retains operating licences and is regulated in the
United Kingdom, Australia, Cyprus, Israel, New Zealand, South
Africa, Singapore, the Seychelles, the United States, Estonia,
Japan and the UAE and through its OTC product portfolio, offers
more than 2,500 different underlying global financial instruments,
comprising equities, indices, commodities, options, ETFs, foreign
exchange and cryptocurrencies. Customers of the Group can trade its
OTC products in more than 50 countries and in 30 languages. Plus500
does not permit customers located in the US to trade its OTC
products. Plus500 does not utilise cold calling techniques and does
not offer binary options. Plus500's trading platforms are
accessible from multiple operating systems (Windows, iOS and
Android) and web browsers. Customer care is and has always been
integral to Plus500, as such, OTC customers cannot be subject to
negative balances. A free demo account is available on an unlimited
basis for OTC trading platform users and sophisticated risk
management tools are provided free of charge to manage leveraged
exposure and stop losses to help customers protect profits, while
limiting capital losses. Plus500 shares have a premium listing on
the Main Market of the London Stock Exchange (symbol: PLUS) and are
a constituent of the FTSE 250 index. www.plus500.com .
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public
domain.
Forward looking statements
This announcement contains statements that are or may be
forward-looking statements. All statements other than statements of
historical facts included in this announcement may be
forward-looking statements, including statements that relate to the
Group's future prospects, developments and strategies. The Company
does not accept any responsibility for the accuracy or completeness
of any information reported by the press or other media, nor the
fairness or appropriateness of any forecasts, views or opinions
express by the press or other media regarding the Group. The
Company makes no representation as to the appropriateness,
accuracy, completeness or reliability of any such information or
publication. Forward-looking statements are identified by their use
of terms and phrases such as "believe", "targets", "expects",
"aim", "anticipate", "project", "would", "could", "envisage",
"estimate", "intend", "may", "plan", "will" or the negative of
those, variations or comparable expressions, including references
to assumptions. The forward-looking statements in this announcement
are based on current expectations and are subject to known and
unknown risks and uncertainties that could cause actual results,
performance and achievements to differ materially from any results,
performance or achievements expressed or implied by such
forward-looking statements. Factors that may cause actual results
to differ materially from those expressed or implied by such
forward looking statements include, but are not limited to, those
described in the Risk Management Framework section of the Company's
most recent Annual Report. These forward-looking statements are
based on numerous assumptions regarding the present and future
business strategies of the Group and the environment in which it is
and will operate in the future. All subsequent oral or written
forward-looking statements attributed to the Company or any persons
acting on its behalf are expressly qualified in their entirety by
the cautionary statement above. Each forward-looking statement
speaks only as at the date of this announcement. Except as required
by law, regulatory requirement, the Listing Rules and the
Disclosure Guidance and Transparency Rules, neither the Company nor
any other party intends to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
Review of FY 2022 results
Excellent operational and financial performance by Plus500
The Group delivered an excellent operational and financial
performance in FY 2022, delivering further growth, well ahead of
market expectations related to Plus500's financial performance at
the start of the year, following several upgrades to these market
expectations throughout the year. Plus500's market-leading
proprietary technology, which is fully inter-connected across its
operations, systems architecture, product and marketing
capabilities, remains the key growth enabler of the Group's strong
performance. In addition, as well as producing operational and
financial growth, the Group continued to deliver an attractive
return of capital to shareholders during the year.
FY 2022 performance was achieved despite lower levels of
activity across the financial markets towards the end of the year,
which were affected, as expected, by the 2022 FIFA World Cup, and
consistent with previous World Cup tournaments. Plus500's strong
performance during the year was fundamentally driven by the Group's
proven business model, its market-leading proprietary technology
and its on-going ability to attract and retain higher value, long
term customers.
Against a challenging macro-economic environment, Plus500's
balance sheet remains extremely robust, with the Group continuing
to hold no debt or loans since inception and with cash balances as
at 31 December 2022 increasing to $ 930 . 2 m (31 December 2021:
$749.5m). The Group's reinforced financial position will continue
to fund Plus500's investment in future growth, through organic
investments and targeted acquisitions and will enable further
attractive returns to be delivered to shareholders, through share
buybacks and dividend payments, as reflected in the highly scaled
distribution of over 7 0 % of FY 2022 net profits to
shareholders.
During the year, Plus500 maintained its market-leading positions
in key strategic markets and was ranked as the number one OTC
provider in the UK[9], Germany[10] and Spai n[11] for its OTC
product offering.
To highlight Plus500's continued market leadership and focus on
innovation in the mobile and tablet space, over 85% of the Group's
OTC revenue in FY 2022 was generated from customers which utilised
Plus500's OTC platform on mobile or tablet devices (FY 2021: over
83%), with over 82% of OTC customer trades taking place on mobile
or tablet devices in FY 2022 (FY 2021: over 79%).
Since the Company's IPO year in 2013, Plus500 has delivered
revenue CAGR of approximately 25%, EBITDA margins averaging 57% and
high levels of cash generation and conversion. The Group's
excellent performance in FY 2022 further builds on this track
record, ensuring Plus500 remains well positioned to access
significant opportunities to further grow and diversify its revenue
streams, geographic footprint and business model.
Significant strategic progress made in FY 2022
Plus500 made strong continued progress against its strategic
roadmap in FY 2022, with the objective of further developing its
position as a global multi-asset fintech group.
Launching new trading and financial products - significant
progress made in the US and initial access was made to Japan
Plus500 has established a strong and growing position in the
substantial futures and options on futures market in the US,
supported by the Group's best-in-class technology and its robust
financial position. In that market, the Group is targeting several
significant growth opportunities and, to this end, made excellent
progress in FY 2022. This progress was supported also by the
Group's new partnership with the NBA Chicago Bulls, announced
during the year, which will drive brand awareness for Plus500, both
in the attractive US market and globally.
The Group also developed a new B2B line of business and a
strategic position as a market infrastructure provider, with a view
to delivering brokerage-execution and clearing services for
institutional clients. The Group's future progress in the
institutional market will be driven by Plus500's operational
capabilities, proprietary technology and the Group's robust
financial position.
Furthermore, the Group's proposition in this new line of
business is further strengthened by its position as a full clearing
member of the CME Group exchanges and the Minneapolis Grain
Exchange (MGEX ( , which were achieved during the year.
In Q3 2022, Plus500 launched a new B2C proprietary trading
platform - 'TradeSniper', an intuitive proprietary futures trading
platform specifically tailored for the sizeable and latent US
retail trading market. Like Plus500's OTC product offering,
'TradeSniper' has been developed with a customer-centric approach,
including a number of embedded features designed to help support
and protect customers, including a free and unlimited demo account.
This platform provides a highly differentiated, technology-based
proposition for Plus500 in the US futures retail trading market,
with high levels of automation and technological integration. This
enables 'TradeSniper' to offer customers a fully holistic solution
of onboarding, depositing and trading, with new payment methods.
All of these features are now available for the first time for
customers in the US futures market, as a result of 'TradeSniper's
unique proposition.
The Group will continue to allocate the appropriate financial,
operational and human resources to maximise these significant
opportunities in the US over the medium term.
In FY 2022, Plus500 completed the acquisition of a regulated
entity in Japan, for which integration plans are progressing well.
Over time, this will enable the Group to access the substantial
Japanese trading market, where Plus500 will apply its considerable
technological capabilities and financial strength to build locally
its market position.
The Group's proprietary share dealing platform, 'Plus500
Invest', was launched in Europe on Android and iOS mobile apps
during the year. This product further drives the expansion of the
Group's product range and geographic footprint, as well as improves
customer retention and diversifies Plus500's revenue base.
Continued success in expanding Plus500's core product offering
in new and existing markets
The Group continues to target a number of new potential markets
to expand its existing OTC product offering and is seeking a number
of potential new operating licences , either organically or via
acquisitions. In FY 2022, the Group obtained a new regulatory
licence in Estonia, which will act as an additional foundation to
the Group's business across Europe in its OTC product offering
.
In February 2023, the Group obtained a licence in the United
Arab Emirates, granted by the Dubai Financial Services Authority
(DFSA), offering a major potential growth opportunity for Plus500,
by allowing the Group to expand its offering to customers in a
significant and high growth market.
Further substantial investment made in R&D to accelerate
initiatives designed to deepen customer relationships
In line with the Company's plan to incrementally invest
approximately $50m in its R&D capability between FY 2021 and FY
2023, the Company continues to invest in product development to
further deepen customer engagement, including through continued
recruitment at the Company's R&D centres in Israel. Plus500 now
has a latent base of over 24 million registered customers on its
trading platforms worldwide since inception, which can be targeted
by the Group through a number of new retention technologies,
products, tools and innovations for customers.
These new innovations include '+Insights', which was launched
during the year on the Group's OTC trading platform as a
complementary service for customers across its web app, iOS and
Android applications. '+Insights' is a new proprietary big-data,
analytical tool designed to provide customers with access to
real-time and historical trends, based on the Group's registered
customer base. '+Insights' enables customers to view previously
undisclosed key data points and information which is uniquely
segmented by the selected core measurement and customisable
filters, providing a unique, tailored experience for customers.
Plus500 will continue to make organic investments in its
proprietary technology and actively target acquisitions, to drive
further growth and value for its shareholders.
Strong operational delivery
In terms of operational performance during FY 2022, the Group
delivered across all key metrics a strong operational delivery,
supported by its on-going focus on attracting and retaining high
value, long term customers.
Long term customer loyalty increased to an extraordinary
position, with 87% of FY 2022 OTC revenue derived from customers
trading with Plus500 for more than a year (FY 2021: 79%), 40% for
more than three years (FY 2021: 35%) and 24% for more than five
years (FY 2021: 16%).
Highlighting the long-term value creation being delivered by
Plus500's business model, the cumulative average revenue from OTC
Active Customers who first started trading with Plus500 during 2016
was approximately $5,000 as at the end of FY 2022, reflecting the
long-term, sustainable value of the Group's customer base.
ARPU reached record annual level of $2,9 66 in FY 2022 (FY 2021:
$1,764), including $9 68 in Q4 2022 (Q4 2021: $937).
Customer deposits remained high with average deposit per Active
Customer also achieving a record annual level of approximately $
8,000 (FY 2021: approximately $ 5,000 ), highlighting the continued
strong level of confidence that customers have in Plus500 and the
resilience of the Group's trading platforms. Total customer
deposits in FY 2022 increased to $ 2.3 billion (FY 2021: $ 2.1
billion).
With continued investment in strategic markets to attract higher
value customers for the long term, AUAC ([12]) was $1, 48 1 in FY
2022 (FY 2021: $877), including $1, 46 2 in Q4 2022 (Q4 2021:
$1,502). The Group continues to expect that AUAC will rise steadily
over time, as the Group's customer profile further shifts to higher
value, long term customers and as the Group invests in attracting
customers to the new trading products in its portfolio and
targeting additional high value customers in strategic
geographies.
The Group onboarded a total of 106,549 New Customers ([13])
during the year (FY 2021: 196,336), including 25,527 New Customers
onboarded in Q4 2022 (Q4 2021: 33,187).
The Group's number of Active Customers during FY 2022 remained
robust at 280,7 69 (FY 2021: 407,374), including 13 0 , 865 in Q4
2022 (Q4 2021: 171,922). This was supported by continued investment
in the Group's diversified marketing approach, which included its
sophisticated proprietary marketing technology and a range of
strategic initiatives and advertising campaigns to drive customer
retention, monetisation and activation.
These initiatives included, among others, the launch of a major
bespoke global advertising campaign, featuring actor Kiefer
Sutherland, to build brand awareness in key strategic markets. This
international advertising campaign, the first in Plus500's history,
is embedded across the Group's social media networks and other
online and offline marketing channels. The next phase of the
campaign has been initiated in Q1 2023, specifically focusing on
the launch and development of '+Insights'.
Financial outperformance
Plus500's financial performance in FY 2022 was exceptional,
reinforcing the Group's financial position with cash balances
increasing to $9 30 . 2 m as at 31 December 2022 (31 December 2021:
$749.5m).
The Group continues to manage its financial position, balance
sheet and cost base in a responsible manner, measuring the
performance of its financial position against a range of internal
benchmarks and KPIs. The Group continues to hold no debt or loans,
has a flexible and lean cost base which is predominantly weighted
to variable costs and financial expenses which have a relatively
low exposure to the current macro inflationary environment. This
financially responsible culture and approach, embedded within the
Group since inception, continues to enable Plus500's focused
strategic investments and, ultimately, its strong financial
performance.
The Group generated total revenue in FY 2022 of $832.6m,
representing a 16% increase year-on-year (FY 2021: $718.7m),
including revenue of $126.7m in Q4 2022 (Q4 2021: $161.1m). EBITDA
for FY 2022 increased by 17% to $453.8m (FY 2021: $387.1m),
including $46. 7 m in Q4 2022 (Q4 2021: $70.9m). EBITDA margin
increased during FY 2022 to 55% (FY 2021: 54%).
Net profit in FY 2022 increased by 19% to $ 370.4 m (FY 2021:
$310.6m) and basic earnings per share increase d by 2 5 % to $3.8 1
(FY 2021: $3.06).
Customer Income, a key measure of the Group's underlying
performance, was strong during FY 2022 at $639.6m (FY 2021:
$702.8m), including $150.4m in Q4 2022 (Q4 2021: $166.7m). Customer
Trading Performance [14] was $193.0m during FY 2022 (FY 2021:
$15.9m), including $(23.7m) in Q4 2022 (Q4 2021: $(5.6m ( ). The
Company continues to expect that the contribution from Customer
Trading Performance will be broadly neutral over time.
The Group's cost base remained well contained supported by the
fact that its cost base continues positively to be heavily weighted
towards variable costs, which is a key financial strength in an
uncertain and dynamic economic environment. Furthermore, in the
face of an extremely volatile foreign exchange environment in FY
2022, the Group's management of currency risk continued to be
efficient and dynamic.
Variable costs remain positively correlated to enhanced
performance and higher volumes . During FY 2022 , 70% of the
Group's costs were variable (FY 2021: 72 %), with the Group
maintaining a flexible and well controlled cost base.
Total SG&A expenses were $382.2m during FY 2022 (FY 2021:
$334.1m), the major elements of which were marketing technological
investment of $157.8m (FY 2021: $172.1m), commissions to processing
companies of $44.9m (FY 2021: $40.8m) and payroll and related
expenses of $40.5m (FY 2021: $33.0m).
Financial income, net, for FY 2022 was $2 3 . 9 m (FY 2021:
$1.8m), mainly as a result of developments in the global interest
rate environment and its positive impact on the Group's cash
balances. In addition, in order to manage the exposure between the
US dollar, as the functional currency of the Group, to the other
range of currencies applicable to the Group ' s operations, a
substantial proportion of the Group's cash is held in US dollar ,
to reduce the impact on financial exposure. This approach also
enabled the Group's strong financial income performance.
As at the end of FY 2022, total assets were $ 1,010.0 m (FY
2021: $ 822.8 m ) with equity of $ 780.5 m, representing
approximately 77 % of the balance sheet.
The Group remains highly cash generative, supported by the
relatively low levels of capital expenditure as a result of its
automation and technological capabilities, with cash generated from
operations during the year of $ 506.8 m (FY 2021: $383.0m) and 11 2
% Operating cash conversion achieved in 2022 (FY 2021: 99%).
As a result, with the Group remaining debt-free, cash and cash
equivalents balance at the end of FY 2022 was $9 30 . 2 m (FY 2021:
$749.5m).
These levels of cash generation and cash balances enable Plus500
to continue delivering significant levels of shareholder returns.
Total shareholder returns in respect of FY 2022 amounted to
$270.2m, representing 7 3 % of FY 2022 net profits. These returns
are comprised of share buyback programmes in the amount of $180.2m
and $90.0m in dividends, as interim, final and special shareholder
returns. These include the $100.0m in shareholder returns declared
today by the Board, including $70.0m in final and special share
buybacks and $30.0m in final and special dividends.
The consolidated financial statements are presented in US
dollars, which is the Company's functional and presentation
currency. Foreign currency transactions and balances in currencies
different from the US dollar are translated into the US dollar
using the exchange rates prevailing on the dates of the
transactions or at the balance sheet date.
Continued focus on key sustainability priorities
The Group remains focused on its key priorities of customer care
and protection, as well as employee welfare and development.
Plus500 ensures a high degree of care and protection for its
customers, with measures such as negative balance protection and
maintenance margin, embedded for all customers on the Group's OTC
trading platform. In addition, a free demo account is available on
an unlimited basis for the Group ' s OTC customers. The Group has a
range of educational tools on its platforms, to help inform
customers of the potential inherent risks involved in trading.
During the year, the Company launched a Trading Academy portal,
which includes training videos, an eBook, relevant news alerts and
detailed FAQ on key trading dynamics. In the Group's US operation,
there also remains a focus on the training and educational
materials for customers, with Plus500 launching a range of
educational content for customers during the year.
The Group's continued investment in its ESG framework is
evidenced by the launch of '+Insights', given it was developed by
the Company based on feedback from customers. This new tool
therefore demonstrates Plus500's on-going focus on customer care
and delivering on customer requirements, to ensure that a
best-in-class experience is maintained for Plus500 customers.
Plus500 operates an entrepreneurial and high-performance
organisational culture to empower on-going improvements in employee
development, attraction and retention, through training, learning,
community engagement, welfare, wellbeing and career
development.
The Group remains very active supporting a number of
stakeholders in the local communities in which it operates and
continues to make both financial and in-kind donations to these
communities and to a variety of charitable organisations supporting
these communities.
As a technology-based business, Plus500 does not carry out any
industrial activity and is not involved in anything which would
emit environmentally harmful substances. However, the Group is
committed to continuing to minimise its environmental impact, which
results from the energy usage relating to the maintenance of the
Group's IT infrastructure and the operation of its network of
offices around the world.
Plus500's Annual Report for FY 2022, to be published in March
2023, will provide additional disclosure relating to the Group's
approach to various ESG matters, including a detailed TCFD
report.
Further developments in corporate stewardship and investor
engagement during the year
The range of the Board's experience, knowledge and expertise
continues to broaden, with further diversification of its gender
composition achieved during the year. The representation of women
on the Board remains well ahead of the 33% target set by the "
Hampton-Alexander Review on gender equality in leadership positions
" framework and the FCA's diversity and inclusion requirements, as
currently female representation within the Board is 50%.
There were several changes to the composition of the Board and
its Committees during the year. In March 2022, Prof. Varda
Liberman, a renowned international expert in the field of
decision-making and behavioural economics, was appointed as an
Independent Non-Executive Director. In June 2022, Daniel King, our
long-serving director, completed his maximum nine-year tenure as an
Independent Non-Executive Director and External Director.
Subsequently, Anne Grim became a member of the Nomination Committee
and Chair of the Remuneration Committee, and Steve Baldwin became
Chair of the ESG Committee. Additionally, David Zruia became a
member of the ESG Committee.
To further diversify the composition of Board Committees, the
Board has considered additional rotations with an immediate effect,
as follows: Prof. Varda Liberman, a member of the Regulatory &
Risk Committee, will chair this Committee and will also become a
member of the Remuneration Committee, replacing Sigalia
Heifetz.
The Company's Chair of the Board and management team hosted a
Capital Markets Day in September 2022, and provided information on
key elements of Plus500's investment case, business model and major
growth opportunities for the Group. A full recording of the event
is available on the Group's new Investor Relations website, which
was launched at the start of last year:
https://investors.plus500.com .
Regulatory compliance remains a major area of management
focus
The Group maintains a highly robust, customer-centric approach
to compliance, supported by its expertise in the applicable global
regulatory standards and its long-standing relationships with the
regulators in the markets and industries in which it operates. The
Company also has the technological skills and capabilities to
ensure that it can efficiently react with speed to any regulatory
changes that occur. This approach has continued to deliver
consistent results and has helped to support the Group's
performance since Plus500's inception.
With an established global regulatory network, managed by its
regulated subsidiaries and co-ordinated centrally, the Group
remains well positioned to cater the regulatory framework across
the markets in which it operates. The Group holds twelve regulatory
licences and, this portfolio of licences is an increasingly
valuable asset for the Group, given the scarcity and the growing
complexity of obtaining new regulatory licences in this
industry.
Plus500 continues to deliver significant returns to
shareholders
Since the Company's IPO in 2013, Plus500 has continued to
deliver an attractive return of capital to shareholders of
approximately $1.7 billion through dividends and share buybacks
(including returns in respect of FY 2022), having generated
significant levels of cash from operations of approximately $2.9
billion in that timeframe.
Plus500's shareholder returns policy and the Board's capital
allocation framework
The Company's shareholder returns policy is to return at least
50% of net profits to shareholders through share buyback programmes
and dividends, on a half yearly basis with at least 50% of this
distribution being made by way of share buybacks . The Board will
also consider executing special share buybacks, or other
distributions, on a half yearly basis, dependent on fiscal year
results as well as on investment and growth opportunities. This
shareholder returns policy applies to net profits on a half-yearly
basis and is based on a 23% corporate tax rate, for both interim
and final distributions.
The Board has a clear capital allocation framework, based on an
on-going assessment of the availability of excess capital going
forward, to ensure there continues to be an optimal balance between
shareholder returns, investments in future growth and in driving
business continuity over the long term. In particular, and aligned
to this framework, the Board will continue to ensure that
appropriate levels of available capital are maintained for required
working capital and other factors to drive future growth.
Shareholder returns related to FY 2022
The Company returned $270.2m to shareholders in relation to FY
2022, including $180.2m in announced share buybacks and $90.0m in
declared dividends.
Total distribution of final and special share buybacks and
dividends announced today in the amount of $100.0m.
Announced share buyback programmes in respect of FY 2022
totalled $180.2m. This includes two programmes announced today - a
f inal buyback programme to purchase up to $42.4m of the Company's
shares and a special buyback programme to purchase up to $27.6m of
the Company's shares. These new programmes further emphasise the
Board's continued confidence in the prospects for Plus500 and
reflect the robust financial position of the Group. These
programmes will commence following the completion of the current
share buyback programme of $60.2m, which was announced on 17 August
2022. The Company also completed a special buyback programme of
$50.0m, announced on 13 April 2022, during the course of FY
2022.
Total dividend s declared in respect of FY 2022 amount to
$90.0m, representing $0.94 72 per share (total dividend for FY
2021: $1.1916 per share). This includes a final dividend for FY
2022, declared today, of $20.0m, representing $0.21 56 per share, a
special dividend also declared today of $10.0m, representing $0.10
78 per share, and an interim dividend of $60.0m. The final and
special dividends have an ex-dividend date of 23 February 2023,
with a record date of 24 February 2023, and a payment date of 11
July 2023. The interim dividend was distributed to shareholders in
November 2022.
At 31 December 2022, the Company held in treasury a total of
21,112,648 ordinary shares, which were purchased since the
commencement of Plus500's initial share buyback programmes in 2017,
representing 18.4% of the Company's issued share capital (the total
treasury shares held by the Company comprise the shares purchased
less issued treasury shares).
The Board remains confident about the Group's future
prospects
Based on Plus500's significant strategic, operational and
financial progress over recent years, and the Group's reinforced
financial position, the Board remains confident about the Group's
future prospects, with Plus500 remaining well positioned to access
a range of significant opportunities to grow and diversify its
revenue streams, geographic footprint and business model.
These growth opportunities will be accessed by the Group's
on-going investment in developing its position as a global
multi-asset fintech group, in particular through further organic
investments in technology, marketing and people, as well as by
actively targeting additional acquisitions.
For FY 2023, the Board expects Plus500's performance to be in
line with current market expectations [15] and continues to expect
that the Group will deliver sustainable growth over the medium to
long term.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
Year ended
31 December
------------------
2022 2021
-------- --------
Note U.S. dollars in
millions
----- ------------------
TRADING INCOME 832.6 718.7
Selling and marketing expenses 302.1 279.8
Administrative and general expenses 80.1 54.3
-------- --------
OPERATING PROFIT 450.4 384.6
Financial income 41.3 10.4
Financial expenses 17.4 8.6
-------- --------
FINANCIAL INCOME, NET 23.9 1.8
-------- --------
PROFIT BEFORE INCOME TAX 474.3 386.4
INCOME TAX EXPENSE 103.9 75.8
-------- --------
PROFIT AND COMPREHENSIVE INCOME FOR THE YEAR 370.4 310.6
======== ========
Basic earnings per share (in US dollars) 6 3.81 3.06
======== ========
Diluted earnings per share (in US dollars) 6 3. 77 3.0 5
======== ========
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(UNAUDITED)
As of 31 December
---------------------------
2022 2021
------------- ------------
Note U.S. dollars in millions
----- ---------------------------
ASSETS
Non-current assets
Property, plant and equipment 2.6 2.6
Goodwill and other intangible assets
, net 38.7 28.0
Right of use assets 5.6 5.6
Long term other receivables 5.8 4.4
------------- ------------
Total non-current assets 52.7 40.6
------------- ------------
Current assets
Income tax receivable 0.2 -
Other receivables and others 26.9 32.7
Cash and cash equivalents 930.2 749.5
------------- ------------
Total current assets 957.3 782.2
------------- ------------
TOTAL ASSETS 1,010.0 822. 8
============= ============
LIABILITIES
Non-current liabilities
Lease liabilities (net of current
maturities) 3.6 4.2
Share based compensation - 0.3
Deferred tax liability 6.9 -
------------- ------------
Total non-current liabilities 10.5 4. 5
------------- ------------
Current liabilities
Share based compensation 6.3 7.3
Income tax payable 116.4 89.9
Other payables 72.2 41.7
Service suppliers 11.7 15.5
Current maturities of lease liabilities 2.0 2.0
Trade payables - due to clients 7 10.4 0.6
------------- ------------
Total current liabilities 219.0 157.0
------------- ------------
TOTAL LIABILITIES 229.5 161.5
------------- ------------
EQUITY
Ordinary shares 4 0.3 0.3
Share premium 22.2 22.2
Cost of Company's shares held by the ( 341 . 1
Company ) (20 7 .5)
Retained earnings 1,09 9.1 846 .3
------------- ------------
Total equity 780.5 66 1 .3
------------- ------------
TOTAL LIABILITIES AND EQUITY 1,010.0 822. 8
============= ============
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(UNAUDITED)
Cost of Company's
shares held
Ordinary Share by Retained
shares premium the Company earnings Total
---------- --------- ------------------- ---------- ----------
U.S. dollars in millions
------------------------------------------------------------------
BALANCE AT 1 JANUARY 2021 0.3 22.2 (145.7) 678.8 555.6
CHANGES DURING THE YEARED 31 DECEMBER 2021
Profit and comprehensive income for the year - - - 310.6 310.6
Share based compensation - - - 4.9 4.9
TRANSACTION WITH SHAREHOLDERS:
( 144 . 9 ( 144 . 9
Dividend - - - ) )
Issue of treasury shares to settle equity share
based compensation - - 3. 1 (3. 1 ) -
Acquisition of treasury shares - - ( 6 4. 9 ) - ( 6 4. 9 )
---------- --------- ------------------- ---------- ----------
( 20 7. 5
BALANCE AT 31 DECEMBER 2021 0.3 22.2 ) 846.3 661.3
CHANGES DURING THE YEARED 31 DECEMBER 2022
Profit and comprehensive income for the year - - - 370.4 370.4
Share based compensation - - - 7.5 7.5
TRANSACTION WITH SHAREHOLDERS:
Dividend - - - ( 119.9 ) ( 119.9 )
Issue of treasury shares to settle equity share
based compensation - - 5.2 ( 5.2 ) -
Acquisition of treasury shares - - (138.8) - (138.8)
---------- --------- ------------------- ---------- ----------
BALANCE AT 31 DECEMBER 2022 0.3 22.2 (34 1 .1) 1, 099 . 1 780.5
========== ========= =================== ========== ==========
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
Year ended
31 December
-------------------
2022 2021
--------- --------
U.S. dollars in
millions
-------------------
OPERATING ACTIVITIES:
Cash generated from operations (see Note 8) 506.8 383.0
(6 6 . 2
Income tax received (paid), net ) 16.3
Interest received, net 1 3 . 5 6.2
--------- --------
Net cash flows provided by operating activities 454.1 405.5
--------- --------
INVESTING ACTIVITIES:
Acquisition of subsidiaries, net of cash acquired ( 4.6 ) (32.5)
Purchase of property, plant and equipment (0. 8 ) (0.8)
--------- --------
Net cash flows used in investing activities (5. 4 ) (33.3)
--------- --------
FINANCING ACTIVITIES:
Dividend paid to equity holders of the Company (119.9) (144.9)
Payment of principal in respect of lease liabilities (2. 3 ) (2.0)
Acquisition of treasury shares (138.8) (64.9)
--------- --------
(26 1 .
Net cash flows used in financing activities 0 ) (211.8)
--------- --------
INCREASE IN CASH AND CASH EQUIVALENTS 187.7 160.4
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING
OF THE YEAR 749.5 593.9
Losses from effects of exchange rate changes on
cash and cash equivalents ( 7.0 ) (4.8)
--------- --------
BALANCE OF CASH AND CASH EQUIVALENTS AT OF
THE YEAR 930 . 2 749.5
========= ========
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - GENERAL INFORMATION
Information on activities
Plus500 Ltd. (the "Company") and its subsidiaries (the "Group")
is a global multi-asset fintech group operating proprietary
technology-based trading platforms. Plus500 offers customers a
range of trading products, including OTC ("Over-the-Counter"
products, namely Contracts for Difference (CFDs)), share dealing,
as well as futures and options on futures. The Company has
developed and operates an online and mobile trading platform within
the OTC sector, enabling its international customer base of
individual customers to trade OTC products on over 2,500 underlying
financial instruments internationally.
The Group's offering is available internationally with main
market presence in the UK, Australia, the US, the European Economic
Area (EEA) and the Middle East and has customers located in more
than 50 countries worldwide. The Group operates through operating
subsidiaries regulated by the Financial Conduct Authority ("FCA")
in the UK, the Australian Securities and Investments Commission
("ASIC") in Australia, the Cyprus Securities and Exchange
Commission ("CySEC") in Cyprus, the Israel Securities Authority
("ISA") in Israel, the Financial Markets Authority ("FMA") in New
Zealand, the Financial Sector Conduct Authority ("FSCA") in South
Africa, the Monetary Authority of Singapore ("MAS") in Singapore,
the Financial Services Authority ("FSA") in the Seychelles, the
Commodities Futures Trading Commission ("CFTC") in the US, the
Estonian Financial Supervision Authority ("EFSA") in Estonia, the
Financial Services Agency ("FSA") in Japan and the Dubai Financial
Services Authority ("DFSA") in the UAE.
The Company also has a subsidiary in Bulgaria which provides
operational services to the Group.
The Company has been listed since 2013 on the London Stock
Exchange. Since 2018, Plus500 Ltd . has been a FTSE 250 listed
entity, following the Company's shares being admitted to the
premium listing segment of the Official List and to trading on the
London Stock Exchange Main Market for listed securities.
The Group operates in three operating sectors: OTC-CFD trading;
share dealing; and futures and options on futures. The Group
presents its operation as one operating segment.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
a. Basis of accounting and accounting policies
The Group's condensed consolidated financial information as of
31 December 2022 and 2021 and for each of the two years in the
periods ended on 31 December 2022 are prepared in accordance with
International Financial Reporting Standards ("IFRS").
The significant accounting policies in this financial
information have been applied consistently in relation to all the
reporting periods, unless otherwise stated.
The financial information has been prepared under the historical
cost convention, subject to adjustments in respect of revaluation
of financial assets at fair value through profit or loss presented
at fair value.
b. Going concern
The Group has considerable financial resources, a broad range of
financial instruments and a substantial active customer base which
is geographically diversified. As a consequence, the Company's
Board of Directors (the "Board") believes that the Group is well
placed to manage its business risks in the context of the current
economic outlook. Accordingly, the Board has a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. The Board
therefore continues to adopt the going concern basis in preparing
these condensed consolidated financial statements.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) (continued)
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
c. Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker,
who is responsible for allocating resources and assessing
performance of the operating segments.
As stated in Note 1 above, the Group operates in three operating
sectors: OTC-CFD trading, share dealing and futures and options on
futures. In the year 2022 the Group presents its operation as one
operating segment.
NOTE 3 - INCOME TAX EXPENSES
Law for the Encouragement of Capital Investments, 5719-1959
The Law for the Encouragement of Capital Investments, 5719-1959,
generally referred to as the " Investment Law " , provides certain
incentives for capital investments in production facilities (or
other eligible assets) by "Industrial Enterprises" (as defined
under the Investment Law).
New Tax benefits under the 2017 Amendment that became effective
on 1 January 2017 ("2017 Amendment")
The 2017 Amendment was enacted as part of the Economic
Efficiency Law that was published on 29 December 2016, and is
effective as of 1 January 2017. The 2017 Amendment provides new tax
benefits, as described below and is in addition to the other
existing tax beneficial programmes under the Investment Law.
The 2017 Amendment provides that a technology company satisfying
certain conditions will qualify as a Preferred Technology
Enterprise ("PTE") and will thereby enjoy a reduced corporate tax
rate of 12% on income that qualifies as Preferred Technology
Income, as defined in the Investment Law.
Dividends distributed by a PTE, paid out of Preferred Technology
Income, are generally subject to withholding tax at source at the
rate of 20% or such lower rate as may be provided in an applicable
tax treaty (subject to the receipt in advance of a valid
certificate from the Israel Tax Authority ("ITA") allowing for a
reduced tax rate).
Company taxation in Israel
The full corporate tax rate in Israel for the years 2022 and
2021 is 23%.
Under the 2017 amendment, provided the conditions stipulated
therein are met, technological income derived by Preferred
Companies from "Preferred Technological Enterprise" (as defined in
the 2017 Amendment), would be subject to reduced corporate tax
rates of 12%.
A Preferred Company distributing dividends from technological
income derived from its PTE, would generally subject the recipient
to a 20% tax (or lower, if so provided under an applicable tax
treaty).
In May 2019, the Company obtained a tax ruling from the ITA and
subject to the Company complying with the conditions stipulated by
the tax ruling, which the Company met, and the Investment Law, the
Company is considered as a PTE.
At the beginning of July 2020, the Company received an approval
from the Israeli Innovation Authority ("IIA") that together with
the tax ruling received from the ITA in May 2019, recognises the
Company as a PTE for the years 2017, 2018 and 2019. Accordingly,
the applicable tax rates for the preferred technological income of
a PTE for these years was 12%. The Company is also considered as
PTE for the years 2021 and 2020. As a result, the Company's
corporate tax rate for the years 2021 and 2020 was 12%.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) (continued)
NOTE 3 - INCOME TAX EXPENSES (continued)
In January 2022, the Company's status as a PTE, as accredited by
the ITA under the tax regime in Israel, has been extended for the
financial years 2022, 2023, 2024, 2025 and 2026, subject to the
Company complying with the conditions of the Law for the
Encouragement of Capital Investments. Consequently, the Company's
corporate tax rate for each of these years will be reduced from 23%
to 12% and the withholding tax rate applicable for dividends will
be reduced from 25% to 20%.
In January 2021, the Company received approximately $30.0
million rebates (including interest) reflecting the reduced tax
rate for FY 2017 and in August 2021, the Company received
approximately $37.2 million in tax rebates (including interest)
reflecting the reduced tax rate for FY 2019.
Tax assessments
The Company has final tax assessments up to the year 2019.
The assessments of amounts of current and deferred taxes require
the Group's management to take into consideration uncertainties
that its tax position will be accepted and of incurring any
additional tax expenses. This assessment is based on estimates and
assumptions based on interpretation of tax laws and regulations,
and the Group's past experience. It is possible that new
information will become known in future periods that will cause the
final tax outcome to be different from the amounts that were
initially recorded, such differences will impact the current and
deferred income tax assets and liabilities in the period in which
such determination is made.
NOTE 4 - SHARE CAPITAL
Composed of ordinary shares of NIS 0.01 par value, as
follows:
Number of ordinary
shares
As of 31 December
----------------------------
2022 2021
------------- -------------
Authorised 300,000,000 300,000,000
============= =============
Issued and fully paid 114,888,377 114,888,377
============= =============
Less treasury shares* (21,112,648) (14,663,597)
============= =============
Outstanding shares 93,775,729 100,224,780
============= =============
*Number of accumulated ordinary shares that were purchased by
the Company as part of the share buyback programmes, less issue of
treasury shares.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) (continued)
NOTE 5 - DIVIDS
The amounts of dividends and the amounts of dividends per share
for the years 2022 and 2021 declared and distributed by the
Company's Board of Directors are as follows:
Amount of dividend Amount of dividend Date of payment
Date of declaration ( US $ in millions) per share (US to shareholders
* $)
---------------------- --------------------- ------------------- --------------------
17 February 2021 84.9 0.8292 12 July 2021
17 August 2021 60.0 0.5921 11 November 2021
15 February 2022 59.9 0.5995 11 July 2022
17 August 2022 60.0 0.6238 11 November 2022
(*) Between the dividend announcement date and the record date
of the dividend, the number of issued and outstanding ordinary
shares of the Company decreased as a result of the repurchase by
the Company of ordinary shares during such period and the
classification of such repurchased ordinary shares as treasury
shares that are not entitled to dividends. However, this did not
affect the dividend per share as announced on the dividend
announcement date.
NOTE 6 - EARNINGS PER SHARE
Earnings per share is calculated by dividing the profit
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the year.
Year ended 31 December
-------------------------
2022 2021
----------- ------------
Profit attributable to equity holders of
the
Company (US dollars in millions) 370.4 310.6
=========== ============
Weighted average number of ordinary shares
in issue* :
Basic 97,311,485 101,456,641
Dilutive effect of equity share based compensation 943,047 529,601
=========== ============
Diluted 98,254,532 101,986,242
Basic earnings per share (In US dollars) 3.81 3.06
=========== ============
Diluted earnings per share (In US dollars) 3. 77 3.0 5
=========== ============
*After weighting the effect of Company's share buyback
programmes.
NOTE 7 - TRADE PAYABLES - DUE TO CLIENTS
As of 31 December
----------------------------
2022 2021
--------------- -----------
U.S. dollars in millions
----------------------------
Customers' deposits, net* 282.8 350.6
Segregated client funds (272. 4 ) (350.0)
--------------- -----------
10. 4 0.6
*Customers deposits, net are comprised of
the following:
Customers' deposits 411.5 428.3
Less- financial derivative open positions:
Gross amount of assets (139.0) (130.4)
Gross amount of liabilities 10.3 52.7
--------------- -----------
282.8 350.6
=============== ===========
* The total amount of 'Trade payables - due to clients' includes
bonuses to clients.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) (continued)
NOTE 8 - CASH GENERATED FROM OPERATIONS
Year ended 31 December
-------------------------
2022 2021
------------ -----------
U.S. dollars in
millions
-------------------------
Cash generated from operating activities
Net income for the year 370.4 310.6
------------ -----------
Adjustments required to reflect the cash
flows from
operating activities:
Depreciation and amortisation 1.4 0.7
Amortisation of right of use assets 2.0 1.8
Lease modification - (0.2)
Liability for share based compensation 11.9 6.8
Settlement of share based compensation ( 7.3 ) (8.4)
Equity share based compensation 7.5 4.9
Taxes on income 103.9 75.8
Interest expenses in respect of leases 0.1 0.2
Exchange differences in respect of leases (0. 4 ) -
(1 3 . 5
Interest income ) (6.2)
Foreign exchange losses (gains) on operating
activities (4.5) 4.3
------------ -----------
101.1 79.7
------------ -----------
Operating changes in working capital:
Decrease (increase) in other receivables ( 16 . 9
and others 5.2 )
Increase (decrease) in trade payables due
to clients 9.8 (0.4)
Increase (decrease) in other payables 24.1 17 . 3
Increase (decrease) in service suppliers (3. 8 ) (7. 3 )
------------ -----------
35.3 (7.3)
------------ -----------
Cash generated from operations 506.8 383.0
============ ===========
NOTE 9 - SUBSEQUENT EVENTS
In February 2023, the Group obtained a licence in the United
Arab Emirates , granted by the Dubai Financial Services Authority
(DFSA).
On 14 February 2023, the Company declared a final dividend in an
amount of $20.0 million ($0.2156 per share). The dividend record
date is 24 February 2023 and it will be paid to the shareholders on
11 July 2023.
On 14 February 2023, the Company declared a special dividend in
an amount of $10.0 million ($ 0.1078 per share). The dividend
record date is 24 February 2023 and it will be paid to the
shareholders on 11 July 2023.
On 14 February 2023, the Company declared the adoption of a
share buyback programme to buy back up to $70.0 million of the
Company's ordinary shares, comprised of a final share buyback
programme in the amount of $42.4 million and a special share
buyback programme in the amount of $27.6 million.
[1] Market expectations based on compiled analysts' consensus
forecasts at the beginning of FY 2022
[2] OTC ('Over-the-Counter') products, namely CFDs ('Contracts
for Difference')
[3] Customer Income - Revenue from O TC Customer Income
(customer spreads and overnight charges) and Non-OTC Customer
Income (commissions from the Group's futures and options on futures
operation and from 'Plus500 Invest', the Group's share dealing
platform)
[4] A RPU - Average Revenue Per User
[5] A ctive Customers - Customers who made at least one real
money trade during the period
[6] Operating cash conversion - Cash generated from operations /
EBITDA
[7] TCFD - Task Force on Climate-related Financial
Disclosures
[8] Market expectations based on compiled analysts' consensus
forecasts, which can be found on the Investor Relations section of
the Company's website. As at 14 February 2023, consensus forecasts
for FY 2023 revenue and EBITDA are $605.1m and $270.7m,
respectively.
[9] By total number of primary customer relationships.
Investment Trends 2022 UK Leverage Trading Report
[10] By total number of customer relationships. Investment
Trends 2022 Germany Leveraged Trading Report
[11] By total number of customer relationships. Investment
Trends 2022 Spain Leveraged Trading Report
[12] AUAC - Average User Acquisition Cost
[13] New Customers - Customers depositing for the first time
[14] Customer Trading Performance - gains/losses on customers' trading positions
[15] Market expectations based on compiled analysts' consensus
forecasts, which can be found on the Investor Relations section of
the Company's website. As at 14 February 2023, consensus forecasts
for FY 2023 revenue and EBITDA are $605.1m and $270.7m,
respectively.
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END
FR FFFEIFIIVLIV
(END) Dow Jones Newswires
February 14, 2023 02:00 ET (07:00 GMT)
Plus500 (AQSE:PLUS.GB)
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