TIDMPLUS
RNS Number : 2346W
Plus500 Limited
17 August 2022
17 August 2022
Plus500 Ltd.
("Plus500", the "Company" or together with its subsidiaries the
"Group")
Interim results for the six month period ended 30 June 2022
Plus500, a global multi-asset fintech group operating
proprietary technology-based trading platforms, today announces its
interim results for the six month period ended 30 June 2022[1].
Another outstanding performance, driven by continued engagement
with long term, higher value customers:
- Group revenue up 48% to $511.4m (H1 2021: $346.2m)
- EBITDA up 63% to $305.3m (H1 2021: $187.6m)
- EBITDA margin of 60% (H1 2021: 54%)
- Basic earnings per share) EPS( up 52% to $2.46 (H1 2021: $1.62)
- Over 23 million customers registered on the Group's platforms
since inception, providing significant inherent potential value and
demonstrating Plus500's leadership position
- 82% of OTC [2] revenue derived from customers trading with Plus500 for more than a year
- Customer deposits of $1.2 billion (H1 2021: $1.1 billion),
emphasising customer confidence in Plus500 and resilience of its
trading platforms
Significant headway made against the Group's strategic roadmap
in delivering on major growth opportunities:
- Strong progress achieved in accessing the substantial
opportunities in the US futures market:
o Institutional opportunity - strategic position built as market
infrastructure provider, supporting institutional clients with
brokerage-execution and clearing services
o Retail opportunity - intuitive new trading platform expected
to be launched in Q3 2022 for the growing US retail futures
market
- Expansion into Japan during the period through acquisition of
a regulated entity, providing access to the substantial Japanese
retail trading market
- New licence obtained in Estonia, further supporting the
Group's OTC product offering in Europe
- Continued roll-out of 'Plus500 Invest', the Group's proprietary share dealing platform
- Launch of the Group's first major global advertising campaign,
featuring actor Kiefer Sutherland, to drive global brand awareness
in key strategic markets
Further attractive returns delivered to shareholders - increased
share buyback momentum:
- Total shareholder returns in respect of H1 2022 of $170.4m,
including $110.2m in share buybacks and $60.2m in dividends:
o $60.2m new share buyback programme announced today
o $50.0m special buyback programme announced on 13 April 2022,
in line with preference for share buybacks highlighted by major
Plus500 shareholders
o $60.2m interim dividend declared today, representing $0.6238
per share
- Updated shareholder returns policy:
o At least 50% of net profits will continue to be paid to
shareholders through share buybacks and dividends on a half-yearly
basis
o From H2 2022, at least 50% of shareholder returns to be made
by way of share buybacks
o Special share buybacks, or other distributions, will also be
considered on a half yearly basis
Plus500's financial position remains extremely healthy,
supported by a robust business model:
- Cash balances of $ 995.5 m at the end of H1 2022 (H1 2021:
$722.5m), with no debts or loans since inception, enabling
continued investment in future growth
- Capital maintained for required regulatory purposes, working
capital and other factors to enable additional growth , currently
estimated to be approximately $525m
- On-going strong Operating cash conversion[3] of 113%
The Board remains confident about the outlook for Plus500 for FY
2022 and beyond:
- Following several positive upgrades to market expectations
related to Plus500's financial performance, which took place
earlier this year , the Board remains optimistic about the Group's
performance, with sustainable growth to be delivered over the
medium to long term
Financial Highlights:
H1 2022 H1 2021 Change
%
Revenue $511.4m $346.2m 48%
-------- ------- ------
EBITDA $305.3m $187.6m 63 %
-------- ------- ------
EBITDA Margin % 60% 54% 11%
-------- ------- ------
Cash balances at period
end $995.5m $722.5m 38%
-------- ------- ------
Operational Highlights:
H1 2022 H1 2021 Change
%
Active Customers[4] 216,928 333,940 (35%)
-------- ------- ------
New Customers[5] 57,275 136,980 (58%)
-------- ------- ------
ARPU[6] $2,357 $1,037 127%
-------- ------- ------
AUAC[7] $1,441 $622 132%
-------- ------- ------
David Zruia, Chief Executive Officer, commented:
"Plus500 produced another outstanding performance in the first
half of 2022, driven by the power of our market-leading proprietary
technology and our consistent ability to attract and retain higher
value customers over the long term. With continued operational and
financial momentum being achieved, we also made substantial
progress in delivering against our strategic priorities, in
particular the major growth opportunities in the US, where we are
continuing to make significant on-going investment, also by
becoming a full clearing member of the CME Group exchanges.
"To highlight the Board's view of the current value of the
Company's shares and our continued confidence in the future of
Plus500, the Company has delivered further elevated levels of
returns to shareholders so far this year, with $17 0 .4m in respect
of H1 2022, comprising interim dividend in the amount of $6 0 .2m,
a new share buyback programme in the amount of $6 0 .2m and a
special buyback programme of $50.0m announced in April 2022. The
Board continues to expect that Plus500 will deliver sustainable
growth over the medium to long term " .
Investor/analyst conference call:
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/plus500/62e0158b0d356d310002c72f/lkjh
. The audiocast can also be accessed by dialing +44 20 3936 2999
and using the following access code: 566840.
The presentation materials and a recording of the audiocast will
be available in due course at
https://investors.plus500.com/Reports/Presentation .
For further details:
Plus500 Ltd.
Elad Even-Chen, Chief Financial +972 4 8189503
Officer +44 7825 189088
Rob Gurner, Head of Investor Relations ir@plus500.com
Brunswick
Charles Pretzlik, Partner +44 207 404 5959
Paul Durman, Partner plus500@brunswickgroup.com
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 and
Japan 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 H1 2022 Results
Another outstanding operational and financial performance
Plus500 delivered another outstanding performance during H1
2022, which included the new operations in the US, supported by the
capability and strength of the Group's market-leading proprietary
technology in accessing significant new market opportunities.
This strong performance was driven by Plus500's ability to
attract and retain higher-value customers, despite exogenous lower
trading volumes experienced across the financial industry as a
whole during the period.
The Group's robust financial position, including cash balances
of $995.5m at period end, will continue to fund Plus500's position
in the US futures market, as well as the Group's investment in
future growth, through organic investments and targeted
acquisitions to access new markets and launch new products. The
Group's healthy financial position also enables further attractive
returns to be delivered to shareholders, through share buybacks and
dividend payments.
Plus500 maintained its market-leading positions in key strategic
markets and was ranked as the number one OTC provider in the UK[8],
Germany[9] and Spai n[10] for its OTC product offering.
85% of the Group's OTC revenue in H1 2022 was generated from
customers trading on mobile or tablet devices (H1 2021: over 82%)
with 82% of OTC customer trades taking place on mobile or tablet
devices in H1 2022 (H1 2021: over 78%). These increases highlight
Plus500's continued market leadership and focus on innovation in
this area.
Following the Group's excellent performance in H1 2022, and
driven by its market-leading proprietary technology, Plus500
remains well positioned to access significant opportunities to grow
and diversify its business operations, particularly in the US
futures market, to ensure further value is delivered for
shareholders.
Significant strategic progress made in H1 2022
Plus500 made substantial progress in developing its position as
a global multi-asset fintech group during H1 2022, based on a
strategic roadmap of entering new markets, launching new products
and deepening engagement with customers. The Group will continue to
invest in future growth, through further organic investments and by
actively targeting additional acquisitions.
Major growth opportunities in the US futures market -
institutional and retail
Plus500 has established a strong and growing position in the
futures market in the US, supported by the Group's best-in-class
technology and its robust financial position.
To optimise the significant retail trading opportunity, Plus500
is expected to launch in Q3 2022 an intuitive new trading platform
to trade on futures, specifically designed and tailored for retail
traders. This will enable the Group to benefit from the continued
increase in accessibility to the futures market for the retail
trading community, further benefiting from the on-going efforts by
the various related exchanges in this regard.
Plus500 has also built a new strategic position as a market
infrastructure provider for institutional clients in the US futures
market, supporting them with its brokerage-execution and clearing
services. This is supported by Plus500 becoming a full Clearing
Firm Member of the CME Group exchanges during the period, and will
be driven by Plus500's healthy balance sheet and its highly
differentiated technological capabilities. In addition, the Group
is already making progress in expanding its clearing capabilities
with other exchanges in the global futures market.
Furthermore, the Group aims to establish a new technology-based
presence in the US retail futures market, utilising its
technological expertise and solutions, as Plus500 has done
historically with its OTC product offering. The Group will continue
to allocate substantial financial and personnel resources to
maximise these opportunities over the medium term.
Entering new markets and launching new products
Plus500 continued to make excellent progress in further
diversifying its product portfolio and geographic footprint during
H1 2022 by entering and developing new positions within new markets
and launching new products.
The Group continues to target a number of new potential markets
to expand its current OTC product offering and is seeking new
operating licences , either organically or via acquisitions.
In February 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 March 2022, the Company completed the acquisition of a
regulated entity licenced as a 'Type 1 Financial Instruments
Business Operator', offering OTC products in Japan. This
acquisition further expands the Group's geographic footprint into
the substantial Japanese retail trading market, where Plus500 will
apply its financial and technological strength to scale and develop
the acquired business over time.
The Group's proprietary share dealing platform, 'Plus500
Invest', was launched in Europe on Android and iOS mobile apps
during the period. This product helps to drive the expansion of the
Group's product range and geographic footprint, as well as to
improve customer retention and further diversify Plus500's revenue
base.
Investment in technological capabilities to drive customer
engagement initiatives
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 continued to invest in technology innovation and
product development during the period, which ultimately helps to
drive deeper customer engagement.
With on-going investments in technology and people, particularly
at the Company's R&D centres in Israel, the Group will continue
leveraging the latent base of over 23 million customers registered
on its platforms since inception, through retention, activation and
monetisation initiatives, including a premium account offering
which continues to be rolled out to additional high value
customers.
Excellent delivery against operational KPIs
The Group delivered an excellent operational performance in H1
2022, supported by the strength and resilience of the Group's
proprietary technology.
Customer loyalty remained strong, with 82% of H1 2022 OTC
revenue derived from customers trading with Plus500 for more than a
year (H1 2021: 64%), 36% for more than three years (H1 2021: 31%)
and 15% for more than five years (H1 2021: 14%).
As evidence of the long-term value creation being delivered by
Plus500's business model, the cumulative average revenue from
Active Customers who first started trading with Plus500 during 2015
was approximately $5,300 as at the end of H1 2022 (H1 2021:
approximately $5,000), highlighting the long-term, sustainable
value of the Group's customer base.
Despite the external lower volumes across the financial
industry, the Group onboarded a total of 57,275 New Customers
during the period (H1 2021: 136,980). This included 23,535 New
Customers onboarded in Q2 2022 (Q2 2021: 47,574).
The Group's number of Active Customers during H1 2022 remained
robust at 216,928 (H1 2021: 333,940), including 145,506 in Q2 2022
(Q2 2021: 209,465). This was supported by continued investment in
the Group's marketing technology and by strategic initiatives to
drive customer retention, monetisation and activation.
Customer Churn[11] in H1 2022 was 29.7% (H1 2021: 29.3%),
including 31.0% in Q2 2022 (Q2 2021: 40.0%).
Client deposits remained high in H1 2022 at $1.2 billion (H1
2021: $1.1 billion), with average deposit per Active Customer of
approximately $5,400 (H1 2021: approximately $3,400), highlighting
the continued strong level of confidence that customers have in
Plus500 and the resilience of the Group's trading platforms.
ARPU was strong at $2,357 in H1 2022 (H1 2021: $1,037),
including $1,653 in Q2 2022 (Q2 2021: $683).
During H1 2022, in conjunction with the Group's technological
marketing capability, Plus500 launched a major bespoke global
advertising campaign, featuring actor Kiefer Sutherland, to build
brand awareness in key strategic markets. This campaign, the first
in Plus500's history, is embedded across the Group's social media
platforms and other online and offline marketing channels.
Consequently, and with on-going investment in strategic markets
to attract higher value customers, AUAC was at the level of $1,441
in H1 2022 (H1 2021: $622), including $1,478 in Q2 2022 (Q2 2021:
$903). Given Plus500's long track record of delivering high returns
on marketing investment, the Group's continued investment in this
area is expected to further deliver attractive returns.
The Group continues to expect that AUAC will rise steadily over
time, as the Group's customer profile further shifts to higher
value 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.
Continued financial delivery across all key metrics
The Group's financial performance in H1 2022 was excellent, with
a further strengthening of Plus500's balance sheet and cash
balances, driven by continued outstanding cash generation during
the period.
The Group generated total revenue in H1 2022 of $511.4m (H1
2021: $346.2m), including revenue of $240.5m in Q2 2022 (Q2 2021:
$143.0m). Customer Income ([12]) , a key measure of the Group's
underlying performance, remained consistent during H1 2022 at
$339.8m (H1 2021: $379.2m), including $151.8m in Q2 2022 (Q2 2021:
$157.7m). Customer Trading Performance [13] was $171.6m during H1
2022 (H1 2021: $(33.0m)), including $88.7m in Q2 2022 (Q2 2021:
$(14.7m)). The Company continues to expect that the contribution
from Customer Trading Performance will be broadly neutral over
time.
EBITDA for H1 2022 was $305.3m (H1 2021: $187.6m), including
$143.7m in Q2 2022 (Q2 2021: $65.9m). EBITDA margin remained high
during H1 2022 at 60% (H1 2021: 54%), including 60% in Q2 2022 (Q2
2021: 46%).
Net profit in H1 2022 was $24 4 . 1 m (H1 2021: $165.1m) and
basic earnings per share was up 52% at $2.46 (H1 2021: $1.62).
The Group's cost base continues to be heavily weighted towards
variable costs, which is a key financial strength in an uncertain
and dynamic economic environment. These variable costs remain
positively correlated to enhanced performance and higher volumes .
During H1 2022 , 7 3% of the Group's costs were variable (H1 2021:
73%), with the Group maintaining a flexible and well controlled
cost base.
Total SG&A expenses were $207.8m during H1 2022 (H1 2021:
$159.8m) , the major elements of which were variable costs
including marketing investment of $82.5m (H1 2021: $85.2m) and
commissions to processing companies of $23.7m (H1 2021:
$22.0m).
Net financial income amounted to $9.0m in H1 2022 (H1 2021:
$2.3m ), predominantly due to foreign exchange and translation
differences, in addition to interest received related to fixed
deposits. A substantial proportion of the Group's cash is held in
US dollars in order to provide a natural hedge, thereby reducing
the impact of currency movements on financial expenses.
As at the end of H1 2022, total assets were $1,072.5 m (H1 2021:
$770.0m ) with equity of $798.3 m, representing approximately 74%
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 period of $344.9m (H1 2021: $163.4m) and 113
% Operating cash conversion achieved (H1 2021: 87%).
As a result, with the Group remaining debt-free, cash and cash
equivalents balance at the end of H1 2022 was $995.5m (FY 2021:
$749.5m, H1 2021: $722.5m).
These levels of cash generation and cash balances enabled
Plus500 to continue delivering significant levels of shareholder
returns. During H1 2022, the Company announced two share buyback
programmes totalling $105.0m, a $55.0m buyback programme announced
on 15 February 2022 in relation to FY 2021 and a $50.0m special
buyback programme announced on 13 April 2022 in respect to H1 2022.
In H1 2022, the Company executed share buybacks totalling $51.7m.
In addition, $59.9m were declared as final and special dividends in
February 202 2 in relation to FY 2021 and paid to shareholders on
11 July 2022.
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.
Plus500's successful track record has been built on robust
structural foundations
The operational, commercial and financial achievements of
Plus500 have been built on the strong structural foundations of
compliance, risk management, sustainability and governance. These
elements ensure that the Group is able to deliver a seamless and
robust commercial offering for more than 23 million registered
customers.
Sustainability - customer care and protection, organisational
culture
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 of its 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 risks involved in
trading.
During the period, 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 US, Plus500
is developing a range of educational content for customers, which
is expected to be launched during Q3 2022.
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 and career progression.
Governance - Board changes during H1 2022
The range of the Board's experience, knowledge and expertise
continues to broaden, with further diversification of its gender
composition achieved during the period. 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 50% of the Board members are women.
There were a number of changes to the composition of the Board
during the period to further strengthen Plus500's leadership
position. 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 completed his maximum nine-year tenure
as an Independent Non-Executive Director and External Director.
Anne Grim has taken Daniel King's place as a member of the
Nomination Committee and as Chair of the Remuneration Committee,
and Steve Baldwin has replaced Daniel King as Chair of the ESG
Committee. In addition, with effect from 16 August 2022, David
Zruia, the CEO and a Director, has been appointed as an additional
member of the ESG Committee.
Investor engagement - Capital Markets Day
Following the launch of the Group's new Investor Relations
website during the period, to further improve investor engagement
and drive education and better understanding of Plus500 amongst the
investor community, the Company's management team is hosting a
virtual Capital Markets Day on Monday, 19 September 2022. This
event will provide further information on key elements of Plus500's
investment case, business model and major growth opportunities for
the Group.
Plus500 continues to deliver significant returns to
shareholders
In the nine years since the Company's IPO year, during which
time the macro environment and global economic conditions have
continued to fluctuate, Plus500 has generated significant levels of
cash from operations at approximately $2.7 billion and returned
approximately $1.6 billion to shareholders through dividends and
share buybacks. This includes returns in respect of H1 2022
totalling $170.4m, of which $60.2m through dividend, $60.2m through
a new share buyback programme and $50.0m through a special buyback
programme announced on 13 April 2022.
Updated shareholder returns policy
Following continued engagement with shareholders, and after much
consideration, the Board has decided to update the Company's
shareholder returns policy, from the current policy of returning at
least 50% of net profits to shareholders through dividends and
share buyback programmes, with at least 50% of this distribution
being made by way of dividends.
With the updated policy, the Company will continue to return at
least 50% of net profits to shareholders through share buyback
programmes and dividends, but from H2 2022, given the preference
for share buybacks from a number of Plus500's major shareholders,
at least 50% of shareholder returns will be made by way of share
buybacks. This shareholder returns policy will continue to apply to
net profits on a half-yearly basis and will continue to be based on
a 23% corporate tax rate, for both interim and final
distributions.
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.
The Board will continue to assess 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 to ensure that appropriate levels of available capital
are maintained for required working capital, regulatory purposes
and other factors, which is currently estimated to be approximately
$525m.
Shareholder returns related to H1 2022
The Board is pleased to declare today a total return of $120.4m
in relation to H1 2022, comprising of an interim dividend and a new
share buyback programme.
The interim dividend for H1 2022 of $60.2m[14], representing $0.
6 238 per share, has an ex-dividend date of 25 August 2022, a
record date of 26 August 2022 and a payment date of 11 November
2022.
To emphasise its strong belief in the positive outlook for
Plus500, and reflecting the robust financial position of the Group,
the Board has resolved to conduct a new share buyback programme to
acquire up to $ 6 0.2m of the Company's shares, which will commence
following the completion of the current share buyback
programmes.
During H1 2022, the Company executed its existing share buyback
programmes, with 2,670,651 ordinary shares purchased during the
period, amounting to a total of $51.7m, at an average share price
of GBP14.98. The remaining share buyback programmes declared during
H1 2022 in the amount of approximately $56.1m as at 30 June 2022,
will continue to run during the second half of 2022, in addition to
the new share buyback programme of $60.2m announced today.
At 30 June 2022, the Company held in treasury a total of
17,320,083 ordinary shares, which were purchased since the
commencement of Plus500's initial share buyback programmes in 2017,
representing 15.1% 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 outlook for Plus500
Following several positive upgrades to market expectations
related to Plus500's financial performance, which took place
earlier this year , the Board remains optimistic about the Group's
performance, with sustainable growth to be delivered over the
medium to long term.
Plus500 will continue to pursue several major growth
opportunities, through organic investments and by actively
targeting acquisitions. Therefore, the Group remains
well-positioned to deliver sustainable growth over the medium and
long term as a global multi-asset fintech group.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIODED 30 JUNE 2022 (UNAUDITED)
Six months Year ended
ended 30 June 31 December
----------------- -------------
2022 2021 2021
--------- ------ -------------
(Unaudited) (Audited)
----------------- -------------
Note U.S. dollars in millions
----- --------------------------------
TRADING INCOME 4 511.4 346.2 718.7
Selling and marketing expenses 5 169.5 131.4 279.8
Administrative and general expenses 6 38.3 28.4 54.3
--------- ------ -------------
OPERATING PROFIT 303.6 186.4 384.6
Financial income 17.1 5. 5 10.4
Financial expenses 8.1 3.2 8.6
--------- ------ -------------
FINANCIAL INCOME , NET 9.0 2. 3 1.8
--------- ------ -------------
PROFIT BEFORE INCOME TAX 312.6 188.7 386.4
INCOME TAX EXPENSE 8 68.5 23.6 75.8
--------- ------ -------------
PROFIT AND COMPREHENSIVE INCOME
FOR THE PERIOD 24 4.1 165.1 310.6
========= ====== =============
Basic earnings per share ( In
U . S . dollars) 9 2.46 1.62 3.06
========= ====== =============
Diluted earnings per share (
In U . S . dollars) 9 2.43 1.61 3.05
========= ====== =============
The accompanying notes are an integral part of the condensed
consolidated interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 JUNE 2022 (UNAUDITED)
As of As of
30 June 31 December
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2022 2021 2021
-------- -------- -------------
(Unaudited) (Audited)
------------------ -------------
Note U.S. dollars in millions
----- ---------------------------------
ASSETS
Non-current assets
Property, plant and equipment 2.5 2.7 2.6
Goodwill and other intangible
assets, net 15 39.9 - 28.0
Right of use assets 5.0 7.2 5.6
Long term other receivables 4.7 2.3 4.4
-------- -------- -------------
Total non-current assets 52.1 12.2 40.6
-------- -------- -------------
Current assets
Income tax receivable - 4.2 -
Other receivables and others 24.9 31.1 32.7
Cash and cash equivalents 995.5 722.5 749.5
-------- -------- -------------
Total current assets 1,020.4 757.8 782.2
-------- -------- -------------
TOTAL ASSETS 1,072.5 770.0 822.8
======== ======== =============
LIABILITIES
Non-current liabilities
Lease liabilities (net of current
maturities) 3.0 6.1 4.2
Share based compensation 1.0 4.1 0.3
Deferred tax liability 7.9 - -
-------- -------- -------------
Total non-current liabilities 11.9 10.2 4.5
-------- -------- -------------
Current liabilities
Dividend 10 59.9 84.9 -
Share based compensation 7.0 5.4 7.3
Income tax payable 114.6 32.6 89.9
Other payables 59.1 19.1 41.7
Service suppliers 12.7 18.3 15.5
Current maturities of lease liabilities 2.0 1.9 2.0
Trade payables - due to clients 12 7.0 0.5 0.6
-------- -------- -------------
Total current liabilities 262.3 162.7 157.0
-------- -------- -------------
TOTAL LIABILITIES 274.2 172.9 161.5
-------- -------- -------------
EQUITY
Ordinary shares 0.3 0.3 0.3
Share premium 22.2 22.2 22.2
Cost of Company's shares held
by the Company 11 (258.9) (186.8) (207.5)
Retained earnings 1,034.7 761.4 846.3
-------- -------- -------------
Total equity 798.3 597.1 661.3
-------- -------- -------------
TOTAL LIABILITIES AND EQUITY 1,072.5 770.0 822.8
======== ======== =============
David Zruia Elad Even-Chen Prof. Jacob A. Frenkel
Chief Executive Officer Group Chief Financial Non-Executive Director
Officer and Chairman
Date of approval of the condensed consolidated interim financial
information by the Company's Board of Directors: 17 August 2022
Registered Company number (Israel): 514142140
The accompanying notes are an integral part of the condensed
consolidated interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIOD EN DED 30 JUNE 2022 (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 2022 (audited) 0.3 22.2 (207.5) 846.3 661.3
CHANGES DURING THE SIX MONTHSED 30 JUNE 2022 (unaudited):
Profit and comprehensive income
for the period - - - 244.1 244.1
Share based compensation - - - 4.5 4.5
TRANSACTION WITH SHAREHOLDERS:
Dividend - - - (59.9) (59.9)
Issue of treasury shares to settle
equity share based compensations - - 0.3 (0.3) -
Acquisition of treasury shares - - (51.7) - (51.7)
---------- --------- ------------------- ---------- -------
BALANCE AT 30 JUNE 2022 (unaudited) 0.3 22.2 (258.9) 1,034.7 798.3
========== ========= =================== ========== =======
BALANCE AT 1 JANUARY 2021 (audited) 0.3 22.2 (145.7) 678.8 555.6
CHANGES DURING THE SIX MONTHSED 30 JUNE 2021 (unaudited):
Profit and comprehensive income
for the period - - - 165.1 165.1
Share based compensation - - - 3.8 3.8
TRANSACTION WITH SHAREHOLDERS:
Dividend - - - (84.9) (84.9)
Issue of treasury shares to settle
equity share based compensations - - 1.4 (1.4) -
Acquisition of treasury shares - - (42.5) - (42.5)
---------- --------- ------------------- ---------- -------
BALANCE AT 30 JUNE 2021 (unaudited) 0.3 22.2 (186.8) 761.4 597.1
========== ========= =================== ========== =======
BALANCE AT 1 JANUARY 2021 (audited) 0.3 22.2 (145.7) 678.8 555.6
CHANGES DURING THE YEARED 31 DECEMBER 2021 (audited):
Profit and comprehensive income
for the year - - - 310.6 310.6
Share based compensation - - - 4.9 4.9
TRANSACTION WITH SHAREHOLDERS:
Dividend - - - (144.9) (144.9)
Issue of treasury shares to settle
equity share based compensations - - 3.1 (3.1) -
Acquisition of treasury shares - - (64.9) - (64.9)
---------- --------- ------------------- ---------- -------
BALANCE AT 31 DECEMBER 2021 (audited) 0.3 22.2 (207.5) 846.3 661.3
========== ========= =================== ========== =======
The accompanying notes are an integral part of the condensed
consolidated interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX-MONTH PERIODED 30 JUNE 2022 (UNAUDITED)
Six months ended Year ended
30 June 31 December
------------------- ------------
2022 2021 2021
---------- ------- ------------
(Unaudited) (Audited)
------------------- ------------
Note U.S. dollars in millions
----- ---------------------------------
OPERATING ACTIVITIES:
Cash generated from operations 13 344.9 163.4 383.0
Income tax received (paid) , net (32.9) 7.9 16.3
Interest received, net 2.2 4.1 6.2
---------- ------- ------------
Net cash flows provided by operating
activities 314.2 175.4 405.5
---------- ------- ------------
INVESTING ACTIVITIES:
Acquisition of subsidiaries, net of
cash acquired 15 ( 4.6 ) - (32.5)
Purchase of property, plant and equipment (0.3) (0.5) (0.8)
---------- ------- ------------
Net cash flows used in investing activities ( 4.9 ) (0.5) (33.3)
---------- ------- ------------
FINANCING ACTIVITIES:
Dividend paid to equity holders of
the Company - - (144.9)
Payment of principal in respect of
leases liabilities (1.1) (1.0) (2.0)
Acquisition of treasury shares 11 (51.7) (42.5) (64.9)
---------- ------- ------------
Net cash flows used in financing activities (52.8) (43.5) (211.8)
---------- ------- ------------
25 6 .
INCREASE IN CASH AND CASH EQUIVALENTS 5 131.4 160.4
BALANCE OF CASH AND CASH EQUIVALENTS
AT
BEGINNING OF THE PERIOD 749.5 593.9 593.9
Gains (losses) from effects of exchange
rate changes on
cash and cash equivalents (10.5) (2.8) (4.8)
---------- ------- ------------
BALANCE OF CASH AND CASH EQUIVALENTS
AT OF THE PERIOD 995.5 722.5 749.5
========== ======= ============
The accompanying notes are an integral part of the condensed
consolidated interim financial information.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
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 and
the Financial Services Agency ("FSA") in Japan.
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.
The address of the Company's principal offices is Building 25,
Matam, Haifa 3190500, Israel.
NOTE 2 - BASIS OF PREPARATION
Basis of accounting and accounting policies
These condensed consolidated interim financial information for
the six month period ended 30 June 2022 have been prepared in
accordance with IAS 34 - 'Interim financial reporting' as issued by
the International Accounting Standards Board. The condensed
consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended
31 December 2021, which have been prepared in accordance with IFRS.
This condensed consolidated interim financial information is
reviewed and not audited.
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
this condensed consolidated interim financial information.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION (continued)
NOTE 3 - ACCOUNTING POLICIES
Significant accounting policies and computation methods used in
preparing the condensed consolidated interim financial information
are consistent with those used in preparing the 2021 annual
financial statements, except for the following:
Income tax in interim periods is recognised based on
management's best estimate of the annual income tax rate expected
(see note 8).
NOTE 4 - TRADING INCOME
The trading income attributed to geographical areas according to
the location of the customer is as follows:
Six months Year ended
ended 30 June 31 December
---------------- ------------
2022 2021 2021
------- ------- ------------
(Unaudited) (Audited)
---------------- ------------
U.S. dollars in millions
------------------------------
European Economic Area (EEA) 234.0 159.5 329.0
United Kingdom 66.8 42.5 88.9
Australia 40.5 32.5 61.6
Rest of the World 170.1 111.7 239.2
------- ------- ------------
511.4 346.2 718.7
======= ======= ============
NOTE 5 - SELLING AND MARKETING EXPENSES
Six months Year ended
ended 30 June 31 December
----------------- -------------
2022 2021 2021
-------- ------- -------------
(Unaudited) (Audited)
----------------- -------------
U.S. dollars in millions
--------------------------------
Payroll and related expenses 11.7 9.6 21.4
Variable Bonuses 9.8 5.1 8.8
Share based compensation 2.0 2.9 4.0
Commissions to media buying 7.0 11.4 20.7
Advertising and technology costs 75.5 73.8 151.4
Commissions to processing companies 23.7 22.0 40.8
Server and data feeds commissions 8.4 4.7 11.7
Other 31.4 1.9 21.0
-------- ------- -------------
169.5 131.4 279.8
======== ======= =============
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 6 - ADMINISTRATIVE AND GENERAL EXPENSES
Six months Year ended
ended 30 June 31 December
----------------- -------------
2022 2021 2021
-------- ------- -------------
(Unaudited) (Audited)
----------------- -------------
U.S. dollars in millions
--------------------------------
Payroll and related expenses 8.0 5.0 11.6
Variable Bonuses 6.1 4.1 5.4
Share based compensation 5.2 5.1 7.7
Professional and regulatory fees 12.6 9.4 18.5
Depreciation and amortisation 1.7 1.2 2.5
Other 4.7 3.6 8.6
-------- ------- -------------
38.3 28.4 54.3
======== ======= =============
NOTE 7 - OPERATING EXPENSES
The presentation below reflects the breakdown of operating
expenses by nature of expense:
Six months Year ended
ended 30 June 31 December
--------------------------- -------------
2022 2021 2021
-------------- ----------- -------------
(Unaudited) (Audited)
--------------------------- -------------
U.S. dollars in millions
---------------------------
Employee benefits and other related
expenses 42.8 31.8 58.9
IT and technology costs 26.6 15.3 38.2
Commissions to processing companies 23.7 22.0 40.8
Advertising, marketing and commissions
to media buying 64.3 74.6 145.6
Professional and regulatory fees 12.6 9.4 18.5
Depreciation and amortisation 1.7 1.2 2.5
Other 36.1 5.5 29.6
-------------- ----------- -------------
207.8 159.8 334.1
============== =========== =============
In the year ended 31 December 2021 and the six months periods
ended 30 June 2022 and 30 June 2021, IT and technology costs,
together with additional allocated other technological related
costs, were $58.4 million, $33.3 million and $22.5 million,
respectively.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 8 - 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 (the "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 Technological
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).
a. 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).
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 rate for the preferred technological income of a
PTE for these years was 12%. The Company is also considered as PTE
for the years 2020 and 2021. As a result, the Company's corporate
tax rate for the years 2021 and 2020 is 12%.
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
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%, subject to the receipt in advance of a valid
certificate from the ITA allowing for a reduced tax rate.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 8 - INCOME TAX EXPENSES (continued)
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.
b. 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.
c. Taxes on income included in the consolidated income statement for the reported periods
Six months Year ended
ended 30 June 31 December
----------------- -------------
2022 2021 2021
-------- ------- -------------
(Unaudited) (Audited)
----------------- -------------
U.S. dollars in millions
--------------------------------
Current taxes:
Current taxes in respect of current
period's profit 66.9 24.3 77.6
Tax income in respect of previous
years 0.5 - 0.5
-------- ------- -------------
67.4 24.3 78.1
Deferred income taxes:
Change of deferred tax assets 1.1 (0.7) (2.3)
-------- ------- -------------
Taxes on income expenses 68.5 23.6 75.8
======== ======= =============
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 9 - 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 period.
Six months Year ended
ended 30 June 31 December
-------------------------- -------------
2022 2021 2021
------------ ------------ -------------
(Unaudited) (Audited)
-------------------------- -------------
Profit attributable to equity
holders of the
Company (U.S. dollars in millions) 244.1 165.1 310.6
============ ============ =============
Weighted average number of ordinary
shares in
issue*:
Basic 99,265,601 102,053,983 101,456,641
Dilutive effect of equity share
based compensation 1,204,619 710,962 529,601
============ ============ =============
Diluted 100,470,220 102,764,945 101,986,242
============ ============ =============
Basic earnings per share (In
U.S. dollars) 2.46 1.62 3.06
============ ============ =============
Diluted earnings per share (In
U.S. dollars) 2.43 1.61 3.05
============ ============ =============
*After weighting the effect of Company's share buyback
programmes (see note 11) .
NOTE 10 - DIVIDS
The amounts of dividends and the amounts of dividends per share
for the years 2022 and 2021 declared and distributed by the Board
are as follows:
Amount of dividend Date of payment
Date of declaration Amount of dividend per share (US to
(US $ in millions)* $) 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
*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.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 11 - COST OF COMPANY'S SHARES HELD BY THE COMPANY
The Board approves share buyback programmes. The share buyback
programmes are funded from the Company's net cash balances.
Aggregate
Number of ordinary purchase amount Average price
Period shares purchased (US $ in millions) of shares
purchased
------------------------ --------------------- -------------------- ----------------
Year ended 31 December
2021 3,406,211 64.9 GBP13.90
Six months ended 30
June 202 1 2,192,074 42.5 GBP14.14
Six months ended 30
June 2022 2,670,651 51.7 GBP14.98
During the six month period ended 30 June 2022, the Company
issued a total of 14,165 of its treasury shares.
NOTE 12 - TRADE PAYABLES - DUE TO CLIENTS
As of 31
As of 30 June December
-------------------- ----------
2022 2021 2021
--------- --------- ----------
(Unaudited) (Audited)
-------------------- ----------
U.S. dollars in millions
--------------------------------
Customers' deposits, net* 274.6 413.5 350.6
Segregated client funds (267.6) (413.0) (350.0)
--------- --------- ----------
7.0 0.5 0.6
========= ========= ==========
*Customers' deposits, net are comprised
of the following:
Customers' deposits 385.1 476.5 428.3
Less - financial derivative open positions:
Gross amount of assets (135.9) (140.1) (130.4)
Gross amount of liabilities 25.4 77.1 52.7
--------- --------- ----------
274.6 413.5 350.6
========= ========= ==========
* The total amount of 'Trade payables - due to clients' includes
bonuses to clients.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 13 - CASH GENERATED FROM OPERATIONS
Six months Year ended
ended 30 June 31 December
----------------- -------------
2022 2021 2021
------- -------- -------------
(Unaudited) (Audited)
----------------- -------------
U.S. dollars in millions
--------------------------------
Cash generated from operating activities
Net income for the period 244.1 165.1 310.6
------- -------- -------------
Adjustments required to reflect the
cash flows from
operating activities:
Depreciation and amortisation 0.8 0.3 0.7
Amortisation of right of use assets 0.9 0.9 1.8
Lease modification - - (0.2)
Liability for share based compensation 2.7 4.2 6.8
Settlement of share based compensation (7.0) ( 8.4 ) (8.4)
Equity share based compensation 4.5 3.8 4.9
Taxes on income 68.5 23.6 75.8
Interest expenses in respect of leases 0.1 0. 1 0.2
Exchange differences in respect of
leases (0.5) (0.1) -
Interest income (2.2) (4.1) (6.2)
Foreign exchange losses (gains) on
operating activities 0.7 2.9 4.3
------- -------- -------------
68.5 23.2 79.7
------- -------- -------------
Operating changes in working capital:
Decrease (increase) in other receivables
and others 7.1 (21.0) (16.9)
Increase (decrease) in trade payables
due to clients 6.4 (0.5) (0.4)
Increase (decrease) in other payables 21.6 0.8 17.3
Increase (decrease) in service suppliers (2.8) (4.2) (7.3)
------- -------- -------------
32.3 (24.9) (7.3)
------- -------- -------------
Cash generated from operations 344.9 163.4 383.0
======= ======== =============
Non-cash transactions
On 15 February 2022, the Board declared a dividend in an amount
of $59.9 million ($0.5995 per share). The dividend was paid to
shareholders on 11 July 2022 (see note 10).
NOTE 14 - FINANCIAL RISK MANAGEMENT
Financial risks arising from financial instruments are analysed
into market, credit, concentration and liquidity risks. The
condensed interim financial information does not include all
financial risk management information and disclosures required in
the annual financial statements. Details of how these risks are
managed are discussed in the financial risk management note of the
2021 annual financial statements .
Further to the mentioned above, there has not been a significant
change in the Group's financial risk management processes or
policies since year end 2021.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 15 - ACQUISITIONS
On 19 July 2021, Plus500US Inc., a wholly owned subsidiary of
the Company, completed the acquisition of all of the membership
interests of Cunningham Commodities LLC. ("Cunningham"), a
regulated Futures Commission Merchant ("FCM"), and Cunningham
Trading Systems LLC. ("CTS"), a technology trading platform
provider, operating in the futures and options on futures market.
The acquisition consideration was funded from the Company's
existing cash balances and was paid on completion. The measurement
period for the acquisition ended on 19 July 2022.
The assets and liabilities recognised as a result of this
acquisition are as follows:
U.S. dollars
in millions
-------------
Cash 0.5
Other receivables and others 6.0
Long-term other receivables 0.4
Service suppliers (0.3)
Other payables (1.6)
Deferred tax liability ( 6.9 )
Goodwill and other intangible assets 3 4 . 9
-------------
Net assets acquired 33.0
-------------
On 21 March 2022, the Company completed the acquisition of 100%
of the issued and outstanding share capital of EZ Invest
Securities, Co., Ltd. ("EZ Invest"). EZ Invest is licenced as a
Type 1 Financial Instruments Business Operator, regulated by the
Financial Services Agency (FSA) in Japan. The acquisition
consideration was funded from the Company's existing cash balances
and was paid on completion.
The assets and liabilities recognised as a result of this
acquisition are as follows:
U.S. dollars
in millions
-------------
Cash 0.2
Other receivables and others 0.7
Other payables (0. 5 )
Deferred tax liability (1.0)
Goodwill and other intangible assets 5.4
-------------
Net assets acquired 4.8
-------------
NOTE 16 - SUBSEQUENT EVENTS
On 17 August 2022 the Board declared an interim dividend in an
amount of $60.2 million ($0.6238 per share). The dividend record
date is 26 August 2022 and it will be paid to the shareholders on
11 November 2022.
On 17 August 2022, the Board approved a new programme to buy
back an amount of up to $60.2 million of the Company's ordinary
shares.
[1] All figures for the six month period ended 30 June 2022 and
for the six month period ended 30 June 2021, included in this
announcement are unaudited
[2] OTC ('Over-the-Counter') product offering is the Group's
definition of its core CFD ('Contracts for Difference') product
offering
[3] Operating cash conversion - cash generated from operations /
EBITDA
[4] Active Customers - Customers who made at least one real
money trade during the period
[5] New Customers - Customers depositing for the first time
[6] ARPU - Average Revenue Per User
[7] AUAC - Average User Acquisition Cost
[8] By total number of primary customer relationships.
Investment Trends 2022 UK Leverage Trading Report
[9] By total number of customer relationships. Investment Trends
2022 Germany Leveraged Trading Report
[10] By total number of customer relationships. Investment
Trends 2022 Spain Leveraged Trading Report
[11] Customer Churn: [(Active Customers (T) + New Customers
(T+1)) - Active Customers (T+1)]/ Active Customers (T)
[12] Customer Income - Revenue from OTC 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)
[13] Customer Trading Performance - gains/losses on customers' trading positions
[14] The total estimated dividend payout of $ 60.2 m is based on
that 96,45 2,043 o rdinary shares are issued as at 16 August 2022.
The total dividend payout will be subject to the ordinary shares t
hat will be repurchased between 17 August 2022 and the dividend
record date of 26 August, which will be held in treasury and
therefore will not be entitled to a dividend and the actual
aggregate dividend payout will be reduced accordingly.
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IR BRGDIGGBDGDL
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August 17, 2022 02:00 ET (06:00 GMT)
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