Plus500
Ltd. (LSE: PLUS) announced today that it will commence a new $100 million share
repurchase initiative. This comes as the publicly-listed broker nears completion of
its existing $60 million buyback launched in August 2023. In response to the
latest news, PLUS shares opened on Thursday on the London Stock Exchange with a
gap of over 3%.
Plus500 Puts $100M toward
Share Repurchases
The Board
views the new program as underscoring their “continued confidence” in Plus500’s
future growth prospects and “ability to deliver strong future shareholder
returns.” This confidence stems from the significant operational and financial
momentum achieved in recent years as Plus500 makes progress on its strategic
roadmap.
The company decided to return $175 million to the shareholders as it ended the fiscal year 2023 with a group revenue of $726.2 million. The maximum
number of shares to be repurchased in the program is 4.8 million. This falls
within the parameters of the authority granted by shareholders at July’s general
meeting. Purchases will occur through open market transactions, managed
day-to-day by Liberum Capital. Liberum will conduct the non-discretionary
buyback according to pre-defined guidelines, independent of the Board’s influence.
“Plus500’s
disciplined approach to capital allocation and cash generative business model
enables it to invest in growth, both organically and through strategic bolt on
acquisitions, maintain a clear dividend policy and return value to shareholders
in the form of share repurchases where appropriate,” the Plus500 commented in
the official statement.
Shares
acquired under the program will be held as treasury shares without
entitlements to dividends or voting rights. The share buyback program will run
from 22 February until 31 December and may continue during closed periods. Plus500
will announce details of any purchases completed by 7AM the following business
day.
Plus500 Continues to
Buyback Shares
Over recent
years, Plus500 has been actively repurchasing its shares from the market. In
the previous fiscal year, the company invested $257.5 million in buying back
its shares and paid out $90 million in dividends, underscoring its commitment
to returning value to shareholders.
Since the
initiation of its buyback program in 2017, Plus500 has acquired 36,651,165 of
its own shares, spending a total of $0.6 billion. These shares were purchased
at an average price of £13.52 each, reflecting a strategic approach to share
repurchase. The last round of share buyback was announced last August and amounted to $60 million.
“Three
years ago, Plus500 presented its new strategic plan to become a global,
multi-asset fintech group, by expanding into new markets, developing new
products, and deepening relationships with customers,” David Zruia, the CEO of
Plus500, said. “2023 saw further progress against all three strategic
objectives.”
Focusing on
multi-asset brokerage services, the firm has seen a mix of dynamics in customer
engagement. The fiscal year 2023 report shows that 90,944 new clients joined
the platform, marking a decrease of 15% compared to the prior year.
Simultaneously, the number of active clients fell 17% to 233,037.
Plus500
Ltd. (LSE: PLUS) announced today that it will commence a new $100 million share
repurchase initiative. This comes as the publicly-listed broker nears completion of
its existing $60 million buyback launched in August 2023. In response to the
latest news, PLUS shares opened on Thursday on the London Stock Exchange with a
gap of over 3%.
Plus500 Puts $100M toward
Share Repurchases
The Board
views the new program as underscoring their “continued confidence” in Plus500’s
future growth prospects and “ability to deliver strong future shareholder
returns.” This confidence stems from the significant operational and financial
momentum achieved in recent years as Plus500 makes progress on its strategic
roadmap.
The company decided to return $175 million to the shareholders as it ended the fiscal year 2023 with a group revenue of $726.2 million. The maximum
number of shares to be repurchased in the program is 4.8 million. This falls
within the parameters of the authority granted by shareholders at July’s general
meeting. Purchases will occur through open market transactions, managed
day-to-day by Liberum Capital. Liberum will conduct the non-discretionary
buyback according to pre-defined guidelines, independent of the Board’s influence.
“Plus500’s
disciplined approach to capital allocation and cash generative business model
enables it to invest in growth, both organically and through strategic bolt on
acquisitions, maintain a clear dividend policy and return value to shareholders
in the form of share repurchases where appropriate,” the Plus500 commented in
the official statement.
Shares
acquired under the program will be held as treasury shares without
entitlements to dividends or voting rights. The share buyback program will run
from 22 February until 31 December and may continue during closed periods. Plus500
will announce details of any purchases completed by 7AM the following business
day.
Plus500 Continues to
Buyback Shares
Over recent
years, Plus500 has been actively repurchasing its shares from the market. In
the previous fiscal year, the company invested $257.5 million in buying back
its shares and paid out $90 million in dividends, underscoring its commitment
to returning value to shareholders.
Since the
initiation of its buyback program in 2017, Plus500 has acquired 36,651,165 of
its own shares, spending a total of $0.6 billion. These shares were purchased
at an average price of £13.52 each, reflecting a strategic approach to share
repurchase. The last round of share buyback was announced last August and amounted to $60 million.
“Three
years ago, Plus500 presented its new strategic plan to become a global,
multi-asset fintech group, by expanding into new markets, developing new
products, and deepening relationships with customers,” David Zruia, the CEO of
Plus500, said. “2023 saw further progress against all three strategic
objectives.”
Focusing on
multi-asset brokerage services, the firm has seen a mix of dynamics in customer
engagement. The fiscal year 2023 report shows that 90,944 new clients joined
the platform, marking a decrease of 15% compared to the prior year.
Simultaneously, the number of active clients fell 17% to 233,037.
