Back-to-Back Buybacks: Plus500 Pledges New $60M after Previous $70M Program
- Plus500 announces a new $60 million share buyback plan.
- The decision reflects the board's faith in company prospects.
After launching a $70 million share buyback program earlier this year, the publicly-listed London broker, Plus500 (LSE: PLUS), announced the commencement of another repurchase, valued at $60 million. According to the official statement, the company decided to take this step due to the approaching finalization of the agenda for the first buyback.
Plus500 Buys Back Shares Again
Plus500 claims that its latest asset buyback program underscores its strong financial position. According to transaction details, a maximum of 8,032,980 shares are up for repurchase, in line with the permissions granted during the general meeting held on 24 July 2023.
Liberum Capital Limited will oversee the execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, strictly operating within defined parameters and without intervention from the company or its board members. All acquired shares will be categorized as treasury (dormant) shares, meaning they won't be eligible for dividends or voting rights at general meetings.
The buyback program is scheduled to run until the company's preliminary results are disclosed for the year ending 31 December 2023. Even during the company's closed periods, the buybacks may continue.
"The purpose of this Share Buyback Program is to further underscore the Board's ongoing confidence in the future prospects of Plus500, reflecting the Group's strong financial position and ability to deliver impressive future shareholder returns," the company commented in the official statement. "This confidence is backed by the significant operational and financial momentum achieved by Plus500 over recent years, as the Group continues to further its strategic roadmap."
As mentioned earlier, this is the second asset buyback program initiated by the broker this year. The first was announced at the end of February, seamlessly continuing the previous share buyback phase. It was part of a broader plan to distribute $100 million among the company's investors.
The Plus500's share price dropped after reaching record levels at the beginning of 2023, when a single Plus500 share was valued at nearly 2000 pence. From February to August, it fell by almost 30% and is currently priced at 1400 pence. However, the shares rebounded from the 14-month lows tested in June.
Decreasing Traders' Activity Affects Plus500's Revenue
The decline in share value can be attributed, in part, to the deteriorating revenue performance of the broker. This, in turn, was caused by the generally reduced activity of consumers and retail investors in the markets during the first half of 2023.
Last week, Plus500 published its interim results for the first half of 2023, revealing mixed performance for the period. Despite an improvement compared to the previous six months, Plus500's results showed a year-on-year decline of 28% in revenue.
The fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term company headquartered in London reported revenues of $368 million for the first half, which is down $142 million from the $511 million during the same period seen in the previous year. Out of this revenue, $346 million came from trading, and $22 million was from interest income.
Plus500's customer turnovers came in at $42 million in the year's first half. This figure marked a sharp decline compared to the $172 million in the previous year's first half, indicating diminishing customer activity and interest in investments.
After launching a $70 million share buyback program earlier this year, the publicly-listed London broker, Plus500 (LSE: PLUS), announced the commencement of another repurchase, valued at $60 million. According to the official statement, the company decided to take this step due to the approaching finalization of the agenda for the first buyback.
Plus500 Buys Back Shares Again
Plus500 claims that its latest asset buyback program underscores its strong financial position. According to transaction details, a maximum of 8,032,980 shares are up for repurchase, in line with the permissions granted during the general meeting held on 24 July 2023.
Liberum Capital Limited will oversee the execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, strictly operating within defined parameters and without intervention from the company or its board members. All acquired shares will be categorized as treasury (dormant) shares, meaning they won't be eligible for dividends or voting rights at general meetings.
The buyback program is scheduled to run until the company's preliminary results are disclosed for the year ending 31 December 2023. Even during the company's closed periods, the buybacks may continue.
"The purpose of this Share Buyback Program is to further underscore the Board's ongoing confidence in the future prospects of Plus500, reflecting the Group's strong financial position and ability to deliver impressive future shareholder returns," the company commented in the official statement. "This confidence is backed by the significant operational and financial momentum achieved by Plus500 over recent years, as the Group continues to further its strategic roadmap."
As mentioned earlier, this is the second asset buyback program initiated by the broker this year. The first was announced at the end of February, seamlessly continuing the previous share buyback phase. It was part of a broader plan to distribute $100 million among the company's investors.
The Plus500's share price dropped after reaching record levels at the beginning of 2023, when a single Plus500 share was valued at nearly 2000 pence. From February to August, it fell by almost 30% and is currently priced at 1400 pence. However, the shares rebounded from the 14-month lows tested in June.
Decreasing Traders' Activity Affects Plus500's Revenue
The decline in share value can be attributed, in part, to the deteriorating revenue performance of the broker. This, in turn, was caused by the generally reduced activity of consumers and retail investors in the markets during the first half of 2023.
Last week, Plus500 published its interim results for the first half of 2023, revealing mixed performance for the period. Despite an improvement compared to the previous six months, Plus500's results showed a year-on-year decline of 28% in revenue.
The fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term company headquartered in London reported revenues of $368 million for the first half, which is down $142 million from the $511 million during the same period seen in the previous year. Out of this revenue, $346 million came from trading, and $22 million was from interest income.
Plus500's customer turnovers came in at $42 million in the year's first half. This figure marked a sharp decline compared to the $172 million in the previous year's first half, indicating diminishing customer activity and interest in investments.