Plus500, a major Europe-regulated forex and CFD broker, said it expects stronger Q2 2017 results and maintained profit margins, compared to Q1.
This is despite considerably lower levels of volatility as measured by the VIX index, compared to Q2 2016.
Plus500’s net cash balances stood at approximately $191 million as of 31 May 2017. This includes a total of $75.0m due to be paid out in dividends (final and special) on 3 July 2017.
According to a separate company statement, the Plus500 Board approved a programe to buy back up to $10 million of the company shares. Share purchases will take place in open market transactions and may be made from time to time depending on market conditions, share price, trading volume and other factors.
The transactions will be managed by the independently-owned pan-European investment bank Liberum Capital. The Plus500 Board will have no say in the process and it will be carried out entirely at Liberum’s discretion.
The program will run from June 2 till end of August this year.
The maximum number of shares that may be acquired through the buyback is 11,488,837, which, in line with UK market practice, represents 10% of the company’s issued share capital. The program will be funded from the aforementioned net cash balance of $191 million.
As of June 2, Plus500’s market cap stands at GBP 622.1 million and a share trades at around GBX 544.
Plus500 offers trading in forex, options, contracts for difference (CFDs), commodities, indices, and exchange-traded funds (ETFs). It operates its own online trading platform for CFDs available in over 31 languages on desktop and Android, Windows and iOS mobile operating systems. The broker is regulated in five countries – the UK, Cyprus, Australia, New Zealand, and South Africa.