Under the terms of the proposed acquisition by Playtech the Board agreed not to declare an Interim Dividend for 2015. However, after the termination of the merger agreement, the Board declares an Interim Dividend of $0.2121 per share (totalling $24.37 million). The record date is set to be in December 2015.
The Board has approved a program to buyback up to $20 million of Plus500’s shares. Share purchases will take place in open market transactions. The buyback programme, which is expected to start at the discretion of the broker, does not require Plus500 to acquire a specific number of shares, and may be suspended from time to time or discontinued. The buyback programme will be funded from available working capital.
Plus500 also provided an update regarding the performance of the company in the final quarter of 2015, saying that trading continues to be strong. The trend of customer numbers and revenues announced in the half-year results and the Q3 trading update has continued through Q4.
Regulatory compliance capability has been strengthened with the broker keeping up with investments in strengthening its management capabilities, particularly in regulatory compliance. The Group is not subject to restrictions imposed by any of its regulators.
Product innovation goes on. Further innovations are coming, adding to recently launched proprietary Apple Watch app. The broker also recently commenced trading of CFDs on options and these have proved to be popular with its customers.
The Board confirmed its forecast that revenue for the whole of 2015 to be ahead of 2014 but with profitability still not expected to match that of last year.
Gal Haber, Chief Executive Officer of Plus500 commented:
“Following the agreement with Playtech that the merger between the companies will not proceed, we can confirm that our business is in good shape for a successful future as an independent company.
Plus500 remains a growing, highly profitable and cash generative company with strong momentum in an expanding international market. We have adopted a “business as usual” policy during the lengthy acquisition timetable and continued to invest in our marketing, technology and regulatory operations during this period. As a result we are very confident that as an independent business we are well positioned to continue to deliver significant returns for shareholders including the declaration today of an intended interim dividend of $0.2121 per share and share buyback programme.”
To view the official statement from Plus500, click here.