Fintech trading platform Plus500 topped market expectations for the year today and announced it would put £82m ($100m) back in shareholders’ pockets after cashing in on “higher value” customers last year.
In its preliminary full year results, the London-listed Israeli firm announced it would kick off a new $70m share buyback programme alongside a $30m full year dividend, after profits before deductibles surged 17 per cent to $455.8m.
Chief David Zruia hailed an “excellent set of results” for the firm and said it “continues to outperform” the market.
“Our performance was again driven by Plus500’s unique proprietary technology stack proposition, which underpins our on-going ability to attract and retain higher value customers over the long term,” he added.
Plus500 allows amateur traders to bet on stocks and provides online trading services in contracts for difference, share dealing, futures trading.
It was among a host of platforms to enjoy a boom through the pandemic as retail investors looked to tap into volatile markets. However unlike some of its peers, it has maintained its growth and reported bumper results in the past two years.
The firm said it had been boosted by “higher value, long term customers” in the past 12 months as customer deposits jumped to $2.3bn – up from $2.1bn last year – while its average deposit grew to a record high of around $8,000.
It is now looking to ramp up a global expansion and eyeing further growth in the US, Zruia said this morning.
“We are in an extremely exciting strategic and commercial position, with multiple potential growth opportunities available, particularly in the US futures market, which will continue to drive our growth as a global multi-asset fintech group,” he said.
Analysts at Liberum said the results today “confirm the cash generative nature of its business model” which was driving “customer acquisition and retention”.
“Not only do these cash flows support high shareholder distributions (cumulative $1.7bn since IPO), they also fund the investment in the group’s growth and diversification strategy, as it builds out a multi-asset fintech platform,” the added, recommending clients buy the stock.