Shares in London listed fintech group Plus500 jumped this morning as bosses hiked profit and revenue guidance for the year on the back of a bumper set of first quarter results.
In a trading statement today, the firm said that performance in the second quarter of the year had continued to be “very strong”, supported by “current market conditions”.
“Consequently, the Board has increasing confidence around the Group’s performance for FY 2022, and therefore anticipates that Plus500’s revenue and EBITDA for this year will be significantly ahead of current market expectations,” the firm said.
“Furthermore, Plus500 will continue to build its strategic position as a global multi-asset fintech group, through organic investments and by actively targeting acquisitions, to help deliver sustainable growth over the medium to long term.”
The update comes on the back of a bumper set of first quarter results in which revenues and profits surged on last year, with EBITDA hitting $161.6m, up 33 per cent on the same period in 2021.
Performance was bolstered by a push into new markets as the firm earned a new licence in Estonia alongside an expansion into Japan, as well as the introduction of a host of new products.
Shares in the firm are up nearly 13 per cent this year and jumped around three per cent this morning as bosses delivered the raised revenue forecast.
Analysts at investment bank Liberum said its new products had caused it to raise its outlook for the firm.
“The group’s strong performance is attributable to the development of new proprietary technologies and product offerings, which will continue to deliver growth and geographic diversification,” analysts said.
“We increase our FY22 revenues and EBITDA by 8 per cent and 16 per cent to $675m and $330m respectively, although maintain our current FY23 and FY24 forecasts.”
However, bosses have faced a showdown with investors in the past two weeks as investors rejected the remuneration report at its annual general meeting.
Nearly 55 per cent of investors of those who voted rebuffed the firm’s remuneration report, which netted boss David Zruia nearly $2.5m in pay and bonuses, while Elad Even-Chen, the finance chief, bagged $2.6m.