Fintech trading firm Plus500 has unveiled a $50m share buyback today after reporting bumper revenues for the first quarter of the year yesterday.
The fresh buyback programme will run alongside an existing $55m buyback announcedin February, as bosses put excess cash to work after revenues were boosted to $270.9m.
Plus500 said it felt the lift of market turbulence in the past three months, with losses suffered by retail traders providing a $82.9m boost to the firm.
Bosses said the fresh buyback signalled a strong outlook for the firm.
“The purpose of the New Share Buyback Programme is to further highlight the Board’s continued confidence in the future prospects of Plus500 and reflects its strong financial position, with the Group’s cash balances at $886.6m, as at 31 March 2022,” the firm said in a statement.
“This confidence is supported by the significant operational and financial momentum achieved by Plus500 over recent years, as the Group continues to make further progress on its strategic roadmap.”
The firm said yesterday it now expects revenues for the full year to sail pass market expectations yesterday.
Shares in the firm are currently trading up 6.72 per cent on yesterday.
Bankers at Liberum yesterday said it had been “another great quarter” for the firm and doubled down on their buy rating for the stock.
“Substantial strategic progress has also been made as Plus500 transitions into a multi-asset fintech group, including a new licence in Estonia, expansion into Japan and becoming a full clearing member firm of the CME group in the US,” they said.