Retail FX and CFDs broker Plus500 issued a brief statement (see full text below) ahead of its (virtual) annual general meeting of shareholders which will take place later this morning in London.
Plus500 indicated that Revenue – and in particular Customer Income – has remained strong in H2 2020 to date. The company noted that it continues to on-board a “high level” of new customers. Plus500 reported a record $564 million in Revenue and $320 million in net profit in the first half of 2020, driven by a combination of increased trading among its existing clients, and an unprecedented number of new client sign-ups. It looks like a lot of that momentum has continued into Q3.
The Times has reported this morning that the company’s AGM might not be a rubber-stamp of resolutions, with some shareholder opposition being reported with regard to certain bonuses proposed for management, and the re-election of certain directors. Shareholder advisory services Institutional Shareholder Services and Glass Lewis have each recommended that investors vote against a planned $1.2 million bonus to the company’s CFO Elad Even-Chen, which the company said was justified based on his work on minimizing taxes for Plus500.
Here is Plus500’s statement from this morning. We will continue to follow the situation on the AGM resolutions. Stay tuned to FNG….
16 September 2020
(“Plus500”, “the Company” or “the Group”)
AGM Trading Update
Plus500, a leading technology platform for trading Contracts for Difference (“CFDs”) internationally, issues the following trading update ahead of today’s AGM, which is taking place at 10.00am BST.
The operational momentum achieved during H1 2020 has continued into the second half to date, with Plus500 making excellent progress across all key commercial and financial performance metrics. This performance has been primarily driven by the strength and differentiation of the Company’s proprietary technology.
Revenue, in particular Customer Income, has remained strong in H2 2020 to date, supported by further growth in the Company’s Active Customer base. The Company has also on-boarded a high level of new customers so far in the second half, driven by continued investment in its marketing technology, rapid response to market events and attractiveness of the Group’s market-leading mobile and tablet offering.
These factors have ensured that platform usage remains at elevated levels and customer deposits continue to be very robust.
Plus500 remains well placed to deliver sustainable future growth, given its proprietary technology, its flexible and scalable business model, its strong financial position and a track record of delivery against key performance metrics.
While market conditions remain uncertain, macroeconomic and sector-specific newsflow continue to provide significant trading opportunities for customers. Therefore, the Board remains very confident about the outlook for Plus500, particularly given the Company’s outstanding performance so far this year.
The Company will publish its results for Q3 2020, for the period ended 30 September 2020, on 27 October 2020.