Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Plus 500 leaps after saying full year profit and revenue seen beating market expectations

The AIM listed firm said it achieved strong volumes in crypto currency CFDs and experienced increased interest in the offering throughout the year
Spread betting sign
Plus 500 added that it achieved record quarterly revenue in the final quarter of 2017 and said about 246,000 new customers joined during the year

Plus500 Limited (LON:PLUS) saw its shares jump today after the spreadbetting firm said it expects to report full-year profit and revenue ahead of market expectations after rising customer numbers and strong trading helped to offset challenges from a sector-wide regulatory clampdown.

In a post-close season trading update, the AIM-listed firm - which provides an online trading platform for retail customers to trade contracts for differences (CFDs) – said it achieved strong volumes in crypto currency CFDs and experienced increased interest in the offering throughout the year.

READ: Spreadbettors drop as EU watchdog proposes curbs on core business parts

The group added that it achieved record quarterly revenue in the final quarter of 2017 and said about 246,000 new customers joined during the year, up from 104,432 a year earlier.

Asaf Elimelech, Plus 500’s chief executive officer, commented: "Momentum in the business has continued to be strong with increased interest in our crypto currency CFD offering and record new and active customer numbers, demonstrating our ability to serve our customers' trading needs through product innovation and technology leadership."

The firm expects to report its preliminary results for the financial year ended 31 December 2017 before the end of February 2018.

In an update to an initial note, analysts at Liberum Capital raised their target price for Plus 500 shares to 1,232p from 1,069p after upgrading their EPS forecasts by 2%, 15% and 20% for 2017, 2018 and 2019, respectively.

Reiterating a ‘buy’ rating on the stock, the Liberum analysts said: “Our forecasts reflect stronger customer acquisition through our forecast horizon offset to some extent by lower ARPU, as a result of the ESMA leverage limits likely to come into force.”

READ: Plus500 and Somero join the Aim Sustainable Dividends portfolio

In mid-morning trading, Plus 500 shares remained a top gainer in London, up 16,4% at 1,026p.

  -- Updates broker comment, share price --

View full PLUS profile View Profile

Plus 500 Timeline

Article
September 05 2016

Related Articles

Merger
October 11 2017
"It will empower us to benefit from increased scale, enhance our product proposition and leverage operational efficiencies to attract more clients, and significantly increase our AUM."

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use