Plus500 Ltd (LON:PLUS) saw its share jump over 8% higher in late morning trading after the online trading company unveiled a share buyback programme and said its business has improved since the first quarter.
The AIM-listed group said that its current trading had “continued the positive trends outlined in the first quarter trading update issued on 26 April.”
The firm, which is focused on the CFD (contracts for difference) market, added that trading revenue has been stronger than the first quarter and profit margins have been maintained.
READ: Plus 500 posts record numbers in turbulent year
Plus500 posted a 9.0% year-on-year fall in revenue to US$77.5mln in the first quarter.
It said the improved performance came “despite considerably lower levels of volatility as measured by the VIX Index than in the same period of 2016.”
The group also added that "none of the regulatory changes announced in various jurisdictions in which the company operates has had a material impact on trading performance."
However, it said it continues “to monitor trends closely, and are awaiting the outcome of the FCA consultation which could affect the second half of 2017.”
Buy-back will be funded from cash resources
Separately, Plus500 announced it will buyback US$10mln of its own shares from today through until August 31.
It said the buy-back will be funded from its cash resources which stood at US$191mln at the end of May.
Plus500’s chief executive, Asaf Elimelech said: "Together with the substantial dividend payments due to be paid in July, our cash generative business model is enabling us to provide good shareholder returns despite current regulatory uncertainties."
In late morning trading, Plus500 shares were up 8.6%, or 44.5p at 563.5p.