Plus500 surges on share buyback announcement

Online trading platform provider Plus500 surged on Friday after it announced a share buyback and said current trading has continued the positive trends outlined in the first quarter update back in April.

The company said its board has approved a programme to buy back up to $10m in shares, funded from its current net cash balances which stood at around $191m at the end of May. This includes a total of $75m due to be paid out in dividends on 3 July.

Chief executive officer 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."

Plus500 also said that compared to the first quarter, trading revenue has been stronger and profit margins have been maintained despite considerably lower levels of volatility as measured by the VIX Index than in the same period of 2016.

The company added that none of the regulatory changes announced in various jurisdictions in which it operates has had a material impact on its trading performance, although it continues to monitor trends closely and is awaiting the outcome of the FCA consultation which could affect the second half of this year.

At 0930 BST, the shares were up 8.4% to 562.75p.