20th Feb 2024 21:06
(Alliance News) - Plus500 Ltd's outlook remains positive, although shares were marked lower after it posted a drop in both annual revenue and profit.
For 2023, the London-based financial technology company reported pretax profit of USD336.2 million, down from USD474.3 million a year prior.
Revenue was USD762.2 million, down 13% from USD832.6 million the previous year. This was comprised of trading income of USD674.3 million and interest income of USD51.9 million.
The firm declared a final dividend of USD0.39 per share, as well as a special dividend of USD0.56 per share.
It also launched a new USD100.0 million share buyback programme.
Jefferies described the results as "high-level" and "robust", although in-line with guidance provided in January.
The broker pointed out the US businesses continue to add clients, both retail and institutional.
It said the UAE has helped increase average customer size and expects it to remain significant for Plus. Meanwhile Japan is likely to be a slow burner, but significant in due course.
"These large markets, as well as other recent additions, will help grow Plus's footprint and increase average client quality", Jefferies said.
Jefferies felt the guidance was prudent and sensible but may end up looking conservative later in the year.
The broker reiterated its 'buy' rating with a share price target of 2,300 pence per share.
"Having returned nearly 20% of the current market cap to shareholders in 2023, Plus has announced another 9.6% is coming", the broker said.
"With EPS being concentrated by the buy-backs, growth in new markets and helpful event-driven volatility prospects, we remain buyers", Jefferies added.
Shares in Plus500 closed down 4.4% at 1,750p each in London on Tuesday.
By Jeremy Cutler, Alliance News reporter
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