Plus500 shares get boost on strong H1 trading figures

Shares in online trading platform Plus500 (LON:PLUS) rose sharply in early trading on Monday, after an update said figures for the full year were likely to be “significantly” ahead of expectations.

The company said it had continued to trade “very strongly” in the first half of the year, exceeding the Board’s expectations with “strong new customer sign ups”. Plus 500, who are an Israel-based online trading platform for CFDs, delivered a higher EBITDA margin than the same period last year.

However, the company warned that the outcome of the year will be subject to the balance between “the benefit of the positive trading conditions from the two quarters continuing, set against the possible negative impact of the expected regulatory changes in a number of our countries of operation.”

The Financial Conduct Authority announced last week that it would be cracking down on the fees charged by trading platforms, in order to make the industry more efficient and transparent.

Plus500 commented on the changes:

“With regards to the announcements made by the FCA and ESMA on the 29 June, Plus500 welcomes a co-ordinated approach by regulators and consistent conduct rules across all European jurisdictions. The company supports changes to regulation that will enable the industry to become more sustainable with only compliant providers. The company retains a highly flexible business model which we believe will allow us to be one of the leaders in the sector.”

Plus500 CEO Asaf Elimelech said the group had had a “very successful half year, significantly ahead of our expectations.”

“This puts us in a strong position for the remainder of the year. We are confident that our flexible business model will enable us to adapt to the upcoming regulatory changes and gives us a competitive advantage that will enable us to deliver another excellent performance this year.”

Plus500 shares are currently trading up 6.87 percent at 585.00 (0945GMT).