Plus500 Continues Share Buyback Program
Retail broker Plus500 continued with its pre-planned share buyback on Thursday, with the details of the transactions released by the London Stock Exchange news service.
In total, the retail trading firm purchased 67,745 ordinary shares on the London Stock Exchange. Those transactions were carried out via Credit Suisse Securities.
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The broker paid a high of 757.20 pence for some shares and a low of 709.60 pence for some others. On average, the broker spent 738.01 pence per share.
That being the case, Plus500 spent just under £499,964 ($610,206) on its buyback program.
The market maker now holds a total of 1,789,283 ordinary shares. Those are stored in the group’s treasury.
News of a buyback program was first announced last week. In its half-year financial report, Plus500 said that it would be committing $50 million of its cash reserves to buy back stock.
That announcement came on the heels of a poor set of half year financial results for the retail broker.
Revenues were down by 68 percent compared to the first half of 2018 and by 42 percent compared to the second half.
To fair to the firm, there were some unique factors at play that led to this dramatic decline.
Firstly, its performance in the first half of 2018 was driven massively by a boom in cryptocurrency trading which hasn’t been replicated since.
In August of last year, regulatory changes were also introduced by the European Securities and Markets Authority that had a negative impact on the group’s operations.
That impact was compounded by a prolonged period of low volatility that began in the final months of 2018 and continued into the first few months of this year.
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