Plus500 (PLUS) spent last year getting its house in order after the group was compelled by UK regulators to review client documentation to ensure compliance with anti-money laundering regulations. The Israel-based group had to suspend some customer accounts in the process, and its shares plummeted. An aborted bid from Playtech (PTEC) provided further distraction.
Learning lessons, management appointed additional compliance staff, including a senior money laundering reporting officer and senior compliance officer, and conducted a wide internal review of its onboarding processes. Sharpening up the group's compliance processes didn't come cheap and, together with high marketing costs, cash profit margins were down 15 percentage points.
Yet Plus500's marketing drive had the desired effect. New customers increased by more than a quarter to almost 85,000, pushing up revenue. Management has been focusing on attracting higher-value customers by winning new business in western Europe, which now accounts for around three-quarters of the group's revenue. This did mean the average cost of acquiring new users increased by around a third, while selling, general and administrative expenses grew almost three-quarters to $143m (£100m). But chief executive Gal Haber is confident this will pay off in the long term as clients spend more.
House broker Liberum expects adjusted EPS of 87ȼ for 2016, compared with 84ȼ last year.
PLUS500 (PLUS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 531p | MARKET VALUE: | £610m | |
| TOUCH: | 530-532p | 12-MONTH HIGH: | 781p | LOW: 198p |
| DIVIDEND YIELD: | 11.1% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 102ȼ | NET CASH: | $157m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2011* | 50 | 23.1 | 7.3 | na |
| 2012* | 56 | 23.1 | 7.3 | na |
| 2013 | 115 | 67.2 | 47.0 | 35.73 |
| 2014 | 229 | 138 | 89.0 | 80.08 |
| 2015 | 276 | 128 | 84.0 | 84.05** |
| % change | +20 | -7 | -6 | +5 |
Ex-div: 24 Mar Payment: 11 May *Pre-IPO figures **Includes special dividend of 33.62ȼ a share £1=$1.43 | ||||
