Plus500 allots additional $10 million to share buyback

In a regulatory filing, Plus500 Ltd. (LSE: PLUS) said it will kick off a fresh $100 million share repurchase program immediately after the completion of the ongoing $60.0 million buyback.

The publicly-traded broker added that the move reflects the opportunities available to drive future ‎growth, as well as its high cash generation. ‎

In 2023, the broker rolled out a generous shareholder return strategy, dishing out around $350 million in total. This hefty sum was split between a share buyback initiative worth $257.5 million—highlighted by a notable $127.5 million share repurchase carried out on June 13—and dividends totaling $90 million.

Plus500’ most recent Extraordinary General Meeting (EGM) has granted the green light for the board to continue the existing buyback program, which was initially unveiled on 14 February 2023.

The resolution, voted on via a poll, passed by the requisite majority. Out of the total votes cast (excluding votes withheld), a majority of 80.66% were in favor of returning more money to the shareholders, while 19.34% voted against it. In terms of issued share capital, the resolution garnered a 57.26% of support.

With the new approval in place, the company’s board has the authority to consider future purchases of ordinary shares prior to the scheduled 2024 Annual General Meeting (AGM).

Plus500 kicked off a further share buyback program of $70 million in February 2023, which follows a previous $60 million share buyback program announced in 2022. The move was part of its previously announced plan that will put $100 million back into shareholders’ pockets after the online trading platform revealed bumper profits for 2022.

Maintaining a balanced approach between funding growth in key channels and returning excess liquidity to shareholders, Plus500 said that it has updated its shareholder returns policy, keeping the current return of at least 50% of the net profit but only via share buybacks. This compares with the previous policy of returning the profit through dividends and share buyback programs, with at least 50% made by way of dividends.