Plus500 Share Discussion Threads

[irishmatt] 08/1/2024 09:26

Nice problem to have though!!

[aleman] 08/1/2024 09:07

Consensus here is earnings of 278 cents and dividend of 69 cents. The company is already awash with cash. What is it going to do with it all? Slightly higher regular dividend, more buy-backs and a special dividend, perhaps?

[thorpematt] 08/1/2024 08:44

Trading of a PER of about 8

Of course it has a lot of cash t so EV to PBT ratio is a lot lower than 8 - probably about half.

This stock has virtually zero cap-ex and its cash conversion is almost 100%

For most stocks EBITDA has a lot of I and a lot of D.

PLUS pays it tax and with acquistions sees some Amortisation but for the last 10 years no exceptionals are reported.

[grahamg8] 08/1/2024 07:40

PLUS updates are usually understated. This one sounds very like 'two fingers' to you doubters.

[base7] 08/1/2024 07:23

Substantially ahead is always good-very encouraging & while Directors are adding value for all shareholders they thoroughly deserve their share awards

[boonboon] 08/1/2024 07:13

Good update.

[whitelotus40] 05/1/2024 11:37

yes usually in 2nd or 3rd week of Jan

[magicformulainvestor1] 03/1/2024 12:36

Post close trading update next Monday. Anyone know if this is usual behaviour?

[base7] 29/12/2023 18:03

String end of year & delayed reaction to RNS earlier this month referring to our US expansion -which will hopefully be vindicated by the trading update due early next month .

[thorpematt] 13/12/2023 09:13

Yep, moves in mysterious ways this stock, but stil great value IMO

[scepticalinvestor] 11/12/2023 12:49

Lovely trend now - up over 20% since my buys at just below 1300

[base7] 05/12/2023 08:34

Yesterday's RNS has been overlooked by The Market.Becoming a member of the FIA is a positive for our potential US growth,which,according to our CEO is compelling & we are already a leading service provider there.Perhaps our next update will put numbers to our US revenues?

[seadog40] 13/11/2023 18:01

47.70 ps via A J Bell.

[blueliner] 13/11/2023 17:44

My payment via HL worked out at 47.60p executed on Friday .

[aleman] 13/11/2023 16:22

My dividend landed today. It was paid into my bank directly in Sterling, as promised after last time's delays. I've been paid 46.26p per share which suggests an exchange rate of $1.27 has been used by Link Registrars after 20% tax. Did others receive similar?

[scepticalinvestor] 10/11/2023 20:41

Lol sorry 4k gbp

[nickwild] 10/11/2023 20:38

is that 4 million in divis?

[scepticalinvestor] 10/11/2023 17:20

4000k gbp in divis received today. All reinvested in PLUS.Thank you PLUS

[scepticalinvestor] 07/11/2023 08:40

Looks like a new base forming at arnd 1400

[aleman] 26/10/2023 11:30

planelondon - that's useful to know. Thanks for pointing it out.

[planelondon] 26/10/2023 11:26

The $10.4m of Trade Payables due to clients you have identified, are likely to be client money obligations to Eligible Professional Customers (EPC), whose deposits are not placed in segregated client money accounts but instead sit on the company’s balance sheet with customers being general creditors of the company.

[planelondon] 26/10/2023 11:15

Aleman, the reason your interest income “almost appears too high at around 4.8%” is because you are not considering interest earned on US client segregated funds that aren’t reported at all in the company accounts but the company receives the interest on those funds.

The net customer deposits of $272.4m you refer to only relate to customer deposits in respect of CFD customers and not US futures customers. CFD deposits are disclosed within the company accounts but do not belong to the company and sit outside the company’s reported cash balances of $930m (31/12/22) and $875m (30/09/23). Although, the interest earned on these deposits is attributed to the company.

The regulatory, accounting and reporting procedures for segregated customer deposits differ slightly between CFDs and US futures.

Hope this helps explain why interest rate income appears high relative to the cash balances you have identified within the accounts.

[aleman] 26/10/2023 09:02

Customer money seems to be covered in cash and trade payables notes.

Note 19 trade payables:

Customer Deposits $411.5m
Open position assets $139.0m
Open position liabiliities $10.3m
Customer Net Deposits $282.8m
Segregated Client Funds $272.4m
Trade Payables due Clients $10.4m

The $10.4m figure is on the balance sheet as Trade payables to Clients so it looks like all the rest of clients' money is covered by their segregated cash and their open positions.

This is reinforced by Note 16 which shows Own Cash of $930.2m after deducting $272.4m of segregated client funds from $1202.6m of gross cash, about 2/3rds of which is in USD. The Own Cash and Equivalents figure in the note is on the balance sheet as just Cash and Equivalents.

So I'd expect PLUS get all the interest on the $930.2m (latest is above $875m at Q3) and perhaps a margin on customers' $272.4m. The company's interest in Q3 was $14.4m , which seems very healthy - almost too high at around 4.8% annualised of gross cash or 6.2% annualised of Own Cash. That could be down to payments timing but you'd expect accounting to accrue interest rather than just record as it's credited.

[aleman] 26/10/2023 08:49

From FY 2022 results:

In January 2022, the Company’s status as a PTE, as accredited by the ITA under the tax regime in Israel, has been extended for the financial years 2022, 2023, 2024, 2025 and 2026, subject to the Company complying with the conditions of the Law for the Encouragement of Capital Investments. Consequently, the Company’s corporate tax rate for each of these years will be reduced from 23% to 12% and the withholding tax rate applicable for dividends will be reduced from 25% to 20%.

[riverman77] 25/10/2023 19:52

I don't think client money would be included in the 875m cash figure - this is the company's cash. That said, a fair amount of this would always need to be retained as a capital surplus, so shareholders would never get their hands on all this cash. Even so, still incredibly cheap. Not a fan of EBITDA, but in this case there wouldn't be much in terms of depreciation and no interest costs.