Plus500 Limited Trading and Remediation Update (5869R)
30 June 2015 - 4:01PM
UK Regulatory
TIDMPLUS
RNS Number : 5869R
Plus500 Limited
30 June 2015
30 June 2015
Plus500 Ltd.
("Plus500", "the Company" or "the Group")
Trading and Remediation Update
Plus500, a leading online service provider for retail customers
to trade CFDs internationally, today announces the following
Trading and Remediation update.
Trading
As at close of business on 27 June 2015, the last practicable
date, the Group had achieved revenues of $43m for the second
quarter, following $82m in the first quarter, giving year to date
revenues of $125m.
The second quarter is typically a quieter trading quarter for
the Group (second quarter 2014 revenue was $45.5m compared to first
quarter 2014 revenue of $60.7m for a total of $106.2m in H1
2014).
The Group's net cash position as of 27 June 2015 stood at
$95.4m. This excludes customer cash retained separately in
segregated accounts.
The Group anticipates publishing H1 2015 trading KPIs as soon as
possible and in any event prior to the Special General Meeting to
be held on 16 July.
Remediation plan update
Following on from the Group's update on the UK Company's
remediation plan on 9 June, the Group now considers it has
substantially completed the plan.
As at close of business on 27 June, 13,499 Plus500UK customers
had been fully reviewed by the remediation team and unfrozen,
thereby enabling those customers to trade and to deposit and
withdraw funds. Of these 9,758 (72%) have resumed trading, with
5,261 making additional funding deposits. Of the customers reviewed
and unfrozen 874 have cashed out all their funds (6%). In
subjecting these customer accounts to the remedial AML procedures,
only 5 accounts have had to be refused re-opening.
To date, the majority of customers' balances have been unfrozen.
While there remains a number of customers with small, nil and / or
dormant accounts still to request their accounts be unfrozen, these
represent a diminishing proportion of Plus500UK's client money
balances. The UK management team believe they can now be dealt with
on a "business as usual" basis along with new customer
applications, when the latter are resumed under the new improved
procedures.
Skilled Person review on Plus500UK Remediation
As announced in the Company's statement on 22 May, Plus500UK was
required by the FCA under a section 166 requirement notice to
appoint a second Skilled Person who was asked to review the steps
taken by Plus500UK in regard to its remedial AML procedures for
existing clients. The Skilled Person carried out a review of
Plus500UK's compliance with its remedial AML policies and
procedures for existing customers in respect of a sample of
existing customers. The Skilled Person sent a draft of its report
to the FCA and Plus500UK on 26 June. The Board is confident that
Plus500UK's revised procedures will meet regulatory approval.
Plus500UK onboarding
As previously announced, Plus500UK has been working with
compliance consultants to agree on revised procedures to enable the
onboarding of new customers. Such work has now concluded and
onboarding of new customers to Plus500UK is expected to recommence
in approximately 3 weeks' time.
Merger Proposal
As previously announced, the Information Statement and Notice of
Special General Meeting to approve the recommended cash acquisition
of Plus500 Ltd by a subsidiary of Playtech plc to be effected by
means of a merger under Israeli companies law (the "Merger") was
posted to Shareholders on 11 June 2015. The Information Statement
and Notice of Special General Meeting to be held in relation to the
Merger is also available online on the Company's website,
www.plus500.com.
The Special General Meeting is to be held at 11 a.m. on 16 July
2015 at the Regus Offices, Level 9, CityPoint, 1 Ropemaker Street,
London EC2Y 9HT. The Directors unanimously recommend that
Shareholders vote in favour of the Resolution being proposed at the
Special General Meeting in relation to the Merger.
Shareholders are reminded of the following 3 key dates with
regard to the Special General Meeting as set out in the Information
Statement sent to Shareholders dated:
-- 6 pm 2 July - Voting Record Time for determining the
Shareholders entitled to vote at the Special General Meeting
-- 11 am 14 July - Last time for lodging the Form of Direction (DI holders only)
-- 15 July - Last time for lodging the Form of Proxy
Shareholders should refer to the Information Statement and
Notice of Special General Meeting for further details of the
Merger.
For further information please contact:
Plus500 Ltd +972 4 8189503
Elad Even-Chen, Finance Director, VP Business Development and
Head of Investor Relations
ir@Plus500.com
Liberum - Nomad and Broker +44 20 3100 2222
Clayton Bush/Christopher Britton/Josh Hughes
MHP Communications +44 20 3128 8100
Reg Hoare/Tim Rowntree/Adam Leviton
Plus500@mhpc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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