Plus500: 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.

Source: Plus500

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