Compound Income
  • Blog
  • Scores
    • Subscribers Scores Access
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact



$PLUS - Interim results to 30 June 2014

13/8/2014

0 Comments

 
Picture
This is one I wrote up in more detail as a Volatile each way trading opportunity in late June when it had fallen below 500 pence. Since then it went onto announce a positive trading update in early July as I thought it might. It also then went on to hit (intra day) my lower price target of 350 pence and has since recovered as they did indeed put out a statement saying that they knew of no reason for the share price fall, again as I thought they might.

So as expected, given the recent announcements from the company, the results are very strong. The highlights from the statements were as follows:

·      Revenues up 138% to $106.2 million (H1 2013: $44.7 million)

·      EBITDA1 up 229% to $72.0 million (H1 2013: $21.9 million)

·      EBITDA margin up 39% to 68% (H1 2013: 49%)

·      Net profit up 249% to $53.8 million (H1 2013: $15.4 million)

·      Earnings per share increased 213% to $0.47 (H1 2013: $0.15)

·      ARPU up 76% to $1,580 (H1 2013: $898)

·      Interim dividend per share of $0.235

.      Interim dividend pay-out of $27 million

.      Representing 50% of H1 2014 net profit

·      Operating cash flow up 301% to $62.9 million (H1 2013: $15.7 million)

·      Net cash up 252% to $115.2 million (H1 2013: $32.7 million)

On current trading and the outlook they said:

"
Plus500 has performed strongly in the first half of 2014 and the Board looks ahead with continued confidence.  This solid performance further underpins the Board's commitment to pursuing a strong dividend policy and therefore the board is pleased to declare a dividend of $0.235 per share.

Whilst customer acquisition slowed in the second quarter, EBITDA margins have remained strong, underpinned by increased ARPU and ongoing improvements in the efficiency and effectiveness of the Company's online marketing efforts.  Current Q3 trading has continued to be strong and the Group is therefore confident of meeting market expectations for the year ending 31 December 2014.
"

Summary and Conclusion
Another set of strong results, as expected given the recent statements and the lower comparatives that they were up against in the first half. It is encouraging to see that they are still confident of meeting market expectations for the year. In addition, the recent pick up in volatility in markets generally, if it is sustained, should help this business and make it easier for them to match the tougher comparatives that they face in the second half. This is especially relevant as the number of new and active customers were down in Q2 2014 versus Q1 and only up a little on 12 months ago - so a definite loss of momentum - although volatility has picked up since then which may help. The cost of acquiring new users was also up sharply both quarter on quarter and year on year.

The shares have recovered well from the recent lows around 350 pence and I hope you managed to get some good trading profits if that's your thing. At the closing price of 520 pence yesterday it was trading on around 10x with a 5.8% yield based on forecasts struck before any changes after these numbers. The shares are off first thing suggesting that after the steep recovery in the price that some consolidation of the gains may be required in the absence
of upgrades on the back of the  numbers in this announcement. So if you got in at the lower levels and are a trader at heart then I wouldn't put you off taking some profits here. However, in the longer term, if they continue to deliver growth albeit most likely at a slower rate, then there should be some upside to the rating and the share price, although no doubt it will be a volatile ride.

Finally on the dividend note that as this is an Israeli stock there are some funnies on the tax situation which mean that UK investors could well be hit by 25% withholding tax.
The Company explained this in more detail in an announcement last year, while one from March this year was probably more helpful and worth checking out if you hold the shares and want to try and avoid being hit with withholding tax on your dividends.

Picture
0 Comments



Leave a Reply.

    RSS Feed

    Archives

    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    August 2019
    June 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    Categories

    All
    32Red
    Aberdeen Am
    Admin
    A G Barr
    Airtel Africa
    Alliance Pharma
    Alternative Telecoms
    AMEC
    Amino Technologies
    Amlin
    Anglo Pacific
    Ashtead
    Asset Allocation
    Auto Trader Group
    Barclays
    BA Systems
    BATS
    Behavioural Finance
    Bellway
    Berendsen
    BHP Billiton
    Bloomsbury Publishing
    Bodycote
    Books
    Bovis Homes
    BREXIT
    Britvic
    Caledonia Mining
    Capital Ltd.
    Catlin-group
    Central Asia Metals
    Centrica
    Character Group
    Churchill China
    Cineworld
    City Of London Investment Group
    Clarkson
    CMC Markets
    Commercial Property
    Compound
    Computacenter
    Connect Group
    Croda
    Currencies
    Demographics
    Diageo
    Diploma
    Directors Dealings
    Dividends
    DotDigital
    Easyjet
    Economics
    Emerging Markets
    Emis
    Empiric Student Property
    Etfs
    Fairpoint
    Ferguson
    Ferrexpo
    Finsbury Foods
    Food Retailers
    Forterra
    Games Workshop
    Gateley
    Go Compare
    Goid
    Greene King
    GSK
    Hargreaves Services
    Hays
    Headlam
    Hedge Funds
    Hikma Pharmaceuticals
    Hill & Smith
    House Builders
    Howden
    HSBC
    IG Group
    IMI
    Imperial Tobacco
    Indivor
    Inflation
    Insurance
    Intermediate Capital
    Interserve
    Investec
    Investment Trusts
    It
    ITV
    James Halstead
    Jarvis Investment Management
    JLT
    Jupiter Fund Management
    KCOM
    Kingfisher
    Legal & General
    Lloyds Bank
    Luceco
    Macfarlane
    Maintel
    Man Group
    Market Timing Indicator
    Market Valuation
    Marston's
    Matchtec
    Media
    Merlin Entertainment
    Micro Focus
    Mining
    Mitie
    Miton Group
    Moenysupermarket
    Mondi
    Moneysupermaket.com
    Morgan Sindall
    Music
    National Grid
    N.Brown
    News
    Next
    Nichols
    Norcros
    Oil
    Page Group
    Paypoint
    Pennon
    Persimmon
    Personal Finance
    Pharmaceuticals
    Phoenix Group
    Photo Me
    Photo-Me
    Plus500
    Podcasts
    Polar Capital
    Politics
    Polymetal
    Portfolio
    Portmeirion
    Provident Financial
    PZC
    Qinetiq
    Ramsdens Holdings
    Rank Group
    Reckitt Benckiser
    Renewable Energy
    Renew Holdings
    Renishaw
    Research Papers
    Restaurant Group
    Retailers
    RIO
    RM Group
    Rolls Royce
    RPC
    RPS
    Safestore
    Sage
    Sainsburys
    Savills
    Schroders
    Scores
    SCS Group
    Sell Discipline
    Shareholder Yield
    Share Picks
    Short Interest
    Somero
    Spectris
    Sprue Aegis
    SSE
    Stock Spirits
    Strix Group
    S & U Plc
    Sureserve
    Sylvania Platinum
    TalkTalk
    Taptica
    Tax
    Technology
    Telecoms
    Tobacco
    Trading Ideas
    TSB
    TUI
    UK Market Update
    Ultra Electronics
    Unilever
    Utilitywise
    Value
    Victrex
    Vodafone
    VP.
    Water Utilities
    Watkins Jones
    WH Smiths
    William Hill
    Wynstay
    XL Media
    XP Power
    Yield
    Zytronic

    googleda4a17cac6d02bb9.html
    File Size: 0 kb
    File Type: html
    Download File

Powered by Create your own unique website with customizable templates.
  • Blog
  • Scores
    • Subscribers Scores Access
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact