Plus500 Ltd hails record performance for 2020, co-founder steps down

() has reported a record performance for its 2020 financial year as usage of its stockbroking platform surged during market volatility caused by the coronavirus (COVID-19) pandemic.

In an update for the year to December 31, 2020, the FTSE 250-listed firm said revenues for the period stood at US$872mln, ahead of its expectations, while customer income, its core focus, also reached record highs of US$997mln.

Plus500 said the strong performance demonstrated its “exceptional ability to respond to news events and volatile financial markets while maintaining a sophisticated, efficient and responsible business model”, adding that its active and new customer numbers had also risen to record levels during the year with a “much reduced” rate of customer churn.

The firm noted that client deposits and new customers had more than doubled year-on-year in its fourth quarter, which it said was driven by sustained levels of “significant investment” in its marketing technology.

As a result of this investment, Plus500 said it expects its underlying earnings (EBITDA) for 2020 will be around US$515mln and “broadly in line” with its expectations, the same figure forecast in its third quarter update.

The company added that it “remains confident about the outlook going forward” and that it is driving a number of initiatives that it said will “produce sustainable growth and cash generation over the medium to long term”.

“In the context of an unprecedented and uncertain market environment, 2020 was an outstanding year for Plus500, during which we delivered a record financial and operational performance. The positive momentum built up during 2020 was driven by the strength and differentiation of our proprietary technology. This was supported by the expertise of our people, who ensured that our customers received a consistently high quality service during the year, and we are extremely grateful to our people for their continued hard work and commitment”, Plus500 chief executive David Zruia said in a statement.

“We continued to significantly invest in all elements of our technology during the year, with a view to driving its scale, agility and attractiveness for customers. In addition, given our robust compliance systems and our regulatory know-how, we are well prepared for the regulatory changes being introduced in 2021, including those being adopted as a result of last month’s Brexit agreement, and we are well positioned to deliver new products and services for our customers. Given these factors, the board remains confident about the outlook for Plus500”, he added.

Co-founder steps down

Meanwhile, Plus500 also announced that Gal Haber, one of its co-founders and its former chief executive, has said he will step down from his position as a managing…