Plus500UK Ltd, the UK subsidiary of Israeli-listed online trading platform Plus500, reported a 49% decline in profit after tax to £2.1 million for the year ended Dec. 31, 2021, down from £4.1 million in 2020, according to accounts filed with Companies House.
Revenue at the contracts-for-difference trading firm fell sharply to £13.5 million from £26.9 million in the prior year, a decline of approximately 50%. The company attributed the drop to diminishing pandemic-led trading conditions that had boosted activity in 2020.
Operating profit decreased to £2.7 million from £6.0 million, while profit before tax stood at £2.6 million compared with £5.1 million in 2020. The effective tax rate for the year was 20.1%, slightly above the prior year’s 19.0%.
The London-based firm, which is regulated by the Financial Conduct Authority, paid no dividends during the financial year, consistent with 2020. Eligible capital stood at £43.9 million as of Dec. 31, 2021, up from £41.8 million.
Average headcount fell to 11 employees from 12 in the prior year. Staff costs totaled £2.0 million, up from £1.8 million in 2020.
Plus500UK Ltd hedges all customer positions back-to-back with its Israeli parent company, Plus500 Ltd, which is quoted on the London Stock Exchange and included in the FTSE 250 index. The company stated it remains debt-free with substantial cash resources and is well-positioned for 2022 and beyond.
