Plus500UK Ltd, the UK subsidiary of Israel-listed online trading platform Plus500, reported a sharp decline in profitability for the year ended Dec. 31, 2023, with profit after tax falling 97% to £205,000 from £7.79 million in the prior year.
Revenue dropped 32% to £10.14 million from £14.95 million in 2022, according to the company’s annual report filed with Companies House. Operating profit declined 81% to £598,000, down from £3.12 million the previous year.
Profit before taxation collapsed to £93,000 from £9.7 million, a 99% decrease. The company recorded a tax credit of £112,000 compared to a tax charge of £1.91 million in 2022.
Distribution costs fell 34% to £5.05 million from £7.68 million, while administrative expenses increased 8% to £4.49 million from £4.15 million. The company noted that introductory commission costs dropped to £2.67 million from £4.02 million.
Staff costs rose slightly to £2.28 million from £2.22 million, with average headcount increasing to 12 employees from 11 in the prior year, including two directors and 10 other employees.
The company, which offers contracts for difference trading through technology-based platforms, maintained total equity of £52.17 million, up from £51.87 million. Cash and cash equivalents decreased to £56.38 million from £60.71 million.
Plus500UK Ltd is wholly owned by Plus500 Ltd, which is listed on the London Stock Exchange. No dividends were paid during the year. The directors stated the company remains debt-free with substantial cash resources.
