30 JUNE INTERIM FINANCIAL STATEMENTS

Size: px

Start display at page:

Download "30 JUNE INTERIM FINANCIAL STATEMENTS"

Griselda Adams
5 years ago
Views:

1 30 JUNE INTERIM FINANCIAL STATEMENTS

2 INTERIM FINANCIAL INFORMATION JUNE 30, 2014

3 INTERIM FINANCIAL INFORMATION JUNE 30, 2014 TABLE OF CONTENTS AUDITOR S REVIEW REPORT 2 Page CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION: Balance sheet 3 Income statement 4 Statement of changes in equity 5 Statement of cash flows 6-7 Notes to interim financial information 8-10 The amounts are presented in U.S. dollars ($) in thousands.

4 Review Report of Interim Financial Information Introduction We have reviewed the accompanying financial information of Plus500 LTD. and its subsidiaries (hereafter - the group), which includes the condensed consolidated statement of financial position as of 30 June 2014 and the related condensed consolidated statements of income comprehensive, changes in equity and cash flows for the six-month periods then ended. The Board of Directors and management are responsible for preparation and presentation of the financial information for this reporting period in accordance with IAS 34 "Interim Financial Reporting"; our responsibility is to express a conclusion of the financial data for this interim period based on our review. Scope of review Our review was performed in accordance with Standard No. 1 on Review Engagements of the Institute of Certified Public Accountants in Israel - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". Review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in Israel and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing came to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34. Haifa, Israel August 12, 2014 Kesselman & Kesselman Certified Public Accountants (lsr.) A member firm of PricewaterhouseCoopers International Limited Kesselman & Kesselman, 1 Nathanson Street, Haifa , Israel, P.O Box 33984, Haifa Telephone: , Fax: , 2

5 CONDENSED CONSOLIDATED BALANCE SHEET JUNE 30, 2014 As of 30 June As of 31 December Assets CURRENT ASSETS: Cash and cash equivalents 115,179 32,728 84,108 Short-term bank deposit 1,166 1,303 1,177 Restricted deposit Accounts receivable 2,949 1,948 3,239 Prepaid expenses -, ,- 119,509 36,682 88,739 NON-CURRENT ASSETS: Long-term deposit -,- 68 -,- Property, plant and equipment Intangible assets Deferred income tax assets ,063 1, ,354 T o t a l assets 120,595 37,308 90,093 Liabilities and equity CURRENT LIABILITIES: Trade payables due to clients 5,823 4,506 5,532 Other accounts payable and accruals: Service supplies 8,008 4,707 6,840 Other 1,361 1,027 1,134 Income tax payable 16,540 3,774 8,573 Dividend payable -,- 3,894 -,- Liability for Share-based compensation -, ,- 31,732 18,737 22,079 NON- CURRENT LIABILITIES: Share- based compensation 93 -,- -,- EQUITY: Ordinary shares Share premium 22, ,220 Retained earnings 66,233 18,278 45,477 T o t a l equity 88,770 18,571 68,014 T o t a l liabilities and equity 120,595 37,308 90,093 ) Gal Haber ) CEO ) Inbal Marom ) Group Chief Financial Officer ) Alastair Neil Gordon ) Non-Executive Director and Chairman Date of approval of the interim financial information by the Company's Board of Directors: August 12, 2014 The attached notes are an integral part of this condensed consolidated interim financial information. 3

6 CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014 Year ended Six months ended 30 June 31 December TRADING INCOME net 106,242 44, ,088 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: Selling and marketing 30,702 21,195 44,322 Administrative and general 3,583 1,617 3,563 INCOME FROM OPERATIONS: 71,957 21,861 67,203 Financial expenses 1,573 1,405 1,373 Financial income (2,752) (57) (1,335) FINANCING EXPENSES (INCOME) net (1,179) 1, INCOME BEFORE TAXES ON INCOME 73,136 20,513 67,165 INCOME TAX EXPENSE 19,373 5,121 16,532 PROFIT AND COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT 53,763 15,392 50,633 In U.S. dollars EARNINGS PER SHARE (basic and diluted) The attached notes are an integral part of this condensed consolidated interim financial information. 4

7 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014 Ordinary Share Retained shares premium earnings Total BALANCE AT 1 JANUARY 2014 (audited) ,220 45,477 68,014 CHANGES DURING THE SIX MONTH ENDED JUNE 30, 2014 (unaudited): Profit and comprehensive income for the period 53,763 53,763 TRANSACTION WITH SHAREHOLDERS Dividend (33,007) (33,007) BALANCE AT 30 JUNE 2014 (unaudited) ,220 66,233 88,770 BALANCE AT 1 JANUARY 2013 (audited) ,654 11,947 CHANGES DURING THE SIX MONTH ENDED JUNE 30, 2013 (unaudited): Profit and comprehensive income for the period 15,392 15,392 TRANSACTION WITH SHAREHOLDERS Distribution of bonus shares 271 (271) Dividend (8,768) (8,768) BALANCE AT 30 JUNE 2013 (unaudited) ,278 18,571 BALANCE AT 31 DECEMBER 2012 (audited): ,654 11,947 CHANGES DURING THE YEAR ENDED 31 DECEBMBER 2013: Profit and comprehensive income for the year 50,633 50,633 TRANSACTION WITH SHAREHOLDERS Shares issued (net) of issuance cost 40 22,204 22,244 Bonus Shares issued 271 (271) Dividend (16,810) (16,810) BALANCE AT 31 DECEMBER 3013 (audited) ,220 45,477 68,014 The attached notes are an integral part of this condensed consolidated interim financial information. 5

8 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014 Six months ended Year ended June December CASH FLOWS FROM OPERATING ACTIVITIES: Cash generated from operations (see Appendix A) 73,991 19,296 66,890 Income tax paid net (11,117) (3,607) (9,894) Interest received Net cash flows from operating activities 62,909 15,739 57,097 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (83) (28) (75) Purchase of intangible assets (17) (17) Net cash flows from investing activities (83) (45) (92) CASH FLOWS FROM FINANCING ACTIVITIES: Dividends paid to equity holders of the Company (33,007) (4,874) (16,810) Prepaid expenses -,- (578) -,- Proceeds from share issuance, net of $ 4,600 thousands issuances cost -,- -,- 21,074 Cash flows from financing activities- net (33,007) (5,452) 4,264 NET INCREASE IN CASH AND CASH EQUIVALENTS 29,819 10,242 61,269 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 84,108 22,486 22,486 EXCHANGE GAIN (LOSS) ON CASH AND CASH EQUIVALENTS 1,252 -,- 353 CASH AND CASH EQUIVALENTS AT END OF PERIOD 115,179 32,728 84,108 The attached notes are an integral part of this condensed consolidated interim financial information. 6

9 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2014 APPENDICIES CONSOLIDATED STATEMENT OF CASH FLOWS APPENDIX A: Six months Year ended ended 30 June 31 December Cash generated from operations - Net income for the period 53,763 15,392 50,633 Adjustments required to reflect the cash flows from operating activities: Depreciation and amortization Taxes on income 19,373 5,121 16,532 Foreign exchange losses on operating activities (1,277) (233) (590) Losses (gains) on revaluation of existing deposits 11 (167) (63) 18,159 4,754 15,961 Operating changes in working capital: Decrease (increase) in accounts receivable 290 (1,054) (2,345) Increase (decrease) in trade payables due to clients 291 (1,586) (560) Increase (decrease) in other accounts payable: Service supplies 1,168 1,510 3,643 Other Liability for Share-based compensation (754) 2,069 (850) 296 Cash flows from operating activities 73,991 19,296 66,890 APPENDIX B: Six months Year ended ended 30 June 31 December Supplementary information on investing and financing activities not involving cash flows: Dividend -,- 3,894 -,- The attached notes are an integral part of this condensed consolidated interim financial information. 7

10 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOTE 1 - GENERAL INFORMATION Plus500 Ltd. (hereafter the Company) was established in 2008 as a private limited company with the name Investsoft Ltd. On 18 June 2012 the company changed its name to Plus500 Ltd. The Company has developed a trading platform for private clients, enabling trading on contracts for differences (hereafter - CFD) on shares, indexes, commodities and foreign exchange. On 24 July 2013, the Company's shares were listed for trading on the London Stock Exchange in the Company's initial public offering ("IPO"). As part of the IPO, the Company issued 14,396,775 shares of NIS 0.01 par value in consideration for a gross amount of 16,556,291 (about $ 25,000 thousands). Subsequent to the IPO the number of shares is 114,888,377. The share issue costs amounted to $ 4,600 thousands. In addition, as part of the IPO, Company shareholders sold 28,793,550 shares to the public in consideration for 33,112,583 (about $ 50,000 thousands). In September 2009, the Company established a subsidiary in the UK (hereafter the UK subsidiary) in order to be granted an FCA license. The Company and the UK Subsidiary (hereafter the Group) are engaged in one operating segment - CFD trading - mainly in Europe. In September 2011 the Company established a subsidiary in Australia (hereafter AU Subsidiary) in order to obtain an Australian securities and investments commission (hereafter - ASIC) license, which was granted in October The AU Subsidiary is engaged in the same field of operations - CFD trading - in Australia and begun operating commencing January The address of the Company's principal offices is Building 22, Matam, Haifa 31905, Israel. NOTE 2 BASIS OF PREPARATION These condensed consolidated interim financial statements for the six months ended 30 June 2014 have been prepared in accordance with IAS 34, Interim financial reporting. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with IFRSs. This condensed consolidated interim financial information is reviewed and not audited. NOTE 3 ACCOUNTING POLICIES a. Significant accounting policies and computation methods used in preparing the interim financial information are consistent with those used in preparing the 2013 annual financial statements, except for the following: Income tax in interim periods is recognized based on management s best estimate of the annual income tax rate expected. 8

11 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOTE 3 ACCOUNTING POLICIES (continued): b. Amendments to existing standards which are not yet effective and which have not been early adopted by the Group: 1) IFRS 15 "Revenue from Contracts with Customers" (hereafter IFRS 15) Upon first time application, IFRS 15 shall replace other IFRS provisions relating to revenue recognition. The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. IFRS 15 sets out a single revenue recognition model, according to which the entity shall recognize revenue in accordance with the said core principle by implementing a five-step model framework: Identify the contract(s) with a customer Identify the performance obligations in the contract Determine the transaction price Allocate the transaction price to the performance obligations in the contract Recognize revenue when the entity satisfies a performance obligation. IFRS 15 provides guidance about various issues related to the application of the said model, including: recognition of revenue from variable consideration set in the contract, adjustment of the price of transaction set in the contract in order to reflect the effect of the time value of money and costs to obtain or fulfill a contract. IFRS 15 extends the disclosure requirements regarding revenue and requires, among other things, that entities disclose qualitative and quantitative information about significant judgments made by management in determining the amount and timing of the revenue. The standard shall be applied retrospectively for annual reporting periods starting on January 1, 2017 or thereafter, taking into account the reliefs specified in the transitional provisions of IFRS 15. Under these provisions, early adoption of the standard is allowed. The Group examines the potential effects of IFRS 15 on its financial statements. c. New and amended standards not yet adopted by the Group for reporting periods starting January 1, 2014: 1) IFRS 9 "Financial Instruments" (hereafter IFRS 9). IFRS 9, Financial instruments, addresses the classification, measurement and recognition of financial assets and financial liabilities. IFRS 9 was issued in November 2009 and October It replaces the parts of IAS 39 that relate to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories: those measured as at fair value and those measured at amortized cost. The determination is made at initial recognition. The classification depends on the entity s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity s own credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting mismatch. The Group is yet to assess IFRS 9 s full impact. The Group considers the impact of the remaining phases of IFRS 9 when completed by the Board. 9

12 NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOTE 3 ACCOUNTING POLICIES (continued): NOTE 4 DIVIDEND d. Subsequent events - On 12 August 2014, the Company s Board of Directors declared the distribution of a dividend of $0.235 per share, in the total amount of $27,000,000. a. On 18 March 2013, the Company s Board of Directors declared the distribution of a dividend of $2.09 (NIS 7.7) per share, in the total amount of $4,874 thousand. b. On 19 June 2013, the Company s Board of Directors declared the distribution of a dividend of $1.67 (NIS 5.99) per share, in the total amount of $ 3,894 thousand. c. On 22 August 2013, the Company s Board of Directors declared the distribution of a dividend of $0.07 (NIS 0.25) per share, in the total amount of $ 8,042 thousand. d. On 18 February 2014, the Company s Board of Directors declared the distribution of a dividend of $ (NIS 1.01) per share, in the total amount of $ 33,007 thousand. Set forth below are the amounts of dividends for the periods: Six months Year ended ended 30 June 31 December Date of declaration 18 March ,874 4, June ,894 3, August , February ,007 33,007 8,768 16,810 NOTE 5- EARNINGS PER SHARE (basic and diluted) Earnings per share are calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares outstanding during the year. Six months Year ended ended 30 June 31 December Profit attributable to equity holders of the Company 53,763,000 15,392,000 50,633,000 Weighted average number of ordinary shares in issue 114,888, ,491, ,730,204 * On 24 July 2013, the Company's shares were listed for trading on the London Stock Exchange in the Company's initial public offering ("IPO"). As part of the IPO, the Company issued 14,396,775 shares of NIS 0.01 par value in consideration for a gross amount of 16,556 thousands (about $25,000 thousands). Subsequent to the IPO the number of shares is 114,888,

13 11

19 FEBRUARY 2014 PLUS500 PRELIMINARY RESULTS

19 FEBRUARY 2014 PLUS500 PRELIMINARY RESULTS 19 February 2014 Plus500 Limited ( Plus500 or the Group ) Preliminary Results for the year ended 31 December 2013 Plus500, a leading online trading platform