It was a mixed bag of numbers in the interim results from Plus500 this morning which showed revenues up 4% but new customers down by 1%. Average deposits surged with the total under administration reaching a record high of $3.1bn, but the note also highlighted an increasing proportion of revenues coming from the direct exchange business as opposed to over the counter. This is by definition a less profitable sector to be in, but regardless the company remains on track to meet full year expectations whilst there was a notable uptick in momentum in Q2 as well. The Plus500 share price was down 4% in early trade.
Strong gains for Martin Sorrell’s advertising and marketing company S4 Capital this morning after the company confirmed media speculation that it was discussing a possible merger with MSQ, a company majority owned by PE play One Equity Partners. The note stresses that should a deal proceed, it would see S4 acquire MSQ and the market has given this a positive reception. The S4 Capital share price was up more than 10% shortly after the open.
Over in the AIM market, advanced engineering materials group Versarien has provided a further update on its financial position this morning. The company has taken action to extend its cash runway to the end of the month but concerns are building that unless a strategic investor can be found, the end is nigh. The value of assets is noted as being lower than the liabilities, wiping out equity investors in the company. The Versarien share price was down 57% by 8.30am.
Most read news on Investegate this morning
Response to Press Speculation - - S4 Capital (SFOR)
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