Trading platform Plus500 confirms accounting error in prior-year results

(Reuters) - Online trading platform Plus500 Ltd confirmed on Friday a drafting error in its 2017 report resulted in the company failing to disclose certain losses from customer trading.

In its full-year results this week, it reported a gain from customer trading of $172 million for the year. This was compared with a loss of $103 million for 2017, which the company had failed to disclose last year.

“In 2017, as in 2016 and 2015, the company did not generate net revenues or losses from market P&L.” The words “or losses” were wrongly included due to the “drafting” error, it said.

“This error does not impact previously reported revenues, profits or the balance sheet of the company,” Plus500 said.

The company also said there had been a similar revenue impact in 2016 of $19.5 million, which it had not disclosed.

Plus500 has already said this week that revenue and profit would fall short of analysts’ expectations in the current year, erasing a third of its market value.

The Times reported the news on Thursday.

Shares of the company were trading down throughout Friday before closing 12 percent lower at 921 pence.

Reporting by Sangameswaran S in Bengaluru; Editing by Shounak Dasgupta