Half-year Report

RNS Number : 0268I
ADVFN PLC
16 March 2018
 

 

16 March 2018

For immediate release

ADVFN PLC

("ADVFN" or the "Company")

Unaudited Interim Results for the Six Months Ended 31 December 2017

 

ADVFN today announces its unaudited interim results for the six months ended 31 December 2017 (the "Period").

Chief Executive's Statement

 

2017 was a year of consolidation at ADVFN. During the Period we announced the first phase of our Plus 1 Coin cryptocurrency project, which we had developed in conjunction with Online Blockchain plc ("Online"). Following testing within the ADVFN community, we offered our customers and members a Plus 1 coin wallet, which had been built on software developed by Online. Plus 1 coin is designed as a social media cryptocurrency to enable social media users to interact and "up vote" content of other social media.  As previously announced, Online and ADVFN are each bearing their own costs in respect of the Plus 1 Coin cryptocurrency cooperation project and while there are currently no financial arrangements between the two companies in respect of this project, we anticipate that Online will in due course charge ADVFN a license fee for its software which supports the wallet, on terms to be agreed.

 

We continue to broaden our information service on cryptocurrencies and intend to make our Plus1 Coin product available to our international community.

 

ADVFN's sales in the 6-month interim period have shown a top line growth of £456,000, an increase of 12% on the comparable period last year, from approximately £3.8m to £4.3m. Reported operating profit for the 6-month interim period was £24,000 (2016: operating loss, £66,000).

 

Financial performance

 

Key financial performance for the Period has been summarised as follows:

 


Six Months ended

Six Months ended


31 December 2017

31 December 2016


£'000

£'000




Turnover

4,282

3,826

Profit for the period

24

18

Operating profit/(loss)

24

(66)

Profit per share (see note 3)

0.09 p

0.07 p

 

 

Clem Chambers

CEO                                                                                                                           

16 March 2018

 

A copy of this announcement is available on the Company's website: www.ADVFN.com

 

Enquiries:

For further information please contact: 

 



ADVFN PLC

Clem Chambers

+44 (0) 207 070 0909



Beaumont Cornish Limited (Nominated Adviser)

www.beaumontcornish.com


Roland Cornish/Michael Cornish 

 

+44 (0) 207 628 3396

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. The person who arranged for the release of this announcement on behalf of the Company was Clem Chambers, Director.



 

Consolidated income statement







6 months to

 31 Dec

6 months to

 31 Dec

12 months to

 30 June



2017

2016

2017



£'000

£'000

£'000



unaudited

unaudited

audited


Notes









Revenue


4,282

3,826

8,186

Cost of sales


(90)

(130)

(201)






Gross profit


4,192

3,696

7,985






Share option charge


(3)

-

-

Amortisation of intangible assets


(105)

(161)

(302)

Other administrative expenses


(4,060)

(3,601)

(7,636)






Total administrative expense


(4,168)

(3,762)

(7,938)






Operating profit/(loss)


24

(66)

47






Finance income


-

84

167

Finance expense


-

-

-






Profit before tax


24

18

214

Taxation


-

-

30






Profit for the period attributable to shareholders of the parent


 

24

 

18

 

244






Earnings per share





Basic and diluted

3

0.09 p

0.07 p

0.95 p






 

 

 

Consolidated statement of comprehensive income







6 months to

 31 Dec

6 months to

 31 Dec

12 months to

 30 June



2017

2016

2017



£'000

£'000

£'000



unaudited

unaudited

audited






Profit for the period


24

18

244






Other comprehensive income:





Items that will be reclassified subsequently to profit or loss:





Exchange differences on translation of foreign operations


(70)

167

(281)

Deferred tax on translation of foreign held assets


-

(29)

92






Total other comprehensive income


(70)

138

(189)






Total comprehensive income for the year attributable to shareholders of the parent


 

(46)

 

156

 

55













 

Consolidated balance sheet







31 Dec

31 Dec

30 June



2017

2016

2017



£'000

£'000

£'000



unaudited

unaudited

audited

Assets





Non-current assets





Property, plant and equipment


54

65

53

Goodwill


913

999

948

Intangible assets


1,235

1,438

1,156

Deferred tax


6

-

6

Trade and other receivables


92

126

92








2,300

2,628

2,255






Current assets





Trade and other receivables


844

1,091

948

Cash and cash equivalents


969

840

963








1,813

1,931

1,911






Total assets


4,113

4,559

4,166






Equity and liabilities





Equity





Issued capital


51

51

51

Share premium


145

145

145

Share based payments reserve


347

344

344

Foreign exchange reserve


208

605

278

Retained earnings


908

658

884








1,659

1,803

1,702






Non-current liabilities





Deferred tax


-

122

-








-

122

-






Current liabilities





Trade and other payables


2,454

2,610

2,464

Current tax


-

24

-








2,454

2,634

2,464






Total liabilities


2,454

2,756

2,464






Total equity and liabilities


4,113

4,559

4,166








 

Consolidated statement of changes in equity

 


Share capital

Share premium

Share based payment reserve

Foreign exchange

Retained earnings

Total equity


£'000

£'000

£'000

£'000

£'000

£'000








At 1 July 2016

51

119

344

467

640

1,621








Equity settled share options

-

-

-

-

-

-

Share issues

-

26

-

-

-

26








Transactions with owners

-

26

-

-

-

26








Profit for the period after tax

-

-

-

-

18

18








Other comprehensive income







Exchange differences on translation of foreign operations

 

-

 

-

 

-

 

167

 

-

 

167

Deferred tax on translation of foreign held assets

 

-

 

-

 

-

 

(29)

 

-

 

(29)








Total comprehensive income

-

-

-

138

18

156








At 31 December 2016

51

145

344

605

658

1,803








Equity settled share options

-

-

-

-

-

-

Share issues

-

-

-

-

-

-








Transactions with owners

-

-

-

-

-

-








Profit for the period after tax

-

-

-

-

226

226








Other comprehensive income







Exchange differences on translation of foreign operations

 

-

 

-

 

-

 

(448)

 

-

 

(448)

Deferred tax on translation of foreign held assets

 

-

 

-

 

-

 

121

 

-

 

121








Total comprehensive income

-

-

-

(327)

226

(101)








At 30 June 2017

51

145

344

278

884

1,702








Equity settled share options

-

-

3

-

-

3

Share issues

-

-

-

-

-

-








Transactions with owners

-

-

3

-

-

3








Profit for the period after tax

-

-

-

-

24

24








Other comprehensive income







Exchange differences on translation of foreign operations

 

-

 

-

 

-

 

(70)

 

-

 

(70)








Total comprehensive income

-

-

-

(70)

24

(46)








At 31 December 2017

51

145

347

208

908

1,659








 



 

Consolidated cash flow statement







6 months to

 31 Dec

6 months to

 31 Dec

12 months to

 30 June



2017

2016

2017



£'000

£'000

£'000



unaudited

unaudited

audited






Cash flows from operating activities





Profit for the year


24

18

244






Taxation


-

-

(30)

Net finance income in the income statement


-

(84)

(167)

Share based payment


3

-

-

Depreciation of property, plant and equipment


18

32

52

Amortisation


105

161

286

Profit on disposal of Investor Events


-

(56)

(56)

Adjustment to fair value of embedded derivative


-

112

225

Increase in trade and other receivables


104

(66)

82

Increase/(decrease) in trade and other payables


(10)

27

(119)






Net cash generated by continuing operations


244

170

517

Income tax received


-

36

14






Net cash generated by operating activities


244

206

531






Cash flows from financing activities





Issue of share capital


-

26

26






Cash flows from investing activities





Interest received


-

1

-

Payments for property, plant and equipment


(19)

(29)

(37)

Purchase of intangibles


(184)

(198)

(379)

Sale of Investor Events


-

40

40






Net cash used by investing activities


(203)

(186)

(376)






Net increase in cash and cash equivalents


41

20

181

Exchange differences


(35)

(23)

(61)






Net increase/(decrease) in cash and cash equivalents


6

(3)

120

Cash and cash equivalents at the start of the period


963

843

843






Cash and cash equivalents at the end of the period


969

840

963

 



 

1.  Legal status and activities

 

ADVFN Plc ("the Company") is principally involved in the development and provision of financial information primarily via the internet and the development and exploitation of ancillary internet sites.

The company is a public limited liability company incorporated and domiciled in England and Wales. The address of its registered office is Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.

 

The Company is quoted on the Alternative Investment Market ("AIM") of the London Stock Exchange.

 

2.  Basis of preparation

 

The unaudited consolidated interim financial information is for the six month period ended 31 December 2017.  The financial information does not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2017, which were prepared under IFRS as adopted by the European Union (EU).

 

The accounting policies adopted in this report are consistent with those of the annual financial statements for the year to 30 June 2017 as described in those financial statements.

 

The interim financial information has not been audited nor has it been reviewed under ISRE 2410 of the Auditing Practices Board. The financial information presented does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The Group's statutory accounts for the year to 30 June 2017 have been filed with the Registrar of Companies. The auditors, Grant Thornton UK LLP reported on these accounts and their report was unqualified and did not contain a statement under section 498(2) or Section 498(3) of the Companies Act 2006.

 

3.   Earnings per share

 


6 months to

 31 Dec

6 months to

 31 Dec

12 months to

 30 June


2017

2016

2017


£'000

£'000

£'000









Profit for the year attributable to equity shareholders

24

18

244





Earnings per share (pence)




Basic

0.09 p

0.07 p

0.95 p

Diluted

0.09 p

0.07 p

0.95 p






Shares

Shares

Shares





Issued ordinary shares at start of the period

25,623,845

25,523,845

25,523,845

Ordinary shares issued in the period

-

100,000

100,000





Issued ordinary shares at end of the period

25,623,845

25,623,845

25,623,845









Weighted average number of shares in issue for the period

25,623,845

25,901,019

25,612,338

Dilutive effect of options

-

-

-





Weighted average shares for diluted earnings per share

25,623,845

25,901,019

25,612,338





Where a loss is reported for the period the diluted loss per share does not differ from the basic loss per share as the exercise of share options would have the effect of reducing the loss per share and is therefore not dilutive under the terms of IAS 33.

 

In addition, where a profit has been recorded but the average share price for the period remains under the exercise price the existence of options is not dilutive.

 

 

 

 

 

 

 

4.   Events after the reporting date

On 9 March 2018 the directors announced that they have agreed amended terms on the arrangements relating to the sale of Equity Holdings Limited ('EHL'). As at 30 June 2017, the carrying value in ADVFN's audited accounts of the outstanding consideration to be received in respect of EHL, which had been fully provided for, amounted to GBP nil.

 

Background

The sale by ADVFN of its entire interest in EHL was first agreed and announced in July 2012. EHL is the holding company of Equity Development Limited ("EDL") which produces research material for distribution in the UK used by brokers, fund managers and investors. As set out in in ADVFN's report and accounts for the year ended 30 June 2017 ("Accounts"), payments due from the shareholders of EHL and its subsidiary EDL as consideration for the purchase of the companies had not been received. Amounts outstanding as at 30 June 2017 comprised GBP200,000 in cash and the repayment of an outstanding loan note of GBP1,000,000 ("Loan Note") was due on 31 July 2017 (the "Consideration Debt"). Neither the loan note nor the cash instalments had been received and therefore, ADVFN Plc stated that it had the right to acquire 99.5% of the shares of EHL. The Directors further stated in the Accounts that they had decided not to enforce this right as the business of EHL remained outside of the longer term strategy of the ADVFN Group and that as a result, the Directors had commenced proceedings to alter the arrangements so as to potentially give ADVFN a right to equity in EHL should it grow in market value.

 

Amended EHL sale terms

The Board reports that on 8 March 2018 ADVFN agreed with EHL, EDL and Bashco Limited amended terms on the arrangements relating to the sale of EHL. ADVFN has agreed to waive, cancel and forgive the payment of the Consideration Debt in consideration for the issue to ADVFN of shares representing 30% in the share capital of EHL and GBP 50,000 to be settled in cash (the "Transaction").

 

Related party matters

Brian Basham, a director of ADVFN, is also a director of EHL and EDL and is interested in 100% of the issued share capital of Bashco Limited, which is the ultimate parent company of EHL. The Transaction is therefore classified as a related party transaction for the purposes of the AIM Rules. The independent directors of ADVFN (excluding Brian Basham) consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable in so far as its shareholders are concerned.

 

Further AIM disclosures

As at 30 June 2017, the last date to which EHL published consolidated audited accounts, EHL's turnover and profit before tax amounted to GBP657,602 and GBP49,316 respectively. EHL's total assets as at 30 June 2017 amounted to GBP1,685,496 (of which GBP 1,000,000 represented an amount owed by a subsidiary undertaking in respect of the Loan Note).

 

The cash to be received by ADVFN on completion will be used for general working capital purposes. ADVFN intends to retain the EHL Shares for the time being.

 

5.   Dividends

The directors do not recommend the payment of a dividend.

 

6.   Financial statements

Copies of this statement are being posted to shareholders shortly and will be available from the company's registered office at Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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