Half Yearly Report

RNS Number : 4829I
ADVFN PLC
25 March 2015
 



25 March 2015

 

ADVFN PLC

 

("ADVFN" or the "Company")

 

Unaudited Interim Results for the Six Months Ended 31 December 2014

 

 

ADVFN today announces its unaudited interim results for the six months ended 31 December 2014.

 

Chief Executive's Statement

 

I am pleased to announce a solid start to the new financial year with sales up 7.8 per cent. from £4.46 million to £4.8 million from the same period a year ago. Our cash position has also increased slightly compared to the same period last year. 

While sales growth has been good, we have won these gains against a background of markets which have ebbed and flowed. This result has therefore come from developments from the broad spread of our offerings, where successes compensate for any downward drift elsewhere.

Our growing newsletter business and new products in the US have been a highlight and we feel these offer strong potential for growth going forward as we roll them out into new territories.

These factors represent a broadening of our revenue potential across our markets as we develop our offerings to reach these wider audiences.

We haven't suffered any disasters or witnessed any miracles in this half year but this period has represented a period of consistent progress as we continue to build on the ADVFN and Investorshub platform.

While doing so, we have re-organised our share capital and completed a US OTC QX market listing with an eye to exposing our huge US audience to the possibility of become shareholders in our company through US listed ADRs. We are hopeful that this will provide a good basis to add to shareholder value in 2015.

Share consolidation

At the Company's General Meeting held on 20 August 2014, the resolution to approve the share consolidation of existing issued Ordinary shares of £0.01 each in the capital of the Company to be consolidated into ordinary shares of £0.25 each ("Ordinary Shares"), was duly passed. The number of post consolidation Ordinary Shares is disclosed above, together with the restated loss per share amounts. In addition, the shares were to be subdivided into 1 ordinary share of par value 1 pence and 1 Deferred share of 24 pence par value; the Deferred shares were then cancelled. Finally, the par value was reduced from 1 pence to 0.2 pence. The number of post consolidation Ordinary Shares is disclosed together with the restated loss per share amounts (see note 3).

Financial performance

 

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

 


Six Months ended

Six Months ended


31 December 2014

31 December 2013


£'000

£'000




Turnover

4,807

4,458

Loss for the period

(552)

(226)

Operating Loss

(647)

(342)

Loss per share (see note 3)

(2.19)p

(0.90)p

 

 

 

 

Clem Chambers

CEO

25 March 2015

 

For further information, please contact:

 

Clem Chambers,

ADVFN PLC CEO

0207 0700 909

 

Salmaan Khawaja

Jen Clarke

Jamie Barklem

Grant Thornton UK LLP (Nominated Adviser)

0207 383 5100



 

Consolidated income statement







6 months to

 31 Dec

6 months to

 31 Dec

12 months to

 30 June



2014

2013

2014



£'000

£'000

£'000



unaudited

unaudited

audited


Notes


restated







Revenue


4,807

4,458

9,702

Cost of sales


(718)

(491)

(1,165)






Gross profit


4,089

3,967

8,537






Share based payment


(18)

(47)

(54)

Amortisation of intangible assets


(326)

(465)

(914)

Other administrative expenses


(4,392)

(3,797)

(8,232)






Total administrative expense


(4,736)

(4,309)

(9,200)






Operating loss


(647)

(342)

(663)






Finance income


57

53

108






Loss before tax


(590)

(289)

(555)

Taxation


38

63

101






Total loss after taxation


(552)

(226)

(454)






Loss for the period


(552)

(226)

(454)






Loss per share





Basic and diluted (pence per share)

3

(2.19)

(0.90)

(1.80)






 

 

 

Consolidated statement of comprehensive income







6 months to

 31 Dec

6 months to

 31 Dec

12 months to

 30 June



2014

2013

2014



£'000

£'000

£'000



unaudited

unaudited

audited






Loss for the period


(552)

(226)

(454)






Other comprehensive income:





Exchange differences on translation of foreign operations


196

(146)

(190)

Deferred tax on translation of foreign held assets


(24)

21

29






Total comprehensive income for the year


(380)

(351)

(615)








 

Consolidated balance sheet


31 Dec

31 Dec

30 June



2014

2013

2014



£'000

£'000

£'000



unaudited

unaudited

audited











Assets





Non-current assets





Property, plant and equipment


89

119

71

Goodwill


793

747

724

Intangible assets


1,289

1,502

1,331

Trade and other receivables


202

540

295






Total non-current assets


2,373

2,908

2,421






Current assets





Trade and other receivables


1,264

1,045

1,122

Current tax recoverable


72

33

60

Cash and cash equivalents


1,510

1,493

1,675






Total current assets


2,846

2,571

2,857






Total assets


5,219

5,479

5,278






Equity and liabilities





Equity





Issued capital


50

6,305

6,305

Share premium


-

8,101

8,102

Merger reserve


-

221

221

Share based payments reserve


18

610

617

Foreign exchange reserve


289

153

117

Retained earnings


2,126

(12,289)

(12,517)






Total equity


2,483

3,101

2,845






Non-current liabilities





Deferred tax


128

185

134






Total non-current liabilities


128

185

134






Current liabilities





Trade and other payables


2,606

2,187

2,268

Current tax


2

6

31






Total current liabilities


2,608

2,193

2,299






Total liabilities


2,736

2,378

2,433






Total equity and liabilities


5,219

5,479

5,278








 

Consolidated statement of changes in equity

 


Share capital

Share premium

Merger reserve

Share based payment  reserve

Foreign exchange

Retained earnings

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000









At 1 July 2013

6,291

8,062

221

563

278

(12,063)

3,352









Issue of shares

14

39

-

-

-

-

53

Equity settled share options

-

-

-

47

-

-

47









Transactions with owners

14

39

-

47

-

-

100









Loss for the period after tax

-

-

-

-

-

(226)

(226)









Other comprehensive income








Exchange differences on translation of foreign operations

 

-

 

-

 

-

 

-

 

(146)

 

-

 

(146)

Deferred tax on translation of foreign held assets

 

-

 

-

 

-

 

-

 

21

 

-

 

21









Total comprehensive income

-

-

-

-

(125)

(226)

(351)









At 31 December 2013

6,305

8,101

221

610

153

(12,289)

3,101









Issue of shares

-

1

-

-

-

-

1

Equity settled share options

-

-

-

7

-

-

7









Transactions with owners

-

1

-

7

-

-

8









Loss for the period after tax

-

-

-

-

-

(228)

(228)









Other comprehensive income








Exchange differences on translation of foreign operations

 

-

 

-

 

-

 

-

 

(44)

 

-

 

(44)

Deferred tax on translation of foreign held assets

 

-

 

-

 

-

 

-

 

8

 

-

 

8









Total comprehensive income

-

-

-

-

(36)

(228)

(264)









At 30 June 2014

6,305

8,102

221

617

117

(12,517)

2,845









Equity settled share options

-

-

-

18

-

-

18









Transactions with owners

-

-

-

18

-

-

18









Loss for the period after tax

-

-

-

-

-

(552)

(552)









Other comprehensive income








Exchange differences on translation of foreign operations

 

-

 

-

 

-

 

-

 

196

 

-

 

196

Deferred tax on translation of foreign held assets

 

-

 

-

 

-

 

-

 

(24)

 

-

 

(24)









Total comprehensive income

-

-

-

-

172

(552)

(380)









Share consolidation

(6,255)

(8,102)

(221)

(617)

-

15,195

-









At 31 December 2014

50

-

-

18

289

2,126

2,483

















 



 

Consolidated cash flow statement







6 months to

 31 Dec

6 months to

 31 Dec

12 months to

 30 June



2014

2013

2014



£'000

£'000

£'000



unaudited

unaudited

audited






Cash flows from operating activities










Loss for the period before tax


(590)

(289)

(555)






Finance costs


(57)

(53)

(108)

Depreciation of property, plant and equipment


30

30

47

Amortisation


326

465

914

Impairment of financial assets


-

-

250

Share based payments


18

47

54

Decrease/(increase) in trade and other receivables


8

(122)

(149)

Increase in trade and other payables


338

233

314






Net cash generated by operations


73

311

767

Income tax (paid)/received


(9)

12

(3)






Net cash generated by operating activities


64

323

764






Cash flows from investing activities





Payments for property, plant and equipment


(48)

(179)

(57)

Purchase of intangibles


(284)

(156)

(495)






Net cash used by investing activities


(332)

(335)

(552)






Cash flows from financing activities





Proceeds from issue of equity shares


-

53

-






Net cash generated by financing activities


-

53

-






Net (decrease)/increase in cash and cash equivalents


(268)

41

212

Exchange movements


103

(9)

2






Total (decrease)/increase in cash and cash equivalents


(165)

32

214

Cash and cash equivalents at the start of the period


1,675

1,461

1,461






Cash and cash equivalents at the end of the period


1,510

1,493

1,675

 



 

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 London Stock Exchange's AIM market under the ticker "AFN".

 

2.  Basis of preparation

 

The unaudited consolidated interim financial information is for the six month period ended 31 December 2014.  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 2014, 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 2014 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 2014 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.

 

The financial statements have been prepared on the going concern basis which assumes the Group will continue in existence for the foreseeable future. At 31 December 2014 the Group's cash balances amounted to £1.5 million and the forecasts indicate that this balance will be broadly maintained and then increase in the remainder of the financial year. Accordingly the directors have prepared these financial statements on the going concern basis.

 

3.   Loss per share

 


6 months to

 31 Dec

6 months to

 31 Dec

12 months to

 30 June


2014

2013

2014


£'000

£'000

£'000



Restated






Loss for the year attributable to equity shareholders

(552)

(226)

(454)





Loss per share - basic and diluted

(2.19)

(0.90)

(1.80)






Shares

Shares

Shares

Issued ordinary shares at start of the period

25,220,210

25,164,560

25,164,560

Ordinary shares issued in the period

-

55,650

55,650





Issued ordinary shares at end of the period

25,220,210

25,220,210

25,220,210









Weighted average number of shares in issue for the period

25,220,210

25,219,905

25,219,905

Dilutive effect of options

-

-

-





Weighted average shares for diluted earnings per share

25,220,210

25,219,905

25,219,905





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.

 

Restatement

The shares in issue for the 6 months to 31 December 2013 have been restated as a result of the share consolidation exercise at 1 new share for 25 old shares. This results in a change of the loss per share. The details of this exercise are given below.



3.   Loss per share (continued)

 

Share consolidation

At the company's General Meeting held on 20 August 2014, the resolution to approve the share consolidation of existing issued Ordinary shares of £0.01 each in the capital of the company to be consolidated into Ordinary shares of £0.25 each, was duly passed. The number of post consolidation Ordinary shares is disclosed above together with the restated loss per share amounts. In addition, the shares were to be subdivided into 1 Ordinary share of par value 1p and 1 Deferred share of 24p par value; the Deferred shares were then cancelled. Finally, the par value was reduced from 1p to 0.2p.

 

4.   Dividends

The directors do not recommend the payment of a dividend.

 

5.   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. Electronic copies of this statement will be available on the Company's website at uk.advfn.com.

 


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