Interim Results

ADVFN PLC 30 March 2007 Embargoed for release until 30th March 2007 ADVFN PLC ('ADVFN' or 'the Company') Unaudited Interim Results for the Six Months Ended 31 December 2006 ADVFN, Europe's leading stocks and shares website, today announces its unaudited interim results for the six months ended 31 December 2006. Highlights: • Turnover up 45.6% to £2.644M (2005 : £1.82M) • ADVFN user numbers up over 30% to 810K (2005 : 620K) • Total group user numbers up over 82% to 3.1M at the report date compared to 1.7M at the last interim report date of 28 March 2006 • Successful acquisition and integration of US subsidiaries InvestorsHub and Silicon Investor during the period. Clem Chambers, Managing Director of ADVFN commented: 'ADVFN is at an exciting phase in its development. Users, subscribers, subscription income, traffic and advertising revenue are all at record highs and we are now a truly international company. Accelerated sales growth, due in part to our overseas properties, is enabling ADVFN to fast approach a post start-up stage of positive cash flow and profits. Whilst attaining profitability is the main focus, we also realise that there is still plenty of scope to expand into untapped markets which offer ADVFN many opportunities and potential revenue streams.' ADVFN PLC Chairman's Statement These interim figures show that ADVFN is growing at an accelerated pace. The company has been in a continuous investment phase since its inception in 1999 and this long-term effort has fed through into sales growth, which now has considerable momentum. While the UK is still responsible for the bulk of ADVFN's turnover, this dependency is diminishing as the company's international markets continue to grow. ADVFN's record over the last few years has established a pattern of growth and with our site now flourishing in a number of markets, we feel confident that we can sustain this level of progress. The US is clearly a key market for future growth and InvestorsHub and Silicon Investor put us in a strong position to unlock North America. Post-acquisition integration has run smoothly and this bodes well for our plans to be a major player in the US within three years. Progress in the US and in other international markets is now developing beyond expectations. This has led us to revise and tighten our focus on these markets in order to drive home the advantage. Although not materially affecting our cost base, we now expect Europe and the Americas to double the scope and scale of our business in the next two-to-three years. Because this growth is built on a business platform with strong operational leverage, our target is to reach cash flow neutrality in calendar year 2007. Moreover we are confident that we can sustain this level of performance in the long term. Michael J Hodges Chairman 30th March 2007 Managing Director's Review Operating Review I am pleased to present a positive set of results which show a 45.6% increase in turnover compared to the same period last year. This has been achieved through additional subscription income and, in particular, additional advertising income generated from the increase in our user numbers which have risen by 30% to 810K compared to the same period last year. Our other businesses are also doing well as can be seen from the exceptional growth in overall group user numbers. These are up by 82% to 3.1M at the report date compared to the previous interim report date of 28th March 2006, with this year's figures seeing the inclusion of our new US subsidiaries for the first time. Whilst turnover rose by 45.6%, total administrative expenses only rose by 27% to £3,079K compared to the same period last year. The company's administrative expenses include substantial depreciation charges and this period also includes goodwill amortisation regarding acquisitions of £82K and £78K in option valuation expenses under the new FRS20 rules together with the inclusion of the administrative expenses of our acquisitions - Equity Holdings for the entire period and our US acquisitions for just over half of the period, together with an element of gearing up costs for localised sites. Our net profits have also been negatively impacted by a substantial exceptional item, this being £372K for our share of associates' losses. Unlike the previous periods we have not had these charges offset by benefits from any exceptional gains on disposals. Since our acquisition of InvestorsHub and related fundraising, the strength of our balance sheet has been greatly increased with substantially higher cash, net current assets and net assets compared to both last year and the June year end figures. Current Trading ADVFN has reached an important milestone - it is now truly international. While ADVFN has been building a global platform for several years, its income was mainly derived from the UK. I'm happy to report that during the first half of financial year 06/07, ADVFN has made significant international progress with growing business in a number of territories; especially Brazil, Italy and North America. This achieves two things: it establishes ADVFN as a proven international platform, which paves the way for further global expansion, and provides impetus for the sales growth (both subscription and advertising revenues) necessary to enter into a post-start up position of positive cash flow and profits. Having proven itself commercially and enjoyed a strong growth period in the last few years, ADVFN is now entering the final stage in the product development cycle; a stage which leads to profitability. In tandem with this, the company continues to position itself for further expansion into untapped markets, so while we have established a proven model in four territories there remains much more opportunity ahead. The ADVFN website is built to enable localised roll out at minimal cost, so once we have consolidated our recent gains we will look to repeat this successful blueprint in additional countries. Our overseas projects have proved that we can build market leading native language sites while centralising the production and costs in London. Furthermore, ADVFN's US sites InvestorsHub and Silicon Investor have put us in contention in the world's biggest market. Its largely untapped advertising inventory will prove an important asset going forwards; an asset that is already significantly contributing to the group's sales growth. Our prospects for growth are underlined by these interim results, which give a good indication of our overall progress. Equity Development has contributed to these strong results by turning in an excellent performance. The third party research market is coming of age with more and more companies appreciating the benefit of commissioned research. The UK's plethora of PLCs increasingly need to raise their profile to reach both institutional and retail investors. Prospects CupidBay and Fotothing continue to grow their user bases and represent significant traffic. Whilst income from these properties is not yet stellar, their traffic remains valuable as is constantly highlighted by M&A activity in the internet space. Developments on CupidBay's business model are showing promise and we are hopeful that this will turn the site into a significant profit centre in due course. ADVFN is generating a record level of registrations a day; approximately twice the level of a year ago. I'm also pleased to report that subscribers, subscription income, traffic and advertising revenue are all at record highs. As such, these figures are concrete signs that our investments in the company strategy for growth are bearing fruit. We are confident that this progress is set to continue and is on course to deliver our plans for both growth and profitability. Clem Chambers Managing Director 30th March 2007 ADVFN PLC Consolidated Profit and Loss Accounts for the six months ended 31 December 2006 Six months ended Six months ended Year ended 31 December 2006 31 December 2005 30 June 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Turnover 2,644 1,816 4,463 Cost of sales (222) (91) (537) __________ __________ __________ Gross profit 2,421 1,725 3,926 Administrative expenses Amortisation of goodwill (82) - (77) Option valuation expense (78) - - Other administrative expenses (2,919) (2,417) (5,052) __________ __________ _________ Total administrative expenses (3,079) (2,417) (5,129) __________ __________ _________ Operating loss (658) (692) (1,203) Share of operating losses of associates (372) (132) (567) Exceptional item : gain on part disposal of associates - 723 761 __________ __________ __________ (1,030) (101) (1,009) Net interest 8 21 45 __________ __________ __________ Loss on ordinary activities before taxation (1,022) (80) (964) Tax on loss on ordinary activities - - 58 __________ __________ __________ Loss on ordinary activities after taxation (1,022) (80) (906) __________ __________ __________ Loss per ordinary share (0.188p) (0.017p) (0.19p) There were no recognised gains or losses other than the result for the financial period. ADVFN PLC Consolidated Balance Sheets at 31 December 2006 31 December 2006 31 December 2005 30 June 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Fixed Assets Intangible assets 2,343 152 874 Tangible assets 1,756 1,519 1,681 Investments 1,909 2,741 2,402 6,008 4,412 4,957 Current Assets Debtors 1,025 556 938 Investments 47 28 48 Cash at bank and in hand 1,382 1,061 938 2,454 1,645 1,924 Creditors: amounts falling due within one year (1,283) (1,010) (1,512) Net current assets 1,171 635 412 Total assets less current liabilities 7,179 5,047 5,369 Creditors: amounts falling due after one year (41) - (28) Net assets 7,138 5,047 5,341 Capital and Reserves Called up share capital 5,870 4,621 4,798 Share premium account 7,607 5,410 5,634 Merger reserve 221 - 221 Shares to be issued 332 - 498 Option valuation reserve 252 - - Profit and loss account (7,144) (4,984) (5,810) Shareholders' funds 7,138 5,047 5,341 ADVFN PLC Consolidated Cash Flow Statements for the six months ended 31 December 2006 Six months ended Six months ended Year ended 31 December 2006 31 December 2005 30 June 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Net cash (outflow) /inflow from operating activities (402) (136) 65 Returns on investment and servicing of finance Net interest 8 21 45 Capital expenditure Payments to acquire tangible fixed assets (392) (636) (1,067) Payments to acquire investments - - (15) (392) (636) (1,082) Acquisitions (1,637) - (246) Net cash outflow before financing (2,423) (751) (1,218) Financing Issue of ordinary share capital 3,053 10 344 Share issue costs (174) - (3) Capital element of finance leases repaid (12) (7) (24) Net cash inflow from financing 2,867 3 317 Increase / (decrease) in cash 444 (748) (901) ADVFN PLC Notes to the interim statement for the six months ended 31 December 2006 1. Loss per ordinary share Six months ended Six months ended Year ended 31 December 2006 31 December 2005 30 June 2006 Loss for the period £'000 (1,022) (80) (906) Weighted average number of shares '000 544,618 461,229 469,165 Loss per share p (0.188p) (0.017p) (0.19p) 2. Reserves Profit and loss Option valuation Share premium account reserve account £'000 £'000 £'000 At 1 July 2006 (5,810) - 5,634 Prior year adjustment re FRS20 option valuations (174) 174 - Foreign exchange difference re associates (138) - - Options valuation adjustment for the period - 78 - Loss retained for the period (1,022) - - At 31 December 2006 (7,144) 252 3,145 3. Reconciliation of operating loss to net cash outflow from operating activities Six months ended Six months ended Year ended 31 December 2006 31 December 2005 30 June 2006 Operating loss (658) (692) (1,203) Depreciation 456 303 678 Amortisation - licences 21 130 260 Amortisation -goodwill 82 - 77 Decrease / (increase )in debtors (87) 99 (135) Increase / (decrease) in creditors (216) 24 388 Net cash (outflow) / inflow from operating activities (402) (136) 65 4. The directors do not recommend the payment of a dividend. 5. The financial information contained in this document does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the year ended 30 June 2006 is extracted from the audited financial statements for that period on which the auditors gave an unqualified report. A copy of those financial statements has been filed with the Registrar of Companies. 6. The interim financial information has been prepared in accordance with applicable accounting standards and under the historical cost convention. The principal accounting policies of the Company have remained unchanged from those set out in the Company's June 2006 Annual Report and Financial Statements except for the adjustments resulting from the adoption of FRS20 in the period as described below. The Company has adopted FRS20 with effect from 1 July 2006. FRS20 requires the recognition of a charge to the profit and loss account for all applicable share based payments, including share options. The Company has equity-settled share based payments but no cash-settled share based payments. All share based payments awards granted after 7 November 2002 which had not vested prior to 1 July 2006 are recognised in the financial statements at their fair value at the date of grant. As vesting periods and non-market based vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of share options expected to vest. Estimates are revised subsequently if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. All equity-settled share based payments are ultimately recognised as an expense in the profit and loss account with a corresponding credit to the option valuation reserve. The adoption of FRS20 requires a prior period adjustment to be made for awards granted before 1 July 2006. This has created an opening balance within the option valuation reserve at 1 July 2006 of £174,000. 7. 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

Companies

ADVFN (AFN)
UK 100

Latest directors dealings