Final Results

RNS Number : 9012T

On-Line PLC

06 October 2010

 



ON-LINE PLC

5th October 2010

Audited Results for the Year Ended 30 June 2010

On-line plc, announces its audited results for the year ended  30 June 2010

Highlights:

On-line Plc:

·   Profit before tax of £10,000 (2009: loss of £267,000)

·   Turnover for the year was £120,000 (2009: £126,000)

ADVFN Plc:

·   Profit for the period £30,000 (2009: a loss of £535,000)

·   EBITDA* profit up by 78% to  £1,140,000 (2009:£641,000)

·   Turnover up 20% to £8,475,000 (2009: £7,034,000)

·   ADVFN's registered users now over 2,000,000 (2009: 1,720,000)

For further information, please contact:

Mike Hodges,

On-Line PLC Chairman

0207 0700 909

Fiona Kindness,

Grant Thornton Corporate Finance (Nominated Adviser)

0207 728 3414

*EBITDA  is calculated as the operating loss for the year before depreciation and amortisation charges.

Chairman's Statement

2009 - 2010 has been a successful period for us and our investment ADVFN PLC. Our turnover for the year was £120,000 (2009: £126,000) giving us a profit before tax of £10,000 (2009: loss of £267,000). ADVFN has continued build on the progress made last year and has now moved into profit, making £30,000 (2009: a loss of £535,000).

ADVFN has continued with its strategy which has seen it make impressive progress.

Its highlights below, as extracted from it's published financial statements, show the progress made:

•     Profit for the period of £30,000 (2009: a loss of £535,000)

•     EBITDA up by 78% to £1,140,000 (2009: £641,000)

•     Turnover up 20% to £8,475,000 (2009: £7,034,000)

•     Positive cash flow; 'net cash generated by operations' £1,417,000 (2009: £392,000) bringing the cash and Gilts balance to £2,300,000 (2009: £1,509,000)

•     ADVFN's registered users base now over 2m (2009: 1,7m)

Sales have grown to £8,475,000 from £7,034,000 (Year ended June 09) an increase of 20% and its turnover has grown for the 10th consecutive year. Sales are up strongly.

ADVFN's bottom line showed a significant improvement to £30,000 profit after tax for the year from a loss after tax of £535,000   (Year ended June 09). While the amount at this stage is small, this profit none-the-less marks an important milestone for the business.

This improvement is also reflected in positive cash flow. 'Net cash generated by operations' increased to £1,417,000 from £392,000  (Year ended June 09) an increase of 261%. This has resulted in an increase in ADVFN's cash and Gilts to £2,300,000 from £1,509,000 (Year ended June 09) an increase of 52%.

ADVFN has continued to decrease its dependence on the UK market. We see our future as an international brand rather than a local one and the benefits of this are twofold: diversification and much greater prospects.

US progress has been particularly exciting with strong growth in the year both on subscriptions and in advertising.

A strategy is meant to be a long-term plan and ADVFN's strategy remains, at the year end, the same as it was at the time of the last statement...to build ADVFN internationally as the leading destination for private investors looking for information and to generate revenue from advertising sales and subscription products."

Consequentially we will be pushing hard to grow our international businesses. It has to be said that international success is extremely difficult to achieve and not all our attempts have been as productive as Brazil and the US. However we feel we are making good progress in our current international portfolio and we will be looking to expand this

The ADVFN platform has already proven it can deliver our product world-wide, so the challenge boils down to addressing the subtleties of local markets to provide the right balance of localised product offering.

Chairman's Statement

Summary of key performance indicators

The directors have monitored the progress of the overall company strategy and the individual strategic elements by reference to certain financial and non financial key performance indicators. These are based on indicators from the investment in ADVFN Plc.

	2010 Actual	2010 Target	2009 Actual	2009 Target
Average head count	46	50	48	50
ADVFN registered users	2.0M	1.9M	1.72M	1.6M

Financial overview

Our turnover has remained steady at £120K (2009: £126K) however, our operating profit is down 58% to £13K (2009: £31K). 

Due to the acquisition of ALL IPO by ADVFN our investment in ALL IPO is now held through ADVFN, resulting in a small realised loss on investments of £3k.   

Financial performance

Key financial performance for the year has been analysed as follows:

	Year to 30 June 2010	Year to 30 June 2009	Change	Change
	£'000	£'000	£'000	%
Turnover	120	126	(6)	(5)
Operating profit	13	31	(18)	(58)
Profit/(loss) per share	0.13p	(3.48p)	3.61p	104

Strategy

We intend to carry on working with ADVFN to help them develop and build on their success while at the same time looking for new opportunities that the company might benefit from.

Operating costs

Our costs remain reasonably fixed and predictable and we do not see that changing in the immediate future.

Research and development

We believe in trying to get the best from all areas that we work in. It's very important that On-line and ADVFN continue to invest in the quality and design of our products. We believe continued investment in our research and development is fundamental to the continuing growth of the business.

Environmental policy

This has always been important to the company and as whole we continue to look for ways to develop our environmental policy. It is our objective to improve our performance in this area.

Future developments for the business

We feel it is right for us to work with our investments and assist in their growth.  This has seen them increase their business and allow new areas to be explored.

Chairman's Statement

Principal risks and uncertainties

The management of the company and the nature of the company's strategy are subject to a number of risks. The directors have set out below the principal risks facing the business. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Where possible, processes are in place to monitor and mitigate such risks.

Economic downturn

The success of the world's stock markets might affect the business given the sector both our main investments operate in.  Many things around the world can affect a stock market from war to human error. This can also have a knock on effect to consumer spending power as has been seen with the current credit crunch around the world, although in the past when we have seen a market downturn this has not impacted on usage of ADVFN, with customers generally wanting to know what is happening in the markets, be it good or bad. In response to this potential risk, senior management aim to keep abreast of economic conditions around the world; not only should senior management be aware of it, likewise so should our customers and members. In cases of severe economic downturn, marketing and pricing strategies are modified to reflect the new market conditions.

High proportion of fixed overheads and variable revenues

A large proportion of the company's overheads are reasonably fixed. There is the risk that any significant changes in revenue may lead to the inability to cover such costs. Management closely monitor fixed overheads against budget on a monthly basis and cost saving exercises would be implemented should there be an anticipated decline in revenues.

Michael Hodges

Chairman

5 October 2010

 

Profit and Loss Account

for the year ended 30 June 2010

	Notes	2010	2009
		£'000	£'000
Turnover		120	126
Administrative expenses		(107)	(95)
Operating profit		13	31
Realised (loss) on investments		(3)	(298)
Profit/(loss) on ordinary activities before taxation		10	(267)
Tax on (loss) on ordinary activities		-	-
Profit/(loss) on ordinary activities after taxation		10	(267)
Basic profit/(loss) per ordinary share	1	0.13p	(3.48p)
Diluted profit/(loss) per ordinary share	1	0.12p	(3.48p)

All operations are continuing.

Balance Sheet

at 30 June 2010

			2010		2009
	Notes		£'000		£'000
Fixed assets
Investments			868		871
Current assets
Debtors			78		62
Cash at bank and in hand			5		3
			83		65
Creditors: amounts falling due within one year			(61)		(56)
Net current assets			22		9
Total assets less current liabilities			890		880
Capital and reserves
Called up share capital			3,242		3,242
Share premium account			2,205		2,205
Option valuation reserve			17		17
Profit and loss account			(4,574)		(4,584)
Shareholders' funds	2		890		880

The financial statements were approved by the Board of Directors on 5 October 2010

Michael Hodges                                                               Jonathan Mullins

Director                                                                                Director

Cash Flow Statement

for the year ended 30 June 2010

			2010		2009
	Notes		£'000		£'000
Net cash inflow/(outflow) from operating activities	3		2		(57)
Net cash inflow/(outflow) before financing			2		(57)
Financing
Net cash inflow from financing			-		-
Increase/(decrease) in cash	4,5		2		(57)

Statement of Total Recognised Gains and Losses

for the year ended 30 June 2010

			2010		2009
			£'000		£'000
Profit/(loss) for the  year			10		(267)
Unrealised (loss) on current asset investments			-		(32)
Total recognised gains/(losses) for the year			10		(299)

1.             Earnings/(loss) per share

		2010			2009
		Number of	Earnings		Number of	Loss
	Profit	shares	per share	Loss	shares	per share
	£'000	'000	p	£'000	'000	p
Basic earnings per share
Profit/(loss) for the year	10			(267)
Weighted average number of shares		7,662			7,662
Basic earnings/(loss)  per share			0.13p			(3.48p)
Diluted earnings per share
Profit /(loss) for the year	10			(267)
Weighted average number of shares		7,662			7,662
Dilutive effect of options		550			-
Weighted average number of shares of diluted earnings per share		8,212			7,662
Diluted earnings/(loss) per share			0.12p			(3.48p)

2.             Reconciliation of movements in shareholders' funds

			2010	2009
			£'000	£'000
Profit/(loss) for the financial year			10	(267)
Recognition of equity settled share based payments in the year (FRS20)			-	6
Unrealised (loss) on investments			-	(32)
Net decrease in shareholders' funds in the year			10	(293)
Shareholders' funds at 1 July 2009			880	1,173
Shareholders' funds at 30 June 2010			890	880

Notes to the Financial Statements

for the year ended 30 June 2010

3.             Reconciliation of operating profit to net cash inflow from operating activities

			2010	2009
			£'000	£'000
Operating profit Equity settled share based payments in the year			13 -	31 6
(Increase) in debtors			(16)	(54)
Increase/(decrease) in creditors			5	(40)
Net cash inflow/(outflow) from operating activities			2	(57)

4.             Reconciliation of net cash flow to movement in net funds

	2010	2009
	£'000	£'000
Increase/(decrease) in cash for the year	2	(57)
Net funds at 1 July 2009	3	60
Net funds at 30 June 2010	5	3

5.             Analysis of movement in net funds

		At 1 July 2009		Cash flow		At 30 June 2010
		£’000		£’000		£’000
Cash in hand and at bank		3		2		5

6.             Publication of Non Statutory Accounts

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006.

The balance sheet at 30 June 2010 and the profit and loss account, cash flow statement , statement of total recognised gains and losses and associated notes for the year then ended have been extracted from the Company's 2010 statutory financial statements upon which the auditors' opinion is unqualified and does not include any statement under Section 498(2) or (3) of the Companies Act 2006.

The annual report and accounts will shortly be sent to shareholders and will be available on the Company's website, http://www.on-line.co.uk/.

 

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