Final Results

RNS Number : 9928B

On-Line PLC

05 November 2009

 



On-line PLC

('On-line' or 'the Company')

Preliminary Results for the Year Ended 30 June 2009

On-line today announces preliminary results for the year ended 30 June 2009.

  For further information, please contact:

  Michael Hodges, Chairman and Managing Director                [e-mail]

  Francesca De Franco, PR                                                     [e-mail]  

                                                                                              020 7070 0932

  Fiona Kindness / Adam Suggett

 Grant Thornton Corporate Finance (Nominated Adviser)       020 7728 3414

On-line PLC

Chairman's Statement

It has been an interesting year for our investments, which has seen ADVFN continue to grow, and since the year end ALLIPO coming under the control of ADVFN, which will open a new range of opportunities. The performance of ADVFN and ALLIPO for the year is summarised below:

ADVFN PLC

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

Its highlights below, as extracted from their published financial statements, show the progress made:

• EBITDA profits of £641,000 (2008: loss of £48,000)

• Operating loss reduced by 67% to £429,000 (2008:£1,308,000)

• Loss after tax down 39% to £535,000 (2008: £882,000)

• Loss per share reduced by 40% to 0.09p (2008: 0.15p)

Despite some of the worst economic conditions in living memory ADVFN has shown a series of much improved financial numbers. ADVFN has not just sailed through the "credit crunch," the team have worked very hard to optimise the business and this shows in its figures; a much improved financial performance from a small increase in overall sales. 

It is making good overall progress in the UK and US, while its other markets continue to show subscription growth. With the launch of new products in the US it has seen it's US business at Investors Hub and ADVFN start to take off strongly.  

ALL IPO PLC

The IPO market has remained very quiet over the past year and although signs are that this might improve next year, the company has not stayed still. It, as you know, created Throgmorton Street Capital, a stockbroker, and now has several corporate clients on its books. During the year TSCTrade was created, a private client stockbroker which actively looks after private clients and their trading requirements. Please view www.TSCTRADE.com to find out more, as I am sure they will be very happy to help you. Since the year end ALLIPO was purchased by ADVFN giving it access to ALLIPO technology and a regulated company.

Financial overview

Our turnover has remained steady at £126K (2008:£127K) yet our operating profit is up 77% to £31K (2008: £7K) 

We have seen a drop in the value of our investments which, in the current market conditions, is expected. Smoking Gun de-listed from the Plus market but is to carry on its business. The fall in its market value, prior to its de-listing from Plus has meant we have had to fully write down its value in accordance with accounting standards, which has resulted in a loss on investments within the profit and loss account of £298K. This means it has been totally written off in our books despite the fact that it is still operating.

Financial performance

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

	Year to 30 June 2009	Year to 30 June 2008	Change	Change
	£'000	£'000	£'000	%
Turnover	126	127	(1)	0
Operating profit	31	7	24	343
Loss per share	(3.48p)	(1.79p)	(1.69)	(94)

Strategy
Our strategy remains the same which is to carry on working with our investments 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 are reasonably fixed and predictable and we do not see that changing in the immediate future. 

Research and development

It is very important that our investments 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

The company as a whole continues to look for ways to develop our environmental policy. It is our objective to improve our performance in this area. 

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. 

	2009 Actual	2009 Target	2008 Actual	2008 Target
Average head count	48	50	54	55
ADVFN registered users	1.72M	1.6M	1.44M	1.2M

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.

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

4th November 2009

Profit and Loss Account

for the year ended 30 June 2009

	Notes	2009	2008
		£'000	£'000
Turnover		126	127
Administrative expenses		(95)	(120)
Operating profit		31	7
Amount written off on investments		(298)	(144)
Loss on ordinary activities before taxation		(267)	(137)
Tax on loss on ordinary activities		-	-
Loss on ordinary activities after taxation		(267)	(137)
Basic and diluted loss per ordinary share from total and continuing operations	2	(3.48p)	(1.79p)

All operations are continuing.

Balance Sheet

at 30 June 2009

			2009		2008
	Notes		£'000		£'000
Fixed assets
Investments			871		871
Current assets
Debtors			62		8
Investments			-		330
Cash at bank and in hand			3		60
			65		398
Creditors: amounts falling due within one year			(56)		(96)
Net current assets			9		302
Total assets less current liabilities			880		1,173
Capital and reserves
Called up share capital			3,242		3,242
Share premium account			2,205		2,205
Option valuation reserve			17		11
Profit and loss account			(4,584)		(4,285)
Shareholders' funds	3		880		1,173

The financial statements were approved by the Board of Directors on 4th Nov 2009

Michael Hodges      Jonathan Mullins

Director                     Director

Cash Flow Statement

for the year ended 30 June 2009

			2009		2008
	Notes		£'000		£'000
Net cash (outflow)/inflow from operating activities	4		(57)		14
Net cash (outflow)/inflow before financing			(57)		14
Financing
Net cash inflow from financing			-		-
(Decrease)/increase in cash	5,6		(57)		14

Statement of Total Recognised Gains and Losses

for the year ended 30 June 2009

			2009		2008
			£'000		£'000
Loss for the year			(267)		(137)
Unrealised (loss) on current asset investments			(32)		(570)
Total recognised losses for the year			(299)		(707)

On-line plc

Notes for the year ended 30 June 2008

1.    General

The financial information herein does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information has been extracted from the Company's 2008 statutory financial statements upon which the auditors reported on 4th November 2009. Their opinion does not include any statement under section 237 of the Companies Act 1985.

The financial statements have been prepared in accordance with applicable United Kingdom Accounting Standards and under the historical cost convention. The principal accounting policies have remained unchanged since the previous year.

Copies of the annual report are being posted to shareholders and copies will be available from the company's registered office at Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA and the Company's website www.on-line.co.uk.

2.    Loss per ordinary share

		2009			2008
		Number of	Loss		Number of	Loss
	Loss	shares	per share	Loss	shares	per share
	£'000	'000	p	£'000	'000	p
Loss for the year	(267)			(137)
Weighted average number of shares		7,662			7,662
Loss per share			(3.48p)			(1.79p)

The share options are anti-dilutive for both years due to the losses incurred.

3.    Reconciliation of movements in shareholders' funds

			2009	2008
			£'000	£'000
Loss for the financial year			(267)	(137)
Recognition of equity settled share based payments relating to repricing of options in the year			6	-
Unrealised (loss) on investments			(32)	(570)
Net decrease in shareholders' funds in the year			(293)	(707)
Shareholders' funds at 1 July 2008			1,173	1,880
Shareholders' funds at 30 June 2009			880	1,173

  Notes to the Financial Statements 

for the year ended 30 June 2008

4.    Reconciliation of operating profit / (loss) to net cash inflow from operating activities

			2009	2008
			£'000	£'000
Operating profit  Equity settled share based payments in the year			31 6	7 -
Increase in debtors			(54)	(1)
Decrease in creditors			(40)	8
Net cash (outflow)/inflow from operating activities			(57)	14

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

	2009	2008
	£'000	£'000
(Decrease)/increase in cash for the year	(57)	14
Net funds at 1 July 2008	60	46
Net funds at 30 June 2009	3	60

6.    Analysis of movement in net funds

			At    1 July  2008	Cash flow	At 30 June 2009
			£'000	£'000	£'000
Cash in hand and at bank			60	(57)	3

 

END

 

 

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