Preliminary Results

On-Line PLC 19 October 2005 Embargoed for release until 7.30 a.m. 19th October 2005 On-line PLC ('On-line' or 'the Company') Preliminary Results for the Year Ended 30 June 2005 On-line today announces preliminary results for the year ended 30 June 2005. Highlights: • Profit before tax up over 600% to £1.53M (2004: £216K) • Earnings per share up over 500% to 20.1p (2004: 3.3p) • EBITDA profits up 144% to £853K (2004: £349K) • Net assets increased more than fourfold to £2.82M (2004: £608K) • ADVFN Plc achieved first full year's profit of £1.01M (2004: £254K loss) • ALL IPO Plc successfully restructured, refinanced, approved by the FSA and business launched Michael Hodges, On-line's Chairman commented: 'We are extremely pleased with the more than six-fold increase in profits to over one and a half million pounds and the strength of our investments which has transformed our balance sheet increasing our net asset base by over four times. With the transformation in ADVFN over the last year and the successful launch and prospects of ALL IPO we feel we are now in a position to start adding significant shareholder value over the next year or two.' For further information, please contact: On-line Plc Michael Hodges, Chairman and Managing Director mikeh@advfn.com On-line PLC Chairman's Statement Results I am very pleased to be able to announce a significantly improved set of results with profit before tax having increased by an impressive 600% to £1.53M from £216K last year. Earnings per share have also improved substantially up 500% to 20.1p per share compared to 3.3p last year. Our balance sheet position has also seen more than a four-fold increase in net assets up to £2.82M from £608K last year leaving us in excellent shape going forwards especially as this does not even reflect the market value of our fixed asset investments only their cost. The inherent strength in our results can also be seen in the continued growth in our EBITDA profit, which is up 144% to £853K compared to £349K last year, as shown in the table below:- EBITDA - Earnings before interest, tax, depreciation, 2005 2004 amortisation and exceptional items £'000 £'000 Profit/(loss) before tax - per accounts 1,529 216 Exceptional item - profits on disposal of investments (585) (105) Share of associate's Ebitda adjustments (84) 231 Net interest (7) 7 EBITDA 853 349 Operating Review I am pleased to report that ADVFN Plc, in which we now hold just under 25%, has not only consolidated its position as Europe's leading financial website but is now extending this further into many new areas with joint ventures in Japan and Brazil and data from many Asian markets starting to come on-line. It recently announced a very positive set of results with first full year's profits of £1.01M compared to losses of £254K the previous year. Its user numbers continued to grow strongly having increased by 46% over the year from 370,000 to 540,000. Its internet properties CupidBay and Fotothing continue to do well and the market for high growth customer acquisition businesses in the internet sector is thriving. ALL IPO Plc, in which we now hold just over 8%, was successfully restructured and refinanced during the year. Whilst developing its on-line IPO systems it went through the process of applying for and obtaining both FSA and European approval following which its business was recently launched. Although early days we have high hopes for the future of this business. Smoking Gun Entertainment Group Plc, where we own approx 20%, has with our help successfully listed on the OFEX market and is now looking to expand its activities. Prospects All our investments appear poised to perform well over the next year or two and the group's position has now improved to the best it has been for some years. With a thriving internet sector and the forecast bull markets we look forward to the coming year with great enthusiasm. Michael Hodges Chairman 18th October 2005 On-line PLC Consolidated Profit and Loss Account for the year ended 30 June 2005 Note 2005 2005 2004 £'000 £'000 £'000 Turnover 31 51 Administrative expenses (100) 95 Operating (loss)/profit (69) 146 Share of operating losses of associate (302) (28) Share of associates losses of its associate (19) - Profit on sale of investments 25 - Amount written back on investments 728 - Exceptional items: profits on disposal of investments 585 105 Share of exceptional items of associate 574 1,159 - Net interest 7 (7) Profit on ordinary activities before taxation 1,529 216 Tax on profit on ordinary activities 3 2 Profit on ordinary activities after taxation 1,532 218 Minority interest 6 8 Profit retained for the year 1,538 226 Earnings per ordinary share 2 Basic 20.1p 3.3p Diluted 18.8p 3.2p All operations are continuing. On-line PLC Balance Sheets at 30 June 2005 Group Group Company Company 2005 2004 2005 2004 Note £'000 £'000 £'000 £'000 Fixed assets Investments 1,795 663 1,373 845 Current assets Debtors 95 29 95 20 Investments 954 101 954 101 Cash at bank and in hand 48 8 48 8 1,097 138 1,097 129 Creditors: amounts falling due within one year (75) (235) (75) (60) Net current assets/(liabilities) 1,022 (97) 1,022 69 Total assets less current liabilities 2,817 566 2,395 914 Minority interest - 42 - - Net assets 2,817 608 2,395 914 Capital and reserves Called up share capital 3,242 3,241 3,242 3,241 Share premium account 2,205 2,202 2,205 2,202 Profit and loss account (2,630) (4,835) (3,052) (4,529) Total shareholders' funds 3 2,817 608 2,395 914 The financial statements were approved by the Board of Directors on 18th October 2005. On-line PLC Consolidated Cash Flow Statement for the year ended 30 June 2005 2005 2004 Notes £'000 £'000 Net cash inflow /(outflow) from operating activities 4 49 (230) Returns on investment and servicing of finance Interest paid (1) (11) Taxation - 55 Capital expenditure Proceeds from sale of investments 66 218 Loans to other entities (78) - (12) 218 Net cash inflow before financing 36 32 Financing Issue of ordinary share capital 4 118 Share issue costs - (20) Issue of shares to minority - 17 Loan repayments - (102) Net cash inflow from financing 4 13 Increase in cash 5,6 40 45 Statement of Total Recognised Gains and Losses for the year ended 30 June 2005 2005 2004 £'000 £'000 Profit for the financial year 1,538 226 Share of prior year adjustment of associate (77) - Unrealised gain on current asset investments 694 30 Total recognised gains and losses for the year 2,155 256 On-line PLC Notes for the year ended 30 June 2005 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 group's 2005 statutory financial statements upon which the auditors reported on 18th October 2005. Their opinion is unqualified and does not include any statement under section 237 of the Companies Act 1985. Copies of the annual report are being posted to shareholders and copies will be available from the company's registered office at 642a Lea Bridge Road, Leyton, London, E10 6AP. 2. Earnings per ordinary share The calculation of the basic earnings or loss per share is based on the earnings attributable to ordinary shareholders divided by the weighted average numbers of shares in issue during the year. The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares and the post tax effect of dividends and/or interest, on the assumed conversion of all dilutive options and other dilutive potential ordinary shares. Reconciliations of earnings and weighted average number of shares used in the calculation are set out below. 2005 2004 Number Number of Earnings of Earnings Profit shares per share Profit share per share £'000 '000 p £'000 '000 p Profit for the year 1,538 226 Weighted average number of shares 7,654 6,848 Basic earnings per share 20.1p 3.3p Number of shares under option 990 600 Number of shares that would have been issued at average market value (448) (520) Diluted earnings per share 1,538 8,196 18.8p 226 6,928 3.2p 3. Reconciliation of movements in shareholders' funds 2005 2004 £'000 £'000 Profit for the financial year 1,538 226 Unrealised gain on investments 694 30 Share of prior year adjustment of associate (77) - Receipts from issue of shares 4 98 Goodwill previously written off to reserves 50 1 Net increase in shareholders' funds in the year 2,209 355 Shareholders' funds at 1 July 2004 608 253 Shareholders' funds at 30 June 2005 2,817 608 4. Reconciliation of operating profit to net cash outflow from operating activities 2005 2004 £'000 £'000 Operating (loss)/profit (69) 146 Decrease in debtors 12 11 Increase/(decrease) in creditors 106 (387) Net cash inflow/(outflow) from operating activities 49 (230) 5. Reconciliation of net cash flow to movement in net funds 2005 2004 £'000 £'000 Increase in cash for the year 40 45 Loan repayments - 102 Movement in net funds in the year 40 147 Net funds at 1 July 2004 8 (139) Net funds at 30 June 2005 48 8 6. Analysis of movement in net debt At At 1 July 30 June 2004 Cash flow 2004 £'000 £'000 £'000 Cash in hand and at bank 8 40 48 This information is provided by RNS The company news service from the London Stock Exchange
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