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(Alliance News) - ADVFN PLC shares plunged on Monday, as the company said its second half outturn was hit by a soft market, and high expenses from "costly" corporate activity in the period.
ADVFN is a London-based operator of financial information websites for private investors. In the second half of the year ending June 30, it said sales to date have been "disappointing".
"While the run rate is broadly flat, sales are below the first-half performance and significantly less than the comparable period for the six months ended 30 June 2021," the firm said.
Shares in ADVFN dropped 27% to 55.25 pence each in London on Monday morning.
It cited advertising sales as being particularly hard hit by factors such as a "softer market for financial media".
For the period so far, ADVFN said there has been a small operational loss, but in the whole financial year to date it has still generated an operational profit.
However, it warned its pretax loss for the period will be "significant".
As well as lower sales, higher costs have also eaten into profit. The firm cited a high level of non-recurring expenses during the period, mostly due to its strategic review, formal sales process, and the requisitioned general meeting.
A settlement payment to former Chief Executive Officer Clem Chambers in compensation for his loss of office in February was a further expense during the period.
The board has decided to suspend dividend payouts for the time being, including any potential final dividend for the current financial year.
"Board and management arrangements are to be concluded and continue to impact on the operational performance of the company, and in particular sales. Future sales are anticipated to be significantly lower than the current run rate," ADVFN warned.
In February, ADVFN posted a pretax profit of GBP202,000 in the six months ended December 31, which was down 23% from the same period a year before.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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