LONDON (Alliance News) - Financial information firm ADVFN PLC Friday said its pretax loss widened in the last financial year after a revenue fell and the company had a "costly defence" against a group of shareholders at the start of the year.
The company reported a pretax loss of GBP1.7 million in the year ended June 30, widening from the GBP555,000 loss a year earlier as revenue fell to GBP9.3 million from GBP9.7 million, comfortably within its guidance range of GBP9.0 to GBP10.0 million.
At the end of the year, ADVFN said it had 3.2 million registered users, which is higher than its target of 3.1 million.
ADVFN said its results were "significantly exacerbated by our difficult and costly defence of the illegal action of a particular shadowy group of share holders at the beginning of the year which was seeking to take control of the ADVFN board".
That refers to a group of three shareholders who were calling for the removal of all the directors from the company's board. Sweet Sky Ltd, Shellhouse Ltd and Zack Keinan decided to withdraw their requisitions in May after a lengthy dispute between them and the company.
Administrative costs in the year also experienced a small rise to GBP9.6 million from GBP9.2 million.
"We have been focusing very keenly on reducing costs. Historically we have focused on growth opportunities and this has been the strategy for well over a decade. However we have decided to deviate from that path and instead shift our focus to cash flows and profitability," it said.
ADVFN shares closed down 11% to 65.90 pence per share on Friday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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ADVFN (AFN)