Last checked at 5 Nov 2009 07:00
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 mikeh@advfn.com
Francesca De Franco, PR francescad@advfn.com
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 overviewOur 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) |
StrategyOur 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 |