Last checked at 24 Mar 2017 17:00
24 March 2017
ADVFN PLC
("ADVFN" or the "Company")
Unaudited Interim Results for the Six Months Ended 31 December 2016
ADVFN today announces its unaudited interim results for the six months ended 31 December 2016.
Chief Executive's Statement
2016 was a year of change at ADVFN. We have, after many years of striving for growth, realigned ourselves to work towards profit. These interim results for the six month period to 31 December 2016 sees us hit this target and realise a profit after tax, albeit this was due largely to foreign exchange gains.
Turning away from growth in order to cut costs has resulted in our sales falling to £3,826,000 from £4,274,000. However, the P&L during this period has gone from a £442,000 loss after tax to an £18,000 profit after tax, a considerable reversal. Whilst this profit may be a meagre one it is, never the less, a milestone.
This result has been produced as a consequence of a number of proactive changes in our business: our headcount reduced, the closure of non-core markets, restrained marketing and the decommissioning of localised web content.
The second half of the 2016 calendar year improved due to the surprise turn-up results of Brexit and President Trump. The outlook, while stronger, is still mixed with much fragility in our marketplace.
We are on an even keel and we expect to remain on the current course. In the short term, this will be heavily dependent on the appetite for trading and investing in our key markets. This outcome in our view is, to some extent, hedged because our main markets are in the UK, US and Brazil and as such are disparate.
We believe that by this time next year we will be in a good position to re-examine a strategy for growth. This will depend on our success in the next 12 months, which in the era of Brexit and President Trump is difficult to predict.
This new politico-economic era could pan out well for ADVFN as, in the past, chaos and uncertainty has worked in our favour. In the meantime, we will continue to work further to improve our performance.
Financial performance
Key financial performance for the period has been summarised as follows:
Six Months ended | Six Months ended | |
31 December 2016 | 31 December 2015 | |
£'000 | £'000 | |
Turnover | 3,826 | 4,274 |
Loss for the period | 18 | (442) |
Operating Loss | (66) | (538) |
Loss per share (see note 3) | 0.07 p | (1.75)p |
Clem Chambers
CEO
24 March 2017
For further information, please contact:
Clem Chambers,
ADVFN PLC CEO
0207 0700 909
Salmaan Khawaja
Jamie Barklem
Carolyn Sansom
Grant Thornton UK LLP (Nominated Adviser)
0207 383 5100
Consolidated income statement | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2016 | 2015 | 2016 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Notes | ||||
Revenue | 3,826 | 4,274 | 8,303 | |
Cost of sales | (130) | (572) | (1,077) | |
Gross profit | 3,696 | 3,702 | 7,226 | |
Share option charge | - | (156) | (275) | |
Amortisation of intangible assets | (161) | (209) | (425) | |
Other administrative expenses | (3,601) | (3,875) | (7,176) | |
Total administrative expense | (3,762) | (4,240) | (7,876) | |
Operating loss | (66) | (538) | (650) | |
Finance income | 84 | 68 | 126 | |
Finance expense | - | (1) | - | |
Loss before tax | 18 | (471) | (524) | |
Taxation | - | 29 | 46 | |
Profit/(loss) for the period attributable to shareholders of the parent |
18 |
(442) |
(478) | |
Profit/(loss) per share | ||||
Basic and diluted (pence per share) | 3 | 0.07 p | (1.75) p | (1.89) p |
Consolidated statement of comprehensive income | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2016 | 2015 | 2016 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Profit/(loss) for the period | 18 | (442) | (478) | |
Other comprehensive income: | ||||
Items that will be reclassified subsequently to profit or loss: | ||||
Exchange differences on translation of foreign operations | 167 | 46 | 233 | |
Deferred tax on translation of foreign held assets | (29) | (17) | (47) | |
Total other comprehensive | 138 | 29 | 186 | |
Total comprehensive income for the year attributable to shareholders of the parent |
156 |
(413) |
(292) | |
Consolidated balance sheet | ||||
31 Dec | 31 Dec | 30 June | ||
2016 | 2015 | 2016 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 65 | 90 | 68 | |
Goodwill | 999 | 833 | 918 | |
Intangible assets | 1,438 | 1,247 | 1,321 | |
Trade and other receivables | 126 | 196 | 155 | |
2,628 | 2,366 | 2,462 | ||
Current assets | ||||
Trade and other receivables | 1,091 | 1,036 | 1,025 | |
Current tax recoverable | - | - | - | |
Cash and cash equivalents | 840 | 784 | 843 | |
1,931 | 1,820 | 1,868 | ||
Assets in disposal group classified as held for sale | - | - | 142 | |
1,931 | 1,820 | 2,010 | ||
Total assets | 4,559 | 4,186 | 4,472 | |
Equity and liabilities | ||||
Equity | ||||
Issued capital | 51 | 51 | 51 | |
Share premium | 145 | 95 | 119 | |
Share based payments reserve | 344 | 344 | 344 | |
Foreign exchange reserve | 605 | 310 | 467 | |
Retained earnings | 658 | 676 | 640 | |
1,803 | 1,476 | 1,621 | ||
Non-current liabilities | ||||
Deferred tax | 122 | 91 | 100 | |
122 | 91 | 100 | ||
Current liabilities | ||||
Trade and other payables | 2,610 | 2,619 | 2,583 | |
Current tax | 24 | - | 10 | |
2,634 | 2,619 | 2,593 | ||
Liabilities directly associated with assets in disposal groups classified as held for sale |
- |
- |
158 | |
2,634 | 2,619 | 2,751 | ||
Total liabilities | 2,756 | 2,710 | 2,851 | |
Total equity and liabilities | 4,559 | 4,186 | 4,472 | |
Consolidated statement of changes in equity
Share capital | Share premium | Share based payment reserve | Foreign exchange | Retained earnings | Total equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
At 1 July 2015 | 50 | - | 189 | 281 | 1,118 | 1,638 |
Equity settled share options | - | - | 155 | - | - | 155 |
Share issues | 1 | 95 | - | - | - | 96 |
Transactions with owners | 1 | 95 | 155 | - | - | 251 |
Loss for the period after tax | - | - | - | - | (442) | (442) |
Other comprehensive income | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
46 |
- |
46 |
Deferred tax on translation of foreign held assets |
- |
- |
- |
(17) |
- |
(17) |
Total comprehensive income | - | - | - | 29 | (442) | (413) |
At 31 December 2015 | 51 | 95 | 344 | 310 | 676 | 1,476 |
Equity settled share options | - | - | - | - | - | - |
Share issues | - | 24 | - | - | - | 24 |
Transactions with owners | - | 24 | - | - | - | 24 |
Loss for the period after tax | - | - | - | - | (36) | (36) |
Other comprehensive income | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
187 |
- |
187 |
Deferred tax on translation of foreign held assets |
- |
- |
- |
(30) |
- |
(30) |
Total comprehensive income | - | - | - | 157 | (36) | 121 |
At 30 June 2016 | 51 | 119 | 344 | 467 | 640 | 1,621 |
Equity settled share options | - | - | - | - | - | - |
Share issues | - | 26 | - | - | - | 26 |
Transactions with owners | - | 26 | - | - | - | 26 |
Profit for the period after tax | - | - | - | - | 18 | 18 |
Other comprehensive income | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
167
|
- |
167
|
Deferred tax on translation of foreign held assets |
- |
- |
- |
(29) |
- |
(29) |
Total comprehensive income | - | - | - | 138 | 18 | 156 |
At 31 December 2016 | 51 | 145 | 344 | 605 | 658 | 1,803 |
Consolidated cash flow statement | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2016 | 2015 | 2016 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Cash flows from operating activities | ||||
Loss for the period before tax | 18 | (471) | (524) | |
Net finance income in the income statement | (84) | (67) | (126) | |
Depreciation of property, plant and equipment | 32 | 28 | 83 | |
Amortisation | 161 | 209 | 425 | |
Profit on disposal of Investor Events | (56) | - | - | |
Adjustment to fair value of embedded derivative | 112 | 125 | 225 | |
Share based payments | - | 96 | 155 | |
Share based payments - options | - | 156 | - | |
Issue of share capital | 26 | - | 120 | |
Increase in trade and other receivables | (66) | (91) | (80) | |
Increase/(decrease) in trade and other payables | 27 | (112) | (148) | |
Net cash generated /(used) by continuing operations | 170 | (127) | 130 | |
Income tax (paid)/received | 36 | 200 | 236 | |
Net cash generated/(used) by operating activities | 206 | 73 | 366 | |
Cash flows from financing activities | ||||
Interest paid | - | (1) | (1) | |
Cash flows from investing activities | ||||
Interest received | 1 | - | - | |
Payments for property, plant and equipment | (29) | (19) | (52) | |
Purchase of intangibles | (198) | (193) | (399) | |
Sale of Investor Events | 40 | - | - | |
Sale/(purchase) of investments | - | 6 | 6 | |
Net cash used by investing activities | (186) | (206) | (445) | |
Net increase/(decrease) in cash and cash equivalents | 20 | (134) | (80) | |
Exchange differences | (23) | (68) | (79) | |
Decrease in cash and cash equivalents continuing operations | (3) | (202) | (159) | |
Cash generated by disposal group | - | - | 16 | |
Net decrease in cash and cash equivalents | (3) | (202) | (143) | |
Cash and cash equivalents at the start of the period | 843 | 986 | 986 | |
Cash and cash equivalents at the end of the period | 840 | 784 | 843 |
1. Legal status and activities
ADVFN Plc ("the Company") is principally involved in the development and provision of financial information primarily via the internet and the development and exploitation of ancillary internet sites.
The company is a public limited liability company incorporated and domiciled in England and Wales. The address of its registered office is Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.
The Company is quoted on the Alternative Investment Market ("AIM") of the London Stock Exchange.
2. Basis of preparation
The unaudited consolidated interim financial information is for the six month period ended 31 December 2016. The financial information does not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2016, which were prepared under IFRS as adopted by the European Union (EU).
The accounting policies adopted in this report are consistent with those of the annual financial statements for the year to 30 June 2016 as described in those financial statements.
The interim financial information has not been audited nor has it been reviewed under ISRE 2410 of the Auditing Practices Board. The financial information presented does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The Group's statutory accounts for the year to 30 June 2016 have been filed with the Registrar of Companies. The auditors, Grant Thornton UK LLP reported on these accounts and their report was unqualified and did not contain a statement under section 498(2) or Section 498(3) of the Companies Act 2006.
3. Loss per share
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | |
2016 | 2015 | 2016 | |
£'000 | £'000 | £'000 | |
Profit/(loss) for the year attributable to equity shareholders | 18 | (442) | (478) |
Profit/(loss) per share - basic and diluted | 0.07 p | (1.75)p | (1.89)p |
Shares | Shares | Shares | |
Issued ordinary shares at start of the period | 25,523,845 | 25,220,210 | 25,220,210 |
Ordinary shares issued in the period | 100,000 | 190,000 | 303,635 |
Issued ordinary shares at end of the period | 25,623,845 | 25,410,210 | 25,523,845 |
Weighted average number of shares in issue for the period | 25,901,019 | 25,335,862 | 25,237,597 |
Dilutive effect of options | - | - | - |
Weighted average shares for diluted earnings per share | 25,901,019 | 25,335,862 | 25,237,597 |
The diluted loss per share does not differ from the basic loss per share as the exercise of share options would have the effect of reducing the loss per share and is therefore not dilutive under the terms of IAS 33.
4. Dividends
The directors do not recommend the payment of a dividend.
5. Financial statements
Copies of this statement are being posted to shareholders shortly and will be available from the company's registered office at Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.