Last checked at 20 Mar 2019 07:00
20 March 2019
For immediate release
ADVFN PLC
("ADVFN" or the "Company")
Unaudited Interim Results for the Six Months Ended 31 December 2018
ADVFN today announces its unaudited interim results for the six months ended 31 December 2018 (the "Period").
Chief Executive's Statement
The first half of the year has been a period of significant change for ADVFN. Our users will have noticed the addition of a strong, innovative Blockchain information offering that provides our global userbase with exhaustive coverage of coins and tokens across a plethora of exchanges. Meanwhile, we have significantly re-engineered the site to cope, not only with the exciting but technically challenging markets but with the ever-increasing demands of markets forever pushing out more data. While nothing sits still for long in the financial markets, we provide information about, we try and by and large succeed in doing this without disrupting the business.
Our re-engineering of the ADVFN website positions us for growth especially on the eventual return of positive investor sentiment towards blockchain cryptocurrencies after the year-long 'crypto winter' bear market. It might seem hard for long term investors in stocks to grasp the opportunity but in our opinion cryptocurrencies will, in a few years, be the preferred investment market for the generation called 'the millennials.' That futurism aside, cryptocurrency is already a revenue generator for us and has been the "tail-wind" making up for the regulatory "head-winds" affecting our equity-focused customers via the ESMA regulations forcing the spread betting community to restructure how they do business.
We have made a material investment thus far in our website and this has added a further diversification to our product mix as well as a chance to be at the forefront as and when Bitcoin and cryptocurrencies catch the imagination of the traders and investors again, as we believe it will in either later in 2019 or 2020.
After much preparation, and after seeing the first fruits of our recent efforts turn into revenue, this has helped us maintain our business in an environment where our customers have been buffeted by new regulation and difficult markets and we continue to look forward to the future with excitement.
Financial performance
Key financial performance for the period has been summarised as follows:
Six Months ended | Six Months ended | |
31 December 2018 | 31 December 2017 | |
£'000 | £'000 | |
Revenue | 4,265 | 4,282 |
(Loss)/profit for the period | (214) | 24 |
Operating (loss)/profit | (210) | 24 |
(Loss)/profit per share (see note 3) | (0.84 p) | 0.09 p |
Clem Chambers
CEO
19 March 2019
A copy of this announcement is available on the Company's website: www.ADVFN.com
Enquiries:
For further information please contact:
ADVFN PLC Clem Chambers |
+44 (0) 207 070 0909 | |
Beaumont Cornish Limited (Nominated Adviser) www.beaumontcornish.com | ||
Roland Cornish/Michael Cornish
| +44 (0) 207 628 3396 | |
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. The person who arranged for the release of this announcement on behalf of the Company was Clem Chambers, Director.
Consolidated income statement | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2018 | 2017 | 2018 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Notes | ||||
Revenue | 4,265 | 4,282 | 9,201 | |
Cost of sales | (227) | (90) | (392) | |
Gross profit | 4,038 | 4,192 | 8,809 | |
Share based payment | - | (3) | (21) | |
Amortisation of intangible assets | (69) | (105) | (202) | |
Other administrative expenses | (4,179) | (4,060) | (8,202) | |
Total administrative expense | (4,248) | (4,168) | (8,245) | |
Operating (loss)/profit | (210) | 24 | 384 | |
Finance income and expense | (4) | - | - | |
Income from related parties | - | - | 58 | |
(Loss)/profit before tax | (214) | 24 | 442 | |
Taxation | - | - | (49) | |
(Loss)/profit for the period attributable to shareholders of the parent |
(214) |
24 |
393 | |
Earnings per share | ||||
Basic and diluted | 3 | (0.84 p) | 0.09 p | 1.53 p |
Consolidated statement of comprehensive income | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2018 | 2017 | 2018 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
(Loss)/profit for the period | (214) | 24 | 393 | |
Other comprehensive income: | ||||
Items that will be reclassified subsequently to profit or loss: | ||||
Exchange differences on translation of foreign operations | 33 | (70) | (33) | |
Deferred tax on translation of foreign held assets | - | - | - | |
Total other comprehensive income | 33 | (70) | (33) | |
Total comprehensive income for the year attributable to shareholders of the parent |
(181) |
(46) |
360 | |
Consolidated balance sheet | ||||
31 Dec | 31 Dec | 30 June | ||
2018 | 2017 | 2018 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 161 | 54 | 136 | |
Goodwill | 971 | 913 | 941 | |
Intangible assets | 1,417 | 1,235 | 1,307 | |
Investments | 3 | - | 3 | |
Deferred tax | 1 | 6 | 4 | |
Trade and other receivables | 108 | 92 | 111 | |
2,661 | 2,300 | 2,502 | ||
Current assets | ||||
Trade and other receivables | 812 | 844 | 855 | |
Cash and cash equivalents | 871 | 969 | 1,061 | |
1,683 | 1,813 | 1,916 | ||
Total assets | 4,344 | 4,113 | 4,418 | |
Equity and liabilities | ||||
Equity | ||||
Issued capital | 51 | 51 | 51 | |
Share premium | 145 | 145 | 145 | |
Share based payments reserve | 365 | 347 | 365 | |
Foreign exchange reserve | 278 | 208 | 245 | |
Retained earnings | 1,063 | 908 | 1,277 | |
1,902 | 1,659 | 2,083 | ||
Current liabilities | ||||
Trade and other payables | 2,442 | 2,454 | 2,313 | |
Current tax | - | - | 22 | |
2,442 | 2,454 | 2,335 | ||
Total liabilities | 2,442 | 2,454 | 2,335 | |
Total equity and liabilities | 4,344 | 4,113 | 4,418 | |
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 2017 | 51 | 145 | 344 | 278 | 884 | 1,702 | ||||||
Equity settled share options | - | - | 3 | - | - | 3 | ||||||
Share issues | - | - | - | - | - | - | ||||||
Transactions with owners | - | - | 3 | - | - | 3 | ||||||
Profit for the period after tax | - | - | - | - | 24 | 24 | ||||||
Other comprehensive income | ||||||||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(70) |
- |
(70) | ||||||
Total comprehensive income | - | - | - | (70) | 24 | (46) | ||||||
At 31 December 2017 | 51 | 145 | 347 | 208 | 908 | 1,659 | ||||||
Equity settled share options | - | - | 18 | - | - | 18 | ||||||
Share issues | - | - | - | - | - | - | ||||||
Transactions with owners | - | - | 18 | - | - | 18 | ||||||
Profit for the period after tax | - | - | - | - | 369 | 369 | ||||||
Other comprehensive income | ||||||||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
37 |
- |
37 | ||||||
Total comprehensive income | - | - | - | 37 | 369 | 406 | ||||||
At 30 June 2018 | 51 | 145 | 365 | 245 | 1,277 | 2,083 | ||||||
Loss for the period after tax | - | - | - | - | (214) | (214) | ||||||
Other comprehensive income | ||||||||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
33 |
- |
33 | ||||||
Total comprehensive income | - | - | - | 33 | (214) | (181) |
| |||||
At 31 December 2018 | 51 | 145 | 365 | 278 | 1,063 | 1,902 | ||||||
Consolidated cash flow statement | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2018 | 2017 | 2018 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Cash flows from operating activities | ||||
(Loss)/profit for the year | (214) | 24 | 393 | |
Taxation | - | - | 49 | |
Net finance income in the income statement | 4 | - | - | |
Share based payment | - | 3 | 21 | |
Depreciation of property, plant and equipment | 36 | 18 | 68 | |
Amortisation | 69 | 105 | 202 | |
Profit on disposal of Equity Holdings | - | - | (53) | |
Decrease in trade and other receivables | 46 | 104 | 74 | |
Increase/(decrease) in trade and other payables | 129 | (10) | (151) | |
Net cash generated by continuing operations | 70 | 244 | 603 | |
Income tax paid | (22) | - | (27) | |
Net cash generated by operating activities | 48 | 244 | 576 | |
Cash flows from financing activities | ||||
Interest paid | (4) | - | - | |
Cash flows from investing activities | ||||
Payments for property, plant and equipment | (61) | (19) | (151) | |
Purchase of intangibles | (179) | (184) | (353) | |
Receipt from related party | - | - | 50 | |
Net cash used by investing activities | (240) | (203) | (454) | |
Net (decrease)/increase in cash and cash equivalents | (196) | 41 | 122 | |
Exchange differences | 6 | (35) | (24) | |
Net (decrease)/ increase in cash and cash equivalents | (190) | 6 | 98 | |
Cash and cash equivalents at the start of the period | 1,061 | 963 | 963 | |
Cash and cash equivalents at the end of the period | 871 | 969 | 1,061 |
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 2018. 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 2018, 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 2018 as described in those financial statements.
The financial statements are presented in Sterling (£) rounded to the nearest thousand except where specified.
The unaudited interim financial information does not include all the information required for full annual financial statements and should be read in conjunction with the financial statements of the company for the year ended 30 June 2018.
The interim financial information has been prepared on the going concern basis which assumes the company will continue in existence for the foreseeable future. No material uncertainties that cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors. Accordingly, the directors believe it is appropriate for the interim financial statement to be prepared on the going concern basis.
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 2018 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.
New standards adopted in the period:
IFRS 15 - Revenue
The standard was adopted for the period commencing 1 July 2018. The standard defines a new five step model to recognise revenue from customers and will apply to the Group as follows:
Subscriptions - both monthly and annual subscriptions are offered and annual subscriptions are deferred on a time basis with equal monthly transfers to the income statement.
Events - revenue from events is recognised at the time of the event. There are no circumstances when the early payment of entrance or stand fees is entirely non-refundable.
Advertising - fees for advertising are recognised when the service obligations are fulfilled. Where there are multiple obligations, amounts specific to that obligation are transferred to the income statement.
IFRS 9 Financial Instruments
The standard was adopted for the period commencing 1 July 2018. The treatment of any doubtful receivables changed to reflect an expected credit loss rather than an incurred credit loss. There has been a small addition to the allowance account for doubtful receivables.
The adoption of the above standards has not had a material impact on the financial statements.
New standards not yet adopted:
IFRS 16 Leases
The standard will be adopted in the period commencing 1 July 2019. Under the provisions of the new standard most leases, including the majority of those previously classified as operating leases, will be brought onto the financial position statement as a right-of-use asset and as an offsetting lease liability. The directors are considering the impact of the new standards on the Group's accounting policies and more information will be provided in the annual report for the year ended 30 June 2019.
3. Earnings per share
6 months to | 6 months to | 12 months to | |
31 Dec 2018 | 31 Dec 2017 | 30 June 2018 | |
£'000 | £'000 | £'000 | |
(Loss)/profit for the year attributable to equity shareholders | (214) | 24 | 393 |
Earnings per share (pence) | |||
Basic | (0.84 p) | 0.09 p | 1.53 p |
Diluted | (0.84 p) | 0.09 p | 1.53 p |
Shares | Shares | Shares | |
Weighted average number of shares in issue for the period | 25,623,845 | 25,623,845 | 25,623,845 |
Dilutive effect of options | - | - | - |
Weighted average shares for diluted earnings per share | 25,623,845 | 25,623,845 | 25,623,845 |
Where a loss is reported for the period 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.
In addition, where a profit has been recorded but the average share price for the period remains under the exercise price the existence of options is not dilutive.
4. Events after the balance sheet date
There are no events of significance occurring after the balance sheet date to report.
5. Dividends
The directors do not recommend the payment of a dividend.
6. Financial statements
Copies of these accounts are available from the Company's registered office at Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA or from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
www.companieshouse.gov.uk
and from the ADVFN plc website:
www.ADVFN.com