ADVFN Regulatory News (AFN)

RNS Number : 3744H

ADVFN PLC

19 February 2010

 

ADVFN PLC

Unaudited Interim Results for the Six Months Ended 31 December 2009

 

ADVFN, Europe's leading stocks and shares website, today announces its unaudited interim results for the six months ended 31 December 2009.

 

Highlights:

 

Turnover up 19% to £4,040,00 (2008: 3,415,00)

 

Cash flow positive for the six month period with cash in hand of £1,763M

(2008: 1,243M)

 

Loss for the Period - down 28% to £330,000 (2008: £460,000)

 

OperatingLoss - down 60% to £160,000 (2008: £395,000)

 

ADVFN user numbers - up 20% to 1.8M (2008: 1.5M)

 

 

 

Contacts:

 

Clem Chambers clemc@advfn.com

Francesca De Franco, PR francescad@advfn.com 020 7070 0932

Fiona Kindness, Grant Thornton UK LLP (Nominated Adviser) 020 7728 3414

 

 

Chief Executive's Statement

 

 

The six month period to the half year has once again shown good improvement over the previous year. Top line growth is coming through to the bottom line. Traffic growth is strong. We continue to see improvements in line with the general trend with solid progress for our business model. We continue to believe that the world markets offer us an opportunity for robust and continuous long term growth.

 

Financial performance

 

Key financial performance for the period has been summarised as follows:

 

	Six Months ended	Six Months ended	Change	Change
	31 December 2009	31 December 2008
	£'000	£'000	£'000	%
Loss for the period	-330	-460	130	28
Operating Loss	-160	-395	235	59.5
Loss per share	0.05p	0.08p	0.03p	37.5

 

 

 

 

Clem Chambers

CEO

18 February 2010

 

Consolidated income statement
		6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
		2009	2008	2009
		£'000	£'000	£'000
		unaudited	unaudited	audited
	Notes
Revenue		4,049	3,415	7,034
Cost of sales		(199)	(243)	(456)
Gross profit		3,850	3,172	6,578
Share based payment		(10)	(25)	(31)
Amortisation of intangible assets		(593)	(489)	(962)
Other administrative expenses		(3,407)	(3,053)	(6,111)
Total administrative expense		(4,010)	(3,567)	(7,104)
Profit on disposal of assets		-	-	97
Operating profit/(loss)		(160)	(395)	(429)
Finance income		8	13	12
Finance expense		(6)	(6)	(11)
Goodwill credit & fair value adjustment	4	(216)	-	-
Result from associates after taxation		(18)	(100)	(282)
Loss before tax		(392)	(488)	(710)
Taxation		62	28	175
Loss for the period		(330)	(460)	(535)
Loss per share from continuing operations
Basic and diluted (pence per share)	3	(0.05)	(0.08)	(0.09)

 

 

 

Consolidated statement of comprehensive income
		6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
		2009	2008	2009
		£'000	£'000	£'000
		unaudited	unaudited	audited
Loss for the period		(330)	(460)	(535)
Other comprehensive income:
Exchange differences on translation of foreign operations		22	(123)	(18)
Total comprehensive income for the year		(308)	(583)	(553)

 

Consolidated balance sheet		31 Dec	31 Dec	30 June
		2009	2008	2009
		£'000	£'000	£'000
		unaudited	unaudited	audited
Assets
Non-current assets
Property, plant and equipment		80	139	92
Goodwill		1,590	1,590	1,590
Intangible assets		3,232	2,497	2,297
Investments in associates		-	1,087	905
Trade and other receivables		204	203	204
Total non-current assets		5,106	5,516	5,088
Current assets
Trade and other receivables		867	925	977
Current tax recoverable		85	163	65
Other financial assets (available for sale)		31	46	32
Cash and cash equivalents		1,763	1,243	1,509
Total current assets		2,746	2,377	2,583
Total assets		7,852	7,893	7,671
Equity and liabilities
Equity
Issued capital		6,236	6,139	6,156
Share premium		7,898	7,752	7,758
Merger reserve		221	221	221
Share based payments reserve		466	450	456
Foreign exchange reserve		4	(123)	(18)
Retained earnings		(9,119)	(8,714)	(8,789)
Total equity		5,706	5,725	5,784
Non-current liabilities
Deferred tax		604	396	314
Borrowings - obligations under finance leases		11	32	11
Total non-current liabilities		615	428	325
Current liabilities
Trade and other payables		1,518	1,698	1,533
Borrowings - overdraft and obligations under finance leases		13	42	29
Total current liabilities		1,531	1,740	1,562
Total liabilities		2,146	2,168	1,887
Total equity and liabilities		7,852	7,893	7,671

 

Consolidated cash flow statement
		6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
		2009	2008	2009
		£'000	£'000	£'000
		unaudited	unaudited	audited
Cash flows from operating activities
Loss for the period before tax		(392)	(488)	(710)
Finance costs in the income statement		(2)	(7)	(1)
Results for associates		18	100	282
Depreciation of non-current assets		46	52	108
Amortisation		593	489	962
Investment acquired as payment for services		-	-	(97)
Goodwill credit & fair value adjustment		216	-	-
Impairment of financial assets		1	21	35
Share based payments		10	25	31
Decrease / (increase) in trade and other receivables		148	74	20
(Decrease) / increase in trade and other payables		(124)	(102)	(238)
Net cash generated from operations		514	164	392
Interest paid		(6)	(6)	(11)
Income tax receivable		-	28	162
Net cash generated by operating activities		508	186	543
Cash flows from investing activities
Interest received		8	13	12
Payments for property plant and equipment		-	(4)	(22)
Purchase of intangibles		(273)	(408)	(682)
Acquisition of subsidiary (net of cash with subsidiary)		(22)	-	-
Disposal of assets		-	-	106
Net cash used in investing activities		(287)	(399)	(586)
Cash flows from financing activities
Proceeds from issue of equity shares		26	-	23
Issue costs		-	-	-
Loans repaid (finance leases)		(15)	(25)	(44)
Net cash used in financing activities		11	(25)	(21)
Net increase / (decrease) in cash and cash equivalents		232	(238)	(64)
Exchange movements		22	(123)	(18)
Total increase / (decrease) in cash and cash equivalents		254	(361)	(82)
Cash and cash equivalents at the start of the period		1,509	1,591	1,591
Cash and cash equivalents at the end of the period		1,763	1,230	1,509

 

 

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 2009. 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 2009, 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 2009 as described in those financial statements, except for the adoption of IAS 1 Presentation of Financial Statements (Revised 2007) and IFRS 3 Business Combinations (Revised 2008).

 

The adoption of IAS 1 (Revised 2007) does not affect the financial position or profits of the Group, but gives rise to additional disclosures. The measurement and recognition of the Group's assets, liabilities, income and expenses is unchanged, however some items that were recognised directly in equity are now recognised in other comprehensive income. IAS 1 (Revised 2007) affects the presentation of owner changes in equity and introduces a 'Statement of comprehensive income'.

 

IFRS 3 Business Combinations (Revised 2008) has introduced a significant change to the accounting requirements for business combinations. The acquisition of ALLIPO plc has been accounted for under the requirements of the new standard, as set out in note 4. The adoption of this standard does not change the accounting for those acquisitions which occurred prior to 1 July 2009. As a result of the adoption of IFRS Business Combinations (Revised 2008), the Group has amended its accounting policies and the key changes are:

 

·; all transaction costs are recorded as an expense in the income statement; and

·; previously held equity interests are measured at fair value in applying the purchase method to combinations achieved in stages.

 

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 2009 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
	2009	2008	2009
From continuing operations:	£'000	£'000	£'000
Loss for the year from continuing operations attributable to equity shareholders	(330)	(460)	(535)
Loss per share from continuing operations
Basic and diluted (pence per share)*	(0.05)	(0.08)	(0.09)
	Shares	Shares	Shares
Issued ordinary shares at start of the period	615,568,901	593,192,435	593,192,435
Ordinary shares issued in the period	8,061,602	20,709,800	22,376,466
Issued ordinary shares at end of the period	623,630,503	613,902,235	615,568,901
Weighted average number of shares in issue for the period	621,570,408	596,473,880	605,430,000
Dilutive effect of options	-	-	-
Weighted average shares for diluted earnings per share	621,570,408	596,473,880	605,430,000

\* 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. Acquisition of ALL IPO Plc

 

On 22 July 2009 the Group acquired the remaining share capital of ALL IPO Plc, which was the balance of 62.93% of the voting rights not already owned by the Group.

 

Consideration

Consideration in the form of shares had been issued totalling 7,236,769 shares at the market value on 4 August 2009 of 2.7 pence per share. This amounted to £195,393. Those shareholders choosing the cash alternative have been paid a total of £31,216. The consideration to date therefore amounts to £226,609.

 

Acquisition of the balance of shares in All IPO Plc
		Provisional
	At book value	F.V. adjustments	At fair value
	£'000	£'000	£'000
Intangible assets	2,398	(2,398)	-
Intangibles identified at acquisition	-	1,255	1,255
PPE	37		37
Receivables (including Corporation Tax refundable)	58		58
Cash and cash equivalents	9		9
Deferred tax liability	-	(351)	(351)
Payables	(109)		(109)
Net assets	2,393	(1,494)	899
Fair value of previously held associate investment			(333)
Goodwill (negative)			(340)
Consideration			226
Satisfied by:
Cash			31
Shares			195
			226

 

 

The fair value exercise in respect of the intangible assets acquired is ongoing and, as a result, this note is based on the provisional figures available at the reporting date. The fair value exercise is anticipated to be completed over the next six months and the final results will be presented in the Group financial statements for the year ending 30 June 2010.

 

A deferred tax liability was created when the separable intangible assets at acquisition were recognised. This amounted to £351,000 and was written down during the period by £35,000 in line with the intangible assets' carrying value.

 

The Group's equity accounted holding in All IPO Plc prior to the acquisition has been written down to its fair value resulting in a charge to the income statement of £556,000. Negative goodwill created at the acquisition of the controlling interest of All IPO Plc amounted to £340,000 and as required by IFRS 3 (revised) Business Combinations this has been credited to the income statement. The net result was a charge of £216,000 in the period.

 

 

5. Dividends

The directors do not recommend the payment of a dividend.

 

 

6. Electronic and web communications

Provisions of the 2006 Act which came into force in January 2007 enable companies to communicate with members by electronic and/or website communications. The New Articles allow communications to members in electronic form and, in addition, they also permit the Company to take advantage of the provisions relating to website communications. Before the Company can communicate with a member by means of a website communication, the relevant member must be asked individually by the Company to agree that the Company may send or supply documents or information to him by means of a website and the Company must either have received a positive response or have received no response within the period of 28 days beginning with the date on which the request was sent. The Company will notify the member (either in writing, or by other permitted means) when a relevant document or information is placed on the website and a member can always request a hard copy version of the document or information.

 

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