Last checked at 24 Mar 2016 17:45
24 March 2016
ADVFN PLC
("ADVFN" or the "Company")
Unaudited Interim Results for the Six Months Ended 31 December 2015
ADVFN today announces its unaudited interim results for the six months ended 31 December 2015.
Chief Executive's Statement
2015 was a tumultuous year for ADVFN. An unexpected attack to wrest control from your board during the year was extremely disruptive and very costly. We were pleased to see the matter conclude satisfactorily from the Company's perspective through the intervention of the FCA. Notwithstanding this, the business has subsequently held up well during a period of radical change (as discussed further below) and months of distraction and dislocation earlier.
2015 saw a sluggish bear market for the first time since 2008 and this combined with low volatility in the markets created a headwind. At the same time a broad section of exchanges exerted serious pricing pressures. This required radical price and content changes to our offering to avoid the adverse effects of this pressure. To add to this pressure, traffic has been moving quickly to our mobile platform, changing patterns of usage and revenue generation, which we have had to adapt to. As if this was not enough to keep us occupied, the internet advertising space has been revolutionized by the emergence of programmatic advertising platforms which we have had to embrace aggressively.
Consequentially our sales have been depressed by 11.1% on the same period last year.
We have taken these changes as an opportunity to reorganize the business and have brought down our operating overheads significantly. The early effects of this can be seen in a fall of administrative expenses for the half year by 10.5% from £4,736,000 to £4,240,000. This has helped lower the operating loss to £538,000 from £647,000 even while top line sales have fallen.
More cost cutting benefits have been felt in the new calendar year as contract and headcount reduction periods have passed with January and February showing good levels of operational performance. This has been helped by a pickup in advertising sales.
At an operational level we have seen improvement in the first few months of the calendar year of 2016. Our aim is to capitalise on last year's hard work to build upon the good start seen during January and February and continue to improve performance on a running basis in the final half of this financial year.
Financial performance
Key financial performance for the period has been summarised as follows:
| Six Months ended | Six Months ended |
| 31 December 2015 | 31 December 2014 |
| £'000 | £'000 |
|
|
|
Turnover | 4,274 | 4,807 |
Loss for the period | (442) | (552) |
Operating Loss | (538) | (647) |
Loss per share (see note 3) | (1.75)p | (2.19)p |
Clem Chambers
CEO
24 March 2016
For further information, please contact:
Clem Chambers,
ADVFN PLC CEO
0207 0700 909
Salmaan Khawaja
Jen Clarke
Jamie Barklem
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 |
|
| 2015 | 2014 | 2015 |
|
| £'000 | £'000 | £'000 |
|
| unaudited | unaudited | audited |
| Notes |
|
|
|
|
|
|
|
|
Revenue |
| 4,274 | 4,807 | 9,297 |
Cost of sales |
| (572) | (718) | (1,628) |
|
|
|
|
|
Gross profit |
| 3,702 | 4,089 | 7,669 |
|
|
|
|
|
Share option charge |
| (156) | (18) | (189) |
Amortisation of intangible assets |
| (209) | (326) | (630) |
Other administrative expenses |
| (3,875) | (4,392) | (8,755) |
|
|
|
|
|
Total administrative expense |
| (4,240) | (4,736) | (9,574) |
|
|
|
|
|
Operating loss |
| (538) | (647) | (1,905) |
|
|
|
|
|
Finance income |
| 68 | 57 | 114 |
Finance expense |
| (1) | - | - |
|
|
|
|
|
Loss before tax |
| (471) | (590) | (1,791) |
Taxation |
| 29 | 38 | 231 |
|
|
|
|
|
Loss for the period attributable to shareholders of the parent |
|
(442) |
(552) |
(1,560) |
|
|
|
|
|
Loss per share |
|
|
|
|
Basic and diluted (pence per share) | 3 | (1.75)p | (2.19)p | (6.19)p |
|
|
|
|
|
Consolidated statement of comprehensive income |
|
|
|
|
|
| 6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June |
|
| 2015 | 2014 | 2015 |
|
| £'000 | £'000 | £'000 |
|
| unaudited | unaudited | audited |
|
|
|
|
|
Loss for the period |
| (442) | (552) | (1,560) |
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
Items that will be reclassified subsequently to profit or loss: |
|
|
|
|
Exchange differences on translation of foreign operations |
| 46 | 196 | 185 |
Deferred tax on translation of foreign held assets |
| (17) | (24) | (21) |
|
|
|
|
|
Total other comprehensive |
| 29 | 172 | 164 |
|
|
|
|
|
Total comprehensive income for the year attributable to shareholders of the parent |
|
(413) |
(380) |
(1,396) |
|
|
|
|
|
|
|
|
|
|
Consolidated balance sheet |
|
|
|
|
|
| 31 Dec | 31 Dec | 30 June |
|
| 2015 | 2014 | 2015 |
|
| £'000 | £'000 | £'000 |
|
| unaudited | unaudited | audited |
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
| 90 | 89 | 99 |
Goodwill |
| 833 | 793 | 784 |
Intangible assets |
| 1,247 | 1,289 | 1,216 |
Trade and other receivables |
| 196 | 202 | 103 |
Investments |
| - | - | 6 |
|
|
|
|
|
|
| 2,366 | 2,373 | 2,208 |
|
|
|
|
|
Current assets |
|
|
|
|
Trade and other receivables |
| 1,036 | 1,264 | 1,095 |
Current tax recoverable |
| - | 72 | 181 |
Cash and cash equivalents |
| 784 | 1,510 | 986 |
|
|
|
|
|
|
| 1,820 | 2,846 | 2,262 |
|
|
|
|
|
Total assets |
| 4,186 | 5,219 | 4,470 |
|
|
|
|
|
Equity and liabilities |
|
|
|
|
Equity |
|
|
|
|
Issued capital |
| 51 | 50 | 50 |
Share premium |
| 95 | - | - |
Share based payments reserve |
| 344 | 18 | 189 |
Foreign exchange reserve |
| 310 | 289 | 281 |
Retained earnings |
| 676 | 2,126 | 1,118 |
|
|
|
|
|
Total equity |
| 1,476 | 2,483 | 1,638 |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Deferred tax |
| 91 | 128 | 97 |
|
|
|
|
|
Total non-current liabilities |
| 91 | 128 | 97 |
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
| 2,619 | 2,606 | 2,731 |
Current tax |
| - | 2 | 4 |
|
|
|
|
|
Total current liabilities |
| 2,619 | 2,608 | 2,735 |
|
|
|
|
|
Total liabilities |
| 2,710 | 2,736 | 2,832 |
|
|
|
|
|
Total equity and liabilities |
| 4,186 | 5,219 | 4,470 |
|
|
|
|
|
Consolidated statement of changes in equity
| Share capital | Share premium | Merger reserve | Share based payment reserve | Foreign exchange | Retained earnings | Total equity |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
|
|
|
|
|
|
|
|
At 1 July 2014 | 6,305 | 8,102 | 221 | 617 | 117 | (12,517) | 2,845 |
|
|
|
|
|
|
|
|
Equity settled share options | - | - | - | 18 | - | - | 18 |
|
|
|
|
|
|
|
|
Transactions with owners | - | - | - | 18 | - | - | 18 |
|
|
|
|
|
|
|
|
Loss for the period after tax | - | - | - | - | - | (552) | (552) |
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
196 |
- |
196 |
Deferred tax on translation of foreign held assets |
- |
- |
- |
- |
(24) |
- |
(24) |
|
|
|
|
|
|
|
|
Total comprehensive income | - | - | - | - | 172 | (552) | (380) |
|
|
|
|
|
|
|
|
Share consolidation | (6,255) | (8,102) | (221) | (617) | - | 15,195 | - |
|
|
|
|
|
|
|
|
At 31 December 2014 | 50 | - | - | 18 | 289 | 2,126 | 2,483 |
|
|
|
|
|
|
|
|
Equity settled share options | - | - | - | 171 | - | - | 171 |
|
|
|
|
|
|
|
|
Transactions with owners | - | - | - | 171 | - | - | 171 |
|
|
|
|
|
|
|
|
Loss for the period after tax | - | - | - | - | - | (1,008) | (1,008) |
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
(11) |
- |
(11) |
Deferred tax on translation of foreign held assets |
- |
- |
- |
- |
3 |
- |
3 |
|
|
|
|
|
|
|
|
Total comprehensive income | - | - | - | - | (8) | - | (8) |
|
|
|
|
|
|
|
|
At 30 June 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 |
|
|
|
|
|
|
|
|
Consolidated cash flow statement |
|
|
|
|
|
| 6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June |
|
| 2015 | 2014 | 2015 |
|
| £'000 | £'000 | £'000 |
|
| unaudited | unaudited | audited |
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Loss for the period before tax |
| (471) | (590) | (1,791) |
|
|
|
|
|
Finance income (net) |
| (67) | (57) | (114) |
Depreciation of property, plant and equipment |
| 28 | 30 | 61 |
Amortisation |
| 209 | 326 | 647 |
Impairment of financial assets |
| 125 | - | 200 |
Share based payments |
| 96 | - | - |
Share option charge |
| 156 | 18 | 189 |
Decrease/(increase) in trade and other receivables |
| (91) | 8 | 133 |
Increase in trade and other payables |
| (112) | 338 | 463 |
|
|
|
|
|
Net cash generated by operations |
| (127) | 73 | (212) |
Interest paid |
| (1) | - | - |
Income tax (paid)/received |
| 200 | (9) | 46 |
|
|
|
|
|
Net cash generated by operating activities |
| 72 | 64 | (166) |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Payments for property, plant and equipment |
| (19) | (48) | (89) |
Purchase of intangibles |
| (193) | (284) | (472) |
Disposal/(purchase) of investments |
| 6 | - | (6) |
|
|
|
|
|
Net cash used by investing activities |
| (206) | (332) | (567) |
|
|
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
| (134) | (268) | (733) |
Exchange movements |
| (68) | 103 | 44 |
|
|
|
|
|
Total (decrease)/increase in cash and cash equivalents |
| (202) | (165) | (689) |
Cash and cash equivalents at the start of the period |
| 986 | 1,675 | 1,675 |
|
|
|
|
|
Cash and cash equivalents at the end of the period |
| 784 | 1,510 | 986 |
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 AIM 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 2015. 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 2015, 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 2015 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 2015 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 |
| 2015 | 2014 | 2015 |
| £'000 | £'000 | £'000 |
|
|
|
|
|
|
|
|
Loss for the year attributable to equity shareholders | (442) | (552) | (1,560) |
|
|
|
|
Loss per share - basic and diluted | (1.75)p | (2.19)p | (6.19)p |
|
|
|
|
| Shares | Shares | Shares |
|
|
|
|
Issued ordinary shares at start of the period | 25,220,210 | 25,220,210 | 25,220,210 |
Ordinary shares issued in the period | 190,000 | - | - |
|
|
|
|
Issued ordinary shares at end of the period | 25,410,210 | 25,220,210 | 25,220,210 |
|
|
|
|
|
|
|
|
Weighted average number of shares in issue for the period | 25,335,862 | 25,220,210 | 25,220,210 |
Dilutive effect of options | - | - | - |
|
|
|
|
Weighted average shares for diluted earnings per share | 25,335,862 | 25,220,210 | 25,220,210 |
|
|
|
|
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.
During December 2015 the company issued 190,000 shares of nominal value £0.002 at £0.50 per share. This resulted in a share premium of £94,620.
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. Electronic copies of this statement will be available on the Company's website at uk.advfn.com.