Last checked at 8 Mar 2013 18:00
8 March 2013
ADVFN PLC
Unaudited Interim Results for the Six Months Ended 31 December 2012
Chief Executive's Statement
ADVFN's half year to the end of December 2012 represents another strong showing against a backdrop that has been far from ideal. Our bottom line performance is much improved and is a result of raising prices and trimming costs to meet prevailing conditions.
Our regional diversification has worked in our favour to turn in a top line performance broadly in line with the previous year, once turnover from discontinued business is taken into account. With equity market conditions in 2012 at historically low activity levels, this underlines the robust nature of our income streams and the significant upside when we see the end of these hard economic times.
The new year has given us a glimpse of this with a significant surge of traffic and subscriptions and with markets indices rallying these previous weeks provide a tantalising flavour of the revenue potential of a bull market. Meanwhile we have geared up our offering with news content, branded as the ADVFN Newspaper, launched a successful line of e-books and set up a private investor show and sold out its tickets in weeks. While in their early stages these initiatives have performed above our expectations and point the way to the further broadening of our offering and income streams.
2013 has started well and we are hoping that the market rallies which we have enjoyed in the latter part of 2012 will continue this year and mark the beginning of a new equity cycle. Opinion in the market is that an end to the bond bubble is in sight and this already sees the early stages of a shift into equities.
This would be very good for business.
Financial performance
Key financial performance for the period has been summarised as follows:
Six Months ended | Six Months ended | |
31 December 2012 | 31 December 2011 | |
£'000 | £'000 | |
Turnover ( Discontinued operations ) ( Continuing operations ) | 16 4,046 | 317 4,267 |
Loss for the period | (312) | (919) |
Operating Loss | (416) | (971) |
Loss per share | (0.05p) | (0.15p) |
Clem Chambers
CEO
8 March 2013
Contacts:
| |
Clem Chambers | clemc@advfn.com |
Tom Frew PR | tomf@advfn.com 020 7070 0932 |
Gerry Beaney/ Salmaan Khawaja | 0207 383 5100 Grant Thornton UK LLP (Nominated Adviser) |
Consolidated income statement | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2012 | 2011 | 2012 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Notes | ||||
Revenue from discontinued operations | 16 | 317 | 579 | |
Revenue from continuing operations | 4,046 | 4,267 | 7,906 | |
Total group revenue | 4,062 | 4,584 | 8,485 | |
Cost of sales | (96) | (213) | (319) | |
Gross profit | 3,966 | 4,371 | 8,166 | |
Share based payment | (51) | (49) | (96) | |
Amortisation of intangible assets | (471) | (529) | (1,001) | |
Other administrative expenses | (3,860) | (4,764) | (8,508) | |
Total administrative expense | (4,382) | (5,342) | (9,605) | |
Operating loss | (416) | (971) | (1,439) | |
Finance income | 46 | - | - | |
Finance expense | - | - | - | |
Loss before tax | (370) | (971) | (1,439) | |
Taxation | 58 | 52 | (163) | |
Loss for the period | (312) | (919) | (1,676) | |
Loss per share | ||||
Basic and diluted (pence per share) | 3 | (0.05) | (0.15) | (0.27) |
Consolidated statement of comprehensive income | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2012 | 2011 | 2012 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
restated | ||||
Loss for the period | (312) | (919) | (1,676) | |
Other comprehensive income: | ||||
Exchange differences on translation of foreign operations | (85) | 65 | 35 | |
Deferred tax on translation of foreign held assets | 14 | (10) | (1) | |
Total comprehensive income for the year | (383) | (864) | (1,642) | |
Consolidated balance sheet | 31 Dec | 31 Dec | 30 June | |
2012 | 2011 | 2012 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 68 | 116 | 83 | |
Goodwill | 763 | 1,733 | 789 | |
Intangible assets | 1,918 | 2,491 | 2,179 | |
Trade and other receivables | 735 | 126 | 105 | |
Total non-current assets | 3,484 | 4,466 | 3,156 | |
Current assets | ||||
Trade and other receivables | 996 | 1,067 | 1,070 | |
Current tax recoverable | 133 | 75 | 151 | |
Other financial assets (available for sale) | - | 717 | - | |
Cash and cash equivalents | 1,116 | 959 | 1,440 | |
2,245 | 2,818 | 2,661 | ||
Total assets of the continuing operations | 5,729 | 7,284 | 5,817 | |
Assets in disposal group classified as held for sale | - | - | 706 | |
Total assets | 5,729 | 7,284 | 6,523 | |
Equity and liabilities | ||||
Equity | ||||
Issued capital | 6,291 | 6,250 | 6,289 | |
Share premium | 8,062 | 7,942 | 8,057 | |
Merger reserve | 221 | 221 | 221 | |
Share based payments reserve | 525 | 580 | 474 | |
Foreign exchange reserve | 144 | 236 | 215 | |
Retained earnings | (11,840) | (10,924) | (11,528) | |
Total equity | 3,403 | 4,305 | 3,728 | |
Non-current liabilities | ||||
Deferred tax | 413 | 477 | 487 | |
Borrowings - obligations under finance leases | - | 2 | - | |
Total non-current liabilities | 413 | 479 | 487 | |
Current liabilities | ||||
Trade and other payables | 1,912 | 2,497 | 2,153 | |
Current tax | 1 | - | 38 | |
Borrowings - overdraft and obligations under finance leases |
- |
3 |
- | |
Total current liabilities | 1,913 | 2,500 | 2,191 | |
Total liabilities of the continuing operations | 2,326 | 2,979 | 2,678 | |
Liabilities in disposal group classified as held for sale | - | - | 117 | |
Total liabilities | 2,326 | 2,979 | 2,795 | |
Total equity and liabilities | 5,729 | 7,284 | 6,523 | |
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 2011 | 6,249 | 7,941 | 221 | 533 | 181 | (10,007) | 5,118 |
Issue of shares | 1 | 1 | - | - | - | - | 2 |
Exercise of share options | - | - | - | (2) | - | 2 | - |
Equity settled share options | - | - | - | 49 | - | 49 | |
Transactions with owners | 1 | 1 | - | 47 | - | 2 | 51 |
Loss for the period after tax | - | - | - | - | - | (919) | (919) |
Other comprehensive income | |||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
65 |
- |
65 |
Deferred tax on translation of foreign held assets |
- |
- |
- |
- |
(10) |
- |
(10) |
Total comprehensive income | - | - | - | - | 55 | (919) | (864) |
At 31 December 2011 | 6,250 | 7,942 | 221 | 580 | 236 | (10,924) | 4,305 |
Issue of shares | 39 | 115 | - | - | - | - | 154 |
Exercise of share options | - | - | - | (153) | - | 153 | - |
Equity settled share options | - | - | - | 47 | - | - | 47 |
Transactions with owners | 39 | 115 | - | (106) | - | 153 | 201 |
Loss for the period after tax | - | - | - | - | - | (757) | (757) |
Other comprehensive income | |||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
(30) |
- |
(30) |
Deferred tax on translation of foreign held assets |
- |
- |
- |
- |
9 |
- |
9 |
Total comprehensive income | - | - | - | - | (21) | (757) | (778) |
At 30 June 2012 | 6,289 | 8,057 | 221 | 474 | 215 | (11,528) | 3,728 |
Issue of shares | - | - | - | - | - | - | - |
Exercise of share options | 2 | 5 | - | - | - | - | 7 |
Equity settled share options | - | - | - | 51 | - | - | 51 |
Transactions with owners | 2 | 5 | - | 51 | - | - | 58 |
Loss for the period after tax | - | - | - | - | - | (312) | (312) |
Other comprehensive income | |||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
(85) |
- |
(85) |
Deferred tax on translation of foreign held assets |
- |
- |
- |
- |
14 |
- |
14 |
Total comprehensive income | (71) | (312) | (383) | ||||
At 31 December 2012 | 6,291 | 8,062 | 221 | 525 | 144 | (11,840) | 3,403 |
Consolidated cash flow statement | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2012 | 2011 | 2012 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | Audited | ||
Cash flows from operating activities | ||||
Loss for the period before tax | (370) | (971) | (1,439) | |
Finance costs | (46) | - | - | |
Depreciation of property, plant and equipment | 38 | 134 | 76 | |
Amortisation | 471 | 529 | 1,001 | |
Impairment of financial assets | - | (5) | - | |
Share based payments | 51 | 49 | 96 | |
Decrease/(increase) in trade and other receivables | 79 | 47 | (53) | |
(Decrease)/increase in trade and other payables | (241) | 42 | (147) | |
Net cash used by continuing operations | (18) | (175) | (466) | |
Net cash used by discontinued operations | - | - | (43) | |
(18) | (175) | (509) | ||
Income tax (paid)/received | (35) | (22) | 61 | |
Net cash used by operating activities | (53) | (197) | (448) | |
Cash flows from investing activities | ||||
Payments for property, plant and equipment | (23) | (144) | (59) | |
Purchase of intangibles | (198) | (436) | (593) | |
Sale of UK Government gilts - available for sale financial assets |
- |
- |
681 | |
Sale of current asset investments by discontinued operations |
- |
- |
15 | |
Net cash (used)/generated by investing activities | (221) | (580) | 44 | |
Cash flows from financing activities | ||||
Proceeds from issue of equity shares | 7 | 2 | 156 | |
Loans repaid (finance leases) | - | (1) | - | |
Loans repaid (finance leases)-discontinued operations | - | - | (3) | |
Net cash generated by financing activities | 7 | 1 | 153 | |
Net decrease in cash and cash equivalents | (267) | (776) | (251) | |
Exchange movements | (57) | 19 | 4 | |
Total decrease in cash and cash equivalents | (324) | (757) | (247) | |
Cash and cash equivalents at the start of the period | 1,440 | 1,716 | 1,716 | |
Cash and cash equivalents at the end of the period | 1,116 | 959 | 1,469 | |
Cash and cash equivalents of the disposal group | - | - | (29) | |
Cash and cash equivalents at the end of the period | 1,116 | 959 | 1,440 |
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 2012. 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 2012, 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 2012 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 2012 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 | |
2012 | 2011 | 2012 | |
£'000 | £'000 | £'000 | |
Loss for the year attributable to equity shareholders | (312) | (919) | (1,676) |
Loss per share -basic and diluted | (0.05) | (0.15) | (0.27) |
Shares | Shares | Shares | |
Issued ordinary shares at start of the period | 628,864,004 | 624,914,504 | 624,914,504 |
Ordinary shares issued in the period | 250,000 | 67,000 | 3,949,500 |
Issued ordinary shares at end of the period | 629,114,004 | 624,981,504 | 628,864,004 |
Weighted average number of shares in issue for the period | 629,043,352 | 624,921,422 | 625,522,552 |
Dilutive effect of options | - | - | - |
Weighted average shares for diluted earnings per share | 629,043,352 | 624,921,422 | 625,522,552 |
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.