ADVFN Regulatory News (AFN)

28 Mar 2006 07:30

ADVFN PLC28 March 2006 Embargoed for release until 7.30 a.m. 28th March 2006 ADVFN PLC ('ADVFN' or 'the Company') Unaudited Interim Results for the Six Months Ended 31 December 2005 ADVFN, Europe's leading stocks and shares website, today announces its unauditedinterim results for the six months ended 31 December 2005. Highlights: • Turnover up 21% to £1.82M (2004 : £1.5M) • ADVFN user numbers up over 37% to 620K (2004 : 450K) • Total group user numbers up over 41% to 1.7M at the report date compared to 1.2M at the annual report date of 10 October 2005 • Growth in subscriber numbers accelerating since the period-end Clem Chambers, Managing Director of ADVFN commented: "ADVFN is experiencing an exciting phase of growth that promises much for 2006.The six months up to the 31st of December 2005 has been another period of solidprogress. We have been investing heavily in calendar year 2005 and the resultsreflect this and are the driver of current levels of growth. The ADVFN site'srevenue has remained consistent and growing, while CupidBay is now contributingas its early monetization phase begins to gain traction. The potential forCupidBay is most encouraging. Our international developments are moving on at agood pace. We are in the advanced stages with the Japanese, Brazilian and Germansites, have launched the Italian site and the US and French sites are continuingto grow. Traffic and subscription levels are at all time highs. We are confidentthat the next 12 months will be particularly strong." ADVFN PLC Chairman's Statement The past 12 months have seen us continue to build and invest in the future ofthe company. This has resulted in a 37% increase in users and a 21% increase inturnover. We have done this by creating new versions of the ADVFN website aimedat different world markets. We are the number one stocks and shares website inthe UK, and in fact Europe; a status which has been achieved solely by workingon an English version of the site. During the past 12 months we have created anew part of ADVFN that is working to internationalise the site. We now have anew ADVFN French site and an Italian site and also have Japanese, Brazilian andGerman sites in test. This will give us the opportunity to bring ADVFN to a muchlarger market; one that is not based around the English language. During the year we also started ADVFN Japan our Joint Venture based in Tokyo.This Joint Venture raised $5M in the local market to allow it to develop ourJapanese site which is in open Alpha testing and the feedback so far is verypositive. I hope that when launched we will see great interest as ADVFN isunique in Japan. Working in Japan has allowed us to meet many exciting andinteresting people throughout Asia which could lead to similar ventures in otherparts of the continent. In the UK we completed a platform revision which has increased the stability ofour service significantly. In fact, since the period end, one of our collocationdata centres caught fire but we were able to keep the site up and running usingone of our other collocation sites without any downtime. Building this type ofinfrastructure is not only expensive it also takes time and the right people todo it. I have always thanked our staff for their hard work in helping us tocreate ADVFN but now we have moved beyond creating and into building a systemthat is more stable and more flexible than we could have ever imagined when wefirst started ADVFN and for that I would like to once again thank all our staff. Adding more content to ADVFN has given our sales team more advertising inventoryto sell and that is exactly what they are doing with great success. We have agreat advertising sales team which has increased in size over the last 12months. Their hard work coupled with the ever-increasing value of the ADVFNbrand has resulted in an advertising platform that is continuing to grow monthon month. Many of our advertising slots/areas sell out some months in advance.This is because our sales team work directly with the advertisers to make surewe get the results they require, which means extremely high levels of customerretention. Since the year-end all the above has continued as you would expect but at anincreased pace. In February we announced the purchase of Equity Development Ltdwhich is a valuable addition to the group. Equity Development produces very highquality sponsored research notes on companies either already listed or thosewishing to come to the market. This research is used and very well respectedthroughout the UK financial sector. I would like to take this opportunity towelcome all of the Equity Development team to ADVFN and I am sure they willenjoy being part of the group as we start to mix our ideas and plans withtheirs. Michael J HodgesChairman28th March 2006 Managing Director's Review Operating Review I am pleased to present a positive set of results which show a 21% increase inturnover to £1.82M compared to the same period last year. This has been achieveddue to an increase in our user numbers of over 37% to 620,000 at the period end. We have continued with our previous policy of introducing new stock markets andother data to our site. Since our last results we have expanded our offerings toinclude market data from several new countries. Current Trading Since the period end I am very pleased to report that our user base hascontinued to expand further and the growth in user numbers has started toaccelerate more strongly. We are continuing with negotiations for most of the remaining major stockmarkets around the world and expect to bring more on-line in due course. We aremaking solid progress in the United States and expect that trend to continue.Our joint venture in Japan is progressing well and we plan to use this as ablueprint in other territories. During the period CupidBay has continued to expand its user numbers and is nowstarting to generate meaningful revenue which we expect to become moresignificant over the coming year. Fotothing has also expanded during the yearand increased its user base. We hope to move this business forward over thecoming year into a position where it can start to generate revenues for thegroup. ALL IPO has gained its FSA regulation and is running ahead of plan. It hasestablished itself as a solid and viable platform for new issues and is lookingto 2006 as the year that it builds its position in the City as a default fixturefor IPOs; with the recent news of more potential privatisations auguring well. The expansion of our user base is not limited to just Advfn, and I am pleased toreport that our total group user numbers up are up in excess of 41% to 1.7M atthe report date compared to 1.2M at the annual report date of 10 October 2005. Prospects So far 2006 has been very positive and leads us to be very optimistic about theprospects for the year ahead. Growth has accelerated since the new year which ismost encouraging. We will continue to execute on our plans, which long-termshareholders will recognise as relatively unchanged over the last few years. Webelieve these are now bearing fruit and that the coming period is verypromising. Clem ChambersManaging Director28th March 2006 ADVFN PLCConsolidated Profit and Loss Accountsfor the six months ended 31 December 2005 Six months ended Six months ended Year ended 31 December 2005 31 December 2004 30 June 2005 Unaudited Unaudited Audited £'000 £'000 £'000 Turnover 1,816 1,503 3,303 Cost of sales (91) (87) (182) __________ __________ __________Gross profit 1,725 1,416 3,121 Administrative expensesExceptional item - impairment loss - - (1,027)Other administrative expenses (2,417) (1,303) (3,252) __________ __________ __________Total administrative expenses (2,417) (1,303) (4,279) __________ __________ __________Operating (loss)/profit (692) 113 (1,158) Share of operating losses of associates (132) (5) (72)Exceptional item : profit on sale of 723 2,239 2,202subsidiary __________ __________ __________ (101) 2,347 972 Net interest 21 9 29 __________ __________ __________(Loss)/profit on ordinary activitiesbefore taxation (80) 2,356 1,001 Tax on (loss)/profit on ordinary - - 11activities __________ __________ __________(Loss)/profit on ordinary activitiesafter taxation (80) 2,356 1,012 __________ __________ __________ (Loss)/earnings per ordinary share (0.017p) 0.56p 0.23p There were no recognised gains or losses other than the result for the financialperiod. ADVFN PLCConsolidated Balance Sheetsat 31 December 2005 31 December 31 December 30 June 2005 2004 2005 Unaudited Unaudited Audited £'000 £'000 £'000 Fixed AssetsIntangible assets 152 412 281Tangible assets 1,519 2,195 1,180Investments 2,741 2,234 2,150 4,412 4,841 3,611 Current AssetsDebtors 556 493 655Investments 28 - 13Cash at bank and in hand 1,061 2,100 1,824 1,645 2,593 2,492 Creditors: amounts falling due within one (1,010) (712) (974)year Net current assets 635 1,881 1,518 Total assets less current liabilities 5,047 6,722 5,129 Creditors: amounts falling due after one - - (12)year Net assets 5,047 6,722 5,117 Capital and ReservesCalled up share capital 4,621 4,609 4,618Share premium account 5,410 5,400 5,403Profit and loss account (4,984) (3,287) (4,904) Shareholders' funds - equity 5,047 6,722 5,117 ADVFN PLCConsolidated Cash Flow Statementsfor the six months ended 31 December 2005 Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 Unaudited Unaudited Audited £'000 £'000 £'000 Net cash inflow from operating activities (136) 717 951 Returns on investment and servicing offinanceInterest received 21 10 48Interest paid - (1) (19) 21 9 29 Taxation - - 311 Capital expenditurePayments to acquire tangible fixed assets (636) (1,152) (1,666)Payments to acquire investments - - (33) (636) (1,152) (1,699) Net cash outflow before financing (751) (426) (719) FinancingIssue of ordinary share capital 10 2,117 2,139Share issue costs - (121) (121)Capital element of finance leases repaid (7) - (5)Net cash inflow from financing 3 1,996 (2,013) (Decrease)/Increase in cash (748) 1,570 1,294 ADVFN PLCNotes to the interim statementfor the six months ended 31 December 2005 1. (Loss)/earnings per ordinary share Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 (Loss)/profit for the period £'000 (80) 2,356 1,012 Weighted average number of shares '000 461,229 418,652 439,932 (Loss)/earnings per share P (0.017p) 0.56p 0.23p 2. The directors do not recommend the payment of a dividend. 3. The financial information contained in this document does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the year ended 30 June 2005 is extracted from the audited financial statements for that period on which the auditors gave an unqualified report. A copy of those financial statements has been filed with the Registrar of Companies. 4. Copies of this statement are being posted to shareholders shortly and will be available from the company's registered office at 642a Lea Bridge Road, Leyton, London, E10 6AP. 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