ADVFN Regulatory News (AFN)

For immediate release

5 July 2021

ADVFN plc

("ADVFN", the "Group" or the "Company")

Post Close Trading Update and Proposed Dividend Policy

The Board of ADVFN is pleased to issue the following post close unaudited trading update ahead of the publication of its final results for the financial year ended 30 June 2021 ("Period"). The Company also announces its intention to commence paying dividends and details of the Company's proposed dividend policy are set out below.

Clem Chambers, Chief Executive, commented:

"I am extremely pleased that following a successful financial year, ADVFN plc has adopted its new dividend policy and will be paying a maiden dividend. This initiative both expresses the confidence that the Board has for the Company's future and also allows us to reward our shareholders with a tangible benefit for their continued support".

Year-end trading update

As announced in the corporate update published on 10 May 2021, the last 12 months has seen a transformation in the financial performance of the business with growth in subscriptions and advertising income in the Period. In addition, ADVFN continued to benefit from the significant cost reduction programme initiated in the latter part of 2019 and early 2020, including a reduction in staff numbers, and a move in the UK to remote working permanently.

Based on unaudited management accounts and subject to audit, the Board expects to report revenue for the year ended 30 June 2021 of approximately £9 million (2020: approximately £7 million). The registered user base amounted to approximately 5 million at the Period end (2020: 4.8 million).

The Board also expects to report profit before tax for the Period of not less than £1.6 million (2020: loss before tax of £(349k)).

At the Period end, unaudited net cash balances (note 1) amounted to approximately £1.8 million (2020: approximately £0.9 million).

The Board expects to publish the Group's audited results for the financial year ended 30 June 2021 in November 2021.

Outlook

As previously reported, ADVFN's business currently has momentum, in both subscription and advertising revenue. This gives us good visibility of future performance and comfort in the robustness of our business

Proposed Dividend Policy

While the Board will continue to deploy the Group's cash resources to the growth of, and investment in, the business, the Board has concluded that as a result of the much-improved financial performance of the Group and the year-end gross cash balances of approximately £1.8 million, the Company is now also in a position to adopt a dividend policy to generate returns to shareholders.

The Board attaches importance to providing Shareholders with a stable flow of dividends balanced by a policy of prudential capital management. To this end the Board will adhere to a dividend cover ratio of not less than 2 times profit after taxation attributable to shareholders based on a rolling basis of 3 years commencing from 1 July 2020. Accumulated earnings will be used to address short-term profit shortfalls that may occur.

In applying the dividend policy, the Board will have regard for a range of factors including the macroeconomic outlook, business performance, balance sheet and growth outlook of the Company and may exercise its discretion and revise the calculated pay-out either up or down, to the extent these factors substantially impact the Company.

For the 2021 financial year only, the Board intends that ADVFN will recommend a maiden dividend of £391,729.78 amounting to approximately 1.5p pence per ordinary share based on the current issued share capital of 26,115,319 ordinary shares. The actual amount per ordinary share will be finalised subject to the shares in issue on the record date.

This maiden dividend is being made in respect of the whole of the 2021 financial year. Subsequently, the Board intends to pay dividends twice a year in equal instalments on a semi-annual basis following the release of the interim and full year financial results, the dates of which will be communicated to shareholders with disclosure of the financial results. 

Further details will be announced with the publication of the audited results for the 2021 financial year, which the Board currently expects to release in November. The announcement of the audited financial results will include confirmation of the final dividend per share and details of the ex-dividend date, record date and payment date.

More information on ADVFN can be found at: www.ADVFN.com

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. The person who arranged the release of this announcement on behalf of the Company was Michael Hodges.

For further information please contact: 

Notes:

1. Unaudited net cash as at 30 June 2021 calculated as gross cash of £1,856k net of outstanding debt of £67k.

Forward Looking Statements

This press release may contain 'forward-looking statements' with respect to certain of the Group's plans and its current goals and expectations relating to its future financial condition , performance, results, strategic initiatives and objectives. Generally, words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "aim", "outlook", "believe", "plan", "seek", "continue" or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to future events and circumstances which are beyond the Group's control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, as well as the impact of tax and other legislation or regulations in the jurisdictions in which the Group and its affiliates operate. As a result, the Group's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Group's forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Group undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.

ENDS