22 Mar 2022 07:00
22nd March 2022
For immediate release
Online Blockchain PLC
("Online" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December 2021
Online today announces its unaudited interim results for the six months ended 31 December 2021 (the "Period").
CEO's Statement
We continue to operate in volatile times, but our Umbria project continues to move forward.
Our focus for a number of years has been on Blockchain and our project with the Umbria team has progressed well. Against a backdrop where Bitcoin and Ethereum have rallied and slumped repeatedly, the Umbria project has managed to establish itself within the Blockchain infrastructure initially bridging the movement of tokens between the Ethereum and Polygon networks. After that initial development, the Umbria bridge, named Narni after the famous Roman bridge in Umbria, has expanded to enable tokens to move between Ethereum and Avalanche, Ethereum and Binance Smart Chain and Ethereum and Fantom.
This initial progress has meant that, through staking in the Narni Bridge liquidity pool, Online is accumulating unrealised income from the use of the Narni Bridge. So, for example, in December 2021, Online's stake in bridging Ethereum from the Ethereum Chain to the Polygon Chain, rose by 1.8 Ethereum and by a further 2.3 Ethereum from the bridging back from the Polygon Chain to Ethereum. Ethereum was priced at $3,764 on 1 January 2022. These are promising developments for such an early-stage project and our Ethereum balances are continuing to grow in the initial period of the current half.
We are excited to see how the Umbria project develops as the product continues to grow in scope and becomes more known in the crypto community. We feel that in its current configuration, especially with its potential to grow across other blockchains while expanding to more tokens, that the Umbria Narni bridge has the potential to generate significant future revenue for Online.
Although the Blockchain landscape will continue to be volatile, these risks come with many opportunities for high potential rewards which we will be looking to take advantage of.
Meanwhile, ADVFN PLC is also performing well with reported revenue for the six months ended 31 December 2021 of £4.2 million, the same level as the comparable period for the six months ended 31 December 2020, and with a reported profit after tax for the period of £202,000.
As you may have seen, I have stepped down as a director of ADVFN PLC which remains an important investment of Online Blockchain PLC. It is clear that subsequent to ongoing corporate activity around ADVFN, that ADVFN will experience an accelerate pace of change which we will work hard to ensure is positive.
ADVFN Plc - Financial performance for the six months ended 31 December 2021
Key financial performance for the period has been summarised as follows:
Six Months ended | Six Months ended | |
31 December 2021 | 31 December 2020 | |
£'000 | £'000 | |
Revenue | 4,228 | 4,233 |
Profit / (loss) for the period | 202 | 264 |
Operating profit / (loss) | 229 | 277 |
Profit per share - basic (see note 3) | 0.77p | 1.03 p |
Clement Chambers
CEO
22/03/2022
Enquiries:
For further information please contact:
Online Blockchain PLC Clem Chambers |
+44 (0) 20 3868 6702 | |
Beaumont Cornish Limited (Nominated Adviser) www.beaumontcornish.com |
| |
Roland Cornish/Michael Cornish
| +44 (0) 207 628 3396 | |
Cassiopeia Ltd (Investor Relations) Stefania Barbaglio |
stefania@cassiopeia-ltd.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 for the release of this announcement on behalf of the Company was Clem Chambers, Director
A copy of this announcement is available on the Group's website, at: www.onlineblockchain.io
Consolidated income statement
for the six months ended 31 December 2021
Six months ended | Six months ended | Year ended | ||
31 December 2021 | 31 December 2020 | 30 June 2021 | ||
Unaudited | Unaudited | Audited | ||
£'000 | £'000 | £'000 | ||
Note | ||||
Revenue | 24 | 56 | 65 | |
Cost of sales | - | - | (5) | |
Gross profit | 24 | 56 | 60 | |
Other administrative expenses | (528) | (178) | (425) | |
Other operating income | - | - | 124 | |
Operating loss | (504) | (122) | (241) | |
Finance expense | - | (1) | (1) | |
Impairment of investment in Encryptid Gaming | - | - | (18) | |
Share of post-tax profit/(loss) of equity accounted associate | 36 | 47 | 285 | |
(Loss)/Profit before taxation | (468) | (76) | 25 | |
Taxation | 38 | - | 4 | |
(Loss)/Profit from continuing operations | (430) | (76) | 29 | |
Loss from discontinued operations | - | - | (8) | |
(Loss)/Profit for the period attributable to shareholders of the parent | (430) | (76) | 21 | |
Profit/(Loss) per share from continuing operations | ||||
Basic loss per ordinary share | 3 | (3.01p) | (0.86 p) | 0.25p |
Diluted loss per ordinary share | 3 | (3.05p) | (0.86 p) | 0.26p |
Profit per share from discontinuing operations | ||||
Basic loss per ordinary share | 3 | - | - | 0.18p |
Diluted loss per ordinary share | 3 | - | - | 0.19p |
Consolidated statement of comprehensive income
for the six months ended 31 December 2021
Six months ended | Six months ended | Year ended | ||
31 December 2021 | 31 December 2020 | 30 June 2021 | ||
Unaudited | Unaudited | Audited | ||
£'000 | £'000 | £'000 | ||
(Loss)/Profit for the period | (430) | (76) | 21 | |
Other comprehensive income: | ||||
Items that will be reclassified subsequently to profit or loss: | ||||
Exchange differences on translation of foreign operations | 8 | (4) | (6) | |
| ||||
Total other comprehensive income | 8 | (4) | (6) | |
Total comprehensive income for the year attributable to shareholders of the parent | (422) | (80) | 15 | |
Consolidated balance sheet
at 31 December 2021
31 December 2021 | 31 December 2020 | 30 June 2021 | ||
Unaudited | Unaudited | Audited | ||
£'000 | £'000 | £'000 | ||
Assets | Note | |||
Non-current assets | ||||
Property, plant and equipment | 3 | 11 | 1 | |
Other receivables | - | 6 | - | |
Investment accounted for using the equity method | 4 | 1,463 | 1,183 | 1,419 |
Other equity investments | - | 18 | - | |
1,466 | 1,218 | 1,420 | ||
Current assets | ||||
Trade and other receivables | 36 | 16 | 33 | |
Cash and cash equivalents | 1,060 | 384 | 1,497 | |
1,096 | 400 | 1,530 | ||
Total assets | 2,562 | 1,618 | 2,950 | |
Equity and liabilities | ||||
Equity | ||||
Issued capital | 3,574 | 3,383 | 3,574 | |
Share premium | 4,484 | 3,464 | 4,484 | |
Share based payment reserve | 65 | 69 | 65 | |
Foreign exchange reserve | (3) | (3) | (5) | |
Retained earnings | (5,621) | (5,346) | (5,199) | |
2,499 | 1,567 | 2,919 | ||
Current liabilities | ||||
Borrowings - bank overdraft | - | - | - | |
Borrowings - lease liabilities | - | 5 | - | |
Trade and other payables | 63 | 46 | 31 | |
63 | 51 | 31 | ||
Total equity and liabilities | 2,562 | 1,618 | 2,950 | |
Statement of changes in equity
at 31 December 2021
Share capital | Share premium | Share based payment reserve | Foreign exchange reserve | Retained earnings | Total equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
At 1 July 2020 | 3,292 | 3,155 | 64 | 1 | (5,269) | 1,243 |
Issue of shares | 91 | 309 | - | - | - | 400 |
Equity settled share options | - | - | 5 | - | - | 5 |
Transactions with owners | 91 | 309 | 5 | - | - | 405 |
Net asset movements of associate | - | - | - | - | (1) | (1) |
Loss for the period | - | - | - | - | (76) | (76) |
Other comprehensive income | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(4) |
- |
(4) |
Total other comprehensive income | - | - | - | (4) | (76) | (80) |
Total comprehensive loss for the period | - | - | - | (4) | (76) | (80) |
At 31 December 2020 | 3,383 | 3,464 | 69 | (3) | (5,346) | 1,567 |
Issue of shares | 191 | 1,161 | - | - | - | 1,352 |
Recycle option costs | - | - | (52) | 52 | - | |
Share based payment (issue costs) | - | (53) | 48 | - | - | (5) |
Share issue costs | - | (88) | - | - | - | (88) |
Net asset movements of associate | - | - | - | - | (2) | (2) |
Profit for the year after tax | - | - | - | - | 97 | 97 |
Other comprehensive income | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
(2) |
- |
(2) |
Total other comprehensive income | - | - | - | (2) | 97 | 95 |
Total comprehensive loss for the period | (2) | 97 | 95 | |||
At 30 June 2021 | 3,574 | 4,484 | 65 | (5) | (5,199) | 2,919 |
Net asset movements of associate | - | - | - | - | 8 | 8 |
Loss for the period | - | - | - | - | (430) | (430) |
Other comprehensive income | ||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
2 |
- |
2 |
Total other comprehensive income | - | - | - | 2 | - | 2 |
Total comprehensive loss for the period | - | - | - | 2 | (430) | (428) |
At 31 December 2021 | 3,574 | 4,484 | 65 | (3) | (5,621) | 2,499 |
Consolidated cash flow statement
for the six months ended 31 December 2021
Six months ended | Six months ended | Year ended | ||
31 December 2021 | 31 December 2020 | 30 June 2021 | ||
Unaudited | Unaudited | Audited | ||
£'000 | £'000 | £'000 | ||
Cash flows from operating activities | ||||
Profit/(Loss) for the period from continuing operations | (430) | (76) | 29 | |
Loss for the period from discontinued operations | - | - | (8) | |
Add back (profit)/loss from equity accounted associate | (36) | (47) | (285) | |
Net finance charge in the income statement | 1 | 1 | 1 | |
Depreciation of property, plant & equipment | (1) | 19 | 29 | |
Share based payments | - | 5 | - | |
Impairment of investment in Encryptid Gaming | - | - | 18 | |
Decrease/(increase) in trade and other receivables | (3) | 98 | 87 | |
Increase/(decrease) in trade and other payables | 32 | 7 | (8) | |
Net cash used by operating activities | (437) | 7 | (137) | |
Income tax receivable | - | - | - | |
Net cash used by operating activities | (437) | 7 | (137) | |
Cash flows from financing activities | ||||
(Repay)/Draw down bank overdraft | - | - | (27) | |
Issue equity shares | - | 400 | 1,664 | |
Repay lease | - | - | (13) | |
Interest paid | (1) | (1) | (1) | |
Net cash generated/(used) by financing activities | (1) | 399 | 1,623 | |
Cash flows from investing activities | ||||
Overdraft repaid | - | (27) | - | |
Lease liability repaid | - | (8) | - | |
Payments for property plant and equipment | (1) | - | - | |
Payments for intangible assets | - | - | - | |
Net cash used by investing activities | (1) | (35) | - | |
(Decrease)/Increase in cash and cash equivalents | (439) | 371 | 1,486 | |
Foreign exchange differences | 2 | (4) | (6) | |
Cash and cash equivalents at the start of the period | 1,497 | 17 | 17 | |
Cash and cash equivalents at the end of the period | 1,060 | 384 | 1,497 | |
Notes to the interim statements
1. General information
The principal activity of Online Blockchain Plc ("the Company") and its subsidiaries (together "the Group") is that of an incubator and investor in internet and information businesses, developers, administrators and custodians of blockchains and cryptocurrencies.
The principal trading subsidiaries are Awesome Animation Limited and Online Development Inc.
The Company is a public limited company which is quoted on the AIM market of the London Stock Exchange and is incorporated in England and Wales and domiciled in the UK. The address of the registered office is Ongar Business Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.
The registered number of the company is 03203042.
2. Basis of preparation
The unaudited consolidated interim financial information is for the six-month period ended 31 December 2021. 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 2021, which were prepared under applicable law and International Accounting Standards (IAS) in conformity with the requirements of the Companies Act 2006 as at 30 June 2021.
The accounting policies adopted in this report are consistent with those of the annual financial statements for the year to 30 June 2021 as described in those financial statements.
The financial statements are presented in Sterling (£) rounded to the nearest thousand except where specified.
Going concern
The interim financial information has been prepared on the going concern basis which assumes the Group will continue in existence for the foreseeable future. The Directors believe that trading will gradually improve over the next 12 months.
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 2021 have been filed with the Registrar of Companies. The auditors, Saffery Champness LLP reported on those 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.
Risks and uncertainties
The Group continuously assesses and monitors the key risks of the business. The risks identified in the financial statements dated 30 June 2021 have not substantially changed.
Notes to the interim statements
3. Loss per ordinary share
Six months to | Six months to | Year to | |
31 Dec 2021 | 31 Dec 2020 | 30 June 2021 | |
£'000 | £'000 | £'000 | |
Profit/(Loss) from continuing operations | (430) | (76) | 29 |
(Loss) from discontinued operations | - | - | (8) |
Profit/(loss) for the year attributable to equity shareholders | (430) | (76) | 21 |
Shares | Shares | ||
Weighted average number of Ordinary shares | 14,311,709 | 8,800,688 | 11,423,439 |
Dilutive effect of options | (192,979) | - | (164,090) |
Weighted average Ordinary shares for diluted earnings per share |
14,118,730 |
8,800,688 |
11,259,350 |
Loss per share for continuing operations | |||
Basic earnings per share (pence) | (3.01p) | (0.86 p) | 0.25p |
Diluted earnings per share (pence) | (3.05p) | (0.86 p) | 0.26p |
Total loss per share | |||
Basic earnings per share (pence) | (3.01p) | (0.86 p) | 0.18p |
Diluted earnings per share (pence) | (3.05p) | (0.86 p) | 0.19p |
Where a loss has been recorded for the year the diluted loss per share does not differ from the basic loss per share. Where a profit has been recorded but the average share price for the year remains under the exercise price the existence of options is not normally dilutive. However, whilst the average exercise price of all outstanding options is above the average share price there are a number of options which are not. Under these circumstances those options where the exercise price is below the average share price are treated as dilutive.
4. Investments in associate undertakings
Six months ended | Six months ended | Year ended | |
31 December 2021 | 31 December 2020 | 30 June 2021 | |
£'000 | £'000 | £'000 | |
Listed investments at cost | 868 | 868 | 868 |
Listed investments at market value | 3,316 | 875 | 3,017 |
Total net assets of ADVFN Plc | 3,375 | 1,759 | 3,123 |
Percentage ownership interest held by the group | 17.64% | 17.92% | 17.64% |
Share of net assets of ADVFN Plc | 595 | 315 | 551 |
Cost of investment in ADVFN Plc | 868 | 868 | 868 |
1,463 | 1,183 | 1,419 |
The investment in ADVFN plc is treated for the purposes of financial reporting as an associate due to the common directorships held between ADVFN plc and Online Blockchain plc and the resulting level of significant influence over the associate. It is an investment accounted for using the equity method.
Online Blockchain Plc owns 17.64% (2020: 17.92%) of ADVFN plc which is incorporated in England and Wales and whose principal activity is the development and provision of financial information, primarily via the internet, research services and the development and exploitation of ancillary internet sites.
The carrying value of the associate in the balance sheet of Online Blockchain Plc is £1,463,000 and is based on the share of the balance sheet of the associate company.
Notes to the interim statements
5. Events after the balance sheet date
There are no events of significance occurring after the balance sheet date to report.
6. Dividends
The directors do not recommend the payment of a dividend.
7. Financial statements
Copies of these accounts are available from Online Blockchain Plc's registered office at Suite 28, Ongar Business Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA or from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
www.companieshouse.gov.uk
and from the Online Blockchain plc website:
www.onlineblockchain.io