TIDMAFN
RNS Number : 5102Q
ADVFN PLC
20 October 2011
ADVFN PLC
Audited Results for the Year Ended 30 June 2011
ADVFN, Europe's leading stocks and shares website, announces its
audited results for the year ended 30 June 2011
Highlights:
-- Turnover up 7% to GBP9,167,000 (2010 restated: GBP8,591,000)
-- EBITDA* profit of GBP348,000 (2010 restated: GBP1,256,000)
-- Cash and gilts balance to GBP2,397,000 (2010: GBP2,300,000)
-- P&L (GBP862,000) (2010 restated: profit of GBP146,000)
-- Positive cash flow; 'net cash generated from operations' GBP595,000 (2010: GBP1,417,000)
-- ADVFN's registered users base now over 2,200,000
(2010: 2,000,000)
For further information, please contact:
Clem Chambers,
ADVFN PLC CEO
0207 0700 909
Gerry Beaney
Grant Thornton Corporate Finance (Nominated Adviser)
0207 7383 5100
*EBITDA is calculated as the operating loss for the year before
depreciation and amortisation charges.
CHIEF EXECUTIVE'S STATEMENT
ADVFN has had another strong year with turnover up 7% to
GBP9,167,000. 2011 has been a pivotal year where we have begun the
next phase of growth outside the UK.
We have made very good progress this year against a background
which could hardly be described as easy. Our product and
geographical diversity has served us well so that we have avoided
many of the challenges other media players have had to contend
with.
Subscriptions have been robust and advertising income has led
our growth. The advertising lead growth is a vanguard of growth as
it accelerates the broadening of our business to important new
markets
Having strong sites in the UK, US and Brazil, we believe we have
the necessary template now to expand into the emerging markets
where audiences are vibrant and huge. Our strategy is to penetrate
markets via sales offices, using advertising income to fund growth
in the territories that warrant it most.
In line with this we have been opening regional sales offices in
Japan, India and the Middle East and we have been focusing on
expanding in these territories. This process is delivering the
platform for growth in the coming years leveraging the considerable
investment we have made over the last 10 years.
All sites have performed robustly against a backdrop of global
financial uncertainty. The UK continues to prosper, Brazil has
remained strong and continues to develop and the US continues to
grow for our ADVFN and Investors Hub brands. We feel very positive
about next year's prospects whatever the outcome of the markets and
expect to see further progress even in the teeth of another
crash.
Financial overview
These accounts have been prepared under International Financial
Reporting Standards (IFRS) as adopted by the European Union.
These figures show an increase in sales of 7%, an EBITDA of
GBP348,000 and cash flow from operations of GBP595,000.
We have been operating against a backdrop of a weakening dollar
which has masked further underlying growth but as we are earning
income in euro, US dollar, UK pounds and Yen we are to some extent
hedged against the currency fluctuations of recent times.
Strategy
We are building out the business for the next phase of ADVFN's
development which we see as taking us towards sales of
GBP20,000,000 a year.
This year is another year of growth; a yearly goal we have
achieved every year for the last 11 years.
The market opportunity for us in India, The Middle East, Mexico
and the Philippines is large and involves a modest level of
investment. The bulk of our platform for entering such large
markets is already made so that each new office is a small measured
risk. We expect each territory to come on stream in a 12 month set
up window and to be quickly income generative thereafter.
Exposure to fast growing economies with active markets is the
way forward for us, taking positive developments in each market and
feeding them back into our global offering.
The size of the opportunity is sufficiently large to keep us
very busy for a long time to come.
Operating Costs
We spend a great deal of time focusing on our cost base making
sure we optimise the return on our outgoings where ever possible.
As we enter this new phase we are earmarking resources to invest in
growth. We have been hiring, increasing our technical platform and
increasing marketing. This has been funded solely from positive
cash flow which represents a strong financial and operational
performance.
Research and Development
As always ADVFN never stops developing its technology and
platform. With growing traffic and giant spikes of usage set off by
the global economic chaos of recent times, ADVFN has adapted to
supply the demand of a world hungry for updates the moment
financial information is available. These demands have grown and
grown over the years and we have seamlessly managed to keep up with
growth on all fronts. This process will continue and represents a
valuable and unique asset.
Environmental policy
The company as a whole continues to look for ways to develop our
environmental policy. It remains our objective to improve our
performance in this area.
Cash and GILTS
We are very happy to say that our improved general performance
has directly translated to our cash and gilts balance. Our cash and
GILTS balance at the end of the year was up GBP97,000 to
GBP2,397,000, an increase of 4%
Summary of key performance indicators
2011 2011 2010 2010
Actual Target Actual Target
------------------------ ------- ------- ------- -------
Average head count 54 60 46 50
------------------------ ------- ------- ------- -------
ADVFN registered users 2.2M 2.1M 2.0M 1.9M
------------------------ ------- ------- ------- -------
Future outlook for the business
We are very comfortable of the prospects for next year and for
that matter the years ahead. We are now rolling out ADVFN to more
global audiences and feel assured that we have the people, the
offerings and the technology to continue along the path we have set
to be a global markets website with GBP100,000,000 in sales. In
percentage terms we are as far away from that target today as we
were from today's sales when we started out in 2001.
Principal risks and uncertainties:
Economic downturn
An extended economic down turn is not to be taken lightly.
However the recent turmoil has been easily overcome and may even
have benefitted the company. In addition this is the third time in
the company's short life that it has had to navigate a financial
crash and both times it has come through bigger and stronger.
High proportion of fixed overheads and variable revenues
A major proportion of the company's overheads are reasonably
fixed. There is the risk that any significant changes in revenue
may lead to the inability to cover such costs. Management closely
monitor fixed overheads against budget on a monthly basis and cost
saving exercises are implemented on a constant review basis. We
have had a strong period of cost optimisations since our finance
function was reorganised and this process continues.
Product obsolescence
The technology that we use and develop is always in flux.
Products are subject to technological change and advance and
resultant obsolescence. We are constantly innovating to keep up
with growing demand, change in product and new developments both at
a technical and a marketing level. The directors are committed to
the Research and Development strategy in place, and are confident
that the company is able to react effectively to the developments
within the market.
Fluctuations in currency exchange rates
A growing proportion of our turnover relates to overseas
operations. As a company, we are therefore exposed to foreign
currency fluctuations. The company manages its foreign exchange
exposure on a net basis, and if required uses forward foreign
exchange contracts and other derivatives/financial instruments to
reduce the exposure. Currently hedging is not employed. If currency
volatility was extreme and hedging activity did not mitigate the
exposure, then the results and the financial condition of the
company might be adversely impacted by foreign currency
fluctuations.
People
We have a very dedicated team that is focused on creating the
best possible service we can provide. We are constantly building
this team and have been hiring to enable us to grow during the next
phase of our development. I would like to thank them all for their
hard work and dedication over the past year.
Clem Chambers
CEO
19 October 2011
Consolidated income statement
12 months 12 months
to to
30 June 30 June
2011 2010
Note GBP'000 GBP'000
Restated
Revenue 9,167 8,591
Cost of sales (538) (404)
---------- ----------
Gross profit 8,629 8,187
Share based payment (84) (43)
Amortisation of intangible assets (1,089) (1,149)
All other administrative expenses (8,241) (6,963)
---------- ----------
Total administrative expenses (9,414) (8,155)
Operating (loss)/profit (785) 32
Finance income 7 23
Finance expense (5) (8)
Gain on bargain purchase and associated
fair value loss on previously held equity
investment - (214)
Result from associates after taxation - (18)
Loss before tax (783) (185)
Taxation (79) 331
---------- ----------
(Loss)/profit for the period attributable
to shareholders of the parent (862) 146
(Loss)/earnings per share - from continuing
operations
Basic and diluted (pence per share) 3 (0.14) 0.02
Consolidated statement of comprehensive
income
12 months 12 months
to to
30 June 30 June
2011 2010
GBP'000 GBP'000
Restated
(Loss)/profit for the period (862) 146
Other comprehensive income:
Exchange differences on translation of
foreign operations 253 (8)
Deferred tax on translation of foreign (46) -
held assets
---------- ----------
Total comprehensive income for the year
attributable to shareholders of the parent (655) 138
========== ==========
Consolidated balance sheet
30 June 30 June 1 July
2011 2010 2009
GBP'000 GBP'000 GBP'000
Assets Restated Restated
Non-current assets
Property, plant and equipment 106 84 92
Goodwill 1,697 1,590 1,590
Intangible assets 2,584 2,973 2,297
Investments in associates - - 905
Trade and other receivables 119 113 204
--------- --------- ---------
4,506 4,760 5,088
Current assets
Trade and other receivables 1,121 890 977
Current tax recoverable 75 92 65
Other financial assets (available
for sale) 712 709 32
Cash and cash equivalents 1,716 1,599 1,509
--------- --------- ---------
3,624 3,290 2,583
--------- --------- ---------
Total assets 8,130 8,050 7,671
========= ========= =========
Equity and liabilities
Equity
Issued capital 6,249 6,238 6,156
Share premium 7,941 7,900 7,758
Merger reserve 221 221 221
Share based payment reserve 533 485 456
Foreign exchange reserve 181 (26) (18)
Retained earnings (10,007) (9,181) (9,341)
--------- --------- ---------
5,118 5,637 5,232
Non-current liabilities
Deferred tax 533 342 314
Borrowings - obligations under
finance leases 1 6 11
--------- --------- ---------
534 348 325
Current liabilities
Trade and other payables 2,455 2,052 2,085
Current tax 18 - -
Borrowings - obligations under
finance leases 5 13 29
--------- --------- ---------
2,478 2,065 2,114
--------- --------- ---------
Total liabilities 3,012 2,413 2,439
--------- --------- ---------
Total equity and liabilities 8,130 8,050 7,671
========= ========= =========
Consolidated statement of changes in equity
Share Share Merger Share Foreign Retained Total
capital premium reserve based exchange earnings equity
payment reserve
reserve
Restated Restated
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2009 as previously
stated 6,156 7,758 221 456 (18) (8,789) 5,784
Prior year adjustment - - - - - (552) (552)
--------- --------- --------- --------- ---------- ---------- ----------
6,156 7,758 221 456 (18) (9,341) 5,232
Issue of shares 82 142 - - - - 224
Exercise of share options - - - (14) - 14 -
Equity settled share
options - - - 43 - - 43
--------- --------- --------- --------- ---------- ---------- ----------
Transactions with owners 82 142 - 29 - 14 267
Profit for the period
after tax - - - - - 146 146
Other comprehensive
income
Exchange differences
on translation of foreign
operations - - - - (8) - (8)
--------- --------- --------- --------- ---------- ---------- ----------
Total comprehensive
income for the year - - - - (8) 146 138
At 30 June 2010 6,238 7,900 221 485 (26) (9,181) 5,637
Issue of shares 11 41 - - - - 52
Exercise of share options - - - (36) - 36 -
Equity settled share
options - - - 84 - - 84
--------- --------- --------- --------- ---------- ---------- ----------
Transactions with owners 11 41 - 48 - 36 136
Loss for the period
after tax - - - - - (862) (862)
Other comprehensive
income
Exchange differences
on translation of foreign
operations - - - - 253 - 253
Deferred tax on translation
of foreign held assets - - - - (46) - (46)
--------- --------- --------- --------- ---------- ---------- ----------
Total comprehensive
income for the year - - - - 207 (862) (655)
At 30 June 2011 6,249 7,941 221 533 181 (10,007) 5,118
========= ========= ========= ========= ========== ========== ==========
Consolidated cash flow statement
12 months 12 months
to to
30 June 30 June
2011 2010
GBP'000 GBP'000
Restated
Cash flows from operating activities
Loss for the period before tax (783) (185)
Net finance income in the income statement (2) (15)
Loss from associates - 18
Depreciation of property, plant & equipment 44 75
Amortisation 1,089 1,149
Gain on bargain purchase and associated
fair value loss on previously held equity
investment - 214
Impairment of financial assets (3) 24
Share based payments 84 43
Decrease in trade and other receivables (237) 236
Increase/(decrease) in trade and other
payables 403 (142)
Net cash generated from operations 595 1,417
Interest paid (5) (8)
Income tax (payable) / receivable 101 (17)
---------- ----------
Net cash generated by operating activities 691 1,392
Cash flows from investing activities
Interest received 7 23
Payments for property plant and equipment (66) (30)
Purchase of intangibles (571) (570)
Purchase of UK Government gilts - (701)
Acquisition of subsidiary (net of cash
with subsidiary) - (22)
Net cash used in investing activities (630) (1,300)
Cash flows from financing activities
Proceeds from issue of equity shares 52 27
Loans repaid (finance leases) (13) (21)
Net cash generated by financing activities 39 6
---------- ----------
Net increase in cash and cash equivalents 100 98
Exchange differences 17 (8)
---------- ----------
Total increase in cash and cash equivalents 117 90
Cash and cash equivalents at the start
of the period 1,599 1,509
---------- ----------
Cash and cash equivalents at the end of
the period 1,716 1,599
========== ==========
1. Prior year adjustment
During the year the Group upgraded its reporting systems for its
subscription website which enabled it to generate more accurate
information over the unexpired level of live subscriptions at any
period end. The information generated by the new reports has
enabled the Group to accurately quantify the level of deferred
subscription levels at 30 June 2011 and prior year ends. In prior
years the Group had calculated deferred revenue using the
information available to it, together with certain estimation
techniques.
The new reports have identified that the deferred income
calculated and reflected in the financial statements for prior
periods was materially incorrect. In accordance with IAS 8
'Accounting Policies, Changes in Accounting Estimates and Errors'
the comparative financial statements have been restated. The effect
of the prior year adjustment on each line item within the prior
year financial statements is set out below:
Consolidated income statement
As originally
reported As restated
12 months Prior year 12 months
to 30 June adjustment to 30 June
2010 2010
GBP'000 GBP'000 GBP'000
Revenue 8,475 116 8,591
Profit for the period attributable
to shareholders of the parent 30 116 146
(Loss)/earnings per share - from
continuing operations
Basic and diluted (pence per
share) - 0.02 0.02
Consolidated statement of comprehensive
income
As originally
reported As restated
12 months Prior year 12 months
to 30 June adjustment to 30 June
2010 2010
GBP'000 GBP'000 GBP'000
Restated
Total comprehensive income for
the year attributable to shareholders
of the parent 22 116 138
============== ============ =============
Consolidated cash flow statement
As originally
reported As restated
12 months Prior year 12 months
to 30 June adjustment to 30 June
2010 2010
Loss for the period before tax (301) 116 (185)
Decrease in trade and other payables (26) (116) (142)
Other movements 1,744 - 1,744
Net cash generated from operations 1,417 - 1,417
2. Segmental analysis
The directors identify reportable segments based upon the
information which is regularly reviewed by the chief operating
decision maker. The Group considers that the chief operating
decision maker is the Board of Directors. The Group has identified
two reportable operating segments, being that of the provision of
financial information and that of research services. The provision
of financial information is made via the Group's various website
platforms. Research activities are provided by the Group's staff,
primarily to corporate customers.
Two minor operating segments, for which IFRS 8's quantitative
thresholds have not been met, are currently combined below under
'other'. The main sources of revenue for these operating segments
is the provision of financial broking services and other internet
services not related to financial information. Segment information
can be analysed as follows for the reporting period under
review:
2011 Provision Research Other Total
of financial services
information
GBP'000 GBP'000 GBP'000 GBP'000
Revenue from external customers 8,422 604 141 9,167
Depreciation and amortisation (1,177) (6) (3) (1,186)
Other operating expenses (8,254) (589) 45 (8,798)
Segment operating (loss)/profit (1,009) 9 183 (817)
Interest income 7 - - 7
Interest expense (4) (1) - (5)
Segment assets 9,178 216 23 9,417
Segment liabilities (2,357) (162) (5) (2,524)
Purchases of non-current assets (662) - - (662)
============== ========== ======== ========
2010 Provision Research Other Total
of financial services
information
GBP'000 GBP'000 GBP'000 GBP'000
Restated Restated
Revenue from external customers 7,979 526 102 8,607
Depreciation and amortisation (1,327) (7) (3) (1,337)
Other operating expenses (6,514) (684) (61) (7,259)
-------------- ---------- -------- ---------
Segment operating (loss)/profit 138 (165) 38 11
Results from associates (18) - - (18)
Interest income 23 - - 23
Interest expense (5) (3) - (8)
Segment assets 9,618 196 26 9,840
Segment liabilities (1,958) (127) (8) (2,093)
Purchases of non-current assets (895) (10) (1) (906)
============== ========== ======== =========
The Group's revenues, which wholly relate to the sale of
services, from external customers and its non-current assets are
divided into the following geographical areas:
Revenue Non-current Revenue Non-current
assets assets
2011 2011 2010 2010
GBP'000 GBP'000 GBP'000 GBP'000
Restated
UK (domicile) 4,802 4,326 4,906 3,119
USA 3,419 1,456 3,071 1,641
Other 946 - 630 -
-------- ------------ --------- ------------
9,167 5,782 8,607 4,760
======== ============ ========= ============
Revenues are allocated to the country in which the customer
resides. During both 2011 and 2010 no single customer accounted for
more than 10% of the Group's total revenues.
The segmental information regularly reviewed by the Board is
presented under UK GAAP and, as a result, a key reconciling item
between the segmental and the Group financial information relates
to IFRS conversion.
The totals presented for the Group's operating segments
reconcile to the entity's key financial figures as presented in its
financial statements as follows:
2011 2010
GBP'000 GBP'000
Restated
Segment revenues
Total segment revenues 9,167 8,607
Consolidation adjustments - (16)
-------- ---------
9,167 8,591
======== =========
Segment profit or loss
Total segment operating (loss)/profit (817) 11
Consolidation adjustments (324) (15)
IFRS conversion adjustments 356 36
-------- ---------
Group operating (loss)/profit (785) 32
Finance income 7 23
Finance expense (5) (8)
Negative goodwill and associated fair value
loss on previously held equity investment - (214)
Result from associate after taxation - (18)
-------- ---------
Group loss before tax (783) (185)
======== =========
2011 2010 2009
GBP'000 GBP'000 GBP'000
Restated Restated
Segment assets
Total segment assets 9,417 9,840 7,950
Consolidation adjustments (2,113) (1,777) (1,382)
IFRS conversion adjustments 826 (13) 1,103
-------- --------- ---------
Total Group assets 8,130 8,050 7,671
======== ========= =========
Segment liabilities
Total segment liabilities (2,524) (2,093) (2,128)
Consolidation adjustments (46) - -
IFRS conversion adjustments (442) (320) (311)
-------- --------- ---------
Total Group liabilities (3,012) (2,413) (2,439)
======== ========= =========
Consolidation adjustments primarily relate to the elimination of
investments and the calculation of goodwill. IFRS conversion
adjustments primarily relate to the different accounting bases for
the Group's intangible and tangible assets under IFRS and UK
GAAP.
3. (Loss) / earnings per share
12 months 12 months
to to
30 June 30 June
2011 2010
GBP'000 GBP'000
(Loss) / profit for the year from continuing
operations attributable to equity shareholders (862) 146
============ ============
(Loss) / earnings per share from continuing
operations
Basic (loss) / earnings per share (pence) (0.14) 0.02
Diluted (loss) / earnings per share (pence) (0.14) 0.02
Shares Shares
Issued ordinary shares at start of the year 623,764,505 615,568,903
Ordinary shares issued in the year (Note 23) 1,149,999 8,195,602
------------ ------------
Issued ordinary shares at end of the year 624,914,504 623,764,505
============ ============
Weighted average number of shares in issue for
the year 624,207,656 622,267,954
Dilutive effect of options - 7,100,433
------------ ------------
Weighted average shares for diluted earnings
per share 624,207,656 629,368,387
============ ============
Where a loss has been recorded for the year 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. Publication of Non Statutory Accounts
The financial information set out in this preliminary
announcement does not constitute statutory accounts as defined in
section 435 of the Companies Act 2006.
The consolidated balance sheet at 30 June 2011 and the
consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of changes in equity,
consolidated cash flow statement and associated notes for the year
then ended have been extracted from the Company's 2011 statutory
financial statements upon which the auditors' opinion is
unqualified and does not include any statement under Section 498(2)
or (3) of the Companies Act 2006.
The annual report and accounts will shortly be sent to
shareholders and will be available on the Company's website,
http://www.advfn.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DKCDPOBDDPKD
Advfn (LSE:AFN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Advfn (LSE:AFN)
Historical Stock Chart
From Apr 2023 to Apr 2024
