TIDMAFN
RNS Number : 5453Y
ADVFN PLC
01 March 2012
ADVFN PLC
Unaudited Interim Results for the Six Months Ended 31 December 2011
Chief Executive's Statement
ADVFN's half year to the end of December 2011 represents another robust performance especially when set against the background of an unprecedented period of financial dislocation.
ADVFN has come out ahead of its previous sales performance in the first half of last year and overcome a widespread chilling effect created by the uncertainties of the Euro crisis. This strong relative performance augurs well for the future. Meanwhile 2012 has started well. There appears to be no single trigger, but activity levels have made a dramatic rally from the level of the last three months of 2011 when investors were paralysed by the events of the sovereign debt crisis.
2012 has had an extremely strong start and we hope this will create strong support for growth over the coming months.
Without the unfortunate turbulence of 2011 our results would have been significantly stronger.
Our geographic diversity, our strong advertiser base and our subscription model all contributed to neutralising the impact of the Euro crisis.
Meanwhile our initial investment cycle of expanding our global revenue has concluded, with the establishment of sales offices in Japan, India and the Middle East.
While it is hard to predict the market in the best of times, it would appear that 2012 is highly likely to be a strong market for equities. This will be helpful. Meanwhile, we will continue to expand our international reach thus making our revenue model yet more diversified.
It appears likely that the US economy is finally on the road to recovery and, with this, we would expect our US business to expand, perhaps significantly.
2012 appears to be materially different in character from 2009-2011 and in its early stages at least it seems possible that equities may be experiencing a secular shift towards investment in stocks.
This is of course good news for shareholders in general and investors in ADVFN in particular.
Financial performance
Key financial performance for the period has been summarised as follows:
Six Months ended Six Months ended Change
31 December 2011 31 December 2010
--------------------- ----------------- ----------------- --------
GBP'000 GBP'000 GBP'000
--------------------- ----------------- ----------------- --------
Turnover 4,584 4,543 41
--------------------- ----------------- ----------------- --------
Loss for the period (919) (121) (798)
--------------------- ----------------- ----------------- --------
Operating Loss (971) (147) (824)
--------------------- ----------------- ----------------- --------
Loss per share 0.15p 0.02p (0.13)
--------------------- ----------------- ----------------- --------
Clem Chambers
CEO
1 March 2012
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 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2011 2010 2011
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Notes restated
Revenue 4,584 4,543 9,167
Cost of sales (213) (208) (538)
---------- ---------- ----------
Gross profit 4,371 4,335 8,629
Share based payment (49) (14) (84)
Amortisation of intangible assets (529) (589) (1,089)
Other administrative expenses (4,764) (3,861) (8,241)
Total administrative expense (5,342) (4,464) (9,414)
Operating loss (971) (129) (785)
Finance income - 6 7
Finance expense - (24) (5)
Loss before tax (971) (147) (783)
Taxation 52 26 (79)
Loss for the period (919) (121) (862)
========== ========== ==========
Loss per share from continuing
operations
Basic and diluted (pence per share) 4 (0.15) (0.02) (0.14)
Consolidated statement of comprehensive
income
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2011 2010 2011
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
restated
Loss for the period (919) (121) (862)
Other comprehensive income:
Exchange differences on translation
of foreign operations 65 14 253
Deferred tax on translation of
foreign held assets (10) - (46)
---------- ---------- ----------
Total comprehensive income for
the year (864) (107) (655)
========== ========== ==========
Consolidated balance sheet 31 Dec 31 Dec 30 June
2011 2010 2011
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
restated
Assets
Non-current assets
Property, plant and equipment 116 85 106
Goodwill 1,733 1,590 1,697
Intangible assets 2,491 2,669 2,584
Trade and other receivables 126 113 119
Total non-current assets 4,466 4,457 4,506
Current assets
Trade and other receivables 1,067 1,133 1,121
Current tax recoverable 75 9 75
Other financial assets (available
for sale) 717 729 712
Cash and cash equivalents 959 1,571 1,716
---------- ---------- ---------
Total current assets 2,818 3,442 3,624
---------- ---------- ---------
Total assets 7,284 7,899 8,130
========== ========== =========
Equity and liabilities
Equity
Issued capital 6,250 6,238 6,249
Share premium 7,942 7,902 7,941
Merger reserve 221 221 221
Share based payments reserve 580 499 533
Foreign exchange reserve 236 (12) 181
Retained earnings (10,924) (9,302) (10,007)
---------- ---------- ---------
Total equity 4,305 5,546 5,118
Non-current liabilities
Deferred tax 477 273 533
Borrowings - obligations under
finance leases 2 6 1
Total non-current liabilities 479 279 534
Current liabilities
Trade and other payables 2,497 2,071 2,455
Current tax - - 18
Borrowings - overdraft and obligations
under finance leases 3 3 5
Total current liabilities 2,500 2,074 2,478
---------- ---------- ---------
Total liabilities 2,979 2,353 3,012
---------- ---------- ---------
Total equity and liabilities 7,284 7,899 8,130
========== ========== =========
Consolidated statement of changes in equity
Share Share Merger Share Foreign Retained Total
capital premium reserve based exchange earnings equity
payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2010 as previously
stated 6,238 7,900 221 485 (26) (8,745) 6,073
Prior year adjustment - - - - - (436) (436)
--------- --------- --------- --------- ---------- ---------- --------
6,238 7,900 221 485 (26) (9,181) 5,637
Issue of shares - 2 - - - - 2
Equity settled share
options - - - 14 - - 14
--------- --------- --------- --------- ---------- ---------- --------
Transactions with owners - 2 - 14 - - 16
Loss for the period after
tax - - - - - (121) (121)
Other comprehensive income
Exchange differences
on translation of foreign
operations - - - - 14 - 14
Total comprehensive income - - - - 14 (121) (107)
--------- --------- --------- --------- ---------- ---------- --------
At 31 December 2010 6,238 7,902 221 499 (12) (9,302) 5,546
Issue of shares 11 39 - - - 50
Exercise of share options - - - (36) - 36 -
Equity settled share
options - - - 70 - - 70
--------- --------- --------- --------- ---------- ---------- --------
Transactions with owners 11 39 - 34 - 36 120
Loss for the period after
tax - - - - - (741) (741)
Other comprehensive income
Exchange differences
on translation of foreign
operations - - - - 239 - 239
Deferred tax on translation
of foreign held assets - - - - (46) - (46)
--------- --------- --------- --------- ---------- ---------- --------
Total comprehensive income - - - - 193 - 193
--------- --------- --------- --------- ---------- ---------- --------
At 30 June 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
========= ========= ========= ========= ========== ========== ========
Consolidated cash flow statement
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2011 2010 2011
GBP'000 GBP'000 GBP'000
unaudited unaudited Audited
restated
Cash flows from operating activities
Loss for the period before tax (971) (147) (783)
Finance costs in the income statement - 18 (2)
Depreciation of property, plant
and equipment 134 64 44
Amortisation 529 589 1,089
Impairment of financial assets (5) - (3)
Share based payments 49 14 84
Decrease/(increase) in trade and
other receivables 47 (243) (237)
Decrease in trade and other payables 42 19 403
Net cash (used)/generated from
operations (175) 314 595
Interest paid - (24) (5)
Income tax (paid)/received (22) 40 101
---------- ---------- ----------
Net cash (used)/generated by operating
activities (197) 330 691
Cash flows from investing activities
Interest received - 6 7
Payments for property, plant and
equipment (144) (65) (66)
Purchase of intangibles (436) (285) (571)
Acquisition of investments - (20) -
Net cash used in investing activities (580) (364) (630)
Cash flows from financing activities
Proceeds from issue of equity shares 2 2 52
Loans repaid (finance leases) (1) (10) (13)
Net cash generated/(used) from
financing activities 1 (8) 39
---------- ---------- ----------
Net (decrease)/ increase in cash
and cash equivalents (776) (42) 100
Exchange movements 19 14 17
---------- ---------- ----------
Total (decrease)/ increase in cash
and cash equivalents (757) (28) 117
Cash and cash equivalents at the
start of the period 1,716 1,599 1,599
---------- ---------- ----------
Cash and cash equivalents at the
end of the period 959 1,571 1,716
========== ========== ==========
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 2011. 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 2011, 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 2011 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 2011 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. Prior year adjustment
During 2011 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 enabled the Group to accurately quantify the level of deferred subscriptions 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 misstated. 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
6 months Prior year 6 months
to 31 December adjustment to 31 December
2010 2010
GBP'000 GBP'000 GBP'000
Revenue 4,597 (54) 4,543
Profit for the period attributable
to shareholders of the parent (67) (54) (121)
(Loss)/earnings per share - from
continuing operations
Basic and diluted (pence per
share) (0.01) (0.01) (0.02)
Consolidated statement of comprehensive
income
As originally
reported As restated
6 months Prior year 6 months
to 31 December adjustment to 31 December
2010 2010
GBP'000 GBP'000 GBP'000
Restated
Total comprehensive income for
the year attributable to shareholders
of the parent (53) (54) (107)
================ ============ ================
Consolidated cash flow statement
As originally
reported As restated
6 months Prior year 6 months
to 31 December adjustment to 31 December
2010 2010
Loss for the period before tax (93) (54) (147)
Decrease in trade and other payables (35) 54 19
Other movements 442 - 442
Net cash generated from operations 314 - 314
4. Loss per share
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2011 2010 2011
GBP'000 GBP'000 GBP'000
Loss for the year from continuing operations
attributable to equity shareholders (919) (121) (862)
============ ============ ============
Loss per share from continuing operations
Basic loss per share (pence) (0.15) (0.02) (0.14)
Diluted loss per share (pence) (0.15) (0.02) (0.14)
Shares Shares Shares
Issued ordinary shares at start of
the period 624,914,504 623,764,505 623,764,505
Ordinary shares issued in the period 67,000 50,000 1,149,999
------------ ------------ ------------
Issued ordinary shares at end of the
period 624,981,504 623,814,505 624,914,504
============ ============ ============
Weighted average number of shares in
issue for the period 624,921,422 623,784,614 624,207,656
Dilutive effect of options - - -
------------ ------------ ------------
Weighted average shares for diluted
earnings per share 624,921,422 623,784,614 624,207,656
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.
5. Dividends
The directors do not recommend the payment of a dividend.
6. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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