TIDMONL
RNS Number : 7635W
On-Line PLC
12 November 2014
12 November 2014
('On-line' or 'the Company')
Preliminary Results for the Year Ended 30 June 2014
On-line today announces preliminary results for the year ended
30 June 2014.
For further information, please contact:
Michael Hodges
Chairman and Managing Director
mikeh@advfn.com
Salmaan Khawaja/Edward Thomas
Grant Thornton UK LLP (Nominated Adviser)
0207 383 5100
Chairman's Statement
On-Line plc continues in its role of an investment company whose
sole investment is that of a holding of 18.26% in ADVFN plc. The
Company has continued to work with ADVFN as it makes progress in
the financial data market. Our turnover for the year was GBP78,000
(2013: GBP91,000) giving us a loss before tax of GBP9,000 (2013:
loss of GBP11,000).
The Company's financial performance for the year and Key
Performance Indicators are analysed in the Strategic Report.
On-line is the largest shareholder in ADVFN, the Company works
closely with ADVFN to ensure its success, which in time will be of
great benefit to it. ADVFN continues to make progress and has
benefitted from particularly strong results from the US. The
following extract from the accounts of ADVFN plc is included to
give information on the performance of the Companies
investment:
Extracts from ADVFN's 2014 accounts:
"ADVFN HIGHLIGHTS
-- EBITDA* profit increases to GBP298,000 (2013: profit of GBP108,000)
-- Loss for the period down to GBP454,000 (2013: loss of GBP539,000)
-- ADVFN's registered user base continues to grow and is in excess of 3,000,000 (2013: 2,800,000)
*EBITDA is calculated as the operating result for the year
before depreciation and amortisation charges.
Below are some high lights from the ADVFN's Chief Executives
statement:
2014 was a good year. Our EBITDA was GBP298,000 up 176%. This
was on top of a significant improvement in
the year before. Sales were GBP9,702,000 up GBP1,625,000 from
GBP8,077,000, an increase of 20% from 2013 levels.
The operating loss improved again in 2014 by GBP208,000 from a
loss of GBP871,000 in 2013 to GBP663,000 this year.
Our cash rose by GBP214,000 to GBP1,675,000 from GBP1,461,000 in
2014.
These solid gains have been against a background of further
investment, apparently depressed market activity as far as market
participants are concerned and a rampant pound which suppressed the
results of our very strong US performance. ADVFN's growth has come
from increased advertising sales, which has coincided with our
total subscriber numbers rising.
Our focus remains the same with particular concentration on the
US which continues to deliver on its promise.
Key to this year has been our US OTC QX listing in the US and
our capital reorganization and American Depository Receipts (ADR)
program. Picking our Google analytic stats at random, in April 2014
we had 5.4 million US visitors in that month according to Comscore
we are the ninth biggest finance site in the US by page
impressions. The eight bigger were: Yahoo Finance, MSN Money, Dow
Jones & Company, CNBC, Bloomberg, AOL Money & Finance, CNN
Money and Forbes Digital. Anyone else you have ever heard of in our
field is smaller than us in the US, that's staggering.
During 2015 we hope to continue to show how well we can present
ourselves to this audience, which, if we are successful in reaching
them, will drive a flow of our UK shares into the US ADR.
PART OF THE ADVFN STRATEGIC REPORT
Summary of key performance indicators
2014 2014 2013 2013
Actual Target Actual Target
-------------------- -------- -------- -------- -------
EBITDA GBP298k GBP200k GBP108k GBP50k
-------- -------- --------
Average head count 43 44 37 40
-------------------- -------- -------- -------- -------
ADVFN registered
users 3.0M 2.9M 2.8M 2.7M
-------------------- -------- -------- -------- -------
On-line plc's Strategy
As an investment company On-line plc is always looking for
further investment opportunities and the Directors will continue
looking for new investment opportunities that the Company might
benefit from. In the meantime On-line plc will continue to work
with ADVFN to help them develop and build their business whose
growth and potential profitability will directly benefit the
Company.
Principal risks and uncertainties
The management of the Company and the nature of the Company's
strategy are subject to a number of risks. The directors have set
out below the principal risks facing the business. The directors
are of the opinion that a thorough risk management process is
adopted which involves the formal review of all the risks
identified below. Where possible, processes are in place to monitor
and mitigate such risks.
Single investment
The Company has a single investment which provides economic
benefits to the Company; this places a reliance on the performance
of the investee which is high risk. The directors see the close
working relationship with ADVFN as well as the search for
additional investments and the building of an investment portfolio
in the long term as necessary mitigating activities. However the
prospects for ADVFN are currently very positive.
Economic downturn
The success of the world's stock markets might affect the
business given the sector our investment operates in. Many things
around the world can affect a stock market from war to human error.
This can also have a knock on effect to consumer spending power as
has been seen with the recent credit crunch around the world,
although in the past when we have seen a market downturn this has
not impacted on usage of ADVFN, with customers generally wanting to
know what is happening in the markets, be it good or bad. In
response to this potential risk, senior management aim to keep
abreast of economic conditions around the world; not only should
senior management be aware of it, likewise so should our customers
and members. In cases of severe economic downturn, marketing and
pricing strategies are modified to reflect the new market
conditions.
High proportion of fixed overheads and variable revenues
A large 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 have been implemented as a result of recent
reduction in revenues.
Performance
The performance of the Company is reliant on the performance of
ADVFN plc. As a result of this reliance the extract of the ADVFN
accounts above will give necessary information and background on
the factors affecting the performance of the Company. In addition
the following KPI's may prove helpful:
2014 2014 2013 2013
Actual Target Actual Target
-------------------- -------- -------- -------- --------
Turnover (GBP'000) 78 80 91 75
-------- -------- --------
Operating results
(GBP'000) (7) (10) (10) (12)
-------------------- -------- -------- -------- --------
Loss per share
(pence) (0.12)p (0.11)p (0.14)p (0.14)p
-------------------- -------- -------- -------- --------
Operating costs
Our costs remain reasonably fixed and predictable and we do not
see that changing in the immediate future. However, the Directors
have made efforts to control the Company's running costs.
We believe in trying to get the best from all areas that we work
in. It is very important that On-line and ADVFN continue to invest
in the quality and design of our products. We believe continued
investment in our research and development is fundamental to the
continuing growth of the business.
Environmental policy
This has always been important to the Company and as a whole we
continue to look for ways to develop our environmental policy. It
is our objective to improve our performance in this area.
Future developments for the business
We feel it is right for us to work with our investment and
assist it with its growth. This has seen it increase its business
and allow new areas to be explored. The prospect of ADVFN
continuing to grow in the medium term provides the incentive to go
on concentrating on this business in the immediate future. Should
other investment opportunities present themselves the Directors
will investigate them appropriately.
Michael Hodges
Director
11 November 2014
Profit and Loss Account
for the year ended 30 June 2014
Notes 2014 2013
GBP'000 GBP'000
Turnover 78 91
Administrative expenses (85) (101)
--------------- ---------------------
Operating loss (7) (10)
Interest payable (2) (1)
--------------- ---------------------
Loss on ordinary activities
before taxation (9) (11)
Tax on (loss)/profit on ordinary
activities - -
--------------- ---------------------
Loss on ordinary activities
after taxation (9) (11)
=============== =====================
Basic and diluted loss per
ordinary share 1 (0.12)p (0.14)p
All operations are continuing.
There were no recognised gains or losses other than the loss for
the year.
Balance Sheet
at 30 June 2014
2014 2013
Notes GBP'000 GBP'000
Fixed assets
Investments 868 868
Current assets
Debtors 109 121
Creditors: amounts falling
due within one year (53) (64)
---------- ----------
Net current assets 56 57
---------- ----------
Total assets less current
liabilities 924 925
========== ==========
Capital and reserves
Called up share capital 3,242 3,242
Share premium account 2,205 2,205
Option valuation reserve 28 37
Profit and loss account (4,551) (4,559)
Shareholders' funds 2 924 925
========== ==========
Cash Flow Statement for the year ended 30 June 2014
2014 2013
Notes GBP'000 GBP'000
Net cash inflow from
operating activities 3 20 15
Increase in cash 20 15
Bank overdraft balance
at the beginning of
the period (35) (50)
--------- ----------
Bank overdraft at the end
of the period 4, 5 (15) (35)
========= ==========
2014 2013
GBP'000 GBP'000
Cash at bank and in
hand - -
Bank overdraft (15) (35)
--------- ----------
Bank overdraft at the end
of the period 5 (15) (35)
========= ==========
1. Loss per share
2014 2013
Profit Number Earnings Profit Number Earnings
of of
shares per share shares per
share
GBP'000 '000 p GBP'000 '000 p
Basic and diluted
loss per share
Loss for the year (9) (11)
------- -------
Weighted average
number of shares 7,662 7,662
------ ------
Basic and diluted
loss per share (0.12)p (0.14)p
--------- --------
As there was a loss in both years the existence of share options
is not dilutive.
2. Reconciliation of movements in shareholders' funds
2014 2013
GBP'000 GBP'000
Loss for the financial
year (9) (11)
Recognition of equity settled
share based payments in
the year (FRS20) 8 6
------- -------
Net decrease in shareholders'
funds in the year (1) (5)
Shareholders' funds at
1 July 925 930
------- -------
Shareholders' funds at
30 June 924 925
======= =======
3. Reconciliation of operating loss to net cash inflow from operating activities
2014 2013
GBP'000 GBP'000
Operating loss (9) (11)
Equity settled share
based payments in the
year 8 6
Decrease in debtors 12 28
Increase/(decrease) in
creditors 9 (8)
------- -------
Net cash inflow from
operating activities 20 15
======= =======
4. Reconciliation of net cash flow to movement in net debt
2014 2013
GBP'000 GBP'000
Increase in cash for the year 20 15
Net debt at 1 July (35) (50)
--------- ---------
Net debt at 30 June (15) (35)
========= =========
5. Analysis of movement in net debt
At At
1 July 30 June
2013 Cash flow 2014
GBP'000 GBP'000 GBP'000
Bank overdraft (35) 20 (15)
============== ============ ==============
6. 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 balance sheet at 30 June 2014 and the profit and loss
account, cash flow statement and associated notes for the year then
ended have been extracted from the Company's 2014 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.on-line.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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