TIDMAFN
RNS Number : 3546T
ADVFN PLC
20 March 2019
20 March 2019
For immediate release
ADVFN PLC
("ADVFN" or the "Company")
Unaudited Interim Results for the Six Months Ended 31 December
2018
ADVFN today announces its unaudited interim results for the six
months ended 31 December 2018 (the "Period").
Chief Executive's Statement
The first half of the year has been a period of significant
change for ADVFN. Our users will have noticed the addition of a
strong, innovative Blockchain information offering that provides
our global userbase with exhaustive coverage of coins and tokens
across a plethora of exchanges. Meanwhile, we have significantly
re-engineered the site to cope, not only with the exciting but
technically challenging markets but with the ever-increasing
demands of markets forever pushing out more data. While nothing
sits still for long in the financial markets, we provide
information about, we try and by and large succeed in doing this
without disrupting the business.
Our re-engineering of the ADVFN website positions us for growth
especially on the eventual return of positive investor sentiment
towards blockchain cryptocurrencies after the year-long 'crypto
winter' bear market. It might seem hard for long term investors in
stocks to grasp the opportunity but in our opinion cryptocurrencies
will, in a few years, be the preferred investment market for the
generation called 'the millennials.' That futurism aside,
cryptocurrency is already a revenue generator for us and has been
the "tail-wind" making up for the regulatory "head-winds" affecting
our equity-focused customers via the ESMA regulations forcing the
spread betting community to restructure how they do business.
We have made a material investment thus far in our website and
this has added a further diversification to our product mix as well
as a chance to be at the forefront as and when Bitcoin and
cryptocurrencies catch the imagination of the traders and investors
again, as we believe it will in either later in 2019 or 2020.
After much preparation, and after seeing the first fruits of our
recent efforts turn into revenue, this has helped us maintain our
business in an environment where our customers have been buffeted
by new regulation and difficult markets and we continue to look
forward to the future with excitement.
Financial performance
Key financial performance for the period has been summarised as
follows:
Six Months ended Six Months ended
31 December 2018 31 December 2017
------------------------------ -----------------
GBP'000 GBP'000
------------------------------ -----------------
Revenue 4,265 4,282
------------------------------ -----------------
(Loss)/profit for the period (214) 24
------------------------------ -----------------
Operating (loss)/profit (210) 24
------------------------------ -----------------
(Loss)/profit per share (see
note 3) (0.84 p) 0.09 p
------------------------------ -----------------
Clem Chambers
CEO
19 March 2019
A copy of this announcement is available on the Company's
website: www.ADVFN.com
Enquiries:
For further information please contact:
ADVFN PLC +44 (0) 207 070
Clem Chambers 0909
Beaumont Cornish Limited (Nominated Adviser)
www.beaumontcornish.com
+44 (0) 207 628
Roland Cornish/Michael Cornish 3396
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. The person who arranged for the
release of this announcement on behalf of the Company was Clem
Chambers, Director.
Consolidated income statement
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2018 2017 2018
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Notes
Revenue 4,265 4,282 9,201
Cost of sales (227) (90) (392)
---------- ---------- ----------
Gross profit 4,038 4,192 8,809
Share based payment - (3) (21)
Amortisation of intangible assets (69) (105) (202)
Other administrative expenses (4,179) (4,060) (8,202)
Total administrative expense (4,248) (4,168) (8,245)
Operating (loss)/profit (210) 24 384
Finance income and expense (4) - -
Income from related parties - - 58
(Loss)/profit before tax (214) 24 442
Taxation - - (49)
---------- ---------- ----------
(Loss)/profit for the period attributable
to shareholders of the parent (214) 24 393
========== ========== ==========
Earnings per share
Basic and diluted 3 (0.84 p) 0.09 p 1.53 p
Consolidated statement of comprehensive
income
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2018 2017 2018
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
(Loss)/profit for the period (214) 24 393
Other comprehensive income:
Items that will be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations 33 (70) (33)
Deferred tax on translation of - - -
foreign held assets
---------- ---------- ----------
Total other comprehensive income 33 (70) (33)
Total comprehensive income for
the year attributable to shareholders
of the parent (181) (46) 360
========== ========== ==========
Consolidated balance sheet
31 Dec 31 Dec 30 June
2018 2017 2018
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Assets
Non-current assets
Property, plant and equipment 161 54 136
Goodwill 971 913 941
Intangible assets 1,417 1,235 1,307
Investments 3 - 3
Deferred tax 1 6 4
Trade and other receivables 108 92 111
2,661 2,300 2,502
Current assets
Trade and other receivables 812 844 855
Cash and cash equivalents 871 969 1,061
---------- ---------- --------
1,683 1,813 1,916
Total assets 4,344 4,113 4,418
========== ========== ========
Equity and liabilities
Equity
Issued capital 51 51 51
Share premium 145 145 145
Share based payments reserve 365 347 365
Foreign exchange reserve 278 208 245
Retained earnings 1,063 908 1,277
---------- ---------- --------
1,902 1,659 2,083
Current liabilities
Trade and other payables 2,442 2,454 2,313
Current tax - - 22
2,442 2,454 2,335
Total liabilities 2,442 2,454 2,335
---------- ---------- --------
Total equity and liabilities 4,344 4,113 4,418
========== ========== ========
Consolidated statement of changes in equity
Share Share Share Foreign Retained Total
capital premium based exchange earnings equity
payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2017 51 145 344 278 884 1,702
Equity settled share options - - 3 - - 3
Share issues - - - - - -
--------- --------- --------- ---------- ---------- ----------
Transactions with owners - - 3 - - 3
Profit for the period after
tax - - - - 24 24
Other comprehensive income
Exchange differences on
translation of foreign operations - - - (70) - (70)
Total comprehensive income - - - (70) 24 (46)
--------- --------- --------- ---------- ---------- ----------
At 31 December 2017 51 145 347 208 908 1,659
Equity settled share options - - 18 - - 18
Share issues - - - - - -
--------- --------- --------- ---------- ---------- ----------
Transactions with owners - - 18 - - 18
Profit for the period after
tax - - - - 369 369
Other comprehensive income
Exchange differences on
translation of foreign operations - - - 37 - 37
--------- --------- --------- ---------- ---------- ----------
Total comprehensive income - - - 37 369 406
--------- --------- --------- ---------- ---------- ----------
At 30 June 2018 51 145 365 245 1,277 2,083
Loss for the period after
tax - - - - (214) (214)
Other comprehensive income
Exchange differences on
translation of foreign operations - - - 33 - 33
--------- --------- --------- ---------- ---------- ----------
Total comprehensive income - - - 33 (214) (181)
--------- --------- --------- ---------- ---------- --------
At 31 December 2018 51 145 365 278 1,063 1,902
========= ========= ========= ========== ========== ==========
Consolidated cash flow statement
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2018 2017 2018
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Cash flows from operating activities
(Loss)/profit for the year (214) 24 393
Taxation - - 49
Net finance income in the income statement 4 - -
Share based payment - 3 21
Depreciation of property, plant and
equipment 36 18 68
Amortisation 69 105 202
Profit on disposal of Equity Holdings - - (53)
Decrease in trade and other receivables 46 104 74
Increase/(decrease) in trade and other
payables 129 (10) (151)
Net cash generated by continuing operations 70 244 603
Income tax paid (22) - (27)
---------- ---------- ----------
Net cash generated by operating activities 48 244 576
Cash flows from financing activities
Interest paid (4) - -
Cash flows from investing activities
Payments for property, plant and equipment (61) (19) (151)
Purchase of intangibles (179) (184) (353)
Receipt from related party - - 50
Net cash used by investing activities (240) (203) (454)
Net (decrease)/increase in cash and
cash equivalents (196) 41 122
Exchange differences 6 (35) (24)
---------- ---------- ----------
Net (decrease)/ increase in cash and
cash equivalents (190) 6 98
Cash and cash equivalents at the start
of the period 1,061 963 963
---------- ---------- ----------
Cash and cash equivalents at the end
of the period 871 969 1,061
========== ========== ==========
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 2018. 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 2018, 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 2018 as described in those financial statements.
The financial statements are presented in Sterling (GBP) rounded
to the nearest thousand except where specified.
The unaudited interim financial information does not include all
the information required for full annual financial statements and
should be read in conjunction with the financial statements of the
company for the year ended 30 June 2018.
The interim financial information has been prepared on the going
concern basis which assumes the company will continue in existence
for the foreseeable future. No material uncertainties that cast
significant doubt about the ability of the company to continue as a
going concern have been identified by the directors. Accordingly,
the directors believe it is appropriate for the interim financial
statement to be prepared on the going concern basis.
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 2018 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.
New standards adopted in the period:
IFRS 15 - Revenue
The standard was adopted for the period commencing 1 July 2018.
The standard defines a new five step model to recognise revenue
from customers and will apply to the Group as follows:
Subscriptions - both monthly and annual subscriptions are
offered and annual subscriptions are deferred on a time basis with
equal monthly transfers to the income statement.
Events - revenue from events is recognised at the time of the
event. There are no circumstances when the early payment of
entrance or stand fees is entirely non-refundable.
Advertising - fees for advertising are recognised when the
service obligations are fulfilled. Where there are multiple
obligations, amounts specific to that obligation are transferred to
the income statement.
IFRS 9 Financial Instruments
The standard was adopted for the period commencing 1 July 2018.
The treatment of any doubtful receivables changed to reflect an
expected credit loss rather than an incurred credit loss. There has
been a small addition to the allowance account for doubtful
receivables.
The adoption of the above standards has not had a material
impact on the financial statements.
New standards not yet adopted:
IFRS 16 Leases
The standard will be adopted in the period commencing 1 July
2019. Under the provisions of the new standard most leases,
including the majority of those previously classified as operating
leases, will be brought onto the financial position statement as a
right-of-use asset and as an offsetting lease liability. The
directors are considering the impact of the new standards on the
Group's accounting policies and more information will be provided
in the annual report for the year ended 30 June 2019.
3. Earnings per share
6 months 6 months 12 months
to to to
31 Dec 2018 31 Dec 2017 30 June
2018
GBP'000 GBP'000 GBP'000
(Loss)/profit for the year attributable
to equity shareholders (214) 24 393
Earnings per share (pence)
Basic (0.84 p) 0.09 p 1.53 p
Diluted (0.84 p) 0.09 p 1.53 p
Shares Shares Shares
Weighted average number of shares in
issue for the period 25,623,845 25,623,845 25,623,845
Dilutive effect of options - - -
------------ ------------ -----------
Weighted average shares for diluted
earnings per share 25,623,845 25,623,845 25,623,845
Where a loss is reported for the period 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.
In addition, where a profit has been recorded but the average
share price for the period remains under the exercise price the
existence of options is not dilutive.
4. Events after the balance sheet date
There are no events of significance occurring after the balance
sheet date to report.
5. Dividends
The directors do not recommend the payment of a dividend.
6. Financial statements
Copies of these accounts are available from the Company's
registered office at Suite 27, Essex Technology 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 ADVFN plc website:
www.ADVFN.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR QKLFFKXFEBBF
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