TIDMONL

RNS Number : 6675A

On-Line PLC

27 March 2017

On-line PLC

('On-line' or 'the Company')

Unaudited Interim Results for the Six Months Ended 31 December 2016

On-line today announces unaudited interim results for the six months ended 31 December 2016.

Chairman's Statement

Here are our interim accounts and statement.

On-Line plc results have remained stable and as you know we are working hard to push ADVFN which has made good progress in the past 6 months with the value of our shareholding improving.

ADVFN PLC

Below are a few extracts from ADVFN's interim statement:

"2016 was a year of change at ADVFN. We have, after many years of striving for growth, realigned ourselves to work towards profit. These interim results for the six month period to 31 December 2016 sees us hit this target and realise a profit after tax, albeit this was due largely to foreign exchange gains.

Turning away from growth in order to cut costs has resulted in our sales falling to GBP3,826,000 from GBP4,274,000. However, the P&L during this period has gone from a GBP442,000 loss after tax to an GBP18,000 profit after tax, a considerable reversal. Whilst this profit may be a meagre one it is, never the less, a milestone.

This result has been produced as a consequence of a number of proactive changes in our business: our headcount reduced, the closure of non-core markets, restrained marketing and the decommissioning of localised web content.

The second half of the 2016 calendar year improved due to the surprise turn-up results of Brexit and President Trump. The outlook, while stronger, is still mixed with much fragility in our marketplace.

We are on an even keel and we expect to remain on the current course. In the short term, this will be heavily dependent on the appetite for trading and investing in our key markets. This outcome in our view is, to some extent, hedged because our main markets are in the UK, US and Brazil and as such are disparate.

We believe that by this time next year we will be in a good position to re-examine a strategy for growth. This will depend on our success in the next 12 months, which in the era of Brexit and President Trump is difficult to predict.

This new politico-economic era could pan out well for ADVFN as, in the past, chaos and uncertainty has worked in our favour. In the meantime, we will continue to work further to improve our performance."

Financial performance

Key financial performance for the period has been summarised as follows:

 
                            Six Months ended   Six Months ended 
                            31 December 2016   31 December 2015 
-------------------------  -----------------  ----------------- 
                                GBP'000            GBP'000 
-------------------------  -----------------  ----------------- 
 
 Turnover                        3,826              4,274 
-------------------------  -----------------  ----------------- 
 Profit/(loss) for the 
  period                           18               (442) 
-------------------------  -----------------  ----------------- 
 Operating Loss                   (66)              (538) 
-------------------------  -----------------  ----------------- 
 Profit/(Loss) per share 
  (see note 3)                   0.07 p            (1.75)p 
-------------------------  -----------------  ----------------- 
 

Michael Hodges

Chairman

27 March 2017

On-line PLC

Statement of comprehensive income

for the six months ended 31 December 2016

 
                                       Six months   Six months 
                                            ended        ended  Year ended 
                                      31 December  31 December     30 June 
                                             2016         2015        2016 
                                        Unaudited    Unaudited     Audited 
                                          GBP'000      GBP'000     GBP'000 
                                Note 
Turnover                                       44           41          85 
Administrative expenses                      (31)         (37)        (73) 
                                      -----------  -----------  ---------- 
 
Operating profit                               13            4          12 
Interest payable                              (1)            -           - 
                                      -----------  -----------  ---------- 
 
Profit on ordinary activities 
 before taxation                               12            4          12 
Tax on profit on ordinary 
 activities                                     -            -           - 
                                      -----------  -----------  ---------- 
 
Profit for the financial year                  12            4          12 
Other comprehensive income                      -            -           - 
                                      -----------  -----------  ---------- 
 
Total comprehensive income 
 for the period                                12            4          12 
                                      ===========  ===========  ========== 
 
 
Earnings per share 
Basic profit per ordinary 
 share                           2         0.16 p       0.05 p      0.16 p 
Diluted profit per ordinary 
 share                           2         0.16 p       0.05 p      0.15 p 
                                      ===========  ===========  ========== 
 
 
 

.

On-line PLC

Balance sheet

at 31 December 2016

 
                                          31 December       31 December           30 June 
                                                 2016              2015              2016 
                                            Unaudited         Unaudited           Audited 
                                              GBP'000           GBP'000           GBP'000 
                               Note 
Non-current assets 
Investments                     3                 868               868               868 
                                     ----------------  ----------------  ---------------- 
 
Current assets 
Debtors                                           170               112               159 
Cash at bank and in hand                            -                 -                 - 
                                     ----------------  ----------------  ---------------- 
 
                                                  170               112               159 
 
Total assets                                    1,038               980             1,027 
                                     ================  ================  ================ 
 
Equity and liabilities 
Equity 
Called up share capital                         3,242             3,242             3,242 
Share premium account                           2,205             2,205             2,205 
Option valuation reserve                           38                36                36 
Profit and loss account                       (4,531)           (4,551)           (4,543) 
                                     ----------------  ----------------  ---------------- 
 
                                                  954               932               940 
 
Current liabilities 
Trade and other payables                           35                32                32 
Borrowings (bank overdraft)                        49                16                55 
                                     ----------------  ----------------  ---------------- 
 
                                                   84                48                87 
 
Total equity and liabilities                    1,038               980             1,027 
                                     ================  ================  ================ 
 
 
 

On-line PLC

Statement of changes in equity

at 31 December 2016

 
                                    Share      Share      Share    Retained     Total 
                                  capital    premium      based    earnings    equity 
                                                        payment 
                                                        reserve 
                                  GBP'000    GBP'000    GBP'000     GBP'000   GBP'000 
 
 At 1 July 2015                     3,242      2,205         35     (4,555)       927 
 
 Equity settled share options           -          -          1           -         1 
                                ---------  ---------  ---------  ----------  -------- 
 
 Transactions with owners               -          -          1           -         1 
 
 Profit for the period after 
  tax                                   -          -          -           4         4 
 
 Total comprehensive income             -          -          -           4         4 
 
 At 31 December 2015                3,242      2,205         36     (4,551)       932 
 
 Equity settled share options           -          -          -           -         - 
                                ---------  ---------  ---------  ----------  -------- 
 
 Transactions with owners               -          -          -           -         - 
 
 Profit for the period after 
  tax                                   -          -          -           8         8 
 
 Total comprehensive income             -          -          -           8         8 
 
 At 30 June 2016                    3,242      2,205         36     (4,543)       940 
 
 Equity settled share options           -          -          2           -         2 
 
 Transactions with owners               -          -          2           -         2 
 
 Profit for the period after 
  tax                                   -          -          -          12        12 
 
 Total comprehensive income             -          -          -          12        12 
                                ---------  ---------  ---------  ----------  -------- 
 
 At 31 December 2016                3,242      2,205         38     (4,531)       954 
                                =========  =========  =========  ==========  ======== 
 
 

On-line PLC

Cash flow statements

for the six months ended 31 December 2016

 
                                              Six months     Six months 
                                                   ended          ended             Year ended 
                                             31 December    31 December 
                                                    2016           2015           30 June 2016 
                                               Unaudited      Unaudited                Audited 
                                                 GBP'000        GBP'000                GBP'000 
 
Cash flows from operating activities 
Profit for the period                                 12              4                     12 
Share based payments                                   2              1                      1 
Increase in trade and other receivables             (11)           (32)                   (79) 
Increase/(decrease) in trade and 
 other payables                                        3           (13)                   (13) 
                                           -------------  -------------  --------------------- 
 
Net cash used by operating activities                  6           (40)                   (79) 
                                           -------------  -------------  --------------------- 
 
(Decrease)/increase in cash and 
 cash equivalents                                      6           (40)                   (79) 
Cash and cash equivalents at the 
 start of the period                                (55)             24                     24 
                                           -------------  -------------  --------------------- 
 
Cash and cash equivalents at the 
 end of the period                                  (49)           (16)                   (55) 
                                           =============  =============  ===================== 
 
 

Cash and cash equivalents

 
                                  Six months     Six months 
                                       ended          ended     Year ended 
                                 31 December    31 December 
                                        2016           2015   30 June 2016 
                                   Unaudited      Unaudited        Audited 
                                     GBP'000        GBP'000        GBP'000 
 
Cash at bank                               -              -              - 
Borrowings (bank overdraft)             (49)           (16)           (55) 
                               -------------  -------------  ------------- 
 
                                        (49)           (16)           (55) 
                               =============  =============  ============= 
 
 

On-line PLC

Notes to the interim statement

for the six months ended 31 December 2016

   1.             Basis of preparation 

The financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' (FRS 102), and with the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in Sterling (GBP) rounded to the nearest thousand except where specified.

The unaudited interim financial information is for the six month period ended 31 December 2016. The 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 2016.

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 company statutory accounts for the year to 30 June 2015 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.

   2.             Earnings per ordinary share 
 
                                Six months   Six months               Year 
                                     ended        ended              ended 
                               31 December  31 December            30 June 
                                      2016         2015               2016 
                                   GBP'000      GBP'000            GBP'000 
 
Profit for the period                   12            4                 12 
 
                                    Shares       Shares             Shares 
Weighted average number of 
 Ordinary shares                 7,662,348    7,662,348          7,662,348 
Dilutive effect of options               -      168,750            129,000 
                               -----------  -----------  ----------------- 
 
Weighted average Ordinary 
 shares for diluted earnings 
 per share                       7,662,348    7,831,098          7,791,348 
                               ===========  ===========  ================= 
 
Earnings per share 
Basic earnings per share            0.16 p        0.05p             0.16 p 
Diluted earnings per share          0.16 p        0.05p             0.15 p 
                               ===========  ===========  ================= 
 
 
 

Where a loss occurs 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.

In addition, the share price of On-Line plc has moved to the point where the options are no longer dilutive and therefore the basic and diluted earnings per share are the same.

   3.             Fixed asset investments 
 
                        Six months   Six months     Year 
                             ended        ended    ended 
                       31 December  31 December  30 June 
                              2016         2015     2016 
                           GBP'000      GBP'000  GBP'000 
 
At historical cost             868          868      868 
 
Percentage ownership        18.05%       18.13%   18.05% 
 
 
 

The Company owns 18.05% (2015: 18.13%) of ADVFN plc (ADVFN) which is incorporated in England and Wales and its 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 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 On-line plc and the resulting level of significant influence over the associate.

   4.             Dividends 

The directors do not recommend the payment of a dividend.

   5.            Accounts 

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 and in electronic form from 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

IR ZMGZFVNRGNZM

(END) Dow Jones Newswires

March 27, 2017 12:30 ET (16:30 GMT)

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