TIDMAFN
RNS Number : 0268I
ADVFN PLC
16 March 2018
16 March 2018
For immediate release
ADVFN PLC
("ADVFN" or the "Company")
Unaudited Interim Results for the Six Months Ended 31 December
2017
ADVFN today announces its unaudited interim results for the six
months ended 31 December 2017 (the "Period").
Chief Executive's Statement
2017 was a year of consolidation at ADVFN. During the Period we
announced the first phase of our Plus 1 Coin cryptocurrency
project, which we had developed in conjunction with Online
Blockchain plc ("Online"). Following testing within the ADVFN
community, we offered our customers and members a Plus 1 coin
wallet, which had been built on software developed by Online. Plus
1 coin is designed as a social media cryptocurrency to enable
social media users to interact and "up vote" content of other
social media. As previously announced, Online and ADVFN are each
bearing their own costs in respect of the Plus 1 Coin
cryptocurrency cooperation project and while there are currently no
financial arrangements between the two companies in respect of this
project, we anticipate that Online will in due course charge ADVFN
a license fee for its software which supports the wallet, on terms
to be agreed.
We continue to broaden our information service on
cryptocurrencies and intend to make our Plus1 Coin product
available to our international community.
ADVFN's sales in the 6-month interim period have shown a top
line growth of GBP456,000, an increase of 12% on the comparable
period last year, from approximately GBP3.8m to GBP4.3m. Reported
operating profit for the 6-month interim period was GBP24,000
(2016: operating loss, GBP66,000).
Financial performance
Key financial performance for the Period has been summarised as
follows:
Six Months
ended Six Months ended
31 December 31 December
2017 2016
------------------------- ------------ -----------------
GBP'000 GBP'000
------------------------- ------------ -----------------
Turnover 4,282 3,826
------------------------- ------------ -----------------
Profit for the period 24 18
------------------------- ------------ -----------------
Operating profit/(loss) 24 (66)
------------------------- ------------ -----------------
Profit per share (see
note 3) 0.09 p 0.07 p
------------------------- ------------ -----------------
Clem Chambers
CEO
16 March 2018
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
2017 2016 2017
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Notes
Revenue 4,282 3,826 8,186
Cost of sales (90) (130) (201)
---------- ---------- ----------
Gross profit 4,192 3,696 7,985
Share option charge (3) - -
Amortisation of intangible
assets (105) (161) (302)
Other administrative expenses (4,060) (3,601) (7,636)
Total administrative expense (4,168) (3,762) (7,938)
Operating profit/(loss) 24 (66) 47
Finance income - 84 167
Finance expense - - -
Profit before tax 24 18 214
Taxation - - 30
---------- ---------- ----------
Profit for the period attributable
to shareholders of the
parent 24 18 244
========== ========== ==========
Earnings per share
Basic and diluted 3 0.09 0.07 0.95
p p p
Consolidated statement
of comprehensive income
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2017 2016 2017
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Profit for the period 24 18 244
Other comprehensive income:
Items that will be reclassified
subsequently to profit
or loss:
Exchange differences on
translation of foreign
operations (70) 167 (281)
Deferred tax on translation
of foreign held assets - (29) 92
---------- ---------- ----------
Total other comprehensive
income (70) 138 (189)
Total comprehensive income
for the year attributable
to shareholders of the
parent (46) 156 55
========== ========== ==========
Consolidated balance sheet
31 Dec 31 Dec 30 June
2017 2016 2017
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Assets
Non-current assets
Property, plant and equipment 54 65 53
Goodwill 913 999 948
Intangible assets 1,235 1,438 1,156
Deferred tax 6 - 6
Trade and other receivables 92 126 92
2,300 2,628 2,255
Current assets
Trade and other receivables 844 1,091 948
Cash and cash equivalents 969 840 963
---------- ---------- --------
1,813 1,931 1,911
Total assets 4,113 4,559 4,166
========== ========== ========
Equity and liabilities
Equity
Issued capital 51 51 51
Share premium 145 145 145
Share based payments reserve 347 344 344
Foreign exchange reserve 208 605 278
Retained earnings 908 658 884
---------- ---------- --------
1,659 1,803 1,702
Non-current liabilities
Deferred tax - 122 -
- 122 -
Current liabilities
Trade and other payables 2,454 2,610 2,464
Current tax - 24 -
2,454 2,634 2,464
Total liabilities 2,454 2,756 2,464
---------- ---------- --------
Total equity and liabilities 4,113 4,559 4,166
========== ========== ========
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 2016 51 119 344 467 640 1,621
Equity settled share - - - - - -
options
Share issues - 26 - - - 26
--------- --------- --------- ---------- ---------- --------
Transactions with
owners - 26 - - - 26
Profit for the period
after tax - - - - 18 18
Other comprehensive
income
Exchange differences
on translation of
foreign operations - - - 167 - 167
Deferred tax on translation
of foreign held assets - - - (29) - (29)
--------- --------- --------- ---------- ---------- --------
Total comprehensive
income - - - 138 18 156
--------- --------- --------- ---------- ---------- --------
At 31 December 2016 51 145 344 605 658 1,803
Equity settled share - - - - - -
options
Share issues - - - - - -
--------- --------- --------- ---------- ---------- --------
Transactions with - - - - - -
owners
Profit for the period
after tax - - - - 226 226
Other comprehensive
income
Exchange differences
on translation of
foreign operations - - - (448) - (448)
Deferred tax on translation
of foreign held assets - - - 121 - 121
--------- --------- --------- ---------- ---------- --------
Total comprehensive
income - - - (327) 226 (101)
At 30 June 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
========= ========= ========= ========== ========== ========
Consolidated cash flow statement
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2017 2016 2017
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Cash flows from operating activities
Profit for the year 24 18 244
Taxation - - (30)
Net finance income in the income
statement - (84) (167)
Share based payment 3 - -
Depreciation of property, plant
and equipment 18 32 52
Amortisation 105 161 286
Profit on disposal of Investor
Events - (56) (56)
Adjustment to fair value of
embedded derivative - 112 225
Increase in trade and other
receivables 104 (66) 82
Increase/(decrease) in trade
and other payables (10) 27 (119)
Net cash generated by continuing
operations 244 170 517
Income tax received - 36 14
---------- ---------- ----------
Net cash generated by operating
activities 244 206 531
Cash flows from financing activities
Issue of share capital - 26 26
Cash flows from investing activities
Interest received - 1 -
Payments for property, plant
and equipment (19) (29) (37)
Purchase of intangibles (184) (198) (379)
Sale of Investor Events - 40 40
Net cash used by investing
activities (203) (186) (376)
Net increase in cash and cash
equivalents 41 20 181
Exchange differences (35) (23) (61)
---------- ---------- ----------
Net increase/(decrease) in
cash and cash equivalents 6 (3) 120
Cash and cash equivalents at
the start of the period 963 843 843
---------- ---------- ----------
Cash and cash equivalents at
the end of the period 969 840 963
========== ========== ==========
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 2017. 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 2017, 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 2017 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 2017 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. Earnings per share
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2017 2016 2017
GBP'000 GBP'000 GBP'000
Profit for the year attributable
to equity shareholders 24 18 244
Earnings per share (pence)
0.95
Basic 0.09 p 0.07 p p
0.95
Diluted 0.09 p 0.07 p p
Shares Shares Shares
Issued ordinary shares at
start of the period 25,623,845 25,523,845 25,523,845
Ordinary shares issued in
the period - 100,000 100,000
----------- ----------- -----------
Issued ordinary shares at
end of the period 25,623,845 25,623,845 25,623,845
=========== =========== ===========
Weighted average number of
shares in issue for the period 25,623,845 25,901,019 25,612,338
Dilutive effect of options - - -
----------- ----------- -----------
Weighted average shares for
diluted earnings per share 25,623,845 25,901,019 25,612,338
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 reporting date
On 9 March 2018 the directors announced that they have agreed
amended terms on the arrangements relating to the sale of Equity
Holdings Limited ('EHL'). As at 30 June 2017, the carrying value in
ADVFN's audited accounts of the outstanding consideration to be
received in respect of EHL, which had been fully provided for,
amounted to GBP nil.
Background
The sale by ADVFN of its entire interest in EHL was first agreed
and announced in July 2012. EHL is the holding company of Equity
Development Limited ("EDL") which produces research material for
distribution in the UK used by brokers, fund managers and
investors. As set out in in ADVFN's report and accounts for the
year ended 30 June 2017 ("Accounts"), payments due from the
shareholders of EHL and its subsidiary EDL as consideration for the
purchase of the companies had not been received. Amounts
outstanding as at 30 June 2017 comprised GBP200,000 in cash and the
repayment of an outstanding loan note of GBP1,000,000 ("Loan Note")
was due on 31 July 2017 (the "Consideration Debt"). Neither the
loan note nor the cash instalments had been received and therefore,
ADVFN Plc stated that it had the right to acquire 99.5% of the
shares of EHL. The Directors further stated in the Accounts that
they had decided not to enforce this right as the business of EHL
remained outside of the longer term strategy of the ADVFN Group and
that as a result, the Directors had commenced proceedings to alter
the arrangements so as to potentially give ADVFN a right to equity
in EHL should it grow in market value.
Amended EHL sale terms
The Board reports that on 8 March 2018 ADVFN agreed with EHL,
EDL and Bashco Limited amended terms on the arrangements relating
to the sale of EHL. ADVFN has agreed to waive, cancel and forgive
the payment of the Consideration Debt in consideration for the
issue to ADVFN of shares representing 30% in the share capital of
EHL and GBP 50,000 to be settled in cash (the "Transaction").
Related party matters
Brian Basham, a director of ADVFN, is also a director of EHL and
EDL and is interested in 100% of the issued share capital of Bashco
Limited, which is the ultimate parent company of EHL. The
Transaction is therefore classified as a related party transaction
for the purposes of the AIM Rules. The independent directors of
ADVFN (excluding Brian Basham) consider, having consulted with the
Company's nominated adviser, that the terms of the transaction are
fair and reasonable in so far as its shareholders are
concerned.
Further AIM disclosures
As at 30 June 2017, the last date to which EHL published
consolidated audited accounts, EHL's turnover and profit before tax
amounted to GBP657,602 and GBP49,316 respectively. EHL's total
assets as at 30 June 2017 amounted to GBP1,685,496 (of which GBP
1,000,000 represented an amount owed by a subsidiary undertaking in
respect of the Loan Note).
The cash to be received by ADVFN on completion will be used for
general working capital purposes. ADVFN intends to retain the EHL
Shares for the time being.
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
END
IR ZQLFFVXFBBBB
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March 16, 2018 10:02 ET (14:02 GMT)
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