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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March 20, 2019 03:00 ET (07:00 GMT)

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