TIDMAFN
RNS Number : 6091H
ADVFN PLC
25 March 2020
25 March 2020
For immediate release
ADVFN PLC
("ADVFN" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December
2019
ADVFN today announces its unaudited interim results for the six
months ended 31 December 2019 (the "Period").
Chief Executive's Statement
As previously reported, sales during the first half were
generally flat, although in the lead up to Brexit, advertising
sales volumes were below management's expectations while traffic
levels and subscription levels remained unaffected. The impact of
this lower than expected advertising demand in the first half can
be seen in the reported loss, which is further increased by higher
overheads which represented an effort to grow sales during the
Autumn of 2019.
The uncertainty created by this change to our revenue from
advertising led us to significantly adjust our cost base at the end
of the year and in January. As it turns out, with the uncertain and
adverse impact of the Covid-19 on markets and general business
activity, this pre-emptive action has proved to be fortunate.
Our reaction to the onset of Covid-19 has been to examine the
potential impact of the virus on our operations and our market. We
need to ensure that the welfare of our staff and the continued
provision of our service is our priority. We are currently a
company of home-based staff and we have looked at reasonable
worst-case scenarios and discussed potential mitigating strategies
to ensure the continuity of our service.
The Board believes it has reduced its cost base sufficiently to
ride out the current business environment and we are beginning to
see the return of advertising revenues. We are also experiencing a
growth in subscriptions levels which, if sustained, will over time
make up for suppressed advertising levels.
At the moment, our business seems to be performing well and with
February a profitable month, we are feeling confident that we are
able to weather the storm.
One of the results of the disruption to advertising revenues is
that the Group's cash levels decreased to GBP557,000 at the period
end, whereas we would have hoped to see them improve. The Directors
believe this has now stabilised and we look to benefit from the
reductions made to the cost base, reflected in an improvement in
performance in the second half, to restore our usual cash levels in
the near future.
While it is clear there are many challenges ahead, your Board is
committed to seeing the business through these, suddenly, extremely
unpredictable times.
Financial performance
Key financial performance for the period has been summarised as
follows:
Six Months ended Six Months ended
31 December 2019 31 December 2018
----------------------------- -----------------
GBP'000 GBP'000
----------------------------- -----------------
Revenue 3,748 4,265
----------------------------- -----------------
Loss for the period (399) (214)
----------------------------- -----------------
Operating loss (397) (210)
----------------------------- -----------------
Loss per share (see note 3) (1.56 p) (0.84 p)
----------------------------- -----------------
Clem Chambers
CEO
25 March 2020
A copy of this announcement is available on the Group'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 Group was Clem
Chambers, Director.
Consolidated income statement
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2019 2018 2019
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Notes
Revenue 3,748 4,265 8,714
Cost of sales (159) (227) (421)
---------- ---------- ----------
Gross profit 3,589 4,038 8,293
Share based payment - - (2)
Amortisation of intangible assets (156) (69) (220)
Other administrative expenses (3,830) (4,179) (8,546)
Total administrative expense (3,986) (4,248) (8,768)
Operating (loss)/profit (397) (210) (475)
Finance income and expense (5) (4) (7)
Profit from sale of equity investment
to a related party - - 47
Loss before tax (402) (214) (435)
Taxation 3 - 24
---------- ---------- ----------
Loss for the period attributable
to shareholders of the parent (399) (214) (411)
========== ========== ==========
Earnings per share
Basic and diluted 3 (1.56 p) (0.84 p) (1.60 p)
Consolidated statement of comprehensive
income
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2019 2018 2019
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Loss for the period (399) (214) (411)
Other comprehensive income:
Items that will be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations 16 33 37
Deferred tax on translation of - - -
foreign held assets
---------- ---------- ----------
Total other comprehensive income 16 33 37
Total comprehensive income for
the year attributable to shareholders
of the parent (383) (181) (374)
========== ========== ==========
Consolidated balance sheet
31 Dec 31 Dec 30 June
2019 2018 2019
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Assets
Non-current assets
Property, plant and equipment 172 161 145
Goodwill 978 971 978
Intangible assets 1,467 1,417 1,447
Investments - 3 -
Deferred tax 1 1 -
Trade and other receivables 108 108 108
2,726 2,661 2,678
Current assets
Trade and other receivables 491 812 693
Cash and cash equivalents 557 871 887
---------- ---------- --------
1,048 1,683 1,580
Total assets 3,774 4,344 4,258
========== ========== ========
Equity and liabilities
Equity
Issued capital 51 51 51
Share premium 167 145 167
Share based payments reserve 367 365 367
Foreign exchange reserve 298 278 282
Retained earnings 436 1,063 835
---------- ---------- --------
1,319 1,902 1,702
Current liabilities
Trade and other payables 2,455 2,442 2,556
Current tax - - -
2,455 2,442 2,556
Total liabilities 2,455 2,442 2,556
---------- ---------- --------
Total equity and liabilities 3,774 4,344 4,258
========== ========== ========
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 2018 - as originally
stated 51 145 365 245 1,277 2,083
Effect of the application
of IFRS 9* - - - - (31) (31)
--------- --------- --------- ---------- ---------- ----------
51 145 365 245 1,246 2,052
Loss for the period after
tax* - - - - (183) (183)
Other comprehensive income
Exchange differences on
translation of foreign operations - - - 33 - 33
Total comprehensive income - - - 33 (183) (150)
--------- --------- --------- ---------- ---------- ----------
At 31 December 2018 51 145 365 278 1,063 1,902
Equity settled share options - - 2 - - 2
Share issues 22 22
--------- --------- --------- ---------- ---------- ----------
Transactions with owners - 22 2 - - 24
Loss for the period after
tax - - - - (228) (228)
Other comprehensive income
Exchange differences on
translation of foreign operations - - - 4 - 4
--------- --------- --------- ---------- ---------- ----------
Total comprehensive income - - - 4 (228) (224)
--------- --------- --------- ---------- ---------- ----------
At 30 June 2019 51 167 367 282 835 1,702
Loss for the period after
tax - - - - (399) (399)
Other comprehensive income
Exchange differences on
translation of foreign operations - - - 16 - 16
--------- --------- --------- ---------- ---------- ----------
Total comprehensive income - - - 16 (399) (383)
--------- --------- --------- ---------- ---------- --------
At 31 December 2019 51 167 367 298 436 1,319
========= ========= ========= ========== ========== ==========
*The application of the Expected Loss method under IFRS 9 on 1
July 2018 has resulted in an adjustment of GBP31,000 at that date.
This, combined with GBP183,000 above, amounts to GBP214,000 which
is the total loss for the period after tax as previously reported
at 31 December 2018.
Consolidated cash flow statement
6 months 6 months 12 months
to to to
31 Dec 31 Dec 30 June
2019 2018 2019
GBP'000 GBP'000 GBP'000
unaudited unaudited audited
Cash flows from operating activities
(Loss)/profit for the year (399) (214) (411)
Taxation expense - - (24)
Net finance income in the income statement 5 4 7
Share based payment - - 2
Depreciation of property, plant and
equipment 52 36 81
Amortisation 156 69 220
Disposal of equity investment to a related
party - - (47)
Decrease in trade and other receivables 202 46 134
(Decrease)/increase in trade and other
payables (101) 129 243
Net cash generated by continuing operations (85) 70 205
Income tax paid - (22) 2
---------- ---------- ----------
Net cash generated by operating activities (85) 48 207
Cash flows from financing activities
Issue of share capital - 22
Interest paid (5) (4) (7)
---------- ---------- ----------
(5) (4) 15
Cash flows from investing activities
Payments for property, plant and equipment (79) (61) (90)
Purchase of intangibles (176) (179) (360)
Receipt from related party - - 50
Net cash used by investing activities (255) (240) (400)
Net decrease in cash and cash equivalents (345) (196) (178)
Exchange differences 15 6 4
---------- ---------- ----------
Net decrease in cash and cash equivalents (330) (190) (174)
Cash and cash equivalents at the start
of the period 887 1,061 1,061
---------- ---------- ----------
Cash and cash equivalents at the end
of the period 557 871 887
========== ========== ==========
1. Legal status and activities
ADVFN Plc is principally involved in the development and
provision of financial information primarily via the internet and
the development and exploitation of ancillary internet sites.
ADVFN Plc 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 .
ADVFN Plc 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 2019. 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 2019, 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 2019 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
Group for the year ended 30 June 2019.
The interim financial information has been prepared on the going
concern basis which assumes the Group will continue in existence
for the foreseeable future.
Our reaction to the onset of Covid-19 has been to examine the
potential impact of the virus on our operations and our market. We
need to ensure that the welfare of our staff and the continued
provision of our service is our priority. We are already a company
of home-based staff and we have looked at reasonable worst-case
scenarios and discussed potential mitigating strategies to ensure
the continuity of our service.
The Board believes it has reduced its cost base sufficiently to
ride out the current business environment and we are beginning to
see the return of advertising revenues. We are also experiencing a
growth in subscriptions levels which, if sustained, will over time
make up for suppressed advertising levels.
At the moment, our business seems to be performing well and with
February a profitable month we are feeling confident that we are
able to weather the storm.
One of the results of the disruption to advertising revenues is
that the Group's cash levels decreased to GBP557,000 at the period
end, whereas we would have hoped to see them improve. The Directors
believe this has now stabilised and we look to benefit from the
reductions made to the cost base, reflected in an improvement in
performance in the second half, to restore our usual cash levels in
the near future.
No material uncertainties that cast significant doubt about the
ability of the Group 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 2019 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 16 Leases
The standard has replaced IAS 17 and introduces a single lessee
accounting model. Under the provisions of the new standard most
leases, including the majority of those previously classified as
operating leases, are brought onto the financial position statement
as a right-of-use asset and as an offsetting lease liability. Both
asset and liability are based on present values of the lease
payments due over the term of the lease with the asset being
depreciated in accordance with IAS 16 'Property, plant and
equipment' and the liability increased by the addition of interest
and reduced as lease payments are made.
3. Earnings per share
6 months 6 months 12 months
to to to
31 Dec 2019 31 Dec 2018 30 June
2019
GBP'000 GBP'000 GBP'000
Loss for the year attributable to equity
shareholders (399) (214) (411)
Earnings per share (pence)
Basic (1.56 p) (0.84 p) (1.60p)
Diluted (1.56 p) (0.84 p) (1.60p)
============ ============ ===========
Shares Shares Shares
Weighted average number of shares in
issue for the period 25,657,927 25,623,845 25,657,927
Dilutive effect of options - - -
------------ ------------ -----------
Weighted average shares for diluted
earnings per share 25,657,927 25,623,845 25,657,927
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
Our assessment of the impact of the COVID-19 virus is set out in
Note 2. There are no other 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 ADVFN Plc'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 QELFLBXLBBBB
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