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

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