TIDMAFN

RNS Number : 4893P

ADVFN PLC

18 February 2021

18 February 2021

For immediate release

ADVFN PLC

("ADVFN" or the "Group")

Unaudited Interim Results for the Six Months Ended 31 December 2020

ADVFN today announces its unaudited interim results for the six months ended 31 December 2020 (the "Period").

Chief Executive's Statement

These are very uncertain times, but as I have often alluded to, times of uncertainty are good for ADVFN. People become more engaged with their investments when the future looks difficult and the rolling confinements and the new work-from-home environments ("WFH") have provided impetus to our audience's desire to trade and invest. Market volatility has also helped. Counter-intuitively it is not necessarily a bullish period that has helped drive ADVFN revenue, because it turns out that solid profits for investors only fuels complacency and complacency is not good for our sales.

Advertising and subscriptions have been growing and so revenue, which sees us producing a solid bottom-line profit. At the end of 2019 and the beginning of 2020, a sudden and unexpected drop in advertising sales, coupled with a lack of subscription growth, caused us to re-evaluate our processes and reorganise the business from top to bottom. With great good fortune, we decided to become a fully 'WFH' enterprise with a new, much reduced cost base and re-engineered business processes around the turn of that year. This dramatic change was almost complete when the pandemic started, which by good fortune we were then pre-prepared for.

This intersection of events has meant we have made good progress across 2020 with the end of the first half showing a profit of GBP264,000. At this stage there seems no end in sight to the disruption of the pandemic and even with an end of the pandemic itself, be it hopefully soon, the global economic aftermath will, we believe, be with us for years to come. We will therefore remain an important destination for those wishing to actively navigate the trying times ahead and we feel a period of investor complacency is not a prospect for the foreseeable future. As such we believe that we will continue to grow for the foreseeable future.

While we expect growth at a similar pace in the coming half, our strategy is to be very conservative and we will expend our energies growing our platform's capacity rather than looking to broaden our audience. We are very optimistic about our near and medium-term prospects, but it seems foolish to contemplate anything but a conservative risk profile to at least the year end.

While we cannot take credit for fate suddenly providing us with a strong hand, we can lay claim to having reshaped ADVFN during the pandemic's disruption into a profitable business that looks set for a strong performance in 2021.

Financial performance

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

 
                                   Six Months ended   Six Months ended 
                                   31 December 2020   31 December 2019 
--------------------------------                     ----------------- 
                                            GBP'000            GBP'000 
--------------------------------                     ----------------- 
 
 Revenue                                      4,233              3,748 
--------------------------------                     ----------------- 
 Profit / (loss) for the period                 264              (399) 
--------------------------------                     ----------------- 
 Operating profit / (loss)                      277              (397) 
--------------------------------                     ----------------- 
 Loss per share - basic (see 
  note 3)                                    1.03 p           (1.56 p) 
--------------------------------                     ----------------- 
 

Clem Chambers

CEO

18 February 2021

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) 20 3868 
  Clem Chambers                                          6702 
 
 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 
                                                           2020        2019        2020 
                                                        GBP'000     GBP'000     GBP'000 
                                                      unaudited   unaudited     audited 
                                              Notes 
 
 Revenue                                                  4,233       3,748       7,069 
 Cost of sales                                            (244)       (159)       (324) 
                                                     ----------  ----------  ---------- 
 
 Gross profit                                             3,989       3,589       6,745 
 
 Share based payment                                       (44)           -           - 
 Amortisation of intangible assets                        (128)       (156)       (296) 
 Other administrative expenses                          (3,540)     (3,830)     (6,769) 
 
 Total administrative expense                           (3,712)     (3,986)     (7,065) 
 
 Operating profit/ (loss)                                   277       (397)       (320) 
 
 Finance expense                                           (13)         (5)        (29) 
 Loan interest expense - Government                         (2)           -           - 
  underwritten loans 
 Government grant - loan interest                             2           -           - 
 
 Profit/(loss) before tax                                   264       (402)       (349) 
 Taxation                                                     -           3         124 
                                                     ----------  ----------  ---------- 
 
 Profit/(loss) for the period attributable 
  to shareholders of the parent                             264       (399)       (225) 
                                                     ==========  ==========  ========== 
 
 Earnings per share 
 Basic                                          3        1.03 p    (1.56 p)    (0.88 p) 
 Diluted                                                 0.99 p    (1.56 p)    (0.88 p) 
 
 
 Consolidated statement of comprehensive 
  income 
                                              6 months    6 months   12 months 
                                                    to          to          to 
                                                31 Dec      31 Dec     30 June 
                                                  2020        2019        2020 
                                               GBP'000     GBP'000     GBP'000 
                                             unaudited   unaudited     audited 
 
 Profit/(loss) for the period                      264       (399)       (225) 
 
 Other comprehensive income: 
 Items that will be reclassified 
  subsequently to profit or loss: 
 Exchange differences on translation 
  of foreign operations                           (49)          16          23 
 
 Total other comprehensive income                 (49)          16          23 
                                            ----------  ----------  ---------- 
 
 Total comprehensive income for 
  the year attributable to shareholders 
  of the parent                                    215       (383)       (202) 
                                            ==========  ==========  ========== 
 
 
 
 
 Consolidated balance sheet 
                                      31 Dec      31 Dec   30 June 
                                        2020        2019      2020 
                                     GBP'000     GBP'000   GBP'000 
                                   unaudited   unaudited   audited 
 Assets 
 Non-current assets 
 Property, plant and equipment           283         172       365 
 Goodwill                                927         978     1,002 
 Intangible assets                     1,460       1,467     1,428 
 Deferred tax asset                        -           1         - 
 Trade and other receivables               -         108         - 
 
                                       2,670       2,726     2,795 
 
 Current assets 
 Trade and other receivables             647         491       574 
 Cash and cash equivalents               931         557       915 
                                  ----------  ----------  -------- 
 
                                       1,578       1,048     1,489 
 
 Total assets                          4,248       3,774     4,284 
                                  ==========  ==========  ======== 
 
 Equity and liabilities 
 Equity 
 Issued capital                           51          51        51 
 Share premium                           167         167       167 
 Share based payments reserve            411         367       367 
 Foreign exchange reserve                256         298       305 
 Retained earnings                       874         436       610 
                                  ----------  ----------  -------- 
 
                                       1,759       1,319     1,500 
 
 Non-current liabilities 
 Borrowing - bank loans                   83           -       144 
 Borrowing - lease liabilities           101           -        94 
                                  ----------  ----------  -------- 
 
                                         184           -       238 
 
 Current liabilities 
 Trade and other payables              2,082       2,455     2,278 
 Borrowing - bank loans                   88           -        80 
 Borrowing - lease liabilities           135           -       188 
 
                                       2,305       2,455     2,546 
 
 Total liabilities                     2,489       2,455     2,784 
                                  ----------  ----------  -------- 
 
 Total equity and liabilities          4,248       3,774     4,284 
                                  ==========  ==========  ======== 
 
 

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 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 
 
 Profit for the period after 
  tax                                         -          -          -           -         174       174 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign operations           -          -          -           7           -         7 
                                      ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total comprehensive income                   -          -          -           7         174       181 
 
 At 30 June 2020                             51        167        367         305         610     1,500 
 
 Share based payments                         -          -         44           -           -        44 
 
 Profit for the period after 
  tax                                         -          -          -           -         264       264 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign operations           -          -          -        (49)           -      (49) 
                                      ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total comprehensive income                   -          -          -        (49)         264       215 
                                      ---------  ---------  ---------  ----------  ----------  -------- 
 
 At 31 December 2020                         51        167        411         256         874     1,759 
                                      =========  =========  =========  ==========  ==========  ======== 
 
 
 
 Consolidated cash flow statement 
                                                  6 months    6 months   12 months 
                                                        to          to          to 
                                                    31 Dec      31 Dec     30 June 
                                                      2020        2019        2020 
                                                   GBP'000     GBP'000     GBP'000 
                                                 unaudited   unaudited     audited 
 
 Cash flows from operating activities 
 Profit/(loss) for the year                            264       (399)       (225) 
 
 Taxation expense                                        -           -       (124) 
 Net finance expense in the income statement            13           5          29 
 Depreciation of property, plant and 
  equipment                                             95          52         177 
 Amortisation                                          128         156         296 
 Loss on disposal of PPE                                 -           -           2 
 Share based payment                                    44           -           - 
 (Increase)/decrease in trade and other 
  receivables                                         (73)         202         227 
 Decrease in trade and other payables                (254)       (101)       (278) 
 
 Net cash generated by continuing operations           217        (85)         104 
 Income tax recovered                                    -           -         124 
                                                ----------  ----------  ---------- 
 
 Net cash generated/(used) by operating 
  activities                                           217        (85)         228 
 
 Cash flows from financing activities 
 Repayment of lease principle                         (41)           -           - 
 Drawdown of loans                                       -           -         224 
 Interest paid                                        (13)         (5)        (29) 
                                                ----------  ----------  ---------- 
 
 Net cash (used)/generated by financing 
  activities                                          (54)         (5)         195 
 
 Cash flows from investing activities 
 Payments for property, plant and equipment           (13)        (79)       (117) 
 Purchase of intangibles                             (160)       (176)       (277) 
 
 Net cash used by investing activities               (173)       (255)       (394) 
 
 Net (decrease)/increase in cash and 
  cash equivalents                                    (10)       (345)          29 
 Exchange differences                                   26          15         (1) 
                                                ----------  ----------  ---------- 
 
 Net increase/(decrease) in cash and 
  cash equivalents                                      16       (330)          28 
 Cash and cash equivalents at the start 
  of the period                                        915         887         887 
                                                ----------  ----------  ---------- 
 
 Cash and cash equivalents at the end 
  of the period                                        931         557         915 
                                                ==========  ==========  ========== 
 
   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 28, Ongar Business 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 2020. 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 2020, 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 2020 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 2020.

The interim financial information has been prepared on the going concern basis which assumes the Group will continue in existence for the foreseeable 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 2020 have been filed with the Registrar of Companies. The auditors, Saffery Champness 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 2020   31 Dec 2019      30 June 
                                                                               2020 
                                                 GBP'000       GBP'000      GBP'000 
 
 Loss for the year attributable to equity 
  shareholders                                       264         (399)        (225) 
 
 Earnings per share (pence) 
 Basic                                            1.03 p      (1.56 p)      (0.88p) 
 Diluted                                          0.99 p      (1.56 p)      (0.88p) 
                                            ============  ============  =========== 
 
                                                  Shares        Shares       Shares 
 
 Weighted average number of shares in 
  issue for the period                        25,703,845    25,657,927   25,703,845 
 Dilutive effect of options                    1,092,868             -            - 
                                            ------------  ------------  ----------- 
 
 Weighted average shares for diluted 
  earnings per share                          26,796,713    25,657,927   25,703,845 
 
 

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 of a specific grant of options, the existence of those 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 ADVFN Plc's registered office at Suite 28, Ongar Business 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.ADVFNPLC.com

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