TIDMAFN
RNS Number : 1900E
ADVFN PLC
05 July 2021
For immediate release
5 July 2021
ADVFN plc
("ADVFN", the "Group" or the "Company")
Post Close Trading Update and Proposed Dividend Policy
The Board of ADVFN is pleased to issue the following post close
unaudited trading update ahead of the publication of its final
results for the financial year ended 30 June 2021 ("Period"). The
Company also announces its intention to commence paying dividends
and details of the Company's proposed dividend policy are set out
below.
Clem Chambers, Chief Executive, commented:
"I am extremely pleased that following a successful financial
year, ADVFN plc has adopted its new dividend policy and will be
paying a maiden dividend. This initiative both expresses the
confidence that the Board has for the Company's future and also
allows us to reward our shareholders with a tangible benefit for
their continued support".
Year-end trading update
As announced in the corporate update published on 10 May 2021,
the last 12 months has seen a transformation in the financial
performance of the business with growth in subscriptions and
advertising income in the Period. In addition, ADVFN continued to
benefit from the significant cost reduction programme initiated in
the latter part of 2019 and early 2020, including a reduction in
staff numbers, and a move in the UK to remote working
permanently.
Based on unaudited management accounts and subject to audit, the
Board expects to report revenue for the year ended 30 June 2021 of
approximately GBP9 million (2020: approximately GBP7 million). The
registered user base amounted to approximately 5 million at the
Period end (2020: 4.8 million).
The Board also expects to report profit before tax for the
Period of not less than GBP1.6 million (2020: loss before tax of
GBP(349k)).
At the Period end, unaudited net cash balances (note 1) amounted
to approximately GBP1.8 million (2020: approximately GBP0.9
million).
The Board expects to publish the Group's audited results for the
financial year ended 30 June 2021 in November 2021.
Outlook
As previously reported, ADVFN's business currently has momentum,
in both subscription and advertising revenue. This gives us good
visibility of future performance and comfort in the robustness of
our business
Proposed Dividend Policy
While the Board will continue to deploy the Group's cash
resources to the growth of, and investment in, the business, the
Board has concluded that as a result of the much-improved financial
performance of the Group and the year-end gross cash balances of
approximately GBP1.8 million, the Company is now also in a position
to adopt a dividend policy to generate returns to shareholders.
The Board attaches importance to providing Shareholders with a
stable flow of dividends balanced by a policy of prudential capital
management. To this end the Board will adhere to a dividend cover
ratio of not less than 2 times profit after taxation attributable
to shareholders based on a rolling basis of 3 years commencing from
1 July 2020. Accumulated earnings will be used to address
short-term profit shortfalls that may occur.
In applying the dividend policy, the Board will have regard for
a range of factors including the macroeconomic outlook, business
performance, balance sheet and growth outlook of the Company and
may exercise its discretion and revise the calculated pay-out
either up or down, to the extent these factors substantially impact
the Company.
For the 2021 financial year only, the Board intends that ADVFN
will recommend a maiden dividend of GBP391,729.78 amounting to
approximately 1.5p pence per ordinary share based on the current
issued share capital of 26,115,319 ordinary shares. The actual
amount per ordinary share will be finalised subject to the shares
in issue on the record date.
This maiden dividend is being made in respect of the whole of
the 2021 financial year. Subsequently, the Board intends to pay
dividends twice a year in equal instalments on a semi-annual basis
following the release of the interim and full year financial
results, the dates of which will be communicated to shareholders
with disclosure of the financial results.
Further details will be announced with the publication of the
audited results for the 2021 financial year, which the Board
currently expects to release in November. The announcement of the
audited financial results will include confirmation of the final
dividend per share and details of the ex-dividend date, record date
and payment date.
More information on ADVFN can be found at: www.ADVFN.com
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018. The person who arranged the release of this announcement on
behalf of the Company was Michael Hodges.
For further information please contact:
ADVFN PLC +44 (0) 20 3868
Clem Chambers, CEO 6702
Beaumont Cornish Limited (Nominated
Adviser)
www.beaumontcornish.com
+44 (0) 207 628
Roland Cornish/Michael Cornish 3396
Notes:
1. Unaudited net cash as at 30 June 2021 calculated as gross
cash of GBP1,856k net of outstanding debt of GBP67k.
Forward Looking Statements
This press release may contain 'forward-looking statements' with
respect to certain of the Group's plans and its current goals and
expectations relating to its future financial condition ,
performance, results, strategic initiatives and objectives.
Generally, words such as "may", "could", "will", "expect",
"intend", "estimate", "anticipate", "aim", "outlook", "believe",
"plan", "seek", "continue" or similar expressions identify
forward-looking statements. These forward-looking statements are
not guarantees of future performance. By their nature, all
forward-looking statements are inherently predictive and
speculative and involve risk and uncertainty because they relate to
future events and circumstances which are beyond the Group's
control, including amongst other things, UK domestic and global
economic business conditions, market-related risks such as
fluctuations in interest rates and exchange rates, the policies and
actions of regulatory authorities, the impact of competition,
inflation, deflation, as well as the impact of tax and other
legislation or regulations in the jurisdictions in which the Group
and its affiliates operate. As a result, the Group's actual future
financial condition, performance and results may differ materially
from the plans, goals and expectations set forth in the Group's
forward-looking statements. Forward-looking statements in this
press release are current only as of the date on which such
statements are made. The Group undertakes no obligation to update
any forward-looking statements, save in respect of any requirement
under applicable law or regulation. Nothing in this press release
shall be construed as a profit forec ast.
ENDS
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END
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