TIDMAFN

RNS Number : 1982C

ADVFN PLC

21 February 2022

21 February 2022

For immediate release

ADVFN PLC

("ADVFN" or the "Group")

Unaudited Interim Results for the Six Months Ended 31 December 2021

ADVFN today announces its unaudited interim results for the six months ended 31 December 2021

(the "Period").

Chief Executive's Statement

The Board is very pleased to report the results for the six months ended 31 December, when ADVFN consolidated the progress made last year.

Revenue was GBP4.2 million, the same level as the comparable period for the six months ended 31 December 2020, with a profit after tax for the Period of GBP202,000, which although lower by GBP62,000 than the previous year was GBP601,000 better than the comparable period in 2019.

We have been a little more aggressive in investing for the future in this half with the addition to our offerings of new features and data, with a special focus on Crypto. We will continue to freshen our offerings which we see as helping to sustain and grow our future revenue.

Financial Performance

The key financial performance for the period is summarised in the table below:

 
                                   Six Months ended   Six Months ended 
                                   31 December 2021   31 December 2020 
--------------------------------                     ----------------- 
                                            GBP'000            GBP'000 
--------------------------------                     ----------------- 
 
 Revenue                                      4,228              4,233 
--------------------------------                     ----------------- 
 Profit / (loss) for the period                 202                264 
--------------------------------                     ----------------- 
 Operating profit / (loss)                      229                277 
--------------------------------                     ----------------- 
 Profit per share - basic (see 
  note 3)                                     0.77p             1.03 p 
--------------------------------                     ----------------- 
 

Post Period Events

Following the Period end the Board announced that it had concluded its strategic review of the Company's options and ended the "formal sale process" of the Company which it had commenced previously in accordance with Rules 2.4 and 2.6 of the Takeover Code. The Board concluded that the Company should take advantage of the available options to grow its business offering and geographic reach through business partnerships and possible joint venture arrangements or acquisitions.

While there can be no certainty as to whether these opportunities can be consummated, the Board believes that these potential development opportunities would enable the Group to build value for all shareholders.

Dividend Policy and Interim Dividend

As announced last year, while the Board will continue to deploy the Group's cash resources to the growth of, and investment in, the business, the Board concluded that as a result of the much-improved financial performance of the Group, the Company was in a position to adopt a dividend policy to generate returns for shareholders. The Board's adopted policy was 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. Accordingly, for the Period, the Board is therefore pleased to announce that the Company will pay an interim dividend of 0.75 pence per ordinary share, which is in line with last year's dividend of 1.5 pence for the year as a whole. The interim dividend will be payable as per the timetable below:

- Ex dividend dated: 24 March 2022

- Record date: 25 March 2022

- Payment date: 11 April 2022

Outlook

While we are focused on the successful future development of ADVFN, on 26 January 2022, the Board announced that it had received a letter from Mr Yair Tauman in which Mr Yair Tauman requested that the Company convene a general meeting under section 303 of the Companies Act, to consider t o consider proposed changes to the Board including my removal as a director of the Company and the proposed appointment of Messrs Anthony Wollenberg, Amit Tauman and Lord David Gold as directors of the Company. The Company requested information from Mr Yair Tauman in respect of the individuals proposed by him as directors of the Company and will make a further announcement in due course.

This may well be my last CEO statement and as such I will take this opportunity to wish shareholders, customers and staff my best wishes for a good outcome for all.

Clem Chambers

CEO

21 February 2022

Enquiries:

For further information please contact:

 
 
 ADVFN PLC 
  Clem Chambers                         +44 20 3868 670203 
 
 Beaumont Cornish Limited (Nominated 
  Adviser) 
  www.beaumontcornish.com 
 Roland Cornish/Michael Cornish         +44 (0) 207 628 3396 
 
 

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 for the release of this announcement on behalf of the Company was Clem Chambers, Director.

A copy of this announcement is available on the Group's website : www.ADVFNPLC.com

 
 Consolidated income statement 
                                                       6 months    6 months   12 months 
                                                             to          to          to 
                                                         31 Dec      31 Dec     30 June 
                                                           2021        2020        2021 
                                                        GBP'000     GBP'000     GBP'000 
                                                      unaudited   unaudited     audited 
                                              Notes 
 
 Revenue                                                  4,228       4,233       9,059 
 Cost of sales                                            (162)       (244)       (452) 
                                                     ----------  ----------  ---------- 
 
 Gross profit                                             4,066       3,989       8,607 
 
 Share based payment                                          -        (44)        (43) 
 Amortisation of intangible assets                        (138)       (128)       (251) 
 Other administrative expenses                          (3,699)     (3,540)     (6,849) 
 
 Total administrative expense                           (3,837)     (3,712)     (7,143) 
 Government grant                                             -           -         162 
 
 Operating profit                                           229         277       1,626 
 
 Finance expense                                           (27)        (13)        (22) 
 Other income                                                 -           -           4 
 
 Profit/(loss) before tax                                   202         264       1,608 
 Taxation                                                     -           -          10 
                                                     ----------  ----------  ---------- 
 
 Profit/(loss) for the period attributable 
  to shareholders of the parent                             202         264       1,618 
                                                     ==========  ==========  ========== 
 
 Earnings per share 
 Basic                                          3         0.77p      1.03 p       6.28p 
 Diluted                                                  0.74p      0.99 p       5.97p 
 
 
 Consolidated statement of comprehensive 
  income 
                                              6 months    6 months   12 months 
                                                    to          to          to 
                                                31 Dec      31 Dec     30 June 
                                                  2021        2020        2021 
                                               GBP'000     GBP'000     GBP'000 
                                             unaudited   unaudited     audited 
 
 Profit/ for the period                            202         264       1,618 
 
 Other comprehensive income: 
 Items that will be reclassified 
  subsequently to profit or loss: 
 Exchange differences on translation 
  of foreign operations                           (50)        (49)        (95) 
 
 Total other comprehensive income                 (50)        (49)        (95) 
                                            ----------  ----------  ---------- 
 
 Total comprehensive income for 
  the year attributable to shareholders 
  of the parent                                    252         215       1,523 
                                            ==========  ==========  ========== 
 
 
 
 
 Consolidated balance sheet 
                                      31 Dec      31 Dec   30 June 
                                        2021        2020      2021 
                                     GBP'000     GBP'000   GBP'000 
                                   unaudited   unaudited   audited 
 Assets 
 Non-current assets 
 Property, plant and equipment           180         283       239 
 Goodwill                                929         927       870 
 Intangible assets                     1,584       1,460     1,562 
 Deferred tax asset                        -           -         - 
 Trade and other receivables              25           -       110 
 
                                       2,718       2,670     2,781 
 
 Current assets 
 Trade and other receivables             725         647       546 
 Cash and cash equivalents             2,032         931     1,939 
                                  ----------  ----------  -------- 
 
                                       2,757       1,578     2,485 
 
 Total assets                          5,475       4,248     5,266 
                                  ==========  ==========  ======== 
 
 Equity and liabilities 
 Equity 
 Issued capital                           52          51        52 
 Share premium                           223         167       223 
 Share based payments reserve            343         411       343 
 Foreign exchange reserve                260         256       210 
 Retained earnings                     2,497         874     2,295 
                                  ----------  ----------  -------- 
 
                                       3,375       1,759     3,123 
 
 Non-current liabilities 
 Borrowing - bank loans                   47          83        54 
 Borrowing - lease liabilities            37         101        87 
                                  ----------  ----------  -------- 
 
                                          84         184       141 
 
 Current liabilities 
 Trade and other payables              1,902       2,082     1,886 
 Borrowing - bank loans                   13          88        13 
 Borrowing - lease liabilities           101         135       103 
 
                                       2,016       2,305     2,002 
 
 Total liabilities                     2,100       2,489     2,143 
                                  ----------  ----------  -------- 
 
 Total equity and liabilities          5,475       4,248     5,266 
                                  ==========  ==========  ======== 
 
 

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 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 
 
 Transactions with equity 
  shareholders: 
 Shares issued                                1         56          -           -           -        57 
 Transfer on exercise                         -          -       (67)           -          67         - 
                                      ---------  ---------  ---------  ----------  ----------  -------- 
 
                                              1         56       (67)           -          67        57 
 
 Reprice share options                        -          -        (1)           -           -       (1) 
 
 Profit for the period after 
  tax                                         -          -          -           -       1,354     1,354 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign operations           -          -          -        (46)           -      (46) 
                                      ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total comprehensive income                   -          -          -        (46)       1,354     1,308 
 
 At 30 June 2021                             52        223        343         210       2,295     3,123 
 
 Share based payments                         -          -          -           -           -         - 
 
 Profit for the period after 
  tax                                         -          -          -           -         202       202 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign operations           -          -          -          50           -        50 
                                      ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total comprehensive income                   -          -          -          50         202       252 
                                      ---------  ---------  ---------  ----------  ----------  -------- 
 
 At 31 December 2021                         52        223        343         260       2,497     3,375 
                                      =========  =========  =========  ==========  ==========  ======== 
 
 
 
 Consolidated cash flow statement 
                                                  6 months    6 months   12 months 
                                                        to          to          to 
                                                    31 Dec      31 Dec     30 June 
                                                      2021        2020        2021 
                                                   GBP'000     GBP'000     GBP'000 
                                                 unaudited   unaudited     audited 
 
 Cash flows from operating activities 
 Profit for the year                                   202         264       1,618 
 
 Taxation expense                                        -           -        (10) 
 Net finance expense in the income statement            27          13          22 
 Depreciation of property, plant and 
  equipment                                            110          95         167 
 Amortisation                                          138         128         251 
 Forgiveness of US loan                                  -                   (174) 
 Loss on disposal of PPE                                 -           -           - 
 Share based payment                                     -          44          43 
 (Increase) in trade and other receivables            (94)        (73)        (72) 
 Increase / (Decrease) in trade and other 
  payables                                              16       (254)       (392) 
 
 Net cash generated by continuing operations           399         217       1,453 
 Income tax recovered                                    -           -           - 
                                                ----------  ----------  ---------- 
 
 Net cash generated/(used) by operating 
  activities                                           399         217       1,453 
 
 Cash flows from financing activities 
 Issue of share capital                                  -           -          57 
 Repayment of lease principle                         (59)        (41)        (92) 
 Drawdown of loans                                       -           -          17 
 Lease interest paid                                   (6)         (9)        (19) 
 Other interest paid                                  (21)         (4)         (3) 
                                                ----------  ----------  ---------- 
 
 Net cash (used)/generated by financing 
  activities                                          (86)        (54)        (40) 
 
 Cash flows from investing activities 
 Payments for property, plant and equipment           (51)        (13)        (39) 
 Purchase of intangibles                             (160)       (160)       (385) 
 
 Net cash used by investing activities               (211)       (173)       (424) 
 
 Net (decrease)/increase in cash and 
  cash equivalents                                     102        (10)         989 
 Exchange differences                                  (9)          26          35 
                                                ----------  ----------  ---------- 
 
 Net increase/(decrease) in cash and 
  cash equivalents                                      93          16        1024 
 Cash and cash equivalents at the start 
  of the period                                      1,939         915         915 
                                                ----------  ----------  ---------- 
 
 Cash and cash equivalents at the end 
  of the period                                      2,032         931       1,939 
                                                ==========  ==========  ========== 
 
   1.   Legal status and activities 

The principal activity of ADVFN PLC ("the Company") and its subsidiaries (together "the Group") is the development and provision of financial information, primarily via the internet, research services and the development and exploitation of ancillary internet sites.

The principal trading subsidiaries are All IPO Plc, InvestorsHub.com Inc, NA Data Inc, MJAC InvestorsHub International Conferences Ltd and Cupid Bay Limited.

The Company is a public limited company which is quoted on the AIM of the London Stock Exchange and is incorporated and domiciled in the UK. The address of the registered office is Suite 28, Essex Business Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.

The registered number of the company is 0 2374988 .

   2.   Basis of preparation 

The unaudited consolidated interim financial information is for the six-month period ended 31 December 2021. 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 2021, which were prepared under applicable law and International Accounting Standards (IAS) in conformity with the requirements of the Companies Act 2006 as at 30 June 2021.

The accounting policies adopted in this report are consistent with those of the annual financial statements for the year to 30 June 2021 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 2021.

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 2021 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.   Profit per share 
 
                                            6 months      6 months    12 months 
                                                  to            to           to 
                                         31 Dec 2021   31 Dec 2020      30 June 
                                                                           2021 
                                             GBP'000       GBP'000      GBP'000 
 
 Profit for the year attributable to 
  equity shareholders                            202           264        1,618 
 
 Earnings per share (pence) 
 Basic                                         0.77p        1.03 p        6.28p 
 Diluted                                       0.74p        0.99 p        5.97p 
                                        ============  ============  =========== 
 
                                              Shares        Shares       Shares 
 
 Weighted average number of shares in 
  issue for the period                    26,115,318    25,703,845   25,773,739 
 Dilutive effect of options                1,144,585     1,092,868    1,336,807 
                                        ------------  ------------  ----------- 
 
 Weighted average shares for diluted 
  earnings per share                      27,259,903    26,796,713   27,110,546 
 
 

Where a loss has been recorded for the year the diluted loss per share does not differ from the basic loss per share. Where a profit has been recorded but the average share price for the year remains under the exercise price the existence of options is not normally dilutive. However, whilst the average exercise price of all outstanding options is above the average share price there are a number of options which are not. Under these circumstances those options where the exercise price is below the average share price are treated as dilutive.

   4.   Dividends 

A dividend was announced on 5 July 2021. Final equity dividends to the shareholders of ADVFN plc are recognised in the period that they are approved by shareholders. Interim equity dividends are recognised in the period that they are paid.

Dividends receivable are recognised when the Company's right to receive payment is established

   5.   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

ENDS

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