TIDMAFN

RNS Number : 6546I

ADVFN PLC

06 December 2022

6 December 2022

For immediate release

ADVFN PLC

(" ADVFN " or the "Company")

Audited Results for the year ended 30 June 2022

Annual General Meeting

The Board of ADVFN announces the audited annual results for the year ended 30 June 2022. The Annual Report and Accounts will shortly be sent to shareholders and will be available on the Company's website, http://www.advfnplc.com . A copy of this announcement is also available on the Company's website, http://www.advfnplc.com .

The Annual General Meeting is due to be held at 10.00am on 29 December 2022 at RPC, Tower Bridge House, St Katherine's Way, London E1W 1AA. Notice of the Annual General Meeting is included in the Company's Annual Report.

For further information please contact:

 
 ADVFN PLC 
  Jonathan Mullins                      +44 (0) 203 8794 460 
 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 Jon Mullins, Director.

Chairman's Statement

I'm delighted to have joined the Board as Non-Executive Chairman of ADVFN, where the opportunities for the future appear to be manifest. The appointment of Amit Tauman as CEO on 25(th) November 2022 provides the company with a talented leader who the Board is confident is ideally placed to achieve the necessary objectives as he describes in his report below. While the company has maintained an average revenue of circa GBP8 million per year over the last ten years, there are several areas of the company that need to be strengthened and this is uppermost in the Board's thinking. By working closely with our new CEO we believe that this will be achieved.

Lord Gold

Non-executive Chairman

5 December 2022

Chief Executive's Statement

I am proud to serve on the Board of ADVFN and to have been appointed as CEO. As the Chairman reports there are considerable opportunities for ADVFN and to achieve them I set out three long-term priorities on which everyone in the company is now focused: Innovation, User Experience and management decisions driven by enterprise data.

I believe these priorities enable us not only to leverage our key strengths, but they also allow us to capitalise on market trends and to innovate and grow. I'm excited about the opportunities and confident about the future. I want to take this opportunity to thank all ADVFN employees for the warm welcome and motivation towards this new journey together.

Amit Tauman

CEO

5 December 2022

Strategic Report

Financial Overview

The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards.

The loss for the financial year after tax amounted to GBP1,368,000 (2021: a profit of GBP1,618,000). The Directors are not proposing payment of a dividend.

As mentioned in the trading and corporate update published on 6th June 2022, there were several extraordinary, non-recurring items incurred this year which were responsible for the majority of the loss. Prior to the appointment of the new directors, Mr. Chambers was awarded a settlement of GBP 830,639 when he resigned as chief executive shortly before the requisition to appoint the new directors. Subsequently, significant legal costs of GBP106,200 (before VAT) were incurred in reaching settlements with two additional outgoing directors and amending the terms of employment of then existing directors.

ADVFN 2021-2022 financial highlights:

-- Revenue was GBP7.8 million compared to GBP9.1 million in the prior year period

-- Net loss was GBP1.8 million compared to net income of GBP1.6 million in the prior year period

-- Cash and cash equivalents: GBP0.9million compared to GBP1.9m in the prior year.

Business Review

Despite a challenging economic environment, in the first half of the financial year the company maintained operational profit which is heartening.

In the second half we encountered a number of challenges, including worsening market conditions, changes to Google search algorithms and changes in senior management and Board composition. This led to a decline in revenue from sales and one-off settlement costs. These challenges have continued into the first quarter of the financial year ending June 2023 with operational losses similar to those of the last quarter of the prior financial year.

I'm pleased to report that changes in senior management and Board composition have created an opportunity to revisit and challenge many of the operations, the organisational structure, and offerings. We have focused our efforts in defining our long-term strategy and detailing our growth engines and roadmap. In addition, we have put great emphasis on empowering and engaging our employees around the world with our mission and vision. We have focused on our users' experience and are creating a data driven infrastructure and culture to enhance and support it. We are excited, committed, and confident that this new and dynamic mindset will drive prospects and growth.

Looking ahead to the next calendar year, we are putting a firm emphasis on our user interface and user experience including the introduction of exciting new real time tools and content. We aim to build a strong and sustainable market-leading financial community. In addition to continued optimisation of our business, with focus on execution and enhancement of our core offering, we are taking actions to maintain margin and strong cash flow generation. We are constantly reviewing our cost structure and have already adjusted staffing levels for less profitable parts of the business. We also aim to optimise our exchange and license fee costs. We adjusted subscription pricing and will be optimising the subscription funnel further in the new year. We have a number of exciting new products in development that will be released in 2023 that will revitalise our subscription offering. We will continue to look for efficiency opportunities across our organisation and will capitalise on investments that position us for long-term sustainable growth.

Operating Costs

We continue to monitor the operating costs of the Group and there is currently no plan for further significant change to our virtual organisation.

Research and Development ("R&D")

As a media company with highly technical products Research and Development is very important to us. Innovation is necessary to drive growth.

Our R & D investment this year has been GBP74,000 (2021: GBP294,000) and all this investment has been capitalised.

This represents a reduced figure primarily due to key personnel being involved in the series of corporate actions during the year. Along with new KPIs, the board is in the process of developing a new research and development plan.

Environmental policy

As always, we continue to look for ways to develop in an environmental way. It remains our objective to improve our performance in this area.

Summary of key performance indicators

Our key indicators have not yet changed, as they are an important part of the business. The current Board is in the process of reviewing KPIs and targets, with changes expected for the financial year 2022/2023.

The Directors monitor the Key Performance Indicators on an ongoing basis. The chart below shows the level of performance achieved in the financial year. The individual items are as follows:

 
                              2022       2022       2021       2021 
                            Actual     Target     Actual     Target 
                          --------  ---------  ---------  --------- 
 Turnover                  GBP7.8M   GBP8.70M   GBP9.06M   GBP8.70M 
                                    ---------  --------- 
 Average head count             37         40         38         42 
                          --------  ---------  --------- 
 ADVFN registered users      5.16M      5.20M      5.10M      5.00M 
                          --------  ---------  ---------  --------- 
 

Market conditions have led to a lower than budgeted turnover for both subscriptions and advertising and registered user count. We have adjusted staff levels in line with business performance.

Turnover - An important indicator that gives an overall view of our place in the market.

Head count - represents a very significant part of the costs of the Group and is fixed as an overhead. Talented people are a vital part of the business.

Registered users - give us an indication of our audience pool and the potential available for marketing our service.

COVID-19

COVID-19 continues to have little measurable impact on the company, in part due to the international and distributed nature of the Group. In the UK the Company continues to employ remote working.

Principal risks and uncertainties

The principal risks and uncertainties are summarised in the Corporate Governance Report.

Consideration of the principal risks associated with financial instruments is contained in note 23.

People

I would like to thank the whole team at ADVFN who worked hard during a tumultuous time in the markets .

Directors' statement of responsibilities under section 172 Companies Act 2006

The Director s have considered the requirements of Section 172(1) of the Companies Act 2006 to prepare a statement explaining how the Directors have considered the wider stakeholder needs when performing their duties under Section 172 of the Companies Act 2006.

The Directors consider the stakeholders to be the people who work for us, work with us, invest with us, own us, regulate us and live in the societies we serve. The Directors recognise that building strong relationships with our stakeholders will help deliver the Group 's strategy in line with the long-term values. The Directors are committed to effective engagement with all of our stakeholders and seek to understand the interests and views of the Group 's stakeholders by engaging with them directly as appropriate.

Depending on the nature of the issue in question, the relevance of each stakeholder group may differ and, as such, as part of the Group 's engagement with stakeholders, the Directors seek to understand the relative interests and priorities of each group and to have regard to these, as appropriate, in their decision making. The Directors acknowledge, however, that not every decision the Board makes will necessarily result in a positive outcome for all stakeholders. However, t he D irectors do challenge management to ensure all stakeholder interests are considered in the day-to-day management and operations of the Group .

.

As part of their deliberations and decision making process, the Directors take into account the following:

-- the likely consequences of any decisions in the long term;

-- interests of the Group 's employees;

-- need to foster the Group 's business relationships with suppliers, customers and others;

-- impact of the Group 's operations on the community and environment;

-- desirability of the Group maintaining a reputation for high standards of business conduct; and

-- need to act fairly as between members of the Group .

As a result of these activities, the Directors believe that they have demonstrated compliance with their obligations under s.172 of the Companies Act 2006

Business

The Directors' aim for the Group is to be and remain a contributing and good "Corporate Citizen".

Our business does not have a high carbon footprint and we consider it to be a sustainable business. We try to ensure that our planet's precious resources are used appropriately for the benefit of current and future generations. The Board considers that the business and strategic decisions which it takes now, in furtherance of the Group's business objectives, do not damage the global environment.

Employees

The Group has a small number of employees but those it has are situated and are deployed on the Group's business around the World. We ensure that we comply with all local labour laws and apply what the Directors believe are appropriate standards and systems to monitor and ensure the welfare of those employees.

Stakeholder engagement

The Group is entirely owned by the shareholders of ADVFN Plc and the shares of the Group are traded on AIM. The stakeholders of the Group consist predominantly of the shareholders, employees, advisers and suppliers. The Directors recognise the importance of these relationships and take active steps to develop and strengthen them through dialogue and engagement. These relationships are regularly monitored at Board level.

Governance

Each Board meeting addresses compliance by the Group with its corporate governance codes and reinforces the Board's requirement that its business be conducted with integrity and with due regard for ethical standards.

ON BEHALF OF THE BOARD

Amit Tauman

CEO

5 December 2022

 
 Consolidated income statement 
                                                              30 June   30 June 
                                                                 2022      2021 
                                                    Notes     GBP'000   GBP'000 
 
 
 Revenue                                              3         7,848     9,059 
 Cost of sales                                                  (374)     (452) 
                                                           ----------  -------- 
 
 Gross profit                                                   7,474     8,607 
 
 Share based payment                                 21             -      (43) 
 Amortisation of intangible assets                   12         (256)     (251) 
 Administrative expenses                                      (7,176)   (6,849) 
 Administrative expenses - non-recurring 
  items                                               6       (1,420)         - 
                                                           ----------  -------- 
 
 Total administrative expenses                                (8,852)   (7,143) 
 Government grant                                                   -       162 
                                                           ----------  -------- 
 
 Operating (loss)/profit                              4       (1,378)     1,626 
 
 Finance expense                                      7          (14)      (22) 
 Other income                                                       -         4 
 
 (Loss)/profit before tax                                     (1,392)     1,608 
 Taxation                                             8            24        10 
                                                           ----------  -------- 
 
 Total (loss)/profit for the period attributable 
  to shareholders of the parent                               (1,368)     1,618 
 
 (Loss)/profit per share 
 Basic                                                9       (5.22p)     6.28p 
 Diluted                                              9       (5.22p)     5.97p 
 
 
 
 
 Consolidated statement of comprehensive 
  income 
                                                    30 June   30 June 
                                                       2022      2021 
                                                    GBP'000   GBP'000 
 
 
 (Loss)/profit for the year                         (1,368)     1,618 
 
 Other comprehensive income: 
 Items that will be reclassified subsequently 
  to profit or loss: 
 
 Exchange differences on translation of 
  foreign operations                                     73      (95) 
 
 Total other comprehensive income                        73      (95) 
 
 Total comprehensive income for the year 
  attributable to shareholders of the parent        (1,295)     1,523 
                                                 ==========  ======== 
 
 

The accompanying accounting policies and notes form an integral part of these financial statements.

 
 Consolidated balance sheet 
                                          30 June   30 June 
                                             2022      2021 
                                  Notes   GBP'000   GBP'000 
 
 Assets 
 Non-current assets 
 Property, plant and equipment     10          98       239 
 Goodwill                          11         988       870 
 Intangible assets                 12       1,124     1,562 
 Trade and other receivables       15          26       110 
 
                                            2,236     2,781 
 
 Current assets 
 Trade and other receivables       15         460       546 
 Cash and cash equivalents                    915     1,939 
                                         --------  -------- 
 
                                            1,375     2,485 
 
 Total assets                               3,611     5,266 
 
 Equity and liabilities 
 Equity 
 Issued capital                    20          53        52 
 Share premium                                305       223 
 Share based payment reserve                  341       343 
 Foreign exchange reserve                     283       210 
 Retained earnings                            340     2,295 
                                         --------  -------- 
 
                                            1,322     3,123 
 
 Non-current liabilities 
 Borrowing - bank loans            17          41        54 
 Borrowing - lease liabilities     17           -        87 
 
                                               41       141 
                                         --------  -------- 
 
 Current liabilities 
 Trade and other payables          19       2,148     1,886 
 Borrowing - bank loans            17          13        13 
 Borrowing - lease liabilities     17          87       103 
 
                                            2,248     2,002 
 
 Total liabilities                          2,289     2,143 
                                         --------  -------- 
 
 Total equity and liabilities               3,611     5,266 
                                         ========  ======== 
 
 

The financial statements on pages 22 to 63 were authorised for issue by the Board of Directors on 3 December 2022 and were signed on its behalf by:

Amit Tauman

CEO

Company number: 02374988

The accompanying accounting policies and notes form an integral part of these financial statements.

 
Company balance sheet                 At 30 June  At 30 June 
                                Note        2022        2021 
                                         GBP'000     GBP'000 
 
Assets 
Non-current assets 
Property, plant and equipment    10           24          64 
Intangible assets                12          234         382 
Trade and other receivables      15           24         108 
Investments                      13        1,001       2,276 
                                      ----------  ---------- 
 
                                           1,283       2,830 
                                      ----------  ---------- 
 
Current assets 
Trade and other receivables      15          786         709 
Cash and cash equivalents                    529       1,650 
                                      ----------  ---------- 
 
                                           1,315       2,359 
                                      ----------  ---------- 
 
Total assets                               2,598       5,189 
                                      ==========  ========== 
 
Equity and liabilities 
Equity 
Called up share capital          20           53          52 
Share premium account                        305         223 
Share based payment reserve                  341         343 
Retained earnings                          (507)       2,311 
                                      ----------  ---------- 
 
                                             192       2,929 
                                      ----------  ---------- 
 
Non-current liabilities 
Borrowings - bank loans          17           41          54 
Deferred tax                                 104         104 
                                      ----------  ---------- 
 
                                             145         158 
 
Current liabilities 
Trade and other payables         19        2,248       2,089 
Borrowings - bank loans          17           13          13 
 
                                           2,261       2,102 
                                      ----------  ---------- 
 
Total liabilities                          2,406       2,260 
                                      ----------  ---------- 
 
Total equity and liabilities               2,598       5,189 
                                      ==========  ========== 
 
 
 

The financial statements on pages 22 to 63 were authorised for issue by the Board of Directors on 3 December 2022 and were signed on its behalf:

Amit Tauman

CEO

Company number: 02374988

Company statement of comprehensive income

As permitted by Section 408 of the Companies Act 2006, the income statement and statement of comprehensive income of the parent company is not presented as part of these financial statements. The parent company's result after taxation for the financial year was a loss of GBP2,231,000 (202 1 : profit of GBP 1,126,000 ).

The accompanying accounting policies and notes on pages 29 to 63 form an integral part of these financial statements.

Consolidated statement of changes in equity

 
                                           Share      Share      Share     Foreign    Retained     Total 
                                         capital    premium      based    exchange    earnings    equity 
                                                               payment     reserve 
                                                               reserve 
                                         GBP'000    GBP'000    GBP'000     GBP'000     GBP'000   GBP'000 
 
 At 1 July 2020                               51        167        367         305         610     1,500 
 
 Transactions with equity 
  shareholders: 
 Share issues                                  1         56          -           -           -        57 
 Transfer on exercise                          -          -       (67)           -          67         - 
                                       ---------  ---------  ---------  ----------  ----------  -------- 
 
                                               1         56       (67)           -          67        57 
 
 Reprice share options                         -          -         43           -           -        43 
 
 Profit for the year after 
  tax                                          -          -          -           -       1,618     1,618 
 
 Other comprehensive income 
 Exchange differences on translation 
  of foreign operations                        -          -          -        (95)           -      (95) 
 
 Total other comprehensive 
  income                                       -          -          -        (95)           -      (95) 
                                       ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total comprehensive income                    -          -          -        (95)       1,618     1,523 
                                       ---------  ---------  ---------  ----------  ----------  -------- 
 
 At 30 June 2021                              52        223        343         210       2,295     3,123 
 
 Transactions with equity 
  shareholders: 
 Share issues                                  1         82                                           83 
 Transfer on exercise                                              (2)                       2         - 
                                       ---------  ---------  ---------  ----------  ----------  -------- 
 
                                               1         82        (2)           -           2        83 
 Distributions to owners 
 Dividends                                     -          -          -           -       (589)     (589) 
                                       ---------  ---------  ---------  ----------  ----------  -------- 
 
                                               -          -          -           -       (589)     (589) 
 
 Loss for the year after tax                   -          -          -           -     (1,368)   (1,368) 
 
 Other comprehensive income 
 Exchange differences on translation 
  of foreign operations                        -          -          -          73           -        73 
                                       ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total other comprehensive 
  income                                       -          -          -          73           -        73 
                                       ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total comprehensive income                    -          -          -          73     (1,957)   (1,884) 
                                       ---------  ---------  ---------  ----------  ----------  -------- 
 
 At 30 June 2022                              53        305        341         283         340     1,322 
                                       =========  =========  =========  ==========  ==========  ======== 
 
 

The accompanying accounting policies and notes form an integral part of these financial statements.

Company statement of changes in equity

 
                                              Share      Share      Share    Retained     Total 
                                            capital    premium      based    earnings    equity 
                                                                  payment 
                                                                  reserve 
                                            GBP'000    GBP'000    GBP'000     GBP'000   GBP'000 
 
 At 1 July 2020                                  51        167        367       1,118     1,703 
 
 Transactions with equity shareholders: 
 Share issues                                     1         56          -           -        57 
 Transfer on exercise                             -          -       (67)          67         - 
                                          ---------  ---------  ---------  ----------  -------- 
 
                                                  1         56       (67)          67        57 
 
 Reprice share options                            -          -         43           -        43 
 
 Profit for the year after tax                    -          -          -       1,126     1,126 
                                          ---------  ---------  ---------  ----------  -------- 
 
 Total comprehensive income for 
  the year                                        -          -          -       1,126     1,126 
                                          ---------  ---------  ---------  ----------  -------- 
 
 At 30 June 2021                                 52        223        343       2,311     2,929 
 
 
 Transactions with equity shareholders: 
 Share issues                                     1         82                               83 
 Transfer on exercise                                                 (2)           2         - 
                                          ---------  ---------  ---------  ----------  -------- 
 
                                                  1         82        (2)           2        83 
 
 Distributions to owners 
 Dividends                                        -          -          -       (589)     (589) 
                                          ---------  ---------  ---------  ----------  -------- 
 
                                                  -          -          -       (589)     (589) 
 
 Loss for the year after tax                      -          -          -     (2,231)   (2,231) 
                                          ---------  ---------  ---------  ----------  -------- 
 
 Total comprehensive income for 
  the year                                        -          -          -     (2,637)   (2,637) 
                                          ---------  ---------  ---------  ----------  -------- 
 
 At 30 June 2022                                 53        305        341       (507)       192 
                                          =========  =========  =========  ==========  ======== 
 
 
 

The accompanying accounting policies and notes form an integral part of these financial statements.

 
 Consolidated cash flow statement 
                                                        12 months   12 months 
                                                               to          to 
                                                          30 June     30 June 
                                                             2022        2021 
                                                Notes     GBP'000     GBP'000 
 
 Cash flows from operating activities 
 (Loss)/Profit for the year                               (1,368)       1,618 
 
 Taxation                                                       -        (10) 
 Net finance income in the income statement       7            14          22 
 Depreciation of property, plant & equipment     10           181         167 
 Amortisation of intangible assets               12           256         251 
 Forgiveness of US loan                                         -       (174) 
 Write off of intangible assets                               296           - 
 Share based payments - options/warrants         21             -          43 
 Decrease/(increase) in trade and other 
  receivables                                                 170        (72) 
 Increase/(decrease) in trade and other 
  payables                                                    262       (392) 
 
 Net cash generated by continuing operations                (189)       1,453 
 
 Income tax receivable                                          -           - 
                                                       ----------  ---------- 
 
 Net cash generated by operating activities                 (189)       1,453 
 
 Cash flows from financing activities 
 Issue of share capital                                        83          57 
 Dividend payments                                          (589)           - 
 Drawdown loans                                                 -          17 
 Repayment of loans                                          (13)           - 
 Repay lease liability                                      (103)        (92) 
 Lease interest paid                                         (10)        (19) 
 Other interest paid                                          (4)         (3) 
 
 Net cash generated by financing activities                 (636)        (40) 
 
 Cash flows from investing activities 
 Payments for property, plant and equipment      10          (39)        (39) 
 Purchase of intangibles                         12         (114)       (385) 
 
 Net cash used by investing activities                      (153)       (424) 
 
 Net increase in cash and cash equivalents                  (978)         989 
 Exchange differences                                        (46)          35 
                                                       ----------  ---------- 
 
 Net increase in cash and cash equivalents                (1,024)       1,024 
 Cash and cash equivalents at the start 
  of the period                                             1,939         915 
                                                       ----------  ---------- 
 
 Cash and cash equivalents at the end of 
  the period                                                  915       1,939 
                                                       ==========  ========== 
 

The accompanying accounting policies and notes form an integral part of these financial statements.

 
 Company cash flow statement 
                                                        12 months   12 months 
                                                               to          to 
                                                          30 June     30 June 
                                                             2022        2021 
                                                Notes     GBP'000     GBP'000 
 
 Cash flows from operating activities 
 (Loss)/profit for the period                             (2,231)       1,126 
 
 Taxation                                                       -         104 
 Net finance expense in the income statement                    1           3 
 Depreciation of property, plant & equipment     10            72          63 
 Amortisation of intangibles                     12           223         234 
 Impairment of investments                                  1,275           - 
 Share based payments - options/warrants         21             -          43 
 (Increase)/decrease in trade and other 
  receivables                                                   7         247 
 Decrease/(increase) in trade and other 
  payables                                                    159       (417) 
 
 Net cash generated by operating activities                 (494)       1,403 
 
 Income tax payable                                             -           - 
                                                       ----------  ---------- 
 
 Net cash generated by operating activities                 (494)       1,403 
 
 Cash flows from financing activities 
 Issue of share capital                                        83          57 
 Dividend payments                                          (589)           - 
 Repayment of loans                                          (13)           - 
 Drawdown loans                                                 -          17 
 Interest paid                                                (1)         (3) 
                                                       ----------  ---------- 
 
 Net cash generated by financing activities                 (520)          71 
 
 Cash flows from investing activities 
 Payments for property, plant and equipment      10          (32)        (39) 
 Purchase of intangibles                         12          (75)       (294) 
 
 Net cash used by investing activities                      (107)       (333) 
 
 Net increase/(decrease) in cash and cash 
  equivalents                                             (1,121)       1,141 
 Cash and cash equivalents at the start 
  of the period                                             1,650         509 
                                                       ----------  ---------- 
 
 Cash and cash equivalents at the end of 
  the period                                                  529       1,650 
                                                       ==========  ========== 
 

The accompanying accounting policies and notes form an integral part of these financial statements.

Notes to the financial statements

   1.      General information 

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, N A 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, Ongar Business Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.

The registered number of the company is 02374988.

Exemption from audit

For the year ended 30 June 2022 ADVFN Plc has provided a guarantee in respect of all liabilities due by its subsidiary companies Cupid Bay Limited (Company No. 04001650) and MJAC InvestorsHub International Conferences Ltd (Company No. 11000464) thus entitling them to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.

   2.      Summary of significant accounting policies 

Basis of preparation

The consolidated and company financial statements are for the year ended 30 June 2022. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards as at 30 June 2022. The consolidated and company financial statements have been prepared under the historical cost convention and are presented in Sterling rounded to the nearest thousand (GBP'000) except where indicated otherwise.

The subsidiary companies Cupid Bay Limited and MJAC InvestorsHub International Conferences Ltd are exempt from an audit under s479A of the Companies Act 2006.

Going concern

The financial statements have been prepared on the going concern basis which assumes the Group will continue in existence for the foreseeable future. The Directors are pleased to report that the Group's profit is in line with the expectations announced earlier in the year. The Directors have prepared a detailed forecast of future trading and cash flows for the next three years after the accounts are approved. The forecasts take into potential future growth of the business both in the UK and USA, the development of products that will enhance the growth of the business and the potential areas for additional cost saving if required. The group is also looking at additional fund raising to help with the continued research and development work that is required to enhance the products available to new and existing customers.

Standards and amendments to existing standards adopted in these accounts

IAS 1 Presentation of Financial Statements and IAS 8 Accounting policies, Changes in Accounting Estimates and Errors (Amendment - Definition of Material)

Interest Rate Benchmark Reform - IBOR 'phase 2' (Amendments to IFRS 7)

IFRS 3 Business Combinations (Amendment - Definition of Business)

COVID-19 Related Rent Concessions (Amendments to IFRS 16)

Notes to the financial statements (continued)

Summary of significant accounting policies (continued)

Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company in the 30 June 2022 financial statements

Revised Conceptual Framework for Financial Reporting

Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37)

Property Plant and Equipment: Proceeds before intended use (Amendments to IAS 16)

Annual improvements to IFRS Standards 2018-2020

References to Conceptual Framework (Amendments to IFRS 3)

Classification of liabilities as Current or Non-current (Amendments to IAS 1)

IFRS 17 - Insurance Contracts

Amendments to IFRS 17 - Insurance Contracts; and Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4 Insurance Contracts)

Disclosure of Accounting Policies (Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements)

Definition of Accounting Estimates (Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors)

Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income Taxes)

The Directors continue to monitor developments in the accounting standards they see as relevant but do not believe that these changes will significantly impact the Group.

Consolidation

The Group's financial statements consolidate those of the parent company and all of its subsidiaries drawn up to 30 June 2022. The parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated on the date control ceases.

Inter-company transactions, balances and unrealised gains and losses (where they do not provide evidence of impairment of the asset transferred) on transactions between Group companies are eliminated.

Business combinations

The Group uses the acquisition method of accounting for the acquisition of a subsidiary. The consideration transferred is measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Costs directly attributable to the acquisition are expensed in the period.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date irrespective of the extent of any non-controlling interest.

Goodwill is recognised at the acquisition date measured as the excess of the aggregate of:

   --       The fair value of the consideration transferred 

-- The fair value or, alternatively, the share of net assets of the non-controlling interest in the acquiree

-- In a combination achieved in stages, the fair value of the acquirer's previously held equity interest in the acquiree over the net of the acquisition date fair value of the identifiable assets acquired and the liabilities assumed.

Where the goodwill calculation results in a negative amount (bargain purchase) this amount is taken to the income statement in the period in which it is derived.

Notes to the financial statements (continued)

Summary of significant accounting policies (continued)

Foreign currency translation

   a)   Functional and presentational currency 

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The Company's functional currency and the Group's presentational currency is Sterling.

   b)   Transactions and balances 

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the reporting period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

   c)   Group companies 

The results and financial position of all Group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

-- Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the balance sheet.

-- Income and expenses for each income statement are translated at the rate of exchange at the transaction date. Where this is not possible, the average rate for the period is used but only if there is no significant fluctuation in the rate and;

-- On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognised in other comprehensive income and accumulated in a separate component of equity. Post transition exchange differences are recycled to profit or loss as a reclassification adjustment upon disposal of the foreign operation.

Income and expense recognition

Revenue is the fair value of the total amount receivable by the Group for supplies of services. VAT or similar local taxes and trade discounts are excluded.

The revenues of the group are now accounted for under IFRS 15 'Revenue from contracts with customers' and reported as follows:

-- Subscriptions - both monthly and annual subscriptions are offered and the price for the subscription is quoted on the website. Revenue for annual subscriptions is deferred on a time basis with equal monthly transfers to the income statement to allocate the recognition across the period of service provision. Payment is received in advance of subscription fulfilment.

-- Advertising - fees for advertising are recognised when the service obligations are fulfilled and are subject to agreement by a written contract which includes pricing. Where there are multiple obligations amounts specific to that obligation are transferred to the income statement. Payment terms are 30 days following invoicing.

Interest income and expenditure are reported on an accruals basis. Operating expenses are recognised in the income statement upon utilisation of the service or at the date of their origin.

Employee benefits

The cost of pensions in respect of the Group's defined contribution scheme is charged to profit or loss in the period in which the related employee services were provided.

Government grants

The Directors have taken advantage of the short-term finance offered under the Business Bounce Back loan scheme and its US equivalent. As part of the UK loans the first 12 months of the interest charges have been reimbursed by the UK Government. This has been treated as a government grant where the receipt has been offset against the expense in the same period and the remainder deferred if already received. The US loan was drawn down on the basis that the loan would be over a period of 2 years, however, this loan has now been 'forgiven' by the US Government and has been treated as a grant and utilised immediately.

Notes to the financial statements (continued)

Summary of significant accounting policies (continued)

Intangible assets

- Licences

Licences are recognised at cost less any subsequent impairment and amortisation charges, they are amortised over a five-year period on a straight-line basis.

- Goodwill

Goodwill is capitalised as an intangible asset and allocated to cash generating units (with separately identifiable cash flows) and is subject to impairment testing on an annual basis or more frequently if circumstances indicate that the asset may have been impaired.

- Internally generated intangible assets

An internally generated intangible asset (website and mobile application) arising from development (or the development phase) of an internal project is recognised if, and only if, all of the following have been demonstrated:

-- the technical feasibility of completing the intangible asset so that it will be available for use or sale

   --           the intention to complete the intangible asset and use or sell it 
   --           the ability to use or sell the intangible asset 
   --           how the intangible asset will generate probable future economic benefits 

-- the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset

-- the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally generated intangible asset can be recognised, development expenditure is charged to profit or loss in the period in which it is incurred.

Subsequent to initial recognition, internally generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses. Internally generated intangibles not yet in use are subject to annual impairment testing.

Internally generated intangible assets are amortised over three to five years.

Research expenditure is recognised as an expense in the period in which it is incurred.

- Intangible assets acquired as part of a business combination

Intangible assets acquired in a business combination are identified and recognised separately from goodwill where they satisfy the definition of an intangible asset. The cost of such intangible assets is their fair value at the acquisition date and comprises brand names, subscriber lists, certain website development costs and licenses. All intangible assets acquired through business combination are amortised over their useful lives estimated at between 5 and 10 years.

Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses.

- Intangible assets purchased

Intangible assets are purchased when the opportunity arises and capitalised at cost (fair value). Purchased intangible assets are amortised over their useful lives estimated at between 5 and 10 years. Subsequent to initial recognition, purchased intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses.

Property, plant and equipment

Property, plant and equipment are recorded at cost net of accumulated depreciation and any provision for impairment. Depreciation is provided using the straight-line method to write off the cost of the asset less any residual value over its useful economic life. The residual values of assets are reviewed annually and revised where necessary. Assets' useful economic lives are as follows:

Leasehold improvements The shorter of the useful life of the asset or the term of the lease (1 to 3 years)

   Computer equipment                         33% per annum over 3 years 
   Office equipment                                                20% per annum over 5 years 

Right of use lease assets The earlier of the end of the useful life of the asset or the end of the lease term

Notes to the financial statements (continued)

Summary of significant accounting policies (continued)

Intangible assets (continued)

Impairment

For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows. As a result some assets are tested individually for impairment and some are tested at cash-generating unit level.

Goodwill, other individual assets or cash-generating units that include goodwill and those intangible assets not yet available for use are tested for impairment at least annually. All other individual assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by which the carrying amount exceeds the recoverable amount of the asset or cash-generating unit. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use based on an internal discounted cash flow evaluation. The cashflow evaluations are a result of the Director's estimation of future sales and expenses based on their past experience and the current market activity within the business. With the exception of goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer exist.

Financial assets

On initial recognition, the Group classifies its financial assets as either financial assets at fair value through profit or loss, at amortised cost or fair value through comprehensive income, as appropriate. The classification depends on the purpose for which the financial assets were acquired. At the reporting year-end the financial assets of the Group were all classified as loans or receivables.

Trade receivables

These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers but also incorporate other types of contractual monetary assets.

They are initially recognised at fair value and measured subsequent to initial recognition at amortised cost using the effective interest method, less any impairment loss.

The Group's financial assets comprise trade receivables, other receivables (excluding prepayments) and cash and cash equivalents.

Trade and other receivables - impairment

The group applies an expected credit loss model to calculate the impairment losses on its trade receivables. The group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of the lifetime expected loss provision for all trade receivables. Trade receivables at the balance sheet date have been put into groups based on days past the due date for payment and an expected loss percentage has been applied to each group to generate the expected credit loss provision for each group and a total expected credit loss provision has thus been calculated.

Financial liabilities

The Group's financial liabilities include trade and other payables and borrowings which include lease liabilities.

Financial liabilities are recognised when the Group becomes a party to the contractual agreements of the instrument. All interest related charges are recognised as an expense in the income statement.

Trade payables are recognised initially at their fair value, net of transaction costs and subsequently measured at amortised costs less settlement payments.

Notes to the financial statements (continued)

Summary of significant accounting policies (continued)

Leases

The Group previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to the ownership of the underlying asset to the Group.

The Group is a lessee of office premises and, under IFRS 16, where the Group had recognised a lease as an operating lease and payments made under the lease were recognised in profit or loss on a straight-line basis over the term of the lease, the Group now recognises a right-of-use asset and a lease liability for most leases i.e. these leases are on-balance sheet.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentive received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

Lease payments included in the measurement of the lease liability comprise the following:

   -     fixed payments, including in-substance fixed payments 

- variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date

   -     amounts expected to be payable under a residual value guarantee, and 

- the exercise price under a purchase option that the group is reasonably certain to exercise, lease payments in an optional renewal period if the group is reasonably certain to exercise such an option to extend and penalties for early termination of a lease unless the group is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the group's estimate of the amount expected to be payable under a residual value guarantee or if the group changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The group presents right-of-use assets in 'property, plant and equipment' and lease liabilities in 'loans and borrowings' in the balance sheet.

Income taxes

Current income tax assets and liabilities comprise those obligations to fiscal authorities in the countries in which the Group carries out its operations. They are calculated according to the tax rates and tax laws applicable to the fiscal period and the country to which they relate. All changes to current tax liabilities are recognised as a component of tax expense in the income statement unless the tax relates to an item taken directly to equity in which case the tax is also taken directly to equity. Tax relating to items recognised in other comprehensive income is recognised in other comprehensive income.

Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by the Group and it is probable that reversal will not occur in the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the group are assessed for recognition as deferred tax assets.

Deferred tax liabilities are always provided for in full. Deferred tax assets such as those resulting from assessing deferred tax on the expense of share-based payments, are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance sheet date.

Notes to the financial statements (continued)

Summary of significant accounting policies (continued)

Provisions, contingent liabilities and contingent assets

Provisions are recognised when the present obligations arising from legal or constructive commitment resulting from past events, will probably lead to an outflow of economic resources from the Group which can be estimated reliably.

Provisions are measured at the present value of the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the balance sheet date.

All provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Share based employee compensation

The Group operates equity settled share-based compensation plans for remuneration of its employees.

All employee services received in exchange for the grant of any share-based compensation are measured at their fair values. These are indirectly determined by reference to the share options awarded. Their value is appraised at the grant date and excludes the impact of any non-market vesting conditions (e.g. profitability or sales growth targets).

All share-based compensation is ultimately recognised as an expense in the income statement with a corresponding credit to the share-based payment reserve, net of deferred tax where applicable. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. No adjustment to expense recognised in prior periods is made if fewer share options ultimately are exercised than originally estimated.

Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, up to the nominal value of the shares issued are reallocated to share capital with any excess being recorded as additional share premium.

Where modifications are made to the vesting or lapse dates of options the excess of the fair value of the revised options over the fair value of the original options at the modification date is expensed over the remaining vesting period.

Dividends

During the year, dividends totalling GBP589,000 were paid. The board is not recommending the payment of any further dividends in the current financial year.

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

Equity

Issued capital

Ordinary shares are classified as equity. The nominal value of shares is included in issued capital.

Share premium

The share premium account represents the excess over nominal value of the fair value of consideration received for equity shares, net of the expenses of the share issue.

Share based payment reserve

The share-based payment reserve represents equity settled share-based employee remuneration until such share options are exercised.

Foreign exchange reserve

The foreign exchange reserve represents foreign exchange gains and losses arising on translation of investments in overseas subsidiaries into the consolidated financial statements.

Retained earnings

The retained earnings include all current and prior period results for the Group and the post-acquisition results of the Group's subsidiaries as determined by the income statement.

Notes to the financial statements (continued)

Summary of significant accounting policies (continued)

Use of key accounting estimates and judgements

Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimates is contained in the accounting policies and/or the notes to the financial statements and the key areas are summarised below:

Judgements in applying accounting policies

a) Capitalisation of development costs in accordance with IAS 38 requires analysis of the technical feasibility and commercial viability of the project in the future. This in turn requires a long-term judgement to be made about the development of the industry in which the development will be marketed. Where the directors consider that sufficient evidence exists surrounding the technical feasibility and commercial viability of the project, which indicate that the costs incurred will be recovered they are capitalised within intangible fixed assets. The amount of the capitalisation is based on estimates to judge the percentage of the time relevant staff spend on projects as specific timesheets are not maintained. Where insufficient evidence exists, the costs are expensed to the income statement.

b) The directors have used their judgement to decide whether the Group should be treated as a going concern and continue in existence for the foreseeable future. Having considered the latest Group forecasts, which cover a period of three years from the balance sheet date, together with the cash resources available to them, the directors have judged that it is appropriate for the financial statements to be prepared on the going concern basis.

c) The application of IFRS 15 - Revenue from contracts with customers requires an assessment of the elements of the contract to separate potentially bundled services requiring different treatment, the recognition of revenue at the point of performance obligations and the assessment of the correct amount of revenue for each of those obligations.

Sources of estimation uncertainty

a) Determining whether goodwill and other intangible assets are impaired requires an estimation of the value in use of the cash generating unit to which the goodwill and intangibles have been allocated. The carrying value of the investments are also assessed. The value in use calculations require an estimation of the future cash flows expected to arise from the cash generating units and a suitable discount rate in order to calculate a suitable present value. During the current year, the review led to an impairment of the investments in Group Companies of GBP1,275,000.

Notes to the financial statements (continued)

Summary of significant accounting policies (continued)

   3.      Segmental analysis 

The directors identify operating segments based upon the information which is regularly reviewed by the chief operating decision maker. The Group considers that the chief operating decision makers are the executive members of the Board of Directors. The Group has identified two reportable operating segments, being that of the provision of financial information and that of other services. The provision of financial information is made via the Group's various website platforms.

The parent entities operations are entirely of the provision of financial information.

Three minor operating segments, for which IFRS 8's quantitative thresholds have not been met, are currently combined below under 'other'. The main sources of revenue for these operating segments is the provision of financial broking services, financial conference events and other internet services not related to financial information. Segment information can be analysed as follows for the reporting period under review:

 
 2022                                   Provision     Other     Total 
                                     of financial 
                                      information 
                                          GBP'000   GBP'000   GBP'000 
 
 Revenue from external customers            7,796        52     7,848 
 Depreciation and amortisation              (405)      (32)     (437) 
 Other operating expenses                 (9,338)       551   (8,787) 
 Other operating income                         -         -         - 
                                   --------------  --------  -------- 
 
 Segment operating (loss)/profit          (1,947)       571   (1,376) 
 
 Interest income                                -         -         - 
 Interest expense                            (14)         -      (14) 
                                   ==============  ========  ======== 
 
 Segment assets                             1,718     1,896     3,597 
 Segment liabilities                      (2,232)      (58)   (2,290) 
 Purchases of non-current assets              155         -       155 
                                   ==============  ========  ======== 
 
 
 
 2021                                   Provision     Other     Total 
                                     of financial 
                                      information 
                                          GBP'000   GBP'000   GBP'000 
 
 Revenue from external customers            9,020        39     9,059 
 Depreciation and amortisation              (408)      (21)     (429) 
 Other operating expenses                 (6,763)     (403)   (7,166) 
 Other operating income                       162         -       162 
                                   --------------  --------  -------- 
 
 Segment operating profit/(loss)            2,011     (385)     1,626 
 
 Interest income                                -         -         - 
 Interest expense                            (21)       (1)      (22) 
                                   ==============  ========  ======== 
 
 Segment assets                             4,451       815     5,266 
 Segment liabilities                      (2,113)      (30)   (2,143) 
 Purchases of non-current assets              424         -       424 
                                   ==============  ========  ======== 
 

Revenue recognition per IFRS 15

 
                        Point in   Over time     Total 
                            time 
                         GBP'000     GBP'000   GBP'000 
 
 Revenue during 2021       5,266       3,793     9,059 
 Revenue during 2022       4,183       3,668     7,851 
                       =========  ==========  ======== 
 
 

Notes to the financial statements (continued)

Segmental analysis (continued)

The Group's revenues, which wholly relate to the sale of services, from external customers and its non-current assets, are divided into the following geographical areas:

 
                  Revenue   Non-current   Revenue   Non-current 
                                 assets                  assets 
                     2022          2022      2021          2021 
                  GBP'000       GBP'000   GBP'000       GBP'000 
 
 UK (domicile)      3,198         1,172     3,655         1,734 
 USA                4,525         1,064     5,240         1,047 
 Other                125             -       164             - 
 
                    7,848         2,236     9,059         2,781 
                 ========  ============  ========  ============ 
 
 

Revenues are allocated to the country in which the customer resides. During both 2022 and 2021 no single customer accounted for more than 10% of the Group's total revenues.

   4.      Operating loss 
 
                                                           2022      2021 
 Operating (loss)/profit has been arrived at            GBP'000   GBP'000 
  after charging: 
 
 Foreign exchange (gain)/loss                               (2)        50 
 Depreciation and amortisation: 
 Depreciation of property, plant and equipment: 
 Depreciation on owned property, plant and equipment        181       167 
 Amortisation of intangible assets                          256       251 
 
 Employee costs (Note 5)                                  4,650     3,612 
 
 Lease payments on land and buildings (Note 22)             103       100 
 Audit and non-audit services: 
 Fees payable to the company's auditor for the 
  audit of the Group's annual accounts                       45        38 
 

Remuneration of key senior management for Group and Company

 
                                                       2022      2021 
                                                    GBP'000   GBP'000 
 Key senior management comprises only directors 
 Salary and fees                                      1,502     1,328 
 Compensation for loss of office                        831         - 
 Benefits in kind                                         -         - 
 Annual bonus                                            80        40 
 Share based payments                                     -        43 
 Post-employment benefits - defined contribution 
  pension plans                                          60        72 
 
                                                      2,473     1,483 
                                                   ========  ======== 
 
 
 Highest paid director 
 Salary and fees                                      381   440 
 Compensation for loss of office                      831     - 
 Benefits in kind                                       -     - 
 Annual bonus                                          25    15 
 Share based payments                                   -    15 
 Post-employment benefits - defined contribution 
  pension plans                                        24    36 
 
                                                    1,261   506 
                                                   ======  ==== 
 

Details of the directors' emoluments, together with other related information, are set out in the Remuneration Report

on page 13.

Notes to the financial statements (continued)

   5.             Employees 

GROUP

 
                                                       2022      2021 
                                                    GBP'000   GBP'000 
 Employee costs (including directors): 
 Wages and salaries                                   3,325     3,129 
 Compensation for loss of office                        831         - 
 Annual bonus                                            80        40 
 Social security costs                                  309       280 
 Pension costs                                          105       120 
 Share based payments                                     -        43 
                                                   --------  -------- 
 
                                                      4,650     3,612 
                                                   ========  ======== 
 
 The average number of employees during the year 
  was made up as follows: 
 
 Development                                             10         9 
 Sales and Administration                                30        29 
 
                                                         40        38 
                                                   ========  ======== 
 

COMPANY

 
                                              2022      2021 
                                           GBP'000   GBP'000 
 
 Employee costs (including directors): 
 Wages and salaries                          2,140     2,036 
 Compensation for loss of office               831         - 
 Social security costs                         225       198 
 Pension                                       103       118 
 Share based payments                            -        43 
                                          --------  -------- 
 
                                             3,299     2,395 
                                          ========  ======== 
 
 

The average monthly number of employees during the year was as follows:

 
 
 Development                   4    4 
 Sales and Administration     15   16 
                             ---  --- 
 
                              19   20 
                             ===  === 
 
 

Details of the directors' emoluments, together with other related information, are set out in the Remuneration Report

on page 13.

Notes to the financial statements (continued)

   6.             Non-recurring items 

GROUP AND COMPANY

 
                                                     2022      2021 
                                                  GBP'000   GBP'000 
 
 Exceptional corporate and shareholder activity     252        - 
 Costs relating to the exit of directors            1,114         - 
 Early termination costs                               54         - 
                                                    1,420         - 
                                                 ========  ======== 
 

During the year, the company went through a period of shareholder and management changes, during which time the company incurred legal and advisory fees. The culmination of the activity was the resignation of Mr Clement Chambers, for which the company incurred further fees in relation to his exit.

The company also chose to vacate the Throgmorton Street offices and incurred early termination costs on this lease.

Finally, the goodwill on the investment in IHUB has impaired during the review of the valuation of the investments.

   7.             Finance expense 

GROUP

 
                       2022      2021 
                    GBP'000   GBP'000 
 
 Finance expense 
 Lease interest          10        19 
 Bank interest            4         3 
                   ========  ======== 
 
   8.             Income tax expense 

GROUP

 
                                                      2022      2021 
                                                   GBP'000   GBP'000 
 
 Current Tax: 
 UK corporation tax on profits for the year           (24)      (10) 
 Adjustments in respect of prior periods                 -         - 
                                                  --------  -------- 
 
 Total current taxation                               (24)      (10) 
 
 Deferred tax 
 Origination and reversal of timing differences         84       303 
 Carried forward losses (DTA)                         (84)     (303) 
 Effect of rate change                                             - 
                                                  --------  -------- 
 Taxation                                             (24)      (10) 
                                                  ========  ======== 
 

Notes to the financial statements (continued)

Income tax expense (continued)

The tax assessed for the year is different from the standard rate of corporation tax as applied in the respective trading domains where the Group operates. The differences are explained below:

 
                                                             2022      2021 
                                                          GBP'000   GBP'000 
 
 (Loss)/Profit before tax                                 (1,782)     1,608 
 (Loss)/Profit before tax multiplied by the respective 
  standard rate of corporation tax applicable 
  in the UK (19.00%) (2021: 19.00%)                         (339)       306 
 
 Effects of: 
 Non-deductible expenses                                      434      (13) 
 Capital allowances                                           (9)       (9) 
 Carried forward losses utilised against profits             (27)     (165) 
 Enhanced Research & Development expenditure                 (18)      (96) 
 Overseas tax rates                                             -         - 
 Surrender of tax losses for R & D tax credit                  27        14 
 Adjustments in respect of prior periods                        -         - 
 Current year R&D tax credit                                 (24)      (11) 
 Effect of difference in tax rates                             63         6 
 Consolidation adjustments - no tax effect                  (131)      (42) 
 Deferred tax - prior period adjustment                         -         - 
 Deferred tax - difference between opening and                  -         - 
  current year tax rates 
 Movements in unrecognised deferred tax                         -         - 
 
 Tax credit for the year                                     (24)      (10) 
                                                         ========  ======== 
 
   9.             (Loss) / Profit per share 
 
                                                       12 months    12 months 
                                                              to           to 
                                                         30 June      30 June 
                                                            2022         2021 
                                                         GBP'000      GBP'000 
 
 (Loss)/profit for the year attributable to equity 
  shareholders                                           (1,368)        1,618 
 
 Total (loss) / profit per share - basic and 
  diluted 
 Basic                                                   (5.22p)        6.28p 
 Diluted                                                 (5.22p)        5.97p 
 
                                                                       Shares 
 
 Weighted average number of shares in issue for 
  the year                                            26,184,360   25,773,739 
 Dilutive effect of options                                    -    1,336,807 
                                                     -----------  ----------- 
 
 Weighted average shares for diluted earnings 
  per share                                           26,184,360   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.

Notes to the financial statements (continued)

   10.          Property, plant and equipment 

GROUP

 
                        Leasehold                                     Right of 
                         property     Computer                       use lease 
                     improvements    equipment   Office equipment       assets     Total 
                          GBP'000      GBP'000            GBP'000      GBP'000   GBP'000 
 Cost 
 At 1 July 2020                48          364                298          349     1,059 
 Additions                      -           39                  -            -        39 
 FX difference                  -            -               (28)            -      (28) 
                   --------------  -----------  -----------------  -----------  -------- 
 
 At 30 June 2021               48          403                270          349     1,070 
 
 Additions                      -           32                  7            -        39 
 FX difference                  -            -                 31            -        31 
                   --------------  -----------  -----------------  -----------  -------- 
 
 At 30 June 2022               48          435                308          349     1,140 
                   ==============  ===========  =================  ===========  ======== 
 
 Depreciation 
 At 1 July 2020                48          276                293           77       694 
 Charge for the 
  year                          -           63                  3          101       167 
 FX difference                  -            -               (30)            -      (30) 
                   --------------  -----------  -----------------  -----------  -------- 
 
 At 30 June 2021               48          339                266          178       831 
 
 Charge for the 
  year                          -           72                 11           98       181 
 FX difference                  -            -                 30            -        30 
                   --------------  -----------  -----------------  -----------  -------- 
 
 At 30 June 2022               48          411                307          276     1,042 
                   ==============  ===========  =================  ===========  ======== 
 
 Net book value 
 At 30 June 
  2022                          -           24                  1           73        98 
 At 30 June 2021                -           64                  4          171       239 
                   ==============  ===========  =================  ===========  ======== 
 
 

Charge over assets

A fixed and floating charge is held by Barclays Bank which covers all the property and undertakings of the company against the provision of any loan, debenture or other bank liability.

Notes to the financial statements (continued)

Property, plant and equipment (continued)

COMPANY

 
                        Leasehold property     Computer   Office equipment     Total 
                              improvements    equipment 
                                   GBP'000      GBP'000            GBP'000   GBP'000 
 Cost 
 At 1 July 2020                         48          359                106       513 
 Additions                               -           39                  -        39 
 Disposals                               -            -                  -         - 
                       -------------------  -----------  -----------------  -------- 
 
 At 30 June 2021                        48          398                106       552 
 
 Additions                               -           32                  -        32 
 Disposals                               -            -                  -         - 
                       -------------------  -----------  -----------------  -------- 
 
 At 30 June 2022                        48          430                106       584 
                       ===================  ===========  =================  ======== 
 
 Depreciation 
 At 1 July 2020                         48          271                106       425 
 Charge for the year                     -           63                  -        63 
 Disposals                               -            -                  -         - 
                       -------------------  -----------  -----------------  -------- 
 
 At 30 June 2021                        48          334                106       488 
 
 Charge for the year                     -           72                  -        72 
 Disposals                               -            -                  -         - 
                       -------------------  -----------  -----------------  -------- 
 
 At 30 June 2022                        48          406                106       560 
                       ===================  ===========  =================  ======== 
 
 Net book value 
 At 30 June 2022                         -           24                  -        24 
 At 30 June 2021                         -           64                  -        64 
                       ===================  ===========  =================  ======== 
 
 
   11.          Goodwill 

GROUP

 
                           GBP'000 
 
 At 1 July 2020              1,002 
 Exchange differences        (132) 
 
 At 30 June 2021               870 
                          ======== 
 
 Exchange differences          118 
 
 
 At 30 June 2022               988 
                          ======== 
 
 

The goodwill carried in the balance sheet is attributable to InvestorsHub.com Inc.

Impairment testing - InvestorsHub.com Inc .

The Group tests goodwill annually for impairment. During the year, impairment tests were undertaken over the goodwill of InvestorsHub.com Inc. which is considered to be a single CGU. The recoverable amount was determined using a value in use calculation based upon management forecasts for the trading results for the three and a half years ending 31 December 2025.

A discount rate of 10% has been used for this exercise based on the estimated likely rate of debt financing for the company. The key assumptions utilised within the forecast model relate to the level of future sales. Increases have been estimated at between 0% and 5%. The closing exchange rate of $1.25/GBP has been used (2021: $1.42/GBP). The value in use calculations indicate that InvestorsHub.com Inc. has a recoverable amount of GBP1,000,000 compared to an investment by ADVFN of GBP1,651,000 and a goodwill carrying value of GBP988,000. The Company's investment in InvestorsHub.com has been impaired, however goodwill has not been impaired based on the recoverable amount being greater than the carrying value.

Notes to the financial statements (continued)

   12.          Other intangible assets 

GROUP

 
                    Licences     Brands &            Website  Mobile application  Software  Crypto-currencies    Total 
                               subscriber        development 
                                    lists              costs 
                     GBP'000      GBP'000            GBP'000             GBP'000   GBP'000            GBP'000  GBP'000 
Cost or valuation 
 
At 1 July 2020           162        2,129              2,181                  10       386                  -    4,868 
Additions                  -            -                294                   -        91                  -      385 
Disposals                  -            -                  -                   -         -                  - 
                    --------  -----------  -----------------  ------------------  --------  -----------------  ------- 
 
At 30 June 
 2021                    162        2,129              2,475                  10       477                  -    5,253 
Additions                  -            -                 74                   -        39                  1      114 
Disposals                  -            -                  -                   -     (296)                  -    (296) 
                    --------  -----------  -----------------  ------------------  --------  -----------------  ------- 
 
At 30 June 
 2022                    162        2,129              2,549                  10       220                  1    5,071 
                    ========  ===========  =================  ==================  ========  =================  ======= 
 
Amortisation 
 
At 1 July 2020           162        2,129              1,076                  10        63                  -    3,440 
Charge for 
 the year                  -            -                232                   -        19                  -      251 
Disposals                  -            -                  -                   -         -                  -        - 
                    --------  -----------  -----------------  ------------------  --------  -----------------  ------- 
 
At 30 June 
 2021                    162        2,129              1,308                  10        82                  -    3,691 
Charge for 
 the year                  -            -                223                   -        33                  -      256 
Disposals                  -            -                  -                   -         -                  -        - 
                    --------  -----------  -----------------  ------------------  --------  -----------------  ------- 
 
At 30 June 
 2022                    162        2,129              1,531                  10       115                  -    3,947 
                    ========  ===========  =================  ==================  ========  =================  ======= 
 
Net book value 
At 30 June 
 2022                      -            -              1,018                   -       105                  1    1,124 
At 30 June 
 2021                      -            -              1,167                   -       395                  -    1,562 
                    ========  ===========  =================  ==================  ========  =================  ======= 
 
 

All additions are internally generated by capitalisation of development work on websites and software projects.

The directors are satisfied that no indication of impairment exists in respect of these assets.

Notes to the financial statements (continued)

Other intangible assets (continued)

COMPANY

 
                     Licenses   Mobile application   Website development   Crypto-currencies     Total 
                      GBP'000              GBP'000               GBP'000             GBP'000   GBP'000 
 Cost 
 
 At 1 July 2020           100                   10                 1,768                   -     1,878 
 Additions                  -                    -                   294                   -       294 
 Disposals                  -                    -                     -                   -         - 
                    ---------  -------------------  --------------------  ------------------  -------- 
 
 At 30 June 2021          100                   10                 2,062                   -     2,172 
 Additions                  -                    -                    74                   1        75 
 Disposals                  -                    -                     -                   -         - 
                    ---------  -------------------  --------------------  ------------------  -------- 
 
 At 30 June 2022          100                   10                 2,136                   1     2,247 
                    =========  ===================  ====================  ==================  ======== 
 
 Amortisation 
 
 At 1 July 2020            90                   10                 1,456                   -     1,556 
 Charge for the 
  year                     10                    -                   224                   -       234 
 Disposals                  -                    -                     -                   -         - 
                    ---------  -------------------  --------------------  ------------------  -------- 
 
 At 30 June 2021          100                   10                 1,680                   -     1,790 
 Charge for the 
  year                      -                    -                   223                   -       223 
 Disposals                  -                    -                     -                   -         - 
                    ---------  -------------------  --------------------  ------------------  -------- 
 
 At 30 June 2022          100                   10                 1,903                   -     2,013 
                    =========  ===================  ====================  ==================  ======== 
 
 Net book value 
 At 30 June 
  2022                      -                    -                   233                   1       234 
 At 30 June 2021            -                    -                   382                   -       382 
                    ---------  -------------------  --------------------  ------------------  -------- 
 
 

All additions are internally generated by capitalisation of development work on websites.

The directors are satisfied that no indication of impairment exists in respect of these assets.

Notes to the financial statements (continued)

   13.          Subsidiary companies consolidated in these accounts 

COMPANY

 
                     Subsidiaries 
                          GBP'000 
 
  At 1 July 2020            2,276 
  Impairment                    - 
                     ------------ 
 
  30 June 2021              2,276 
                     ============ 
 
  Impairment              (1,275) 
 
  30 June 2022              1,001 
                     ============ 
 
 

The Group tests investments annually for impairment. During the year, impairment tests were undertaken over the investments of InvestorsHub.com Inc. and All IPO Plc which are each considered to be a single CGU. The recoverable amount was determined using a value in use calculation based upon management forecasts for the trading results for the three years ending 30 June 2023 and extended by another 2 years without growth. This 5-year forecast is then extended to perpetuity.

A discount rate of 10% has been used for this exercise based on the estimated likely rate of debt financing for the company. The key assumptions utilised within the forecast model relate to the level of future sales. Increases have been estimated at between 0% and 5%. The closing exchange rate of $1.25/GBP has been used (2021: $1.42/GBP). The value in use calculations indicate that InvestorsHub.com Inc. has a recoverable amount of GBP1,000,000 compared to an investment by ADVFN of GBP1,651,000. The Company's investment in InvestorsHub.com has been impaired to the expected recoverable amount. The value in use calculations indicate that the value of use in All IPO is minimal and therefore the full investment, to the value of GBP624,000, has been impaired.

 
                                Country of     % interest   Principal activity     Registered address 
                               incorporation       in 
                                                ordinary 
                                                 shares 
                                              30 June 2022 
 
  Cupid Bay Limited             England &        100.00     Internet dating        Suite 28 Ongar 
                                   Wales                     web site               Business Centre, 
                                                                                    The Gables, Ongar, 
                                                                                    England, CM5 0GA 
                                England &        100.00     Dormant                As Cupid Bay Limited 
  Fotothing Limited                Wales 
  NA Data Inc.                     USA           100.00     Office services        P.O. Box 780 
                                                                                    Harrisonville 
                                                                                    Mo. 64701 
  InvestorsHub.com                 USA           100.00     Financial information  As NA Data Inc. 
   Inc.                                                      web site 
  ADVFN Brazil Limited          England &        100.00     Dormant                As Cupid Bay Limited 
                                   Wales 
  E O Management Limited        England &        100.00     Dormant                As Cupid Bay Limited 
                                   Wales 
  Throgmorton Street            England &        100.00     Dormant                As Cupid Bay Limited 
   Capital Limited                 Wales 
                                England &        100.00     Dormant                As Cupid Bay Limited 
  Advessel Limited                 Wales 
  All IPO Plc                 England &          100.00     Brokerage and          As Cupid Bay Limited 
                               Wales                         software development 
                                England &        100.00     Dormant                As Cupid Bay Limited 
  Writer Pub Limited               Wales 
  MJAC InvestorsHub             England &        100.00     Dormant                As Cupid Bay Limited 
   International Conferences       Wales 
   Ltd 
 
 

The subsidiary companies Cupid Bay Limited and MJAC InvestorsHub International Conferences Ltd are exempt from audit under s479A of the Companies Act 2006.

Notes to the financial statements (continued)

   14.          Deferred tax 

GROUP

The following are the major deferred tax liabilities and assets recognised by the Group and the movements thereon during the current and prior periods:

 
                              Intangible        Website   US temporary    UK tax     Total 
                                  assets    development    differences    losses 
                                             & software 
                                                  costs 
                                 GBP'000        GBP'000        GBP'000   GBP'000   GBP'000 
 
 At 30 June 2020                      80          (271)           (80)       271         - 
 Credit/(charge) to profit 
  or loss                           (80)           (32)             80        32         - 
 
 At 30 June 2021                       -          (303)                      303         - 
 Credit/(charge) to profit 
  or loss                              -           (84)              -        84         - 
 
 At 30 June 2022                       -          (387)              -       387         - 
                             ===========  =============  =============  ========  ======== 
 

Deferred tax in ADVFN Plc amounted to GBP57,800 and in subsidiary companies amounted to GBP26,000 in All IPO Plc. The deferred tax liability for the temporary difference has been recognised at 25% as per the future tax rate which has increased the deferred tax liability by GBP21,000. The deferred tax asset for the losses has also been recognised at 25% as per the future tax rate.

Certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred tax balances, after offset, for the purposes of financial reporting:

 
                                                        2022      2021 
                                                     GBP'000   GBP'000 
 
 Deferred tax liabilities 
 
        *    Website development & software costs       (84)     (303) 
 
        *    US temporary differences                      -        80 
 Deferred tax assets 
 
        *    Intangible assets                             -      (80) 
 
        *    UK tax losses                                84       303 
 
                                                           -         - 
 
 

At the balance sheet date the Group had unused tax losses of GBP5,340,000 (2021: GBP5,175,000) available for offset against future profits. The Group has surrendered losses of GBP169,000 for the R&D tax credit for the year. A deferred tax asset has been recognised in respect of GBP338,000 (2021: GBP1,212,000) of such losses, as these losses would offset any taxable profits arising as a result of the unwinding of the deferred tax liability in respect of website development costs. No deferred tax asset has been recognised in respect of the remaining GBP5,002,000 (2021: GBP3,963,000) due to the unpredictability of future profit streams. Substantially all of the losses may be carried forward indefinitely.

COMPANY

The Deferred Tax Liability in the ADVFN company is due to the temporary difference between the accounting base and tax base for the Intangible - Website development, temporary difference GBP232,000 and deferred tax liability GBP58,000

Notes to the financial statements (continued)

   15.          Trade and other receivables 

GROUP

 
                                                      2022      2021 
                                                   GBP'000   GBP'000 
 
 Non-current assets 
 Other receivables                                      26       110 
                                                  ========  ======== 
 
 
 Current assets 
 Trade receivables - gross                             320       416 
 Less: provision for impairment - expected loss       (18)      (10) 
 Less: provision for impairment - specific             (2)       (7) 
 Trade receivables - net                               300       399 
 Prepayments and accrued income                        130       132 
 Other receivables                                       6         5 
 Recoverable corporation tax                            24        10 
 
 Total trade and other receivables                     460       546 
 
 

The ageing of trade receivables is as follows:

 
                                     2022      2021 
                                  GBP'000   GBP'000 
 
 Not past due and not impaired        222       325 
 Past due but not impaired             96        84 
 Past due and fully impaired            2         7 
                                 --------  -------- 
 Trade receivables - gross            320       416 
 
 
 
 Not past due and not impaired     222    325 
 Past due but not impaired: 
 Up to 30 days                       -      5 
 31 to 60 days                      12     57 
 61 to 90 days                      30      2 
 Over 90 days                       54     20 
                                 -----  ----- 
                                    96     84 
 Receivables not impaired          318    409 
 Past due but fully impaired         2      7 
 Less impairment provision        (20)   (17) 
                                 -----  ----- 
 Trade receivables - net           300    399 
                                 =====  ===== 
 
 

Provision for impairment:

 
                            2022      2021 
                         GBP'000   GBP'000 
 
 Opening                      17        29 
 Movement in the year          3      (12) 
                        --------  -------- 
 Closing                      20        17 
                        ========  ======== 
 
 

The Directors consider that the carrying amount of trade and other receivables in both the Group and Company is approximately equal to their fair value.

Notes to the financial statements (continued)

COMPANY

 
                                                      2022      2021 
                                                   GBP'000   GBP'000 
 
 Non-current assets 
 Other receivables                                      24       108 
                                                  ========  ======== 
 
 
 Current assets 
 Trade receivables - gross                             175       180 
 Less: provision for impairment - expected loss        (8)       (6) 
 Less: provision for impairment - specific             (2)       (5) 
 Trade receivables - net                               165       169 
 Prepayments and accrued income                         97       102 
 Other receivables                                       -         - 
 Recoverable corporation tax                            24         - 
 Amounts owed by Group undertakings                    500       438 
 
 Total trade and other receivables                     786       709 
 
 

The ageing of trade receivables is as follows:

 
                                     2022      2021 
                                  GBP'000   GBP'000 
 
 Not past due and not impaired        133       120 
 Past due but not impaired             40        55 
 Past due and fully impaired            2         5 
                                 --------  -------- 
 Trade receivables - gross            175       180 
 
 
 
 Not past due and not impaired     133    120 
 Past due but not impaired: 
 Up to 30 days                       -      2 
 31 to 60 days                       5     37 
 61 to 90 days                      14      2 
 Over 90 days                       21     14 
                                 -----  ----- 
                                    40     55 
 Receivables not impaired          173    175 
 Past due and fully impaired         2      5 
 Less impairment provision        (10)   (11) 
                                 -----  ----- 
 Trade receivables - net           165    169 
                                 =====  ===== 
 
 

Provision for impairment:

 
                            2022      2021 
                         GBP'000   GBP'000 
 
 Opening                      11        11 
 Movement in the year        (1)         - 
                        --------  -------- 
 Closing                      10        11 
                        ========  ======== 
 
 

The Directors consider that the carrying amount of trade and other receivables in both the Group and Company is approximately equal to their fair value.

Notes to the financial statements (continued)

   16.          Credit quality of financial assets 

Under IFRS 9 Financial Instruments the allowance account for doubtful debts is calculated using an Expected Credit Loss (ECL) model which takes a view on the lifetime expected credit loss to be suffered by the current receivables. On that basis the allocation to the allowance account for receivables at 30 June 2022 is calculated using the percentage credit loss expectations shown.

GROUP

As of 30 June 2022, trade receivables of GBP96,000 (2021: GBP84,000) were past due but not impaired (see note 15). These relate to a number of independent customers for whom there is no recent history of default.

 
 Expected credit loss provision               2022                 2021 
                                    GBP'000       %   GBP'000   GBP'000 
 
 Not past due                           222    1.00         2       325 
 Not more than 3 months                  42    5.00         2        64 
 More than 3 months but not more 
  than 6 months                          21   15.00         3        11 
 More than 6 months but not more 
  than 1 year                            24   25.00         6         9 
 More than 1 year                         9   50.00         5         - 
 
                                        318                18       409 
                                   ========  ======  ========  ======== 
 
 

Impaired receivables allowance account

 
                                2022      2021 
 Specific provision          GBP'000   GBP'000 
 
 At 1 July                         7        17 
 Utilised during the year       (12)      (26) 
 Created during the year           7        16 
 
 At 30 June                        2         7 
                            ========  ======== 
 
 
 

The carrying amount of the Group's trade receivables is denominated in the following currencies:

 
                 2022      2021 
              GBP'000   GBP'000 
 
 Sterling         135       104 
 Euro               1         1 
 US dollar        164       294 
 
                  300       399 
             ========  ======== 
 
 

Notes to the financial statements (continued)

Credit quality of financial assets (continued)

COMPANY

As of 30 June 2022, trade receivables of GBP40,000 (2021: GBP55,000) were past due but not impaired (see note 15). These relate to a number of independent customers for whom there is no recent history of default.

 
 Expected credit loss provision               2022                 2021 
                                    GBP'000       %   GBP'000   GBP'000 
 
 Not past due                           133    1.00         1       120 
 Not more than 3 months                  19    5.00         1        41 
 More than 3 months but not more 
  than 6 months                           5   15.00         1        10 
 More than 6 months but not more 
  than 1 year                            13   25.00         3         4 
 More than 1 year                         3   50.00         2         - 
 
                                        173                 8       175 
                                   ========  ======  ========  ======== 
 
 

Impaired receivables allowance account

 
                                2022      2021 
 Specific provision          GBP'000   GBP'000 
 
 At 1 July                         5         6 
 Utilised during the year       (10)      (16) 
 Created during the year           7        15 
 
 At 30 June                        2         5 
                            ========  ======== 
 

The carrying amount of the Company's trade receivables is denominated in the following currencies:

 
                  2022      2021 
               GBP'000   GBP'000 
 
 Sterling          122       104 
 Euro                1         1 
 US dollar          42        64 
 
                   165       169 
              ========  ======== 
 
 

Notes to the financial statements (continued)

   17.          Interest bearing borrowings 

Bank loans

As a result of the COVID-19 pandemic the Directors considered it prudent to take further steps to ensure that short term cashflow did not present a problem for the Group. Short term finance offered under the Business Bounce Back loan scheme and the US equivalent has provided an additional layer of protection whilst the economy rides out the effects of the pandemic. The US loan was drawn down on the basis that the loan would be over 2 years at 1% interest with a payment free period. However, this loan has now been 'forgiven' by the US Government and has become a grant, The UK loan is charged at 2.5% over 6 years with an interest and payment free period for the first 12 months.

Lease liabilities

The carrying value of the lease liabilities is included in the borrowing classification. There are no leases carried in the Company. For further details please see Note 22.

GROUP

 
                        2022     2021 
                     GBP'000  GBP'000 
 Non-current 
 Bank loans               41       54 
 Lease liability           -       87 
                     -------  ------- 
 
                          41      141 
 
 Brought forward         141      238 
 Cash flows            (103)    (106) 
 Interest and fees         3        9 
                     -------  ------- 
 
 As at 30 June            41      141 
                     =======  ======= 
 
 Current 
 Bank loans               13       13 
 Lease liability          87      103 
                     -------  ------- 
 
                         100      116 
 
 Brought forward         116      268 
 Cash flows             (25)    (160) 
 Interest and fees         9        8 
                     -------  ------- 
 
 As at 30 June           100      116 
                     =======  ======= 
 

Notes to the financial statements (continued)

Interest bearing borrowings (continued)

COMPANY

 
                        2022     2021 
                     GBP'000  GBP'000 
 Non-current 
 Bank loans               41       54 
 
 
 
 Brought forward          54       39 
 Cash flows             (14)       15 
 Interest and fees         1        - 
                     -------  ------- 
 
 As at 30 June            41       54 
                     =======  ======= 
 
 Current 
 Bank loans               13       13 
 
 
 
 Brought forward           -       11 
 Cash flows                -        2 
 Interest and fees         -        - 
                     -------  ------- 
 
 As at 30 June            13       13 
                     =======  ======= 
 

Changes in liabilities arising from financing activities

GROUP

 
                          2021   Cash      Loan     2022 
                       GBP'000  flows  forgiven  GBP'000 
 
 Long term borrowing        67   (13)         -       54 
 
 Lease liabilities         190  (103)         -       87 
 
 

COMPANY

 
                          2021   Cash     New     2022 
                       GBP'000  flows  leases  GBP'000 
 
 Long term borrowing        67   (13)       -       54 
                       =======  =====  ======  ======= 
 
 

Notes to the financial statements (continued)

   18.          Financial instruments 

GROUP

 
 Categories of financial instrument                         2022      2021 
                                                         GBP'000   GBP'000 
 Non-current 
 Trade and other receivables - at amortised 
  cost                                                        26       110 
                                                        ========  ======== 
 
 Current 
 Trade and other receivables - at amortised 
  cost                                                       306       404 
 Trade and other receivables - non-financial 
  assets                                                     130       142 
                                                        --------  -------- 
 
                                                             436       546 
                                                        ========  ======== 
 
 Cash and cash equivalents                                   915     1,939 
                                                        ========  ======== 
 
 Financial assets                                          1,221     2,343 
                                                        ========  ======== 
 
 Non-current 
 Borrowings                                                   41       141 
                                                        ========  ======== 
 
 Current 
 Borrowings                                                  100       116 
 
 Trade and other payables - at amortised cost              1,184     1,002 
 Trade and other payables - non-financial liabilities        963       884 
                                                        --------  -------- 
 
                                                           2,147     1,886 
                                                        ========  ======== 
 
 Financial liabilities                                     1,284     1,118 
                                                        ========  ======== 
 
 

COMPANY

 
 Categories of financial instrument                         2022      2021 
                                                         GBP'000   GBP'000 
 Non-current 
 Trade and other receivables - at amortised 
  cost                                                        24       108 
                                                        ========  ======== 
 
 Current 
 Trade and other receivables - at amortised 
  cost                                                       848       607 
 Trade and other receivables - non-financial 
  assets                                                      96       102 
                                                        --------  -------- 
 
                                                             944       709 
                                                        ========  ======== 
 
 Cash and cash equivalents                                   529     1,650 
                                                        ========  ======== 
 
 Financial assets                                          1,376     2,257 
                                                        ========  ======== 
 
 Non-current 
 Borrowings                                                   41        54 
                                                        ========  ======== 
 
 Current 
 Borrowings                                                   13        13 
 
 Trade and other payables - at amortised cost              1,411     1,310 
 Trade and other payables - non financial liabilities        837       779 
                                                        --------  -------- 
 
                                                           2,248     2,089 
                                                        ========  ======== 
 
 Financial liabilities                                     1,424     1,323 
                                                        ========  ======== 
 
 

Notes to the financial statements (continued)

   19.          Trade and other payables 

GROUP

 
                                            2022      2021 
                                         GBP'000   GBP'000 
 
 Trade payables                              849       811 
 Social security and other taxes             191       179 
 Accrued expenses and deferred income      1,074       874 
 Other payables                               34        22 
 Amounts owed to related parties               -         - 
 
                                           2,148     1,886 
                                        ========  ======== 
 
 

COMPANY

 
                                       2022     2021 
                                    GBP'000  GBP'000 
 
  Trade payables                        801      790 
  Other tax and social security         166      160 
  Accruals and deferred 
   income                               941      765 
  Other payables                          8       16 
  Amounts owed to related                 -        - 
   parties 
  Amounts owed to Group 
   undertakings                         332      358 
                                    -------  ------- 
 
                                      2,248    2,089 
                                    =======  ======= 
 
 
   20.          Share capital 
 
 GROUP AND COMPANY 
                                                  Shares   GBP'000 
 Issued, called up and fully paid Ordinary 
  shares of GBP0.002 each 
 
 At 30 June 2021                              26,115,319        52 
 Share issued                                    200,000         1 
 
 At 30 June 2022                              26,315,319        53 
                                             ===========  ======== 
 
 
 

Shares issued

On 29 April 2021 Mr Clement Chambers exercised 40,000 ordinary shares of at exercise price of 31.25p per share and 160,000 ordinary s hares at an exercise price of 43.75p per share. The total paid was GBP 82,500.

Share price

The market value of the shares at 30 June 202 2 was 51.00p (202 1 ; 65.50p). The range during the year was 49.00p to 87.20p (202 1 ; 11.50p to 75.50p). Shareholders are entitled to one vote per Ordinary share held and dividends will be apportioned and paid proportionately to the amounts paid up on the Ordinary shares held.

Notes to the financial statements (continued)

   21.          Share based payments 

GROUP AND COMPANY

The Group uses share options as remuneration for services of employees. The fair value is expensed over the remaining vesting period.

The fair value of options granted after 7 November 2002 has been arrived at using the Black-Scholes model. The assumptions inherent in the use of this model are as follows:

   --    The option life is assumed to be at the end of the allowed period 

-- There are no vesting conditions which apply to the share options/warrants other than continued service up

to 3       years. 
   --    No variables change during the life of the option (e.g. dividend yield must be zero). 

-- Volatility has been calculated over the 3 years prior to the grant date by reference to the daily share price.

Details of the number of share options and the weighted average exercise price (WAEP) outstanding during the year are as follows:

 
                                                    2022 WAEP 
 
                                              Number     Price (GBP) 
 
 Outstanding at the beginning of the year    1,751,473        0.4100 
 Granted during the year                             -             - 
 Exercised during the year                   (200,000)        0.4125 
 Expired during the year                     (200,000)        0.7950 
                                            ----------  ------------ 
 
 Outstanding at the year end                 1,351,473        0.4437 
                                            ==========  ============ 
 
 Exercisable at the year end                 1,351,473        0.4437 
                                            ==========  ============ 
 
 
                                                     2021 WAEP 
 
                                               Number      Price (GBP) 
 
 Outstanding at the beginning of the year      2,162,946        0.7740 
 Repriced during the year                    (1,222,946)        0.7740 
                                               1,222,946        0.1400 
 Granted during the year                               -             - 
 Exercised during the year                     (411,473)        0.1400 
 Expired during the year                               -             - 
                                            ------------  ------------ 
 
 Outstanding at the year end                   1,751,473        0.4100 
                                            ============  ============ 
 
 Exercisable at the year end                   1,751,473        0.4100 
                                            ============  ============ 
 
 

Notes to the financial statements (continued)

Share based payments (continued)

The options outstanding at the year-end are set out below:

 
 Expiry date       Exercise                       2022                        2021 
                      Price                 Share     Remaining         Share     Remaining 
                      (GBP)               options    life (years)     options    life (years) 
 10 year expiry 
 31 December 
  2022             0.1400     Options      80,000        0.5           80,000         2 
 31 December 
  2022             0.1400     Options      80,000        0.5           80,000         2 
 31 December 
  2022             0.1400     Options     120,000        0.5          120,000         2 
 31 December 
  2022             0.1400     Options      31,473        0.5           31,473         2 
 12 December 
  2024             0.1400     Options     500,000         2           500,000         4 
 12 December 
  2024             0.7950     Options     300,000         2           500,000         4 
 24 November 
  2027             0.4750     Options      50,000         4            50,000         6 
 24 November 
  2027             1.0000     Options      50,000         4            50,000         6 
 7 year expiry 
 12 December 
  2024             0.4375     Options      60,000         2           220,000         4 
 12 December 
  2024             0.3125     Options      80,000         2           120,000         4 
 
                                        1,351,473         2         1,751,473         6 
                                       ==========                  ========== 
 
 

The total expense recognised during the year by the Group, for all schemes, was GBPnil (2021: GBP43,000).

Notes to the financial statements (continued)

   22.          Lease commitments 

Property, plant and equipment comprises owned and leased assets.

GROUP

 
                                                   2022      2021 
                                                GBP'000   GBP'000 
 
 Property, plant and equipment - owned               25        58 
 Right-of-use assets except for investment 
  property                                           73       172 
                                               --------  -------- 
                                                     98       230 
 Right-of-use assets 
 The group leases office buildings: 
 Balance at 1 July                                  171       272 
 Additions in the year                                -         - 
 Depreciation charge for the year                  (98)     (101) 
                                               --------  -------- 
 Balance at 30 June                                  73       171 
 
 Lease Liability 
 Maturity analysis - contractual discounted 
  cash flows 
 Within one year                                     87       103 
 Two to five years                                    -        87 
 Over five years                                      -         - 
                                               --------  -------- 
 Total lease liabilities at 30 June                  87       190 
                                               --------  -------- 
 
 
 
                                                2022      2021 
                                             GBP'000   GBP'000 
 Lease liabilities per the balance sheet 
 As at 30 June 
 Current                                          87       103 
 Non-current                                       -        87 
                                            --------  -------- 
                                                  87       190 
                                            --------  -------- 
 
 Amounts recognised in profit or loss 
 Interest on lease liabilities                    11        18 
 
 Amounts recognized in the statement of 
  cashflows 
 Total cash outflow for leases                   103       100 
 
 

Notes to the financial statements (continued)

Lease commitments (continued)

The following payments are due to be made on operating lease commitments which are all leases on office accommodation:

 
 Land & buildings        2022      2021 
                      GBP'000   GBP'000 
 
 Within one year           90       113 
 Two to five years          -        90 
 Over five years            -         - 
 
                           90       203 
                     ========  ======== 
 
 

When measuring lease liabilities, the Group discounted lease payments using its incremental borrowing rate at 1 July 2022. The weighted average rate applied is 7.5%.

COMPANY

At the reporting date ADVFN Plc company does not carry any reportable leases. This results from:

   --    The closure of the Throgmorton Street offices during early 2020 

-- Taking the exemption under IFRS 16 for the Ongar premises which allows all leases of less than 12 months to be excluded.

During the year to 30 June 2022 the Company did not renew leases on office premises.

Notes to the financial statements (continued)

   23.          Financial risk management 

The Group and Company's activities expose it to a variety of financial risks: market risk (primarily foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. This year the Group and Company are also exposed to global inflation risks. All companies within the group apply the same risk management programme, overall this focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance. Risk management is carried out by the Board and their policies are outlined below.

   a)    Market risk 

Foreign exchange risk

The Group is exposed to translation and transaction foreign exchange risk as it operates within the USA and other countries around the world and therefore transactions are denominated in Sterling, Euro, US Dollars and other currencies. The Group policy is to try and match the timing of the settlement of sales and purchase invoices so as to eliminate, as far as possible, currency exposure. During the year, the weakening of Sterling has decreased the impact of movements in US Dollars.

The Group does not currently hedge any transactions and therefore there are no open forward contracts. Foreign exchange differences on retranslation of foreign currency monetary assets and liabilities are taken to the income statement.

GROUP

The carrying value of the Group's foreign currency denominated assets and liabilities are set out below:

 
                            2022                    2021 
                     Assets   Liabilities    Assets   Liabilities 
                    GBP'000       GBP'000   GBP'000       GBP'000 
 
 US Dollars           1,448           468     1,802           450 
 Euros                   28            59        51            19 
 Yen                     18             -        14             - 
 Other                    -            11         -             2 
 
                      1,494           538     1,867           471 
                   ========  ============  ========  ============ 
 
 

COMPANY

The carrying value of the Company's foreign currency denominated assets and liabilities are set out below:

 
                            2022                    2021 
                     Assets   Liabilities    Assets   Liabilities 
                    GBP'000       GBP'000   GBP'000       GBP'000 
 
 US Dollars             726           199       337           133 
 Euros                   28            59        51            19 
 Yen                     18             -        14             - 
 Other                    -            11         -             2 
 
                        772           269       402           154 
                   ========  ============  ========  ============ 
 
 

Notes to the financial statements (continued)

Financial risk management (continued)

Foreign exchange risk (continued)

The majority of the group's financial assets are held in Sterling but movements in the exchange rate of the US Dollar and the Euro against Sterling have an impact on both the result for the year and equity. The Group considers its most significant exposure is to movements in the US Dollar.

Sensitivity to reasonably possible movements in the US Dollar exchange rate can be measured on the basis that all other variables remain constant. The effect on profit and equity of strengthening or weakening of the US Dollar in relation to sterling by 10% would result in a movement of:

Group: +/-GBP50,000 (2021: +/-GBP148,000).

Company: +/-GBP57,000 (2021: +/-GBP41,000).

Interest rate risk

The Group carries borrowings which are at fixed interest rates and as a result the directors consider that there is no significant interest rate risk.

   b)    Credit risk 

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. In order to minimise this risk the Group endeavours only to deal with companies which are demonstrably creditworthy and this, together with the aggregate financial exposure, is continuously monitored. The maximum exposure to credit risk is the value of the outstanding amount:

Group: GBP1,325,000 (2021: GBP2,453,000).

   Company:   GBP1,473,000 (2021: GBP2,365,000). 

Provision of services by members of the Group results in trade receivables which the management consider to be of low risk, other receivables are likewise considered to be low risk. The management do not consider that there is any concentration of risk within either trade or other receivables. The receivables are due from companies whose credit performance is constantly monitored and, if an amount becomes overdue, immediate action is taken to obtain payment. The population of clients is diverse and this ensures no concentration of risk with any specific customer. A default is assumed and actioned when the Directors believe it will not be possible to obtain payment for the service supplied. This is not generally measured exclusively on the overdue period but judged on the basis of prior experience and the dialogue with the customer that follows the recognition of an overdue payment. For additional information on receivables see note 15.

Credit risk on cash and cash equivalents is considered to be small as the counterparties are all substantial banks with high credit ratings. The maximum exposure is the amount of the deposit.

   c)    Liquidity risk 

The Group currently holds cash balances in Sterling, US Dollars and Euros to provide funding for normal trading activity. The Group also has access to additional equity funding and, for short term flexibility, overdraft facilities would be arranged with the Group's bankers. Trade and other payables are monitored as part of normal management routine. Liabilities are disclosed as follows:

Notes to the financial statements (continued)

Financial risk management (continued)

Liquidity risk (continued)

GROUP

 
 2022                               Within       One to        Two to   Over five 
                                    1 year    two years    five years       years 
                                   GBP'000      GBP'000       GBP'000     GBP'000 
 
 Trade payables                        849            -             -           - 
 Accruals                              303            -             -           - 
 Other payables                         32            -             -           - 
 Amounts owed to related parties         -            -             -           - 
 
 
 
 2021                               Within       One to        Two to          Over 
                                    1 year    two years    five years    five years 
                                   GBP'000      GBP'000       GBP'000       GBP'000 
 
 Trade payables                        811            -             -             - 
 Accruals                              168            -             -             - 
 Other payables                         22            -             -             - 
 Amounts owed to related parties         -            -             -             - 
 
 

COMPANY

 
 2022                                  Within       One to        Two to   Over five 
                                       1 year    two years    five years       years 
                                      GBP'000      GBP'000       GBP'000     GBP'000 
 
 Trade payables                           801            -             -           - 
 Accruals                                 272            -             -           - 
 Other payables                             8            -             -           - 
 Amounts owed to related parties            -            -             -           - 
 Amounts owed to Group undertakings       332            -             -           - 
 
 
 
 2021                                  Within       One to        Two to          Over 
                                       1 year    two years    five years    five years 
                                      GBP'000      GBP'000       GBP'000       GBP'000 
 
 Trade payables                           790            -             -             - 
 Accruals                                 146            -             -             - 
 Other payables                            16            -             -             - 
 Amounts owed to related parties            -            -             -             - 
 Amounts owed to Group undertakings       358            -             -             - 
 
 
   d)    Capital risk management 

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in a volatile and tight credit economy.

The Group will also seek to minimise the cost of capital and attempt to optimise the capital structure, which currently means maintaining equity funding and keeping debt levels to insignificant amounts of lease funding. Share capital and premium together amount to GBP358,000.

During the year, the Group paid a dividend to shareholders of GBP589,000 as part of its capital strategy to provide returns to shareholders and benefits for other members. The Group continues to plan for growth, and it will continue to be important to maintain the Group's credit rating and ability to borrow should acquisition targets become available.

Capital for further development of the Group's activities will, where possible, be achieved by share issues and not by carrying significant debt.

Notes to the financial statements (continued)

Financial risk management (continued)

   e)    Inflation risk 

Inflation risk refers to the risks posed to the Group due to rising inflation. This increase in inflation could lead to increasing costs and potentially decreasing revenue as companies seek to decrease their own costs. Management have considered these factors in preparing their going concern forecasts and will continue to monitor the level of expenses and revenue going forward.

   24.          Capital commitments 

GROUP AND COMPANY

At 30 June 2022 neither the Group nor the Company had any capital commitments (2021: GBPnil).

   25.          Related party transactions 

GROUP

Online Blockchain Plc is related by virtue of having common directors, M J Hodges and J B Mullins and as Online Blockchain Plc holds approximately 17.64% of the shares in the Company. Advertising recharges were paid to Online Blockchain Plc Group amounting to GBPnil (2021: GBP53,000). Online Blockchain Plc was owed GBPnil (2021: GBPNil) by ADVFN Plc at the balance sheet date.

The remuneration paid to Directors is disclosed on page 14 of the Directors' Report; there were no other related party transactions. Transactions with related parties were carried out on an arm's length basis.

COMPANY

Online Blockchain Plc is related by virtue of having common directors, M J Hodges, C H Chambers and J B Mullins and as Online Blockchain Plc holds approximately 17.64% of the shares in the company. Advertising recharges were paid to Online Blockchain Plc Group amounting to GBPnil (2021: GBP53,000). Online Blockchain Plc was owed GBPnil (2021: GBPNil) by ADVFN Plc at the balance sheet date.

The remuneration paid to Directors is disclosed on page 13 of the Directors' Report; there were no other related party transactions. Transactions with related parties were carried out on an arm's length basis.

   26.          Events after the balance sheet date 

There were no significant events to report after the balance sheet date.

   27.          Accounts 

Copies of these accounts are available from the Company'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.ADVFN.com

ENDS

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END

FR BKPBNABDDOBK

(END) Dow Jones Newswires

December 06, 2022 02:00 ET (07:00 GMT)

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