TIDMAFN

RNS Number : 9043R

ADVFN PLC

06 March 2023

6 March 2023

For immediate release

ADVFN PLC

("ADVFN" or the "Group")

Unaudited Interim Results for the Six Months Ended 31 December 2022

ADVFN today announces its unaudited interim results for the six months ended 31 December 2022 (the "Period").

Chief Executive's Statement

On behalf of the board of Directors, I am delighted to report that our recent fundraising has been a success. As announced in January, we raised GBP4.52 million through the Open Offer and which will provide us with the necessary resources to pursue our strategic objectives and drive growth.

We are grateful to our investors for their confidence in our ability to execute on our mission and deliver value to our customers. With this infusion of capital, we can invest in our business to drive growth and scale our operations to meet the demand for our product offerings.

Looking ahead, we have a positive outlook for the future. Our roadmap includes expanding our product portfolio, entering new geographic markets, and strengthening our partnerships with our key stakeholders. We are confident that these initiatives will drive further growth and establish our position as a leader in our industry.

Financial performance

The half-year financial report for the Period is in line with the statements made in the Open Offer document and our trading update. The changes in management, structure and employees disrupted our normal workflow during the Period and made it a challenge for the Company to meet its financial targets. However, the Company remains optimistic and with the Open Offer completed and the changes we are working on, we have confidence in our new team. The Company acknowledges that changes take time and appreciates the efforts being made by the team.

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

 
                        Six Months ended 31   Six Months ended 31 
                         December 2022         December 2021 
                        GBP'000               GBP'000 
                       --------------------  -------------------- 
 Revenue                3,061                 4,228 
                       --------------------  -------------------- 
 Profit / (loss) for 
  the period            ) 616)                202 
                       --------------------  -------------------- 
 Operating profit / 
  (loss)                (622)                 229 
                       --------------------  -------------------- 
 Profit per share - 
  basic (see note 3)    (2.36) p              0.77p 
                       --------------------  -------------------- 
 

The Board is not recommending a dividend.

Outlook

As we move forward into 2023, I am excited to share with you our plans to build new products and invest in our operations to drive growth and deliver value to our users and shareholders.

With the proceeds from our recent fundraising efforts, we will be able to accelerate our product development efforts and plan to bring innovative new solutions to market. Our R&D team is working tirelessly to identify emerging trends and technologies that will enable us to stay ahead of the curve and deliver the next generation of products and services.

We also plan to invest in our operations to improve our efficiency and scalability. This will involve upgrading our infrastructure, streamlining our processes, and investing in our people to ensure that we have the talent and capabilities to support our growth ambitions.

As we pursue these initiatives, we remain committed to maintaining a disciplined approach to capital allocation and managing our resources in a way that delivers the best returns for our shareholders. We will closely monitor our progress and adjust our strategy as necessary to ensure that we achieve good results.

In summary, we are confident that our focus on product innovation, operational excellence, and disciplined capital allocation will enable us to achieve our growth objectives and create long-term value for all our stakeholders.

We thank our shareholders for their continued support, and we look forward to providing further updates on our progress in the months ahead.

Amit Tauman

CEO

6 March 2023

For further information please contact:

 
 
           ADVFN plc 
            Amit Tauman (CEO)                +44 (0) 203 8794 460 
           Beaumont Cornish Limited 
            (Nominated Adviser) 
            Michael Cornish 
            Roland Cornish                           +44 (0) 207 628 3396 
           Peterhouse Capital Limited 
            (Broker) 
            Eran Zucker / Lucy Williams 
            / Rose Greensmith                        +44 (0) 207 469 0930 
 

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 Amit Tauman, Director.

A copy of this announcement will be available on the Group's website:

www.advfnplc.com

 
 Condensed interim consolidated income statement 
                                                       6 months    6 months   12 months 
                                                             to          to          to 
                                                         31 Dec      31 Dec     30 June 
                                                           2022        2021        2022 
                                                        GBP'000     GBP'000     GBP'000 
                                                      unaudited   unaudited     audited 
                                              Notes 
 
 Revenue                                                  3,061       4,228       7,848 
 Cost of sales                                            (196)       (162)       (374) 
                                                     ----------  ----------  ---------- 
 
 Gross profit                                             2,865       4,066       7,474 
 
 Amortisation of intangible assets                         (91)       (138)       (256) 
 Administrative expenses                                (3,390)     (3,699)     (7,176) 
 Administrative expenses - non-recurring 
  items                                                       -                 (1,420) 
 
 Total administrative expense                           (3,481)     (3,837)     (8,852) 
 
 Operating (loss)/profit                                  (616)         229     (1,378) 
 
 Finance expense                                            (6)        (27)        (14) 
 
 (Loss)/profit before tax                                 (622)         202     (1,392) 
 Taxation                                                                 -          24 
                                                     ----------  ----------  ---------- 
 
 (Loss)/profit for the period attributable 
  to shareholders of the parent                           (622)         202     (1,368) 
                                                     ==========  ==========  ========== 
 
 Earnings per share 
 Basic                                          3       (2.36p)       0.77p     (5.22p) 
 Diluted                                                (2.36p)       0.74p     (5.22p) 
 
 
 Condensed interim consolidated statement of comprehensive 
  income 
                                                      6 months    6 months   12 months 
                                                            to          to          to 
                                                        31 Dec      31 Dec     30 June 
                                                          2022        2021        2022 
                                                       GBP'000     GBP'000     GBP'000 
                                                     unaudited   unaudited     audited 
 
 (Loss)/profit for the period                            (622)         202     (1,368) 
 
 Other comprehensive income: 
 Items that will be reclassified 
  subsequently to profit or loss: 
 Exchange differences on translation 
  of foreign operations                                     41          50          73 
 
 Total other comprehensive income                           41          50          73 
                                                    ----------  ----------  ---------- 
 
 Total comprehensive (loss)/income 
  for the year attributable to shareholders 
  of the parent                                          (581)         252     (1,295) 
                                                    ==========  ==========  ========== 
 
 
 
 
 Condensed interim consolidated 
  balance sheet 
                                                 31 Dec      31 Dec   30 June 
                                                   2022        2021      2022 
                                                GBP'000     GBP'000   GBP'000 
                                              unaudited   unaudited   audited 
 Assets 
 Non-current assets 
 Property, plant and equipment (including 
  right of use assets)                               51         180        98 
 Goodwill and intangible assets                   2,054       2,513     2,112 
 Other receivables                                   26          25        26 
 
                                                  2,131       2,718     2,236 
 
 Current assets 
 Trade and other receivables                        368         725       460 
 Cash and cash equivalents                          647       2,032       915 
                                             ----------  ----------  -------- 
 
                                                  1,015       2,757     1,375 
 
 Total assets                                     3,146       5,475     3,611 
                                             ==========  ==========  ======== 
 
 Equity and liabilities 
 Equity 
 Issued capital                                      53          52        53 
 Share premium                                      305         223       305 
 Share based payments reserve                       341         343       341 
 Foreign exchange translation reserve               324         260       283 
 Retained earnings                                (282)       2,497       340 
                                             ----------  ----------  -------- 
 
                                                    741       3,375     1,322 
 
 Non-current liabilities 
 Borrowing - bank loans                              34          47        41 
 Lease liabilities                                    -          37         - 
                                             ----------  ----------  -------- 
 
                                                     34          84        41 
 
 Current liabilities 
 Trade and other payables                         2,314       1,902     2,148 
 Borrowing - bank loans                              13          13        13 
 Lease liabilities                                   44         101        87 
 
                                                  2,371       2,016     2,248 
 
 Total liabilities                                2,405       2,100     2,289 
                                             ----------  ----------  -------- 
 
 Total equity and liabilities                     3,146       5,475     3,611 
                                             ==========  ==========  ======== 
 
 

Condensed interim consolidated statement of changes in equity

 
                                          Share      Share      Share        Foreign    Retained      Total 
                                        capital    premium      based       exchange    earnings     equity 
                                                              payment    translation 
                                                              reserve        reserve 
                                        GBP'000    GBP'000    GBP'000        GBP'000     GBP'000    GBP'000 
 
 At 1 July 2021                              52        223        343            210       2,295      3,123 
 
 Profit for the period after 
  tax                                         -          -          -              -         202        202 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign operations           -          -          -             50           -         50 
                                      ---------  ---------  ---------  -------------  ----------  --------- 
 
 Total comprehensive income                   -          -          -             50         202        252 
                                      ---------  ---------  ---------  -------------  ----------  --------- 
 
 At 31 December 2021                         52        223        343            260       2,497      3,375 
 
 Transactions with equity 
  shareholders: 
 Shares issued                                1         82          -              -           -         83 
 Transfer on exercise                         -          -        (2)              -           2          - 
                                      ---------  ---------  ---------  -------------  ----------  --------- 
                                              1         82        (2)              -           2         83 
                                                                                   - 
 Distribution to owners 
 Dividends                                    -          -          -              -       (589)      (589) 
 
 
 Loss for the period after 
  tax                                         -          -          -              -     (1,570)   (1,570)) 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign operations           -          -          -             23           -         23 
                                      ---------  ---------  ---------  -------------  ----------  --------- 
 
 Total comprehensive (loss)/income            -          -          -             23     (2,159)    (2,136) 
 
 At 30 June 2022                             53        305        341            283         340      1,322 
 
 Loss for the period after 
  tax                                         -          -          -              -       (622)      (622) 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign operations           -          -          -             41           -         41 
                                      ---------  ---------  ---------  -------------  ----------  --------- 
 
 Total comprehensive (loss)/income            -          -          -             41       (622)      (581) 
                                      ---------  ---------  ---------  -------------  ----------  --------- 
 
 At 31 December 2022                         53        305        341            324       (282)        741 
                                      =========  =========  =========  =============  ==========  ========= 
 
 
 
 Condensed interim consolidated cash 
  flow statement 
                                                  6 months    6 months   12 months 
                                                        to          to          to 
                                                    31 Dec      31 Dec     30 June 
                                                      2022        2021        2022 
                                                   GBP'000     GBP'000     GBP'000 
                                                 unaudited   unaudited     audited 
 
 Cash flows from operating activities 
 (Loss)/profit for the year                          (622)         202     (1,368) 
 
 Net finance expense in the income statement             6          27          14 
 Depreciation of property, plant and 
  equipment                                             53         110         181 
 Amortisation of intangible assets                      91         138         256 
 Write off of intangible asset                           -           -         296 
 Decrease / (Increase) in trade and other 
  receivables                                           92        (94)         170 
 Increase in trade and other payables                  167          16         262 
 
 Net cash (used) / generated by operating 
  activities                                         (213)         399       (189) 
 
 Cash flows from financing activities 
 Issue of share capital                                  -           -          83 
 Dividend payments                                       -           -       (589) 
 Repayment of loans                                    (7)        (59)        (13) 
 Repayments of lease liabilities                      (44)           -       (103) 
 Lease interest paid                                   (3)         (6)        (10) 
 Other interest paid                                   (3)        (21)         (4) 
                                                ----------  ----------  ---------- 
 
 Net cash (used)/generated by financing 
  activities                                          (57)        (86)       (636) 
 
 Cash flows from investing activities 
 Payments for property, plant and equipment            (6)        (51)        (39) 
 Purchase of intangibles                                 -       (160)       (114) 
 
 Net cash used by investing activities                 (6)       (211)       (153) 
 
 Net (decrease)/increase in cash and 
  cash equivalents                                   (276)         102       (978) 
 Gain / (loss) on foreign exchange                       8         (9)        (46) 
                                                ----------  ----------  ---------- 
 
 Net increase/(decrease) in cash and 
  cash equivalents                                   (268)          93     (1,024) 
 Cash and cash equivalents at the start 
  of the period                                        915       1,939       1,939 
                                                ----------  ----------  ---------- 
 
 Cash and cash equivalents at the end 
  of the period                                        647       2,032         915 
                                                ==========  ==========  ========== 
 
   1.   Legal status and activities 

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

The principal trading subsidiaries are All IPO Plc, InvestorsHub.com Inc, 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, Essex Business Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.

The registered number of the company is 0 2374988 .

   2.   Basis of preparation 

These condensed interim financial statements have been prepared in accordance with IAS 34, "Interim Financial Reporting".

The financial information does not include all the information required for full annual financial statements. The same accounting policies and methods of computation have been followed in the interim financial statements as compared with the full audited financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2022, which were prepared under applicable law and in accordance with UK-adopted international accounting standards.

The unaudited consolidated interim financial information is for the six-month period ended 31 December 2022.

The financial statements are presented in Sterling (GBP) rounded to the nearest thousand except where specified.

The interim financial information has been prepared on the going concern basis which assumes the Group will continue in existence for the foreseeable future.

No material uncertainties that cast significant doubt about the ability of the Group to continue as a going concern have been identified by the directors. Accordingly, the directors believe it is appropriate for the interim financial statement to be prepared on the going concern basis.

The principle risks and uncertainties of the Company remain the same as those reported in the consolidated financial statements of the Group for the year ended 30 June 2022.

The interim financial information has not been audited nor has it been reviewed under ISRE 2410 of the Auditing Practices Board. The financial information presented does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The Group's statutory accounts for the year to 30 June 2022 have been filed with the Registrar of Companies. The auditors, Saffery Champness LLP reported on these accounts and their report was unqualified and did not contain a statement under section 498(2) or Section 498(3) of the Companies Act 2006.

   3.   Earnings per share 
 
                                                 6 months      6 months    12 months 
                                                       to            to           to 
                                              31 Dec 2022   31 Dec 2021      30 June 
                                                                                2022 
                                                  GBP'000       GBP'000      GBP'000 
 
 (Loss) / profit for the year attributable 
  to equity shareholders                            (622)           202      (1,368) 
 
                                                   Shares        Shares       Shares 
 
 Weighted average number of shares in 
  issue for the period                         26,315,319    26,115,318   26,184,360 
 Dilutive effect of options                             -     1,144,585            - 
                                             ------------  ------------  ----------- 
 
 Weighted average shares for diluted 
  earnings per share                           26,316,319    27,259,903   26,184,360 
 
 
 (Loss) / earnings per share (pence) 
 Basic                                            (2.36p)         0.77p      (5.22p) 
 Diluted                                          (2.36p)         0.74p      (5.22p) 
 
 

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

   4.   Dividends 

The directors are not recommending payment of a dividend in the current financial year.

   5.   Events after the balance sheet date 

On 6 January 2023, the company raised GBP4.523m by way of an open offer of shares to qualifying shareholders. A total of 20,676,322 shares were offered to existing shareholders at a price of 33 pence per share. 13,708,300 shares were taken up.

6. Financial statements

Copies of these accounts are available from ADVFN Plc's registered office at Suite 28, Ongar Business Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA or from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ, www.companieshouse.gov.uk and from the ADVFN plc website: www.ADVFNPLC.com

ENDS

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