TIDMAFN

RNS Number : 4829I

ADVFN PLC

25 March 2015

25 March 2015

ADVFN PLC

("ADVFN" or the "Company")

Unaudited Interim Results for the Six Months Ended 31 December 2014

ADVFN today announces its unaudited interim results for the six months ended 31 December 2014.

Chief Executive's Statement

I am pleased to announce a solid start to the new financial year with sales up 7.8 per cent. from GBP4.46 million to GBP4.8 million from the same period a year ago. Our cash position has also increased slightly compared to the same period last year.

While sales growth has been good, we have won these gains against a background of markets which have ebbed and flowed. This result has therefore come from developments from the broad spread of our offerings, where successes compensate for any downward drift elsewhere.

Our growing newsletter business and new products in the US have been a highlight and we feel these offer strong potential for growth going forward as we roll them out into new territories.

These factors represent a broadening of our revenue potential across our markets as we develop our offerings to reach these wider audiences.

We haven't suffered any disasters or witnessed any miracles in this half year but this period has represented a period of consistent progress as we continue to build on the ADVFN and Investorshub platform.

While doing so, we have re-organised our share capital and completed a US OTC QX market listing with an eye to exposing our huge US audience to the possibility of become shareholders in our company through US listed ADRs. We are hopeful that this will provide a good basis to add to shareholder value in 2015.

Share consolidation

At the Company's General Meeting held on 20 August 2014, the resolution to approve the share consolidation of existing issued Ordinary shares of GBP0.01 each in the capital of the Company to be consolidated into ordinary shares of GBP0.25 each ("Ordinary Shares"), was duly passed. The number of post consolidation Ordinary Shares is disclosed above, together with the restated loss per share amounts. In addition, the shares were to be subdivided into 1 ordinary share of par value 1 pence and 1 Deferred share of 24 pence par value; the Deferred shares were then cancelled. Finally, the par value was reduced from 1 pence to 0.2 pence. The number of post consolidation Ordinary Shares is disclosed together with the restated loss per share amounts (see note 3).

Financial performance

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

 
                             Six Months ended   Six Months ended 
                             31 December 2014   31 December 2013 
-------------                     --------- 
                                 GBP'000            GBP'000 
-------------                     --------- 
 
 Turnover                         4,807              4,458 
-------------                     --------- 
 Loss for the period              (552)              (226) 
-------------                     --------- 
 Operating Loss                   (647)              (342) 
-------------                     --------- 
 Loss per share (see note 
  3)                             (2.19)p            (0.90)p 
-------------                     --------- 
 

Clem Chambers

CEO

25 March 2015

For further information, please contact:

Clem Chambers,

ADVFN PLC CEO

0207 0700 909

Salmaan Khawaja

Jen Clarke

Jamie Barklem

Grant Thornton UK LLP (Nominated Adviser)

0207 383 5100

 
 Consolidated income statement 
                                                 6 months    6 months   12 months 
                                                       to          to          to 
                                                   31 Dec      31 Dec     30 June 
                                                     2014        2013        2014 
                                                  GBP'000     GBP'000     GBP'000 
                                                unaudited   unaudited     audited 
                                        Notes                restated 
 
 Revenue                                            4,807       4,458       9,702 
 Cost of sales                                      (718)       (491)     (1,165) 
                                               -----  -----  ----- 
 
 Gross profit                                       4,089       3,967       8,537 
 
 Share based payment                                 (18)        (47)        (54) 
 Amortisation of intangible assets                  (326)       (465)       (914) 
 Other administrative expenses                    (4,392)     (3,797)     (8,232) 
 
 Total administrative expense                     (4,736)     (4,309)     (9,200) 
 
 Operating loss                                     (647)       (342)       (663) 
 
 Finance income                                        57          53         108 
 
 Loss before tax                                    (590)       (289)       (555) 
 Taxation                                              38          63         101 
                                               -----  -----  ----- 
 
 Total loss after taxation                          (552)       (226)       (454) 
 
 Loss for the period                                (552)       (226)       (454) 
                                               ==========  ==========  ========== 
 
 Loss per share 
 Basic and diluted (pence per share)      3        (2.19)      (0.90)      (1.80) 
 
 
 
 Consolidated statement of comprehensive 
  income 
                                              6 months    6 months   12 months 
                                                    to          to          to 
                                                31 Dec      31 Dec     30 June 
                                                  2014        2013        2014 
                                               GBP'000     GBP'000     GBP'000 
                                             unaudited   unaudited     audited 
 
 Loss for the period                             (552)       (226)       (454) 
 
 Other comprehensive income: 
 Exchange differences on translation 
  of foreign operations                            196       (146)       (190) 
 Deferred tax on translation of 
  foreign held assets                             (24)          21          29 
                                            -----  -----  ----- 
 
 Total comprehensive income for 
  the year                                       (380)       (351)       (615) 
                                            ==========  ==========  ========== 
 
 
 
 Consolidated balance sheet           31 Dec      31 Dec    30 June 
                                        2014        2013       2014 
                                     GBP'000     GBP'000    GBP'000 
                                   unaudited   unaudited    audited 
 
 
 Assets 
 Non-current assets 
 Property, plant and equipment            89         119         71 
 Goodwill                                793         747        724 
 Intangible assets                     1,289       1,502      1,331 
 Trade and other receivables             202         540        295 
 
 Total non-current assets              2,373       2,908      2,421 
 
 Current assets 
 Trade and other receivables           1,264       1,045      1,122 
 Current tax recoverable                  72          33         60 
 Cash and cash equivalents             1,510       1,493      1,675 
                                  -----  -----  ----- 
 
 Total current assets                  2,846       2,571      2,857 
                                  -----  -----  ----- 
 
 Total assets                          5,219       5,479      5,278 
                                  ==========  ==========  ========= 
 
 Equity and liabilities 
 Equity 
 Issued capital                           50       6,305      6,305 
 Share premium                             -       8,101      8,102 
 Merger reserve                            -         221        221 
 Share based payments reserve             18         610        617 
 Foreign exchange reserve                289         153        117 
 Retained earnings                     2,126    (12,289)   (12,517) 
                                  -----  -----  ----- 
 
 Total equity                          2,483       3,101      2,845 
 
 Non-current liabilities 
 Deferred tax                            128         185        134 
 
 Total non-current liabilities           128         185        134 
 
 Current liabilities 
 Trade and other payables              2,606       2,187      2,268 
 Current tax                               2           6         31 
 
 Total current liabilities             2,608       2,193      2,299 
                                  -----  -----  ----- 
 
 Total liabilities                     2,736       2,378      2,433 
                                  -----  -----  ----- 
 
 Total equity and liabilities          5,219       5,479      5,278 
                                  ==========  ==========  ========= 
 
 

Consolidated statement of changes in equity

 
                                   Share      Share     Merger      Share     Foreign    Retained     Total 
                                 capital    premium    reserve      based    exchange    earnings    equity 
                                                                  payment 
                                                                  reserve 
                                 GBP'000    GBP'000    GBP'000    GBP'000     GBP'000     GBP'000   GBP'000 
 
 At 1 July 2013                    6,291      8,062        221        563         278    (12,063)     3,352 
 
 Issue of shares                      14         39          -          -           -           -        53 
 Equity settled share 
  options                              -          -          -         47           -           -        47 
                               -----  -----  -----  -----  -----  -----  ---- 
 
 Transactions with owners             14         39          -         47           -           -       100 
 
 Loss for the period after 
  tax                                  -          -          -          -           -       (226)     (226) 
 
 Other comprehensive income 
 Exchange differences 
  on translation of foreign 
  operations                           -          -          -          -       (146)           -     (146) 
 Deferred tax on translation 
  of foreign held assets               -          -          -          -          21           -        21 
                               -----  -----  -----  -----  -----  -----  ---- 
 
 Total comprehensive income            -          -          -          -       (125)       (226)     (351) 
                               -----  -----  -----  -----  -----  -----  ---- 
 
 At 31 December 2013               6,305      8,101        221        610         153    (12,289)     3,101 
 
 Issue of shares                       -          1          -          -           -           -         1 
 Equity settled share 
  options                              -          -          -          7           -           -         7 
                               -----  -----  -----  -----  -----  -----  ---- 
 
 Transactions with owners              -          1          -          7           -           -         8 
 
 Loss for the period after 
  tax                                  -          -          -          -           -       (228)     (228) 
 
 Other comprehensive income 
 Exchange differences 
  on translation of foreign 
  operations                           -          -          -          -        (44)           -      (44) 
 Deferred tax on translation 
  of foreign held assets               -          -          -          -           8           -         8 
                               -----  -----  -----  -----  -----  -----  ---- 
 
 Total comprehensive income            -          -          -          -        (36)       (228)     (264) 
                               -----  -----  -----  -----  -----  -----  ---- 
 
 At 30 June 2014                   6,305      8,102        221        617         117    (12,517)     2,845 
 
 Equity settled share 
  options                              -          -          -         18           -           -        18 
                               -----  -----  -----  -----  -----  -----  ---- 
 
 Transactions with owners              -          -          -         18           -           -        18 
 
 Loss for the period after 
  tax                                  -          -          -          -           -       (552)     (552) 
 
 Other comprehensive income 
 Exchange differences 
  on translation of foreign 
  operations                           -          -          -          -         196           -       196 
 Deferred tax on translation 
  of foreign held assets               -          -          -          -        (24)           -      (24) 
                               -----  -----  -----  -----  -----  -----  ---- 
 
 Total comprehensive income            -          -          -          -         172       (552)     (380) 
 
 Share consolidation             (6,255)    (8,102)      (221)      (617)           -      15,195         - 
                               -----  -----  -----  -----  -----  -----  ---- 
 
 At 31 December 2014                  50          -          -         18         289       2,126     2,483 
                               =========  =========  =========  =========  ==========  ==========  ======== 
 
 
 
 
 Consolidated cash flow statement 
                                            6 months    6 months   12 months 
                                                  to          to          to 
                                              31 Dec      31 Dec     30 June 
                                                2014        2013        2014 
                                             GBP'000     GBP'000     GBP'000 
                                           unaudited   unaudited     audited 
 
 Cash flows from operating activities 
 
 Loss for the period before tax                (590)       (289)       (555) 
 
 Finance costs                                  (57)        (53)       (108) 
 Depreciation of property, plant 
  and equipment                                   30          30          47 
 Amortisation                                    326         465         914 
 Impairment of financial assets                    -           -         250 
 Share based payments                             18          47          54 
 Decrease/(increase) in trade and 
  other receivables                                8       (122)       (149) 
 Increase in trade and other payables            338         233         314 
 
 Net cash generated by operations                 73         311         767 
 Income tax (paid)/received                      (9)          12         (3) 
                                          -----  -----  ----- 
 
 Net cash generated by operating 
  activities                                      64         323         764 
 
 Cash flows from investing activities 
 Payments for property, plant and 
  equipment                                     (48)       (179)        (57) 
 Purchase of intangibles                       (284)       (156)       (495) 
 
 Net cash used by investing activities         (332)       (335)       (552) 
 
 Cash flows from financing activities 
 Proceeds from issue of equity shares              -          53           - 
 
 Net cash generated by financing                   -          53           - 
  activities 
                                          -----  -----  ----- 
 
 Net (decrease)/increase in cash 
  and cash equivalents                         (268)          41         212 
 Exchange movements                              103         (9)           2 
                                          -----  -----  ----- 
 
 Total (decrease)/increase in cash 
  and cash equivalents                         (165)          32         214 
 Cash and cash equivalents at the 
  start of the period                          1,675       1,461       1,461 
                                          -----  -----  ----- 
 
 Cash and cash equivalents at the 
  end of the period                            1,510       1,493       1,675 
                                          ==========  ==========  ========== 
 

1. Legal status and activities

ADVFN Plc ("the Company") is principally involved in the development and provision of financial information primarily via the internet and the development and exploitation of ancillary internet sites.

The Company is a public limited liability company incorporated and domiciled in England and Wales. The address of its registered office is Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.

The Company is quoted on the London Stock Exchange's AIM market under the ticker "AFN".

2. Basis of preparation

The unaudited consolidated interim financial information is for the six month period ended 31 December 2014. The financial information does not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2014, which were prepared under IFRS as adopted by the European Union (EU).

The accounting policies adopted in this report are consistent with those of the annual financial statements for the year to 30 June 2014 as described in those financial statements.

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 2014 have been filed with the Registrar of Companies. The auditors, Grant Thornton UK 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.

The financial statements have been prepared on the going concern basis which assumes the Group will continue in existence for the foreseeable future. At 31 December 2014 the Group's cash balances amounted to GBP1.5 million and the forecasts indicate that this balance will be broadly maintained and then increase in the remainder of the financial year. Accordingly the directors have prepared these financial statements on the going concern basis.

   3.   Loss per share 
 
                                               6 months     6 months    12 months 
                                                     to           to           to 
                                                 31 Dec       31 Dec      30 June 
                                                   2014         2013         2014 
                                                GBP'000      GBP'000      GBP'000 
                                                            Restated 
 
 Loss for the year attributable to equity 
  shareholders                                    (552)        (226)        (454) 
 
 Loss per share - basic and diluted              (2.19)       (0.90)       (1.80) 
                                            ===========  ===========  =========== 
 
                                                 Shares       Shares       Shares 
 Issued ordinary shares at start of 
  the period                                 25,220,210   25,164,560   25,164,560 
 Ordinary shares issued in the period                 -       55,650       55,650 
                                            ------  ------  ------ 
 
 Issued ordinary shares at end of the 
  period                                     25,220,210   25,220,210   25,220,210 
                                            ===========  ===========  =========== 
 
 
 Weighted average number of shares in 
  issue for the period                       25,220,210   25,219,905   25,219,905 
 Dilutive effect of options                           -            -            - 
                                            ------  ------  ------ 
 
 Weighted average shares for diluted 
  earnings per share                         25,220,210   25,219,905   25,219,905 
 
 

The diluted loss per share does not differ from the basic loss per share as the exercise of share options would have the effect of reducing the loss per share and is therefore not dilutive under the terms of IAS 33.

Restatement

The shares in issue for the 6 months to 31 December 2013 have been restated as a result of the share consolidation exercise at 1 new share for 25 old shares. This results in a change of the loss per share. The details of this exercise are given below.

   3.   Loss per share (continued) 

Share consolidation

At the company's General Meeting held on 20 August 2014, the resolution to approve the share consolidation of existing issued Ordinary shares of GBP0.01 each in the capital of the company to be consolidated into Ordinary shares of GBP0.25 each, was duly passed. The number of post consolidation Ordinary shares is disclosed above together with the restated loss per share amounts. In addition, the shares were to be subdivided into 1 Ordinary share of par value 1p and 1 Deferred share of 24p par value; the Deferred shares were then cancelled. Finally, the par value was reduced from 1p to 0.2p.

   4.   Dividends 

The directors do not recommend the payment of a dividend.

   5.   Financial statements 

Copies of this statement are being posted to shareholders shortly and will be available from the company's registered office at Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA. Electronic copies of this statement will be available on the Company's website at uk.advfn.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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