TIDMOBC
RNS Number : 0749U
Online Blockchain PLC
27 March 2019
27 March 2019
For immediate release
Online Blockchain PLC
("Online" or the "Company")
Unaudited Interim Results for the Six Months Ended 31 December
2018
Online today announces unaudited interim results for the six
months ended 31 December 2018 (the "Period").
CEO's Statement
We have been working hard on our new blockchain products and are
pleased to say that they will shortly be in test and generating
revenue. It is of course hard to predict new products' success but
we are very excited at their potential and we believe they will
generate material revenue before the year end.
Cryptocurrencies and tokens have had an awful last 12 months and
many companies have gone to the wall or cut dramatically back,
because their business models relied on the value of coins rather
than their use. Our developments are all based on use rather than
the values of coins and this, we believe, is the key to producing
Blockchain products with longevity.
Plus1, our initial coin, has been used by ADVFN to some success
and we will be looking to expand the social media use case wider.
Plus1 has been used by ADVFN to generate revenue and we have
received our part of that in our turn. The sales and profit from
this are not hard to understand. People use Plus1 to tip other
ADVFN users and ADVFN takes a cut of that tip and pays OBC a cut of
that cut. Plus1 is an affordable currency to make microtransactions
with and you can trade the coin on a number of independent
exchanges to sell the coin or buy some to tip with. This is an
example of a working 'use case' and a way blockchain companies can
provide a service to make money that cannot be easily done by
another method. We have several cryptocurrencies for use on these
kinds of projects and the projects to be released will take us into
the realms of potentially mainstream adaptation.
You cannot mandate for having a software hit especially when you
produce something new, but I could not be more excited about the
potential of these products even after over 35 years of producing
innovative software.
The first of these new products are in test with the initial
test community as I write, and this group will be widened in the
coming weeks. The second products will follow shortly in the same
way.
This will mean that in weeks OBC will not only have four listed
Crytpo-currencies but two live Blockchain products that we hope may
quickly begin to generate some initial revenues.
As such the second half of the year should be extremely exciting
as we shift into a product marketing phase.
Our investment in ADVFN Plc remains our largest asset and we
show below an extract from the ADVFN Plc interim financial
statements:
ADVFN PLC - Chief Executive's Statement
The first half of the year has been a period of significant
change for ADVFN. Our users will have noticed the addition of a
strong, innovative Blockchain information offering that provides
our global userbase with exhaustive coverage of coins and tokens
across a plethora of exchanges. Meanwhile, we have significantly
re-engineered the site to cope, not only with the exciting but
technically challenging markets but with the ever-increasing
demands of markets forever pushing out more data. While nothing
sits still for long in the financial markets we provide information
about, we try and by and large succeed in doing this without
disrupting the business.
Our re-engineering of the ADVFN website positions us for growth
especially on the eventual return of positive investor sentiment
towards blockchain cryptocurrencies after the year-long 'crypto
winter' bear market. It might seem hard for long term investors in
stocks to grasp the opportunity but in our opinion cryptocurrencies
will, in a few years, be the preferred investment market for the
generation called 'the millennials.' That futurism aside,
cryptocurrency is already a revenue generator for us and has been
the "tail-wind" making up for the regulatory "head-winds" affecting
our equity-focused customers via the ESMA regulations forcing the
spread betting community to restructure how they do business.
We have made a material investment thus far in our website and
this has added a further diversification to our product mix as well
as a chance to be at the forefront as and when Bitcoin and
cryptocurrencies catch the imagination of the traders and investors
again, as we believe it will in either later in 2019 or 2020.
After much preparation, and after seeing the first fruits of our
recent efforts turn into revenue, this has helped us maintain our
business in an environment where our customers have been buffeted
by new regulation and difficult markets and we continue to look
forward to the future with excitement.
ADVFN Plc - Financial performance for the six months ended 31
December 2018
Key financial performance for the period has been summarised as
follows:
Six Months ended Six Months ended
31 December 2018 31 December 2017
------------------------- -----------------
GBP'000 GBP'000
------------------------- -----------------
Revenue 4,265 4,282
------------------------- -----------------
(Loss)/profit for the
period (214) 24
------------------------- -----------------
Operating (loss)/profit (210) 24
------------------------- -----------------
(Loss)/profit per share (0.84 p) 0.09 p
------------------------- -----------------
Clement Chambers
CEO
27 March 2019
A copy of this announcement is available on the Company's
website, at www.onlineblockchain.io
Enquiries:
For further information please contact:
Online Blockchain PLC
Michael Hodges 44 (0) 207 070 0909
Beaumont Cornish Limited (Nominated
Adviser)
www.beaumontcornish.com +44 (0) 207 628 3396
Roland Cornish/Michael Cornish
Smaller Company Capital Limited
(Broker)
Jeremy Woodgate +44 (0) 203 651 2910
Cassiopeia Ltd (Investor Relations)
Stefania Barbaglio stefania@cassiopeia-ltd.com
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. The person who arranged for the
release of this announcement on behalf of the Company was Michael
Hodges, Director.
Consolidated statement of comprehensive income
for the six months ended 31 December 2018
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2018 2017 2018
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Note
Revenue 26 32 56
Cost of sales (7) - (2)
----------- ----------- ----------
19 32 54
Share based payment (14) (3) (15)
Other administrative expenses (243) (21) (297)
----------- ----------- ----------
Total administrative expenses (257) (24) (312)
----------- ----------- ----------
Operating (loss)/profit (238) 8 (258)
Finance income and expense - (15) (1)
Share of post-tax loss of
equity accounted associate (38) - 71
----------- ----------- ----------
Loss before taxation (276) (7) (188)
Taxation - - -
----------- ----------- ----------
Loss and total comprehensive
income
for the period attributable
to shareholders of the parent (276) (7) (188)
=========== =========== ==========
Loss per share
Basic loss per ordinary share 2 (3.19 p) (0.09 p) (2.32 p)
Diluted loss per ordinary
share 2 (3.19 p) (0.09 p) (2.32 p)
=========== =========== ==========
.
Consolidated balance sheet
at 31 December 2018
31 December 31 December 30 June
2018 2017 2018
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Assets Note
Non-current assets
Property, plant and equipment 56 - 65
Other receivables 6 - 6
Investment in associate 3 1,210 1,174 1,243
Other equity investments 4 - -
---------------- ---------------- ----------------
1,276 1,174 1,314
Current assets
Trade and other receivables 214 159 183
Cash and cash equivalents 389 - 652
---------------- ---------------- ----------------
603 159 835
Total assets 1,879 1,333 2,149
================ ================ ================
Equity and liabilities
Equity
Issued capital 3,292 3,242 3,292
Share premium 3,155 2,205 3,155
Share based payment reserve 66 39 51
Retained earnings (4,680) (4,226) (4,409)
---------------- ---------------- ----------------
1,833 1,260 2,089
Current liabilities
Trade and other payables 46 24 60
Borrowings (bank overdraft) - 49 -
---------------- ---------------- ----------------
46 73 60
Total equity and liabilities 1,879 1,333 2,149
================ ================ ================
Statement of changes in equity
at 31 December 2018
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 2017 3,242 2,205 36 (4,219) 1,264
Equity settled share options - - 3 - 3
Transactions with owners - - 3 - 3
Loss for the period after
tax - - - (7) (7)
Total comprehensive loss - - - (7) (7)
--------- --------- --------- ---------- --------
At 31 December 2017 3,242 2,205 39 (4,226) 1,260
Equity settled share options - - 12 - 12
Issue of shares 50 950 - - 1,000
--------- --------- --------- ---------- --------
Transactions with owners 50 950 12 - 1,012
Net asset movements of associates - - - (2) (2)
Loss for the period after
tax - - - (181) (181)
--------- --------- --------- ---------- --------
Total comprehensive loss - - - (181) (181)
--------- --------- --------- ---------- --------
At 30 June 2018 3,292 3,155 51 (4,409) 2,089
Equity settled share options - - 15 - 15
--------- --------- --------- ---------- --------
Transactions with owners - - 15 - 15
Net asset movements of associate - - - 5 5
Total comprehensive loss for
the period - - - (276) (276)
--------- --------- --------- ---------- --------
At 31 December 2018 3,292 3,155 66 (4,680) 1,833
Consolidated cash flow statement
for the six months ended 31 December 2018
Six months Six months
ended ended Year ended
31 December 31 December
2018 2017 30 June 2018
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Loss for the period (276) (7) (188)
Profit/(loss) from equity accounted
associate 38 - (71)
Net finance income in the income
statement - - 1
Depreciation of property, plant
& equipment 12 - 5
Share based payments 15 3 15
(Increase)/decrease in trade and
other receivables (31) (34) (64)
(Decrease)/increase in trade and
other payables (14) (13) 23
-------------- ------------- --------------
Net cash used by operating activities (256) (51) (279)
Income tax receivable - - -
-------------- ------------- --------------
Net generated by operating activities (256) (51) (279)
Cash flows from financing activities
Issue of share capital - - 1,000
Interest paid - - (1)
-------------- ------------- --------------
Net cash generated/(used) by financing
activities - - 999
Cash flows from investing activities
Investment in equity shares (4) - -
Payments for property plant and
equipment (3) - (70)
-------------- ------------- --------------
Net cash used by investing activities (7) - (70)
-------------- ------------- --------------
(Decrease)/increase in cash and
cash equivalents (263) (51) 650
Cash and cash equivalents at the
start of the period 652 2 2
-------------- ------------- --------------
Cash and cash equivalents at the
end of the period 389 (49) 652
============== ============= ==============
Cash and cash equivalents
Six months Six months
ended ended Year ended
31 December 31 December
2018 2017 30 June 2018
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash at bank 389 - 652
Borrowings (bank overdraft) - (49) -
------------ ------------- ------------
389 (49) 652
============ ============= ============
Notes to the interim statements
1. Legal status and activities
Online Blockchain Plc ("the Company") is principally acting as
an incubator and developer of businesses in internet and
information-based technologies including developers, administrators
and custodians of blockchains and cryptocurrencies.
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 Alternative Investment Market
("AIM") of the London Stock Exchange.
2. Basis of preparation
The unaudited consolidated financial information is for the six
month period ended 31 December 2018. 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 2018,
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 2018 except as described below.
The financial statements are presented in Sterling (GBP) rounded
to the nearest thousand except where specified.
The interim financial information does not include all the
information required for full annual financial statements and
should be read in conjunction with the financial statements of the
company for the year ended 30 June 2018.
The interim financial information has been prepared on the going
concern basis which assumes the company will continue in existence
for the foreseeable future. The remaining cash reserves are
adequate to meet the Group's liabilities for the next 12 months. No
material uncertainties that cast significant doubt about the
ability of the company to continue as a going concern have been
identified by the directors. Accordingly, the directors, believe it
is appropriate for the interim financial statement to be prepared
on the going concern basis.
The interim financial information has not been audited nor has
it been reviewed under ISRE 2410 of the Auditing Practices Board.
The financial information presented does not constitute statutory
accounts as defined by section 434 of the Companies Act 2006. The
company statutory accounts for the year to 30 June 2018 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.
New standards adopted in the period:
IFRS 15 - Revenue
The standard was adopted for the period commencing 1 July 2018.
The standard defines a new five step model to recognise revenue
from customers and will apply to the Group as follows:
Fees charged for marketing and advertising - revenue is
recognised at the completion of the project.
Mining - revenue from mining crypto-currency is recognised at
receipt of cash.
IFRS 9 Financial Instruments
The standard was adopted for the period commencing 1 July 2018.
The treatment of any doubtful receivables changed to reflect an
expected credit loss rather than an incurred credit loss.
The adoption of the above standards has not had a material
impact on the financial statements.
New standards not yet adopted:
IFRS 16 Leases
The standard will be adopted in the period commencing 1 July
2019. Under the provisions of the new standard most leases,
including the majority of those previously classified as operating
leases, will be brought onto the financial position statement as a
right-of-use asset and as an offsetting lease liability. The
directors are considering the impact of the new standards on the
Group's accounting policies and more information will be provided
in the annual report for the year ended 30 June 2019.
Notes to the interim statements
3. Loss per ordinary share
Six months Six months Year to
to to
31 Dec 2018 31 Dec 2017 30 June 2018
GBP'000 GBP'000 GBP'000
Loss for the period (276) (7) (188)
Shares Shares Shares
Weighted average number of
Ordinary shares 8,662,348 7,662,348 8,130,841
Dilutive effect of options - - -
----------- ----------- ------------
Weighted average Ordinary
shares for diluted earnings
per share 8,662,348 7,662,348 8,130,841
=========== =========== ============
Loss per share
Basic earnings per share (3.19 p) (0.09 p) (2.32 p)
Diluted earnings per share (3.19 p) (0.09 p) (2.32 p)
=========== =========== ============
Where a loss occurs 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.
In addition, where a profit has been recorded but the average
share price for the period remains under the exercise price the
existence of options is not dilutive.
4. Investments in associate undertakings
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2018 2017 2018
GBP'000 GBP'000 GBP'000
At historical cost 868 868 868
At market value 1,175 1,451 1,428
Percentage ownership 17.98% 17.98% 17.98%
Total net assets of ADVFN
Plc 1,902 1,659 2,083
Percentage ownership interest
held by the group 17.98% 17.98% 17.98%
Share of net assets of ADVFN
Plc 342 306 375
Cost of investment in ADVFN
Plc 868 868 868
----------- ----------- -------
1,210 1,174 1,243
=========== =========== =======
Notes to the interim statements
Investments in associate undertakings (continued)
The Company owns 17.98% (2017: 17.98%) of ADVFN plc (ADVFN)
which is incorporated in England and Wales and whose principal
activity is the development and provision of financial information,
primarily via the internet, research services and the development
and exploitation of ancillary internet sites.
The investment in ADVFN plc is treated for the purposes of
financial reporting as an associate due to the common directorships
held between ADVFN plc and On-line plc and the resulting level of
significant influence over the associate.
5. Events after the balance sheet date
There are no events of significance occurring after the balance
sheet date to report.
6. Dividends
The directors do not recommend the payment of a dividend.
7. Financial statements
Copies of these accounts are available from the Company's
registered office at Suite 27, Essex Technology 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 Online Blockchain plc website:
www.onlineblockchain.io
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SESFIMFUSEDD
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