Final Results
October 06 2010 - 2:00AM
UK Regulatory
TIDMONL
RNS Number : 9012T
On-Line PLC
06 October 2010
ON-LINE PLC
5th October 2010
Audited Results for the Year Ended 30 June 2010
On-line plc, announces its audited results for the year ended 30 June 2010
Highlights:
On-line Plc:
· Profit before tax of GBP10,000 (2009: loss of GBP267,000)
· Turnover for the year was GBP120,000 (2009: GBP126,000)
ADVFN Plc:
· Profit for the period GBP30,000 (2009: a loss of GBP535,000)
· EBITDA* profit up by 78% to GBP1,140,000 (2009:GBP641,000)
· Turnover up 20% to GBP8,475,000 (2009: GBP7,034,000)
· ADVFN's registered users now over 2,000,000 (2009: 1,720,000)
For further information, please contact:
Mike Hodges,
On-Line PLC Chairman
0207 0700 909
Fiona Kindness,
Grant Thornton Corporate Finance (Nominated Adviser)
0207 728 3414
*EBITDA is calculated as the operating loss for the year before depreciation
and amortisation charges.
Chairman's Statement
2009 - 2010 has been a successful period for us and our investment ADVFN PLC.
Our turnover for the year was GBP120,000 (2009: GBP126,000) giving us a profit
before tax of GBP10,000 (2009: loss of GBP267,000). ADVFN has continued build on
the progress made last year and has now moved into profit, making GBP30,000
(2009: a loss of GBP535,000).
ADVFN has continued with its strategy which has seen it make impressive
progress.
Its highlights below, as extracted from it's published financial statements,
show the progress made:
- Profit for the period of GBP30,000 (2009: a loss of GBP535,000)
- EBITDA up by 78% to GBP1,140,000 (2009: GBP641,000)
- Turnover up 20% to GBP8,475,000 (2009: GBP7,034,000)
- Positive cash flow; 'net cash generated by operations' GBP1,417,000 (2009:
GBP392,000) bringing the cash and Gilts balance to GBP2,300,000 (2009:
GBP1,509,000)
- ADVFN's registered users base now over 2m (2009: 1,7m)
Sales have grown to GBP8,475,000 from GBP7,034,000 (Year ended June 09) an
increase of 20% and its turnover has grown for the 10th consecutive year. Sales
are up strongly.
ADVFN's bottom line showed a significant improvement to GBP30,000 profit after
tax for the year from a loss after tax of GBP535,000 (Year ended June 09).
While the amount at this stage is small, this profit none-the-less marks an
important milestone for the business.
This improvement is also reflected in positive cash flow. 'Net cash generated by
operations' increased to GBP1,417,000 from GBP392,000 (Year ended June 09) an
increase of 261%. This has resulted in an increase in ADVFN's cash and Gilts to
GBP2,300,000 from GBP1,509,000 (Year ended June 09) an increase of 52%.
ADVFN has continued to decrease its dependence on the UK market. We see our
future as an international brand rather than a local one and the benefits of
this are twofold: diversification and much greater prospects.
US progress has been particularly exciting with strong growth in the year both
on subscriptions and in advertising.
A strategy is meant to be a long-term plan and ADVFN's strategy remains, at the
year end, the same as it was at the time of the last statement...to build ADVFN
internationally as the leading destination for private investors looking for
information and to generate revenue from advertising sales and subscription
products."
Consequentially we will be pushing hard to grow our international businesses. It
has to be said that international success is extremely difficult to achieve and
not all our attempts have been as productive as Brazil and the US. However we
feel we are making good progress in our current international portfolio and we
will be looking to expand this
The ADVFN platform has already proven it can deliver our product world-wide, so
the challenge boils down to addressing the subtleties of local markets to
provide the right balance of localised product offering.
Chairman's Statement
Summary of key performance indicators
The directors have monitored the progress of the overall company strategy and
the individual strategic elements by reference to certain financial and non
financial key performance indicators. These are based on indicators from the
investment in ADVFN Plc.
+----------------------------+---------+--------+----------+---------+
| | 2010 | 2010 | 2009 | 2009 |
| | Actual | Target | Actual | Target |
+----------------------------+---------+--------+----------+---------+
| | | | | |
+----------------------------+---------+--------+----------+---------+
| Average head count | 46 | 50 | 48 | 50 |
+----------------------------+---------+--------+----------+---------+
| ADVFN registered users | 2.0M | 1.9M | 1.72M | 1.6M |
+----------------------------+---------+--------+----------+---------+
Financial overview
Our turnover has remained steady at GBP120K (2009: GBP126K) however, our
operating profit is down 58% to GBP13K (2009: GBP31K).
Due to the acquisition of ALL IPO by ADVFN our investment in ALL IPO is now held
through ADVFN, resulting in a small realised loss on investments of GBP3k.
Financial performance
Key financial performance for the year has been analysed as follows:
+----------------+------------+-------------+-----------+-----------+
| | Year to | Year to | Change | |
| | 30 June | 30 June | | Change |
| | 2010 | 2009 | | |
+----------------+------------+-------------+-----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 | % |
+----------------+------------+-------------+-----------+-----------+
| | | | | |
+----------------+------------+-------------+-----------+-----------+
| Turnover | 120 | 126 | (6) | (5) |
+----------------+------------+-------------+-----------+-----------+
| Operating | 13 | 31 | (18) | (58) |
| profit | | | | |
+----------------+------------+-------------+-----------+-----------+
| Profit/(loss) | 0.13p | (3.48p) | 3.61p | 104 |
| per share | | | | |
+----------------+------------+-------------+-----------+-----------+
Strategy
We intend to carry on working with ADVFN to help them develop and build on their
success while at the same time looking for new opportunities that the company
might benefit from.
Operating costs
Our costs remain reasonably fixed and predictable and we do not see that
changing in the immediate future.
Research and development
We believe in trying to get the best from all areas that we work in. It's very
important that On-line and ADVFN continue to invest in the quality and design of
our products. We believe continued investment in our research and development is
fundamental to the continuing growth of the business.
Environmental policy
This has always been important to the company and as whole we continue to look
for ways to develop our environmental policy. It is our objective to improve our
performance in this area.
Future developments for the business
We feel it is right for us to work with our investments and assist in their
growth. This has seen them increase their business and allow new areas to be
explored.
Chairman's Statement
Principal risks and uncertainties
The management of the company and the nature of the company's strategy are
subject to a number of risks. The directors have set out below the principal
risks facing the business. The directors are of the opinion that a thorough risk
management process is adopted which involves the formal review of all the risks
identified below. Where possible, processes are in place to monitor and mitigate
such risks.
Economic downturn
The success of the world's stock markets might affect the business given the
sector both our main investments operate in. Many things around the world can
affect a stock market from war to human error. This can also have a knock on
effect to consumer spending power as has been seen with the current credit
crunch around the world, although in the past when we have seen a market
downturn this has not impacted on usage of ADVFN, with customers generally
wanting to know what is happening in the markets, be it good or bad. In response
to this potential risk, senior management aim to keep abreast of economic
conditions around the world; not only should senior management be aware of it,
likewise so should our customers and members. In cases of severe economic
downturn, marketing and pricing strategies are modified to reflect the new
market conditions.
High proportion of fixed overheads and variable revenues
A large proportion of the company's overheads are reasonably fixed. There is the
risk that any significant changes in revenue may lead to the inability to cover
such costs. Management closely monitor fixed overheads against budget on a
monthly basis and cost saving exercises would be implemented should there be an
anticipated decline in revenues.
Michael Hodges
Chairman
5 October 2010
Profit and Loss Account
for the year ended 30 June 2010
+--------------------------------+-------+----------------+-------------------+
| | Notes | 2010 | 2009 |
+--------------------------------+-------+----------------+-------------------+
| | | GBP'000 | GBP'000 |
+--------------------------------+-------+----------------+-------------------+
| | | | |
+--------------------------------+-------+----------------+-------------------+
| Turnover | | 120 | 126 |
+--------------------------------+-------+----------------+-------------------+
| | | | |
+--------------------------------+-------+----------------+-------------------+
| Administrative expenses | | (107) | (95) |
+--------------------------------+-------+----------------+-------------------+
| | | | |
+--------------------------------+-------+----------------+-------------------+
| Operating profit | | 13 | 31 |
+--------------------------------+-------+----------------+-------------------+
| | | | |
+--------------------------------+-------+----------------+-------------------+
| Realised (loss) on investments | | (3) | (298) |
+--------------------------------+-------+----------------+-------------------+
| | | | |
+--------------------------------+-------+----------------+-------------------+
| Profit/(loss) on ordinary | | 10 | (267) |
| activities before taxation | | | |
+--------------------------------+-------+----------------+-------------------+
| | | | |
+--------------------------------+-------+----------------+-------------------+
| Tax on (loss) on ordinary | | - | - |
| activities | | | |
+--------------------------------+-------+----------------+-------------------+
| | | | |
+--------------------------------+-------+----------------+-------------------+
| Profit/(loss) on ordinary | | 10 | (267) |
| activities after taxation | | | |
+--------------------------------+-------+----------------+-------------------+
| | | | |
+--------------------------------+-------+----------------+-------------------+
| | | | |
+--------------------------------+-------+----------------+-------------------+
| Basic profit/(loss) per | 1 | 0.13p | (3.48p) |
| ordinary share | | | |
+--------------------------------+-------+----------------+-------------------+
| Diluted profit/(loss) per | 1 | 0.12p | (3.48p) |
| ordinary share | | | |
+--------------------------------+-------+----------------+-------------------+
All operations are continuing.
Balance Sheet
at 30 June 2010
+--------------------------+--------+---------+---------------------+---------+---------------------+
| | | | 2010 | | 2009 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| | Notes | | GBP'000 | | GBP'000 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Fixed assets | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Investments | | | 868 | | 871 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Current assets | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Debtors | | | 78 | | 62 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Cash at bank and in hand | | | 5 | | 3 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| | | | 83 | | 65 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Creditors: amounts | | | (61) | | (56) |
| falling due within one | | | | | |
| year | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Net current assets | | | 22 | | 9 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Total assets less | | | 890 | | 880 |
| current liabilities | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Capital and reserves | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Called up share capital | | | 3,242 | | 3,242 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Share premium account | | | 2,205 | | 2,205 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Option valuation reserve | | | 17 | | 17 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Profit and loss account | | | (4,574) | | (4,584) |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| Shareholders' funds | 2 | | 890 | | 880 |
+--------------------------+--------+---------+---------------------+---------+---------------------+
| | | | | | |
+--------------------------+--------+---------+---------------------+---------+---------------------+
The financial statements were approved by the Board of Directors on 5 October
2010
Michael Hodges
Jonathan Mullins
Director
Director
Cash Flow Statement
for the year ended 30 June 2010
+-----------------------------+-------+--------+-------------+--------+----------------+
| | | | 2010 | | 2009 |
+-----------------------------+-------+--------+-------------+--------+----------------+
| | Notes | | GBP'000 | | GBP'000 |
+-----------------------------+-------+--------+-------------+--------+----------------+
| | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
| | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
| Net cash inflow/(outflow) | 3 | | 2 | | (57) |
| from operating activities | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
| | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
| Net cash inflow/(outflow) | | | 2 | | (57) |
| before financing | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
| | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
| Financing | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
| Net cash inflow from | | | - | | - |
| financing | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
| | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
| Increase/(decrease) in cash | 4,5 | | 2 | | (57) |
+-----------------------------+-------+--------+-------------+--------+----------------+
| | | | | | |
+-----------------------------+-------+--------+-------------+--------+----------------+
Statement of Total Recognised Gains and Losses
for the year ended 30 June 2010
+-------------------------------+----+--------+----------------+--------+-------------------+
| | | | 2010 | | 2009 |
+-------------------------------+----+--------+----------------+--------+-------------------+
| | | | GBP'000 | | GBP'000 |
+-------------------------------+----+--------+----------------+--------+-------------------+
| | | | | | |
+-------------------------------+----+--------+----------------+--------+-------------------+
| Profit/(loss) for the year | | | 10 | | (267) |
+-------------------------------+----+--------+----------------+--------+-------------------+
| Unrealised (loss) on current | | | - | | (32) |
| asset investments | | | | | |
+-------------------------------+----+--------+----------------+--------+-------------------+
| Total recognised | | | 10 | | (299) |
| gains/(losses) for the year | | | | | |
+-------------------------------+----+--------+----------------+--------+-------------------+
1. Earnings/(loss) per share
+----------------------+---------+--------+----------+---------+--------+----------+
| | | 2010 | | | 2009 | |
+----------------------+---------+--------+----------+---------+--------+----------+
| | | Number | Earnings | | Number | Loss |
| | | of | | | of | |
+----------------------+---------+--------+----------+---------+--------+----------+
| | Profit | shares | per | Loss | shares | per |
| | | | share | | | share |
+----------------------+---------+--------+----------+---------+--------+----------+
| | GBP'000 | '000 | p | GBP'000 | '000 | p |
+----------------------+---------+--------+----------+---------+--------+----------+
| Basic earnings per | | | | | | |
| share | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| Profit/(loss) for | 10 | | | (267) | | |
| the year | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| Weighted average | | 7,662 | | | 7,662 | |
| number of shares | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| Basic | | | 0.13p | | | (3.48p) |
| earnings/(loss) per | | | | | | |
| share | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| Diluted earnings per | | | | | | |
| share | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| Profit /(loss) for | 10 | | | (267) | | |
| the year | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| Weighted average | | 7,662 | | | 7,662 | |
| number of shares | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| Dilutive effect of | | 550 | | | - | |
| options | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| Weighted average | | 8,212 | | | 7,662 | |
| number of shares of | | | | | | |
| diluted earnings per | | | | | | |
| share | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
| Diluted | | | 0.12p | | | (3.48p) |
| earnings/(loss) per | | | | | | |
| share | | | | | | |
+----------------------+---------+--------+----------+---------+--------+----------+
2. Reconciliation of movements in shareholders' funds
+-----------------------------------+-+----------+----------------+------------------+
| | | | 2010 | 2009 |
+-----------------------------------+-+----------+----------------+------------------+
| | | | GBP'000 | GBP'000 |
+-----------------------------------+-+----------+----------------+------------------+
| | | | | |
+-----------------------------------+-+----------+----------------+------------------+
| Profit/(loss) for the financial | | | 10 | (267) |
| year | | | | |
+-----------------------------------+-+----------+----------------+------------------+
| Recognition of equity settled | | | | |
| share based payments in the year | | | - | 6 |
| (FRS20) | | | | |
+-----------------------------------+-+----------+----------------+------------------+
| Unrealised (loss) on investments | | | - | (32) |
+-----------------------------------+-+----------+----------------+------------------+
| Net decrease in shareholders' | | | 10 | (293) |
| funds in the year | | | | |
+-----------------------------------+-+----------+----------------+------------------+
| Shareholders' funds at 1 July | | | 880 | 1,173 |
| 2009 | | | | |
+-----------------------------------+-+----------+----------------+------------------+
| Shareholders' funds at 30 June | | | 890 | 880 |
| 2010 | | | | |
+-----------------------------------+-+----------+----------------+------------------+
Notes to the Financial Statements
for the year ended 30 June 2010
3. Reconciliation of operating profit to net cash inflow from
operating activities
+-------------------------------+-----+----------+--------------+-----------------+
| | | | 2010 | 2009 |
+-------------------------------+-----+----------+--------------+-----------------+
| | | | GBP'000 | GBP'000 |
+-------------------------------+-----+----------+--------------+-----------------+
| | | | | |
+-------------------------------+-----+----------+--------------+-----------------+
| Operating profit | | | 13 | 31 |
| Equity settled share based | | | - | 6 |
| payments in the year | | | | |
+-------------------------------+-----+----------+--------------+-----------------+
| (Increase) in debtors | | | (16) | (54) |
+-------------------------------+-----+----------+--------------+-----------------+
| Increase/(decrease) in | | | 5 | (40) |
| creditors | | | | |
+-------------------------------+-----+----------+--------------+-----------------+
| Net cash inflow/(outflow) | | | 2 | (57) |
| from operating activities | | | | |
+-------------------------------+-----+----------+--------------+-----------------+
4. Reconciliation of net cash flow to movement in net funds
+------------------------------------------------+--------------+---------------+
| | 2010 | 2009 |
+------------------------------------------------+--------------+---------------+
| | GBP'000 | GBP'000 |
+------------------------------------------------+--------------+---------------+
| | | |
+------------------------------------------------+--------------+---------------+
| Increase/(decrease) in cash for the year | 2 | (57) |
+------------------------------------------------+--------------+---------------+
| Net funds at 1 July 2009 | 3 | 60 |
+------------------------------------------------+--------------+---------------+
| Net funds at 30 June 2010 | 5 | 3 |
+------------------------------------------------+--------------+---------------+
5. Analysis of movement in net funds
+------------------------------+-+----------+--+----------+-+----------+
| | | At | | Cash | | At |
| | | 1 July | | flow | | 30 June |
| | | 2009 | | | | 2010 |
+------------------------------+-+----------+--+----------+-+----------+
| | | GBP000 | | GBP000 | | GBP000 |
+------------------------------+-+----------+--+----------+-+----------+
| | | | | | | |
+------------------------------+-+----------+--+----------+-+----------+
| Cash in hand and at bank | | 3 | | 2 | | 5 |
+------------------------------+-+----------+--+----------+-+----------+
| | | | | | | |
+------------------------------+-+----------+--+----------+-+----------+
6. Publication of Non Statutory Accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 435 of the Companies Act
2006.
The balance sheet at 30 June 2010 and the profit and loss account, cash flow
statement , statement of total recognised gains and losses and associated notes
for the year then ended have been extracted from the Company's 2010 statutory
financial statements upon which the auditors' opinion is unqualified and does
not include any statement under Section 498(2) or (3) of the Companies Act 2006.
The annual report and accounts will shortly be sent to shareholders and will be
available on the Company's website, http://www.on-line.co.uk/.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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