2002 Preliminary Results

ADVFN.COM PLC
18 December 2002

Embargoed for release until 7.30 a.m.18th December 2002



                                 ADVFN.COM PLC

                           ('ADVFN' or 'the Company')


              Preliminary Results for the Year Ended 30 June 2002

ADVFN, the UK's leading on-line resource of financial information for private
investors, today announces preliminary results for the year ended 30 June 2002.


Highlights:

•   Revenues up by 106% to £1.64 million (2001 £796,000)
•   EBITDA losses reduced by 73% (£973,000) to £355,000 (2001 £1,328,000)
•   Positive cashflow and operational profitability achieved during second
    half of the year
•   Live streaming services successfully introduced
•   US share prices launched

Clement Chambers, ADVFN's Managing Director commented:

'It has been a very positive year with strong growth bolstered by acquisitions.
With an excellent start to the new year we foresee another period of consistent
growth as we continue to roll out new products and expand into new territories.'


For further information, please contact:

ADVFN
Clement Chambers, Managing Director                         020 7070 0948
Michael Hodges, Chairman                                    020 7070 0946


Chairman's Statement

We are very pleased with this set of results. They show that turnover for the
full year has more than doubled from the previous year to £1.6 million (2001 -
£796,000).

This has been achieved against a background of devastation in the financial
markets.

ADVFN continues to bring new products to market and increase its income. It is
our aim and goal to provide the private investor with the ultimate platform for
managing his investments and we believe that we will continue to progress our
business in line with the rate of past growth.

While there remains plenty of scope for expansion in the UK, the first fruits of
US traffic are being felt at ADVFN.

While 2002 has seen harsh conditions in world stock markets, ADVFN is now
running at record levels. We have increased our market share of the UK private
investor market and are well positioned to take a serious portion of the
lucrative US market.

With this in mind I think we can look forward to the future with increasing
optimism.



Michael J Hodges
Chairman

17 December 2002



Managing Director's Review

Operating Review

Turnover for the six months to the end of June was £919,000 up from £489,000 for
the final 6 month of the previous year. In addition to the 106% rise in sales
for the full year, this 88% income growth for comparable periods underscores the
consistency of our growth.

Our EBITDA has improved from a loss of £1,328,000 to only £355,000 as can be
seen from the table below. Our overall net loss has gone up as we have adopted a
very conservative and prudent policy on conducting our impairment review
including the writing off of significant research and development expenditure.

EBITDA - Earnings before interest, tax, depreciation, amortisation                   2002               2001
and exceptional items                                                               £'000              £'000

Loss before tax - per financial statements                                        (2,479)            (1,593)

Amortisation                                                                          309                 69
Exceptional item - impairment                                                       1,359                  -
Depreciation                                                                          453                284
Net interest                                                                            3                (88)
EBITDA                                                                              (355)             (1,328)


The launch of US prices has seen ADVFN increase its revenue per head, expand its
potential market dramatically and add further value to its proposition to
advertisers. This has reflected in strong growth in sales of both subscription
and advertising that bode well for the coming year.

The second half of 2002 has seen a new focus on our business processes and our
costs have been held at bay so that revenue from growth is pushed down to the
bottom line. We are a lean and some might say mean operation.


Managing Director's Review

Current Trading

The ADVFN brand continues to strengthen and we will continue to add new features
to the site to extend our offering and increase our reach and revenue.

ADVFN remains the leading destination for UK private investors on the web. We
expect to start appearing on the 'radar' of private investors in the US during
2003 and we will slowly but surely chip away at this market. While US traffic is
fast approaching 10% of ADVFN usage, the prospect of making even a small impact
in a market that is between 5 to 10 times bigger, is very appealing. However we
will approach this in our typical low risk way.

ADVFN's business model remains robust with both subscription and advertising
revenue rising together. ADVFN is an excellent medium for advertisers as shown
by consistent levels of rebooking, while ADVFN's subscription platform has been
expanded so in addition to an increase in ADVFN products it can retail third
party services such as the recently introduced Quantigma packages.


Prospects

2003 will be another exciting year. The first half sees us operating at record
levels of sales and growing quickly. Our targets are simple:  Continue to grow
our income, control costs and continually improve our products.

Our progress to this point has been hard won and we are making no allowances for
any improvements in the market, however we believe we can continue to make
strong progress in 2003 and beyond.

I would like to take this opportunity to thank the staff of ADVFN, as our
ongoing progress is simply a reflection of the quality of their work.


Clement Chambers
Managing Director
17 December 2002




Consolidated Profit and Loss Account 
for the year ended 30 June 2002 

                                                                                                     
                                                          2002      2002      2001
                                               Notes     £'000     £'000     £'000

Turnover                                                           1,640       796

Cost of sales                                                       (57)      (10)

Gross profit                                                       1,583       786

Administrative expenses                                                           
Exceptional item - impairment loss                     (1,359)                   -
Other administrative expenses                          (2,700)             (2,467)
Total administrative expenses                                    (4,059)   (2,467)

Operating loss                                                                    
Continuing operations                                  (2,238)                    
Acquisitions                                             (238)                    
                                                                 (2,476)   (1,681)
Net interest                                                         (3)        88

Loss on ordinary activities before taxation                      (2,479)   (1,593)

Tax on loss on ordinary activities                                     -         2

Loss on ordinary activities after taxation                       (2,479)   (1,591)

Loss per ordinary share                            4             (0.83p)   (0.64p)


All operations are continuing.

There were no recognised gains or losses other than the loss for the financial 
year except for the exchange differences (see note 5).


Balance Sheets 
at 30 June 2002 

                                                                                                         
                                                       Group     Group   Company   Company
                                                        2002      2001      2002      2001
                                             Notes     £'000     £'000     £'000     £'000
Fixed Assets                                                                              
Intangible assets                                      1,257       266         -         -
Tangible assets                                        1,113     2,159       519     1,810
Investments                                                -         -       116       355
                                                       2,370     2,425       635     2,165
Current Assets                                                                            
Debtors                                                  450       522     2,036       846
Cash at bank and in hand                                 261       462       253       374
                                                         711       984     2,289     1,220
Creditors: amounts falling due within                                                     
one year                                               (670)     (730)     (734)     (661)

Net current assets                                        41       254     1,555       559

Total assets less current liabilities                  2,411     2,679     2,190     2,724

Creditors: amounts falling due after more                                                 
than one year                                              -       (6)         -       (6)

Net assets                                             2,411     2,673     2,190     2,718

Capital and Reserves                                                                      
Called up share capital                                3,271     2,505     3,271     2,505
Share premium account                                  3,790     2,336     3,790     2,336
Profit and loss account                              (4,650)   (2,168)   (4,871)   (2,123)
Shareholders' funds - equity                     5     2,411     2,673      2190     2,718


The financial statements were approved by the Board of Directors on 17 December 2002

              

     
Consolidated Cash Flow Statement 
for the year ended 30 June 2002 

                                                                                                       
                                                                      2002      2001
                                                           Notes     £'000     £'000
Net cash outflow from                                                                
operating activities                                            6     (334)   (1,459)

Returns on investment and                                                            
servicing of finance                                                                 
Interest received                                                         1        89
Interest paid                                                           (4)       (1)
                                                                        (3)        88

Corporation tax paid                                                      -       (7)

Capital expenditure                                                                  
Payments to acquire tangible and intangible fixed assets            (2,076)   (1,420)
Net cash outflow before financing                                   (2,413)   (2,798)

Financing                                                                            
Issue of ordinary share capital                                       2,304         -
Share issue costs                                                      (84)         -
Proceeds from sale and leaseback                                          -        17
Capital element of finance leases and hire                                           
purchase contracts repaid                                               (8)       (3)
Net cash inflow from financing                                        2,212        14

Decrease in cash                                                7     (201)   (2,784)


Notes for the year ended 30 June 2002

 
1.     General 

The financial information herein does not constitute statutory accounts as 
defined in section 240 of the Companies Act 1985.

The financial information has been extracted from the group's 2002 statutory 
financial statements upon which the auditors reported on 17 December 2002. Their 
opinion is unqualified and does not include any statement under section
237 of the Companies Act 1985.

The accounts have been prepared in accordance with applicable accounting
standards and under the historical cost convention. The principal accounting
policies of the group have remained unchanged from the previous annual report,
except for the accounting policy on deferred tax which has been amended
following the adoption of FRS 19 (Deferred Tax). The adoption of FRS 19 has had
no effect this year.

Copies of the annual report are being posted to shareholders and copies will be
available from the company's registered office at 642a Lea Bridge Road, Leyton,
London, E10 6AP.

2.     Basis of preparing the financial statements 

The company meets its day to day working capital requirements through a positive
cash balance and has a bank overdraft facility of £60,000 which has been agreed
since the year end. It is repayable on demand and renewable in September 2003
when the directors believe it will be renewed. Additionally, the company has a
committed facility whereby it is able to issue shares in the market up to a
maximum of £5 million in the period up to 31 January 2005. The facility is
linked to the volume of shares traded in a given period and the directors will
use this facility if required.

The nature of the company's business is such that there can be considerable
unpredictable variation in the timing of cash inflows. On the basis of the cash
flow projections they have prepared for the period ending 31 December 2003 and
the facilities outlined above, the directors consider that the company will
continue to operate within the currently available facility including those from
future fundraising.

However, the margin of facilities over requirements is not large and there can
be no certainty that an issue of equity shares would be successful. Inherently
there can be no certainty in relation to these matters. On this basis, the
directors consider it is appropriate to prepare the financial statements on the
going concern basis. The financial statements do not include any adjustments
that would result from the inability to raise the required funding.

3.     Post balance sheet events 

On 17 September 2002, the company issued 16 million ordinary 1p shares at 1.25p
per share for a total consideration of £200,000 satisfied by 200,000 redeemable
ordinary 5p shares at £1 each in the New Opportunities Trust plc.

4.     Loss per ordinary share

                                                                                                              
                                                             2002                              2001            
                                                        Number of        Loss             Number of        Loss
                                                 Loss      shares   per share      Loss      shares   per share
                                                £'000        '000           p     £'000        '000           p

         Loss for the year                    (2,479)                           (1,591)                        

         Weighted average number of shares                297,522                           250,504            

         Loss per share                                               (0.83p)                           (0.64p)


The options are anti-dilutive so there is no diluted loss per share.



Notes for the year ended 30 June 2002


5.     Reconciliation of movements in shareholders' funds 

                                                                                        
                                          2002      2001
                                         £'000     £'000

Loss for the financial year            (2,479)   (1,591)
Exchange differences                       (3)         -
Net receipts from issues of shares       2,220         -
Net decrease in shareholders' funds      (262)   (1,591)

Shareholders' funds at 1 July            2,673     4,264

Shareholders' funds at 30 June           2,411     2,673

6.     Reconciliation of operating loss to net cash outflow from operating activities 

                                                                                           
                                                 2002      2001
                                                £'000     £'000

Operating loss                                (2,476)   (1,681)
Loss on disposal of assets                         10         -
Exchange differences                              (3)         -
Exceptional item - impairment loss              1,359         -
Amortisation                                      309        69
Depreciation                                      453       284
Decrease/(increase) in debtors                     72     (369)
(Decrease)/increase in creditors                 (58)       238

Net cash outflow from operating activities      (334)   (1,459)

7.     Reconciliation of net cash flow to movement in net funds 

                                                                                                     
                                                                     2002      2001
                                                                    £'000     £'000

Decrease in cash for the year                                       (201)   (2,784)
Proceeds from sale and leaseback                                        -      (17)
Cash outflow from capital repayments of hire purchase agreements        8         3
Movement in net cash in the year                                    (193)   (2,798)
Net funds at 1 July                                                   448     3,246
Net funds at 30 June                                                  255       448


8.     Analysis of movements in net funds 

                                                                                                
                             At 1 July 2001   Cash Flow   At 30 June 2002
                                      £'000       £'000             £'000
Cash in hand and at bank                462       (201)               261
Finance leases                         (14)           8               (6)
                                        448       (193)               255


END

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