Half Yearly Report

RNS Number : 6427Z

ADVFN PLC

08 March 2013

 



8 March 2013

ADVFN PLC

Unaudited Interim Results for the Six Months Ended 31 December 2012

Chief Executive's Statement

ADVFN's half year to the end of December 2012 represents another strong showing against a backdrop that has been far from ideal. Our bottom line performance is much improved and is a result of raising prices and trimming costs to meet prevailing conditions.

Our regional diversification has worked in our favour to turn in a top line performance broadly in line with the previous year, once turnover from discontinued business is taken into account. With equity market conditions in 2012 at historically low activity levels, this underlines the robust nature of our income streams and the significant upside when we see the end of these hard economic times.

The new year has given us a glimpse of this with a significant surge of traffic and subscriptions and with markets indices rallying these previous weeks provide a tantalising flavour of the revenue potential of a bull market. Meanwhile we have geared up our offering with news content, branded as the ADVFN Newspaper, launched a successful line of e-books and set up a private investor show and sold out its tickets in weeks. While in their early stages these initiatives have performed above our expectations and point the way to the further broadening of our offering and income streams.

2013 has started well and we are hoping that the market rallies which we have enjoyed in the latter part of 2012 will continue this year and mark the beginning of a new equity cycle. Opinion in the market is that an end to the bond bubble is in sight and this already sees the early stages of a shift into equities.

This would be very good for business.

Financial performance

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

	Six Months ended	Six Months ended
	31 December 2012	31 December 2011
	£'000	£'000
Turnover ( Discontinued operations ) ( Continuing operations )	16 4,046	317 4,267
Loss for the period	(312)	(919)
Operating Loss	(416)	(971)
Loss per share	(0.05p)	(0.15p)

Clem Chambers

CEO

8 March 2013

Contacts:
Clem Chambers	[e-mail]
Tom Frew PR	[e-mail] 020 7070 0932
Gerry Beaney/ Salmaan Khawaja	0207 383 5100 Grant Thornton UK LLP (Nominated Adviser)

 

Consolidated income statement
		6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
		2012	2011	2012
		£'000	£'000	£'000
		unaudited	unaudited	audited
	Notes
Revenue from discontinued operations		16	317	579
Revenue from continuing operations		4,046	4,267	7,906
Total group revenue		4,062	4,584	8,485
Cost of sales		(96)	(213)	(319)
Gross profit		3,966	4,371	8,166
Share based payment		(51)	(49)	(96)
Amortisation of intangible assets		(471)	(529)	(1,001)
Other administrative expenses		(3,860)	(4,764)	(8,508)
Total administrative expense		(4,382)	(5,342)	(9,605)
Operating loss		(416)	(971)	(1,439)
Finance income		46	-	-
Finance expense		-	-	-
Loss before tax		(370)	(971)	(1,439)
Taxation		58	52	(163)
Loss for the period		(312)	(919)	(1,676)
Loss per share
Basic and diluted (pence per share)	3	(0.05)	(0.15)	(0.27)

Consolidated statement of comprehensive income
		6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
		2012	2011	2012
		£'000	£'000	£'000
		unaudited	unaudited	audited
			restated
Loss for the period		(312)	(919)	(1,676)
Other comprehensive income:
Exchange differences on translation of foreign operations		(85)	65	35
Deferred tax on translation of foreign held assets		14	(10)	(1)
Total comprehensive income for the year		(383)	(864)	(1,642)

Consolidated balance sheet		31 Dec	31 Dec	30 June
		2012	2011	2012
		£'000	£'000	£'000
		unaudited	unaudited	audited
Assets
Non-current assets
Property, plant and equipment		68	116	83
Goodwill		763	1,733	789
Intangible assets		1,918	2,491	2,179
Trade and other receivables		735	126	105
Total non-current assets		3,484	4,466	3,156
Current assets
Trade and other receivables		996	1,067	1,070
Current tax recoverable		133	75	151
Other financial assets (available for sale)		-	717	-
Cash and cash equivalents		1,116	959	1,440
		2,245	2,818	2,661
Total assets of the continuing operations		5,729	7,284	5,817
Assets in disposal group classified as held for sale		-	-	706
Total assets		5,729	7,284	6,523
Equity and liabilities
Equity
Issued capital		6,291	6,250	6,289
Share premium		8,062	7,942	8,057
Merger reserve		221	221	221
Share based payments reserve		525	580	474
Foreign exchange reserve		144	236	215
Retained earnings		(11,840)	(10,924)	(11,528)
Total equity		3,403	4,305	3,728
Non-current liabilities
Deferred tax		413	477	487
Borrowings - obligations under finance leases		-	2	-
Total non-current liabilities		413	479	487
Current liabilities
Trade and other payables		1,912	2,497	2,153
Current tax		1	-	38
Borrowings - overdraft and obligations under finance leases		-	3	-
Total current liabilities		1,913	2,500	2,191
Total liabilities of the continuing operations		2,326	2,979	2,678
Liabilities in disposal group classified as held for sale		-	-	117
Total liabilities		2,326	2,979	2,795
Total equity and liabilities		5,729	7,284	6,523

 

Consolidated statement of changes in equity

	Share capital	Share premium	Merger reserve	Share based payment  reserve	Foreign exchange	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 July 2011	6,249	7,941	221	533	181	(10,007)	5,118
Issue of shares	1	1	-	-	-	-	2
Exercise of share options	-	-	-	(2)	-	2	-
Equity settled share options	-	-	-	49	-		49
Transactions with owners	1	1	-	47	-	2	51
Loss for the period after tax	-	-	-	-	-	(919)	(919)
Other comprehensive income
Exchange differences on translation of foreign operations	-	-	-	-	65	-	65
Deferred tax on translation of foreign held assets	-	-	-	-	(10)	-	(10)
Total comprehensive income	-	-	-	-	55	(919)	(864)
At 31 December 2011	6,250	7,942	221	580	236	(10,924)	4,305
Issue of shares	39	115	-	-	-	-	154
Exercise of share options	-	-	-	(153)	-	153	-
Equity settled share options	-	-	-	47	-	-	47
Transactions with owners	39	115	-	(106)	-	153	201
Loss for the period after tax	-	-	-	-	-	(757)	(757)
Other comprehensive income
Exchange differences on translation of foreign operations	-	-	-	-	(30)	-	(30)
Deferred tax on translation of foreign held assets	-	-	-	-	9	-	9
Total comprehensive income	-	-	-	-	(21)	(757)	(778)
At 30 June 2012	6,289	8,057	221	474	215	(11,528)	3,728
Issue of shares	-	-	-	-	-	-	-
Exercise of share options	2	5	-	-	-	-	7
Equity settled share options	-	-	-	51	-	-	51
Transactions with owners	2	5	-	51	-	-	58
Loss for the period after tax	-	-	-	-	-	(312)	(312)
Other comprehensive income
Exchange differences on translation of foreign operations	-	-	-	-	(85)	-	(85)
Deferred tax on translation of foreign held assets	-	-	-	-	14	-	14
Total comprehensive income					(71)	(312)	(383)
At 31 December 2012	6,291	8,062	221	525	144	(11,840)	3,403

Consolidated cash flow statement
		6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
		2012	2011	2012
		£'000	£'000	£'000
		unaudited	unaudited	Audited
Cash flows from operating activities
Loss for the period before tax		(370)	(971)	(1,439)
Finance costs		(46)	-	-
Depreciation of property, plant and equipment		38	134	76
Amortisation		471	529	1,001
Impairment of financial assets		-	(5)	-
Share based payments		51	49	96
Decrease/(increase) in trade and other receivables		79	47	(53)
(Decrease)/increase in trade and other payables		(241)	42	(147)
Net cash used by continuing operations		(18)	(175)	(466)
Net cash used by discontinued operations		-	-	(43)
		(18)	(175)	(509)
Income tax (paid)/received		(35)	(22)	61
Net cash used by operating activities		(53)	(197)	(448)
Cash flows from investing activities
Payments for property, plant and equipment		(23)	(144)	(59)
Purchase of intangibles		(198)	(436)	(593)
Sale of UK Government gilts - available for sale financial assets		-	-	681
Sale of current asset investments by discontinued operations		-	-	15
Net cash (used)/generated by investing activities		(221)	(580)	44
Cash flows from financing activities
Proceeds from issue of equity shares		7	2	156
Loans repaid (finance leases)		-	(1)	-
Loans repaid (finance leases)-discontinued operations		-	-	(3)
Net cash generated by financing activities		7	1	153
Net decrease in cash and cash equivalents		(267)	(776)	(251)
Exchange movements		(57)	19	4
Total decrease in cash and cash equivalents		(324)	(757)	(247)
Cash and cash equivalents at the start of the period		1,440	1,716	1,716
Cash and cash equivalents at the end of the period		1,116	959	1,469
Cash and cash equivalents of the disposal group		-	-	(29)
Cash and cash equivalents at the end of the period		1,116	959	1,440

 

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 Alternative Investment Market ("AIM") of the London Stock Exchange.

2.  Basis of preparation

The unaudited consolidated interim financial information is for the six month period ended 31 December 2012.  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 2012, 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 2012 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 2012 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.

3.   Loss per share

	6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
	2012	2011	2012
	£'000	£'000	£'000
Loss for the year attributable to equity shareholders	(312)	(919)	(1,676)
Loss per share -basic and diluted	(0.05)	(0.15)	(0.27)
	Shares	Shares	Shares
Issued ordinary shares at start of the period	628,864,004	624,914,504	624,914,504
Ordinary shares issued in the period	250,000	67,000	3,949,500
Issued ordinary shares at end of the period	629,114,004	624,981,504	628,864,004
Weighted average number of shares in issue for the period	629,043,352	624,921,422	625,522,552
Dilutive effect of options	-	-	-
Weighted average shares for diluted earnings per share	629,043,352	624,921,422	625,522,552

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.

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.

 

END

 

 

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