Interim Results

RNS Number : 9750M

ADVFN PLC

09 February 2009

 



ADVFN PLC

Unaudited Interim Results for the Six Months Ended 31 December 2008

ADVFN, Europe's leading stocks and shares website, today announces its unaudited interim results for the six months ended 31 December 2008.

Highlights:

Loss before Tax - down 45% to £488,000 (2007: £887,000)

Operating Loss - down 37% to £395,000 (2007: £631,000)

ADVFN user numbers - up 25% to 1.5M (2007: 1.2M)

Clem Chambers, CEO of ADVFN commented:

'The first six months have given us continued growth in all our main markets and an improved financial performance. We consider the second half will continue this progress.'

Contacts:

Clem Chambers [e-mail]

Francesca De Franco, PR [e-mail] 020 7070 0932

Fiona Kindness, Grant Thornton UK LLP (Nominated Adviser) 020 7728 3414

Chief Executive's Statement

Operating Review 

I am pleased to present another set of positive results. So far market volatility appears to have helped raise our profile and spread the ADVFN brand further than we could have hoped for from a benign environment. 

ADVFN PLC

At our recent AGM I stated, 'that the year to June 08 was an exceptional year for ADVFN and the numbers belie a reality that we have outperformed expectations and are riding out the credit crunch.  It seems unintuitive that in such a harsh market environment we are actually growing. I am happy to report that while conditions are clearly very challenging, we are still making headway.'

While the world economy has been entering a very gloomy period we have focused more on organically growing the business than in previous times, pulling back from numerous acquisition opportunities that have come our way. Until there is a significant change in the economic picture our strategy is to focus on driving our costs down and our sales and margins up. This is a defensive stance and one in which we are confident to carry us through the global recession.

Financial performance

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

	Six Months ended	Six Months ended	Change	Change
	31 December 2008	31 December 2007
	£'000	£'000	£'000	%
Loss before Tax	(488)	(887)	399	(45)
Operating Loss	(395)	(631)	236	(37)
Loss per share	(0.08p)	(0.10p)	0.02p	(20)

Current Trading

We have spent much of calendar year 2008 battening down the hatches and this is a process which has been focused on by our newly formed finance team. This has brought us solid financial benefits. 

Subscriptions continue to grow and while advertising income flattened for a short period it is now once again strengthening.  

We have always believed in growing ADVFN into international markets and this has meant that we now have a global revenue stream which has helped smooth out our income as markets rise and fall around the world. It also gives us plenty of opportunities to grow even if conditions are generally hard.

Prospects

Recent months have shown we are well positioned to navigate the 'credit crunch' and be in a strong position for the recovery.

The world is a huge potential market for ADVFN and slowly but surely we are growing into the opportunity. We think that we have demonstrated the resilience of the ADVFN platform and its business model.

We aim to bring the company to profitability for 2010.

Clem Chambers

CEO

9 February 2009

Condensed consolidated income statement
		6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
		2008	2007	2008
		£'000	£'000	£'000
		unaudited	unaudited	audited
	Notes
Revenue		3,415	3,342	6,931
Cost of sales		(243)	(317)	(640)
Gross profit		3,172	3,025	6,291
Share based payment		(25)	(50)	(90)
Amortisation of intangible assets		(489)	(541)	(1,087)
Other administrative expenses		(3,053)	(3,065)	(6,422)
Total administrative expense		(3,567)	(3,656)	(7,599)
Operating loss		(395)	(631)	(1,308)
Finance income		13	17	57
Finance expense		(6)	-	(17)
Result from associates after taxation		(100)	(273)	(221)
Loss before tax		(488)	(887)	(1,489)
Taxation		28	315	775
Loss for the period from continuing operations		(460)	(572)	(714)
Loss for the period from discontinued operations		-	-	(168)
Loss for the period		(460)	(572)	(882)
Loss per share from continuing operations
Basic and diluted (pence per share)	3	(0.08)	(0.10)	(0.12)
Loss per share from continuing and discontinued operations
Basic and diluted (pence per share)	3	(0.08)	(0.10)	(0.15)

Condensed consolidated balance sheet		31 Dec	31 Dec	30 June
		2008	2007	2008
		£'000	£'000	£'000
		unaudited	unaudited	audited
Assets
Non-current assets
Property, plant and equipment		139	258	187
Goodwill		1,590	1,388	1,590
Intangible assets		2,497	2,696	2,577
Investments in associates		1,087	1,288	1,187
Trade and other receivables		203	206	182
Total non-current assets		5,516	5,836	5,723
Current assets
Trade and other receivables		925	1,305	1,019
Current tax recoverable		163	-	163
Other financial assets (available for sale)		46	68	67
Other short term financial assets		-	13	-
Cash and cash equivalents		1,243	1,367	1,591
Total current assets		2,377	2,753	2,840
Total assets		7,893	8,589	8,563
Equity and liabilities
Equity
Issued capital		6,139	5,932	5,932
Share premium		7,752	7,710	7,710
Shares to be issued		-	166	249
Merger reserve		221	221	221
Share based payments reserve		450	393	425
Foreign exchange reserve		(123)	(6)	-
Retained earnings		(8,714)	(7,939)	(8,254)
Total equity		5,725	6,477	6,283
Non-current liabilities
Deferred tax		396	372	425
Borrowings - obligations under finance leases		32	22	31
Total non-current liabilities		428	394	456
Current liabilities
Trade and other payables		1,698	1,718	1,771
Borrowings - overdraft and obligations under finance leases		42	-	53
Total current liabilities		1,740	1,718	1,824
Total liabilities		2,168	2,112	2,280
Total equity and liabilities		7,893	8,589	8,563

Condensed consolidated statement of changes in equity

	Share capital	Share premium	Shares to be issued	Merger reserve	Other reserve	Foreign exchange	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 July 2007	5,870	7,600	332	221	335	(92)	(7,367)	6,899
Disposal of interest in associate						92		92
Exchange differences on translation of foreign operations						(6)		(6)
Net income recognised directly in equity						86		86
Loss for the period after tax							(572)	(572)
Total recognised income and expense						86	(572)	(486)
Issue of shares	62	110	(166)					6
Equity settled share options					58			58
At 31 December 2007	5,932	7,710	166	221	393	(6)	(7,939)	6,477
Exchange differences on translation of foreign operations						6		6
Net income recognised directly in equity						6		6
Loss for the period after tax							(315)	(315)
Total recognised income and expense						6	(315)	(309)
New shares as consideration			83					83
Equity settled share options					32			32
At 30 June 2008	5,932	7,710	249	221	425	-	(8,254)	6,283
Exchange differences on translation of foreign operations						(123)		(123)
Net income recognised directly in equity						(123)		(123)
Loss for the period after tax							(460)	(460)
Total recognised income and expense						(123)	(460)	(583)
Issue of shares	207	42	(249)					-
Equity settled share options					25			25
At 31 December 2008	6,139	7,752	-	221	450	(123)	(8,714)	5,725

Condensed consolidated cash flow statement
		6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
		2008	2007	2008
		£'000	£'000	£'000
		unaudited	unaudited	audited
Cash flows from operating activities
Loss for the period before tax		(488)	(887)	(1,489)
Finance costs in the income statement		(7)	(17)	(40)
Results for associates		100	273	221
Depreciation of non-current assets		52	67	173
Amortisation		489	541	1,087
Investment acquired as payment for services		-	(9)	-
Impairment of financial assets		21	-	5
Share based payments		25	58	90
Decrease / (increase) in trade and other receivables		74	(70)	(53)
(Decrease) / increase in trade and other payables		(102)	100	209
Net cash generated from operations		164	56	203
Interest paid		(6)	-	(17)
Income tax receivable		28	267	783
Net cash generated by operating activities		186	323	969
Cash flows from investing activities
Interest received		13	17	57
Payments for property plant and equipment		(4)	(48)	(62)
Purchase of intangibles		(408)	(407)	(811)
Disposal of interest in associates		-	132	132
Net cash used in investing activities		(399)	(306)	(684)
Cash flows from financing activities
Proceeds from issue of equity shares		-	6	9
Issue costs		-	-	-
Loans repaid (finance leases)		(25)	(6)	(61)
Net cash used in financing activities		(25)	-	(52)
Net (decrease)/increase in cash and cash equivalents		(238)	17	233
Exchange losses		(123)	(8)	-
Total (decrease)/increase in cash and cash equivalents		(361)	9	233
Cash and cash equivalents at the start of the period		1,591	1,358	1,358
Cash and cash equivalents at the end of the period		1,230	1,367	1,591

For the purposes of the cash flow the bank balance of £1,243,000 is netted down by an overdraft of £13,000 giving a net cash balance at the 31 December 2008 of £1,230,000. In the balance sheet the overdraft is shown under the heading of 'Borrowings' in the category 'Current liabilities'. 

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 2008.  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 2008, 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 2008 as described in those financial statements.

The following new accounting standards and amendments to existing standards are effective for accounting periods beginning on or after 1 January 2009 and have not been early adopted by the Group:

IAS 1 'Presentation of Financial Statements (revised 2007)'

Amendment to IAS 7 'Consolidated and Separate Financial Statements (revised 2008)'

Amendment to IFRS 2 'Share Based Payments' - vesting conditions and cancellations

IFRS 8 'Operating Segments'

IAS 23 (Revised) 'Borrowing Costs'

IFRS 3 (Revised) 'Business Combinations'

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 240 of the Companies Act 1985. The Group's statutory accounts for the year to 30 June 2008 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 237(2) or (3) of the Companies Act 1985.

3.  Loss per share

	6 months to  31 Dec	6 months to  31 Dec	12 months to  30 June
	2008	2007	2008
From continuing operations:	£'000	£'000	£'000
Loss for the year attributable to equity shareholders	(460)	(572)	(882)
Adjustments to exclude loss for the period from discontinued operations	-	-	168
Loss for the year from continuing operations attributable to equity shareholders	(460)	(572)	(714)
Loss per share from continuing operations
Basic and diluted (pence per share)*	(0.08)	(0.10)	(0.12)
Loss per share from discontinued operations
Basic and diluted (pence per share)*	-	-	(0.03)
	Shares	Shares	Shares
Issued ordinary shares at start of the period	593,192,000	586,979,000	586,979,000
Ordinary shares issued in the period	20,709,800	6,213,000	6,213,000
Issued ordinary shares at end of the period	613,901,800	593,192,000	593,192,000
Weighted average number of shares in issue for the period	596,473,880	589,763,000	591,468,000
Dilutive effect of options	-	-	-
Weighted average shares for diluted earnings per share	596,473,880	589,763,000	591,468,000

*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 and in electronic form from the Company's website http://www.advfn.com/advfn_ir/.

 

END

 

 

IR IIFIAFSIDIIA