Final Results

On-Line PLC
08 October 2004


                                  On-line PLC
                          ('On-line' or 'the Company')


              Preliminary Results for the Year Ended 30 June 2004



On-line today announces preliminary results for the year ended 30 June 2004.


Highlights:

•        Profit before tax of £216K (2003 : £1.5M loss)

•        Earnings per share 3.3p (2003 : 19.4p loss)

•        EBITDA profits of £382K (2003 : £274K loss)

•        ADVFN PLC close to break-even with loss before tax reduced by 93% to
         86K, EBITDA up 111% to £852K and user numbers up 50% to 370,000

•        AKAEI PLC being restructured to provide future growth potential.
         Conclusion of reverse takeover deal looking probable in foreseeable 
         future


Michael Hodges, On-line's Chairman commented:

'We are especially pleased with the £1.7 million improvement in profit from last
year's loss. With ADVFN ranking as Europe's leading stocks and shares website
coupled with its potential for further growth and the prospect of Akaei being
restructured, we are in a strong position and can look forward with cautious
optimism.'


For further information, please contact:

On-line Plc
Michael Hodges, Chairman and Managing Director                   020 8532 8924

Grant Thornton - Nominated Advisors
Graeme Thom                                                      020 7383 5100



On-line PLC

Chairman's Statement

Results

Profit before tax improved dramatically to £216K compared to a loss last year of
£1.51M. Retained profits for the year are £226K against a retained loss last
year of £1.36M. Earnings per share have seen a remarkable turnaround at 3.3p
this year from a loss per share of 19.4p last year. Group turnover is lower this
year due to the non-consolidation of ADVFN PLC and due to the curtailment of
trading by Akaei Plc.

We have achieved an EBITDA profit of £382K compared to an EBITDA loss of £274K
last year as can be seen from the table below.


EBITDA - Earnings before interest, tax, depreciation,                              2004          2003
amortisation and exceptional items                                                £'000         £'000

Profit/(loss) before tax - per financial statements                                 216       (1,509)

Exceptional item - Impairment                                                         -           325
Exceptional item - Part disposal of subsidiary                                     (23)         (267)
(Gain on disposal)/amount written off investments                                  (82)           504
Share of associate's Ebitda adjustments                                             264           578
Depreciation                                                                          -            55
Net interest                                                                          7            40

EBITDA                                                                              382         (274)


Operating Review

I am pleased to report that ADVFN PLC, in which we hold a 28% stake, has not
only maintained its number one position as the UK's leading financial website
but has now extended this to become Europe's leading website. It reduced its
loss before tax by 91% and almost broke-even for the year and saw its EBITDA
profit up 111% to £852K on turnover up 30% at £3 million. It's user numbers also
dramatically increased by 50% over the year from 250,000 to 370,000 and has
since broken the 400,000 barrier.

We currently hold an 82% stake in Akaei and continue in our quest to restructure
this business. Whilst I cannot at this stage provide any details I am pleased to
report that our efforts to reorganise the company appear to be nearing
completion and I hope to be able to provide more details within the near future.


Prospects

With ADVFN continuing to grow its user numbers and being well positioned to
exploit any improvement in general market conditions and Akaei likely to be
successfully restructured within the foreseeable future we can look forward with
optimism.


Michael Hodges
Chairman
7 October 2004


On-line PLC
Consolidated Profit and Loss Account
for the year ended 30 June 2004

                                             Notes                2004                        2003
                                                                 £'000                       £'000

Turnover                                                            51                          205

Cost of sales                                                        -                        (237)

Gross profit/(loss)                                                 51                         (32)

Administrative expenses
Exceptional item - impairment loss                                   -                        (325)
Other administrative expenses                                       95                        (491)
Total administrative expenses                                       95                        (816)

Other operating income                                               -                           50

Operating profit/(loss)                                            146                        (798)

Share of operating losses of associate                            (28)                        (434)

Amount written off investments                                       -                        (504)

Exceptional items: profits on disposal of                          105                          267
investments

Net interest                                                       (7)                         (40)

Profit/(loss) on ordinary activities                               216                      (1,509)
before taxation

Tax on profit/(loss) on ordinary                                     2                          163
activities

Profit/(loss) on ordinary activities after                         218                      (1,346)
taxation

Minority interest                                                    8                         (16)


Profit/(loss) retained for the year            4                   226                      (1,362)


Profit/(loss) per ordinary share               3
Basic                                                             3.3p                      (19.4p)
Diluted                                                           3.2p                           -



On-line PLC
Balance Sheets
at 30 June 2004
                                                     Group         Group       Company       Company
                                                      2004          2003          2004          2003
                                            Notes    £'000         £'000         £'000         £'000

Fixed assets
Investments                                            663           819           845         1,151
                                                       663           819           845         1,151

Current assets
Debtors                                                 29            95            20            30
Investments                                            101            71           101            71
Cash at bank and in hand                                 8           112             8           109
                                                       138           278           129           210
Creditors: amounts falling due within
one year                                             (235)         (873)          (60)         (624)

Net current (liabilities)/assets                      (97)         (595)            69         (414)
                                                                             
Total assets less current liabilities                  566           224           914           737

Minority interests                                      42            29             -             -
Net assets                                             608           253           914           737




Capital and Reserves
Called up share capital                              3,241         3,211         3,241         3,211
Share premium account                                2,202         2,134         2,202         2,134
Profit and loss account                            (4,835)       (5,092)       (4,529)       (4,608)
Shareholders funds                            4        608           253           914           737


The financial statements were approved by the Board of Directors on 7 October
2004.



On-line PLC
Consolidated Cash Flow Statement
for the year ended 30 June 2004
                                                                      2004                      2003
                                                  Notes              £'000                     £'000

Net cash outflow from operating activities          5                (230)                      (89)

Returns on investment and servicing of finance
Interest paid                                                         (11)                      (40)

Taxation                                                                55                         -

Capital expenditure
Proceeds from sale of fixed asset investments                          218                         -

Net cash inflow/(outflow) before financing                              32                     (129)

Financing
Issue of ordinary share capital                                        118                         -
Share issue costs                                                     (20)                         -
Issue of shares to minority                                             17                         -
Loan repayments                                                      (102)                      (69)
Capital element of finance leases and hire                               -                     (109)
purchase contracts repaid
Net cash inflow/(outflow) from financing                                13                     (178)

Increase/(decrease) in cash                         6                   45                     (307)



Statement of Total Recognised Gains and Losses
for the year ended 30 June 2004
                                                                       2004                      2003
                                                                      £'000                     £'000

Profit/(loss) for the financial year                                    226                    (1,362)
Unrealised gain on current asset investments                             30                         21

Total recognised gains and losses for the year                          256                    (1,341)



On-line PLC
Notes for the year ended 30 June 2004


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 2004 statutory financial statements upon which
the auditors reported on 7 October 2004. Their opinion is unqualified and does
not include any statement under section 237 of the Companies Act 1985, but
refers to the uncertainties surrounding the ability of the group to continue as
a going concern (as described in note 2).

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 preparation of the financial statements

The financial statements have been prepared in accordance with applicable United
Kingdom accounting standards and under the historical cost convention as
modified by the revaluation of current asset investments. The principal
accounting policies are unchanged from the previous year.

The company meets its day to day working capital requirements through a positive
cash balance and has a bank overdraft facility of £100,000 which the company had
yet to utilise at 30 June 2004.  It is repayable on demand and the directors
have no reason to believe the facility will be withdrawn in the foreseeable
future.

The nature of the company's business is such that there can be unpredictable
variation in the timing of cash flows.  Bearing this in mind, the directors have
prepared cash flow projections for the period ending 31 December 2005.  The
projections include the existing overdraft facility of £100,000 together with
funds of approximately £90,000 raised by the proposed sale of an investment in
equity shares during the six months ending 30 June 2005. On this basis, the
directors consider there will be sufficient funds  to allow the company to
continue to operate within the currently available facility and consider it is
appropriate to prepare the financial statements on the going concern basis.


3.   Earnings/(loss) per ordinary share
     
The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average numbers of
shares in issue during the year. Shares held in employee share schemes are
treated as cancelled for the purposes of this calculation. The calculation of
diluted earnings per share is based on the basic earnings per share, adjusted to
allow for the issue of shares and the post tax effect of dividends and/or
interest, on the assumed conversion of all dilutive options and other dilutive
potential ordinary shares.

Reconciliations of earnings and weighted average number of shares used in the
calculation are set out below.

                                                     2004                                   2003
                                                Number of      Earnings                Number of          Loss
                                        Profit     shares     per share       Loss        shares     per share
                                         £'000       '000             p      £'000          '000             p

Profit/(loss) for the year                 226                             (1,362)
Weighted average number of shares                   6,848                                7,028
Basic earnings/(loss) per share                                    3.3p                                (19.4p)

Number of shares under option                         600                                    -
Number of shares that would have
been issued at average market                       (520)                                    -
value

Diluted earnings per share                 226      6,928          3.2p    (1,362)       7,028          (19.4p)


     
4.   Reconciliation of movements in shareholders' funds
                                                           Group               Group
                                                            2004                2003
                                                           £'000               £'000

Profit/(loss) for the financial year                         226             (1,362)
Unrealised gain on investments                                30                  21
Receipts from issue of shares                                 98                  51
Goodwill previously written off to reserves                    1                 260
Net decrease in shareholders funds in the                    355             (1,030)
year
Shareholders' funds at 1 July                                253               1,283
Shareholders' funds at 30 June                               608                 253

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

                                                                   2004             2003
                                                                  £'000            £'000

Operating profit/(loss)                                             146            (798)
Other operating income - compensation received                        -             (50)
Depreciation                                                          -               55
Impairment loss                                                       -              325
Loss on disposal of tangible fixed assets                             -                6
Decrease in stocks                                                    -               25
Decrease in debtors                                                  11              103
(Decrease)/Increase in creditors                                  (387)              245
Net cash outflow from operating activities                        (230)             (89)


     
6.   Reconciliation of net cash flow to movement in net debt
                                                                         2004             2003
                                                                        £'000            £'000

Increase/(decrease) in cash for the year                                   45            (307)
Loan repayments                                                           102               69
Cash outflow from capital repayments of hire purchase                       -              109
and finance lease agreements
Movement in net funds in the year                                         147            (129)

Net debt at 1 July                                                      (139)             (10)
Net debt at 30 June                                                         8            (139)

     
7.   Analysis of movement in net debt

                                   At 1 July 2003    Cash flow   At 30 June 2004
                                            £'000        £'000             £'000

Cash in hand and at bank                      112        (104)                 8
Overdraft                                   (149)          149                 -
                                             (37)           45                 8
Debt                                        (102)          102                 -
                                            (139)          147                 8



                      This information is provided by RNS
            The company news service from the London Stock Exchange END

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