Preliminary Results
On-Line PLC
19 October 2005
Embargoed for release until 7.30 a.m. 19th October 2005
On-line PLC
('On-line' or 'the Company')
Preliminary Results for the Year Ended 30 June 2005
On-line today announces preliminary results for the year ended 30 June 2005.
Highlights:
• Profit before tax up over 600% to £1.53M (2004: £216K)
• Earnings per share up over 500% to 20.1p (2004: 3.3p)
• EBITDA profits up 144% to £853K (2004: £349K)
• Net assets increased more than fourfold to £2.82M (2004: £608K)
• ADVFN Plc achieved first full year's profit of £1.01M (2004: £254K loss)
• ALL IPO Plc successfully restructured, refinanced, approved by the FSA
and business launched
Michael Hodges, On-line's Chairman commented:
'We are extremely pleased with the more than six-fold increase in profits to
over one and a half million pounds and the strength of our investments which has
transformed our balance sheet increasing our net asset base by over four times.
With the transformation in ADVFN over the last year and the successful launch
and prospects of ALL IPO we feel we are now in a position to start adding
significant shareholder value over the next year or two.'
For further information, please contact:
On-line Plc
Michael Hodges, Chairman and Managing Director mikeh@advfn.com
On-line PLC
Chairman's Statement
Results
I am very pleased to be able to announce a significantly improved set of results
with profit before tax having increased by an impressive 600% to £1.53M from
£216K last year. Earnings per share have also improved substantially up 500% to
20.1p per share compared to 3.3p last year. Our balance sheet position has also
seen more than a four-fold increase in net assets up to £2.82M from £608K last
year leaving us in excellent shape going forwards especially as this does not
even reflect the market value of our fixed asset investments only their cost.
The inherent strength in our results can also be seen in the continued growth in
our EBITDA profit, which is up 144% to £853K compared to £349K last year, as
shown in the table below:-
EBITDA - Earnings before interest, tax, depreciation, 2005 2004
amortisation and exceptional items £'000 £'000
Profit/(loss) before tax - per accounts 1,529 216
Exceptional item - profits on disposal of investments (585) (105)
Share of associate's Ebitda adjustments (84) 231
Net interest (7) 7
EBITDA 853 349
Operating Review
I am pleased to report that ADVFN Plc, in which we now hold just under 25%, has
not only consolidated its position as Europe's leading financial website but is
now extending this further into many new areas with joint ventures in Japan and
Brazil and data from many Asian markets starting to come on-line. It recently
announced a very positive set of results with first full year's profits of
£1.01M compared to losses of £254K the previous year. Its user numbers continued
to grow strongly having increased by 46% over the year from 370,000 to 540,000.
Its internet properties CupidBay and Fotothing continue to do well and the
market for high growth customer acquisition businesses in the internet sector is
thriving.
ALL IPO Plc, in which we now hold just over 8%, was successfully restructured
and refinanced during the year. Whilst developing its on-line IPO systems it
went through the process of applying for and obtaining both FSA and European
approval following which its business was recently launched. Although early days
we have high hopes for the future of this business.
Smoking Gun Entertainment Group Plc, where we own approx 20%, has with our help
successfully listed on the OFEX market and is now looking to expand its
activities.
Prospects
All our investments appear poised to perform well over the next year or two and
the group's position has now improved to the best it has been for some years.
With a thriving internet sector and the forecast bull markets we look forward to
the coming year with great enthusiasm.
Michael Hodges
Chairman
18th October 2005
On-line PLC
Consolidated Profit and Loss Account
for the year ended 30 June 2005
Note 2005 2005 2004
£'000 £'000 £'000
Turnover 31 51
Administrative expenses (100) 95
Operating (loss)/profit (69) 146
Share of operating losses of associate (302) (28)
Share of associates losses of its associate (19) -
Profit on sale of investments 25 -
Amount written back on investments 728 -
Exceptional items: profits on disposal of
investments 585 105
Share of exceptional items of associate 574
1,159 -
Net interest 7 (7)
Profit on ordinary activities before taxation 1,529 216
Tax on profit on ordinary activities 3 2
Profit on ordinary activities after taxation 1,532 218
Minority interest 6 8
Profit retained for the year 1,538 226
Earnings per ordinary share 2
Basic 20.1p 3.3p
Diluted 18.8p 3.2p
All operations are continuing.
On-line PLC
Balance Sheets
at 30 June 2005
Group Group Company Company
2005 2004 2005 2004
Note £'000 £'000 £'000 £'000
Fixed assets
Investments 1,795 663 1,373 845
Current assets
Debtors 95 29 95 20
Investments 954 101 954 101
Cash at bank and in hand 48 8 48 8
1,097 138 1,097 129
Creditors: amounts falling due
within one year (75) (235) (75) (60)
Net current assets/(liabilities) 1,022 (97) 1,022 69
Total assets less current
liabilities 2,817 566 2,395 914
Minority interest - 42 - -
Net assets 2,817 608 2,395 914
Capital and reserves
Called up share capital 3,242 3,241 3,242 3,241
Share premium account 2,205 2,202 2,205 2,202
Profit and loss account (2,630) (4,835) (3,052) (4,529)
Total shareholders' funds 3 2,817 608 2,395 914
The financial statements were approved by the Board of Directors on 18th October
2005.
On-line PLC
Consolidated Cash Flow Statement
for the year ended 30 June 2005
2005 2004
Notes £'000 £'000
Net cash inflow /(outflow) from operating activities 4 49 (230)
Returns on investment and servicing of finance
Interest paid (1) (11)
Taxation - 55
Capital expenditure
Proceeds from sale of investments 66 218
Loans to other entities (78) -
(12) 218
Net cash inflow before financing 36 32
Financing
Issue of ordinary share capital 4 118
Share issue costs - (20)
Issue of shares to minority - 17
Loan repayments - (102)
Net cash inflow from financing 4 13
Increase in cash 5,6 40 45
Statement of Total Recognised Gains and Losses
for the year ended 30 June 2005
2005 2004
£'000 £'000
Profit for the financial year 1,538 226
Share of prior year adjustment of associate (77) -
Unrealised gain on current asset investments 694 30
Total recognised gains and losses for the year 2,155 256
On-line PLC
Notes for the year ended 30 June 2005
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 2005 statutory financial statements upon which
the auditors reported on 18th October 2005. Their opinion is unqualified and
does not include any statement under section 237 of the Companies Act 1985.
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. Earnings per ordinary share
The calculation of the basic earnings or loss per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average numbers of
shares in issue during the year.
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.
2005 2004
Number Number
of Earnings of Earnings
Profit shares per share Profit share per share
£'000 '000 p £'000 '000 p
Profit for the year 1,538 226
Weighted average number of shares 7,654 6,848
Basic earnings per share 20.1p 3.3p
Number of shares under option 990 600
Number of shares that would have
been issued at average market
value (448) (520)
Diluted earnings per share 1,538 8,196 18.8p 226 6,928 3.2p
3. Reconciliation of movements in shareholders' funds
2005 2004
£'000 £'000
Profit for the financial year 1,538 226
Unrealised gain on investments 694 30
Share of prior year adjustment of associate (77) -
Receipts from issue of shares 4 98
Goodwill previously written off to reserves 50 1
Net increase in shareholders' funds in the year 2,209 355
Shareholders' funds at 1 July 2004 608 253
Shareholders' funds at 30 June 2005 2,817 608
4. Reconciliation of operating profit to net cash outflow from operating
activities
2005 2004
£'000 £'000
Operating (loss)/profit (69) 146
Decrease in debtors 12 11
Increase/(decrease) in creditors 106 (387)
Net cash inflow/(outflow) from operating activities 49 (230)
5. Reconciliation of net cash flow to movement in net funds
2005 2004
£'000 £'000
Increase in cash for the year 40 45
Loan repayments - 102
Movement in net funds in the year 40 147
Net funds at 1 July 2004 8 (139)
Net funds at 30 June 2005 48 8
6. Analysis of movement in net debt
At At
1 July 30 June
2004 Cash flow 2004
£'000 £'000 £'000
Cash in hand and at bank 8 40 48
This information is provided by RNS
The company news service from the London Stock Exchange
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