23rd Feb 2011 07:00
ADVFN PLC
Unaudited Interim Results for the Six Months Ended 31 December 2010
ADVFN, Europe's leading stocks and shares website, today announces its unaudited interim results for the six months ended 31 December 2010.
Highlights:
Turnover up 13.5% to £4,597,000 (2009: £4,049,000)
Cash and gilts in hand of £2.283M up 29.5% (2009: £1.763M)
Loss for the Period - down 80% to £67,000 (2009: £330,000)
Operating Loss - down 53% to £75,000 (2009: £160,000)
ADVFN user numbers - up 17% to 2.1M (2009: 1.8M)
Contacts:
Clem Chambers [email protected]
Francesca De Franco, PR [email protected] 020 7070 0932
Fiona Kindness, Grant Thornton UK LLP (Nominated Adviser) 020 7728 3414
Chief Executive's Statement
The half year interim period has shown a continuation of good growth and bottom line improvement. Comparable sales are up 13.5%. Cash flow for the period was much improved with our cash and gilts in hand rising 29.5% for the period, up by £520,000. The increase in cash and gilts is tracking against the growth in sales which is a good indication that growth is directly driving cash generation. The end of this period enjoyed record sales in both subscriptions and advertising and a strong finish to the half year. Robust growth has continued into the new half, which feels very positive.
We are entering into a new phase as a business, which sees us building on overseas success in Brazil and the US. We are implementing a long term effort to lever up income in major markets like Australia, Canada, India, Japan and Mexico and broaden our reach yet further into these exciting markets. We already have toe-holds in most of the global markets and it is our plan to extend these using established levels of business a spring board into monetising local markets around the globe
With our UK market showing strength, further progress in all markets, significant opportunities in large territories opening up and forward momentum with transactional platforms, we are feeling buoyant about the months ahead.
Financial performance
Key financial performance for the period has been summarised as follows:
Six Months ended | Six Months ended | Change | Change | |
31 December 2010 | 31 December 2009 | |||
£'000 | £'000 | £'000 | % | |
Loss for the period | (67) | (330) | 263 | 80% |
Operating Loss | (75) | (160) | 85 | 53% |
Loss per share | 0.01p | 0.05p | 0.04p | 80% |
Clem Chambers
CEO
23rd February 2011
Consolidated income statement | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2010 | 2009 | 2010 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Notes | ||||
Revenue | 4,597 | 4,049 | 8,475 | |
Cost of sales | (208) | (199) | (404) | |
Gross profit | 4,389 | 3,850 | 8,071 | |
Share based payment | (14) | (10) | (43) | |
Amortisation of intangible assets | (589) | (593) | (1,149) | |
Other administrative expenses | (3,861) | (3,407) | (6,963) | |
Total administrative expense | (4,464) | (4,010) | (8,155) | |
Operating loss | (75) | (160) | (84) | |
Finance income | 6 | 8 | 23 | |
Finance expense | (24) | (6) | (8) | |
Goodwill credit & fair value adjustment | - | (216) | (214) | |
Result from associates after taxation | - | (18) | (18) | |
Loss before tax | (93) | (392) | (301) | |
Taxation | 26 | 62 | 331 | |
(Loss)/profit for the period | (67) | (330) | 30 | |
Loss per share from continuing operations | ||||
Basic and diluted (pence per share) | 3 | (0.01) | (0.05) | - |
Consolidated statement of comprehensive income | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2010 | 2009 | 2010 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
(Loss)/profit for the period | (67) | (330) | 30 | |
Other comprehensive income: | ||||
Exchange differences on translation of foreign operations | 14 | 22 | (8) | |
Total comprehensive income for the year | (53) | (308) | 22 | |
Consolidated balance sheet | 31 Dec | 31 Dec | 30 June | |
2010 | 2009 | 2010 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 85 | 80 | 84 | |
Goodwill | 1,590 | 1,590 | 1,590 | |
Intangible assets | 2,669 | 3,232 | 2,973 | |
Trade and other receivables | 113 | 204 | 113 | |
Total non-current assets | 4,457 | 5,106 | 4,760 | |
Current assets | ||||
Trade and other receivables | 1,133 | 867 | 890 | |
Current tax recoverable | 9 | 85 | 92 | |
Other financial assets (available for sale) | 729 | 31 | 709 | |
Cash and cash equivalents | 1,571 | 1,763 | 1,599 | |
Total current assets | 3,442 | 2,746 | 3,290 | |
Total assets | 7,899 | 7,852 | 8,050 | |
Equity and liabilities | ||||
Equity | ||||
Issued capital | 6,238 | 6,236 | 6,238 | |
Share premium | 7,902 | 7,898 | 7,900 | |
Merger reserve | 221 | 221 | 221 | |
Share based payments reserve | 499 | 466 | 485 | |
Foreign exchange reserve | (12) | 4 | (26) | |
Retained earnings | (8,812) | (9,119) | (8,745) | |
Total equity | 6,036 | 5,706 | 6,073 | |
Non-current liabilities | ||||
Deferred tax | 273 | 604 | 342 | |
Borrowings - obligations under finance leases | 6 | 11 | 6 | |
Total non-current liabilities | 279 | 615 | 348 | |
Current liabilities | ||||
Trade and other payables | 1,581 | 1,518 | 1,616 | |
Borrowings - overdraft and obligations under finance leases |
3 |
13 |
13 | |
Total current liabilities | 1,584 | 1,531 | 1,629 | |
Total liabilities | 1,863 | 2,146 | 1,977 | |
Total equity and liabilities | 7,899 | 7,852 | 8,050 | |
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 2009 | 6,156 | 7,758 | 221 | 456 | (18) | (8,789) | 5,784 |
Issue of shares | 80 | 140 | - | - | - | - | 220 |
Equity settled share options | - | - | - | 10 | - | - | 10 |
Transactions with owners | 80 | 140 | - | 10 | - | - | 230 |
Loss for the period after tax | - | - | - | - | - | (330) | (330) |
Other comprehensive income | |||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
22 |
- |
22 |
At 31 December 2009 | 6,236 | 7,898 | 221 | 466 | 4 | (9,119) | 5,706 |
Issue of shares | 2 | 2 | - | - | - | - | 4 |
Equity settled share options | - | - | - | 33 | - | - | 33 |
Transactions with owners | 2 | 2 | - | 33 | - | - | 37 |
Profit for the period after tax | - | - | - | - | - | 360 | 360 |
Other comprehensive income | |||||||
Exercise of share options | - | - | - | (14) | - | 14 | - |
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
(30) |
- |
(30) |
Total comprehensive income for the year |
- |
- |
- |
(14) |
(30) |
14 |
(30) |
At 30 June 2010 | 6,238 | 7,900 | 221 | 485 | (26) | (8,745) | 6,073 |
Issue of shares | - | 2 | - | - | - | - | 2 |
Equity settled share options | - | - | - | 14 | - | - | 14 |
Transactions with owners | - | 2 | - | 14 | - | - | 16 |
Loss for the period after tax | - | - | - | - | - | (67) | (67) |
Other comprehensive income | |||||||
Exchange differences on translation of foreign operations |
- |
- |
- |
- |
14 |
- |
14 |
At 31 December 2010 | 6,238 | 7,902 | 221 | 499 | (12) | (8,812) | 6,036 |
Consolidated cash flow statement | ||||
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | ||
2010 | 2009 | 2010 | ||
£'000 | £'000 | £'000 | ||
unaudited | unaudited | audited | ||
Cash flows from operating activities | ||||
Loss for the period before tax | (93) | (392) | (301) | |
Finance costs in the income statement | 18 | (2) | (15) | |
Results for associates | - | 18 | 18 | |
Depreciation of non-current assets | 64 | 46 | 75 | |
Amortisation | 589 | 593 | 1,149 | |
Goodwill credit & fair value adjustment | - | 216 | 214 | |
Impairment of financial assets | - | 1 | 24 | |
Share based payments | 14 | 10 | 43 | |
(Increase)/decrease in trade and other receivables | (243) | 148 | 236 | |
Decrease in trade and other payables | (35) | (124) | (26) | |
Net cash generated from operations | 314 | 514 | 1,417 | |
Interest paid | (24) | (6) | (8) | |
Income tax receivable / (payable) | 40 | - | (17) | |
Net cash generated by operating activities | 330 | 508 | 1,392 | |
Cash flows from investing activities | ||||
Interest received | 6 | 8 | 23 | |
Payments for property, plant and equipment | (65) | - | (30) | |
Purchase of intangibles | (285) | (273) | (570) | |
Acquisition of subsidiary (net of cash with subsidiary) | - | (22) | (701) | |
Acquisition of investments | (20) | - | - | |
Disposal of assets | - | - | (22) | |
Net cash used in investing activities | (364) | (287) | (1,300) | |
Cash flows from financing activities | ||||
Proceeds from issue of equity shares | 2 | 26 | - | |
Issue costs | - | - | 27 | |
Loans repaid (finance leases) | (10) | (15) | (21) | |
Net cash (used) / generated from financing activities | (8) | 11 | 6 | |
Net (decrease)/ increase in cash and cash equivalents | (42) | 232 | 98 | |
Exchange movements | 14 | 22 | (8) | |
Total (decrease)/ increase in cash and cash equivalents | (28) | 254 | 90 | |
Cash and cash equivalents at the start of the period | 1,599 | 1,509 | 1,509 | |
Cash and cash equivalents at the end of the period | 1,571 | 1,763 | 1,599 |
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 2010. 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 2010, 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 2010 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 2010 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. Earnings / (loss) per share
6 months to 31 Dec | 6 months to 31 Dec | 12 months to 30 June | |
2010 | 2009 | 2010 | |
£'000 | £'000 | £'000 | |
(Loss) / profit for the year from continuing operations attributable to equity shareholders |
(67) |
(330) |
30 |
Earnings / (loss) per share from continuing operations | |||
Basic earnings / (loss) per share (pence) | (0.01) | (0.05) | - |
Diluted loss per share (pence) | (0.01) | (0.05) | - |
Shares | Shares | Shares | |
Issued ordinary shares at start of the period | 623,764,505 | 615,568,901 | 615,568,903 |
Ordinary shares issued in the period | 50,000 | 8,061,602 | 8,195,602 |
Issued ordinary shares at end of the period | 623,814,505 | 623,630,503 | 623,764,505 |
Weighted average number of shares in issue for the period | 623,784,614 | 621,570,408 | 622,267,954 |
Dilutive effect of options | - | - | 7,100,433 |
Weighted average shares for diluted earnings per share | 623,784,614 | 621,570,408 | 629,368,387 |
\* 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 from the Company's website, www.advfn.com.
Related Shares:
ADVFN