9th Feb 2009 07:30
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 [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
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/.
Related Shares:
ADVFN