19th Oct 2005 07:30
On-Line PLC19 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 toover one and a half million pounds and the strength of our investments which hastransformed our balance sheet increasing our net asset base by over four times.With the transformation in ADVFN over the last year and the successful launchand prospects of ALL IPO we feel we are now in a position to start addingsignificant shareholder value over the next year or two." For further information, please contact: On-line PlcMichael Hodges, Chairman and Managing Director [email protected] On-line PLC Chairman's Statement Results I am very pleased to be able to announce a significantly improved set of resultswith 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% to20.1p per share compared to 3.3p last year. Our balance sheet position has alsoseen more than a four-fold increase in net assets up to £2.82M from £608K lastyear leaving us in excellent shape going forwards especially as this does noteven 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 inour EBITDA profit, which is up 144% to £853K compared to £349K last year, asshown in the table below:- EBITDA - Earnings before interest, tax, depreciation, 2005 2004amortisation 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) 231Net interest (7) 7 EBITDA 853 349 Operating Review I am pleased to report that ADVFN Plc, in which we now hold just under 25%, hasnot only consolidated its position as Europe's leading financial website but isnow extending this further into many new areas with joint ventures in Japan andBrazil and data from many Asian markets starting to come on-line. It recentlyannounced 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 continuedto 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 themarket for high growth customer acquisition businesses in the internet sector isthriving. ALL IPO Plc, in which we now hold just over 8%, was successfully restructuredand refinanced during the year. Whilst developing its on-line IPO systems itwent through the process of applying for and obtaining both FSA and Europeanapproval following which its business was recently launched. Although early dayswe have high hopes for the future of this business. Smoking Gun Entertainment Group Plc, where we own approx 20%, has with our helpsuccessfully listed on the OFEX market and is now looking to expand itsactivities. Prospects All our investments appear poised to perform well over the next year or two andthe 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 tothe coming year with great enthusiasm. Michael HodgesChairman18th October 2005 On-line PLCConsolidated Profit and Loss Accountfor 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 ofinvestments 585 105Share 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 2Basic 20.1p 3.3pDiluted 18.8p 3.2p All operations are continuing. On-line PLCBalance Sheetsat 30 June 2005 Group Group Company Company 2005 2004 2005 2004 Note £'000 £'000 £'000 £'000 Fixed assetsInvestments 1,795 663 1,373 845 Current assetsDebtors 95 29 95 20Investments 954 101 954 101Cash at bank and in hand 48 8 48 8 1,097 138 1,097 129Creditors: amounts falling duewithin one year (75) (235) (75) (60) Net current assets/(liabilities) 1,022 (97) 1,022 69 Total assets less currentliabilities 2,817 566 2,395 914 Minority interest - 42 - -Net assets 2,817 608 2,395 914 Capital and reservesCalled up share capital 3,242 3,241 3,242 3,241Share premium account 2,205 2,202 2,205 2,202Profit 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 October2005. On-line PLCConsolidated Cash Flow Statementfor 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 financeInterest paid (1) (11) Taxation - 55 Capital expenditureProceeds from sale of investments 66 218Loans to other entities (78) - (12) 218 Net cash inflow before financing 36 32 FinancingIssue of ordinary share capital 4 118Share issue costs - (20)Issue of shares to minority - 17Loan repayments - (102)Net cash inflow from financing 4 13 Increase in cash 5,6 40 45 Statement of Total Recognised Gains and Lossesfor 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 PLCNotes for the year ended 30 June 2005 1. General The financial information herein does not constitute statutory accounts asdefined in section 240 of the Companies Act 1985. The financial information hasbeen extracted from the group's 2005 statutory financial statements upon whichthe auditors reported on 18th October 2005. Their opinion is unqualified anddoes 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 beavailable 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 earningsattributable to ordinary shareholders divided by the weighted average numbers ofshares in issue during the year. The calculation of diluted earnings per share is based on the basic earnings pershare, adjusted to allow for the issue of shares and the post tax effect ofdividends and/or interest, on the assumed conversion of all dilutive options andother dilutive potential ordinary shares. Reconciliations of earnings and weighted average number of shares used in thecalculation 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 226Weighted average number of shares 7,654 6,848Basic earnings per share 20.1p 3.3p Number of shares under option 990 600Number of shares that would havebeen issued at average marketvalue (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 226Unrealised gain on investments 694 30Share of prior year adjustment of associate (77) -Receipts from issue of shares 4 98Goodwill previously written off to reserves 50 1Net increase in shareholders' funds in the year 2,209 355Shareholders' funds at 1 July 2004 608 253Shareholders' funds at 30 June 2005 2,817 608 4. Reconciliation of operating profit to net cash outflow from operatingactivities 2005 2004 £'000 £'000 Operating (loss)/profit (69) 146Decrease in debtors 12 11Increase/(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 45Loan repayments - 102Movement 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 ExchangeRelated Shares:
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