5th Dec 2008 16:52
On-line PLC
('On-line' or 'the Company')
Preliminary Results for the Year Ended 30 June 2008
On-line today announces preliminary results for the year ended 30 June 2008.
For further information, please contact:
Michael Hodges, Chairman and Managing Director [email protected]
Francesca De Franco, PR [email protected] 020 7070 0932
Fiona Kindness, Grant Thornton UK LLP (Nominated Adviser) 020 7728 3414
On-line PLC
Chairman's Statement
Despite turmoil in the world's stock markets we have continued to see growth and advancement in our investments. This progress made has been achieved through hard work of all involved. At On-line we have also made good progress and have switched from an operating loss to a small operating profit and at the same time our turnover has increased which you will be able to see details of in the panel below.
ADVFN PLC
ADVFN has made great progress around the world and again it has increased its turnover and reduced its losses in line with expectations. Turnover is up 15.1% to £6.93M (2007: £6.02M), Loss after tax is down 36% to £882,000 (2007: £1,382,000). It has launched new products aimed at their international markets that have been received very well. Its user base has also continued to grow with ADVFN user numbers up 48% to 1.44M (2007: 970K) and total group user numbers up 21% to 4.0M (2007: 3.3M). Its strategy remains on target to make ADVFN internationally the leading destination for private investors looking for information with its products giving the private investor information of a professional quality at a competitive price.
ALL IPO PLC
The IPO market has been very quiet over the past year so the IPO's available to the private investor have been very few. As a result of this the company has looked for new areas to work in and grow the business. It has carried on within it development of the ALLIPO platform and created Throgmorton Street Capital which it is hoped will show further potential for growth.
Financial overview
Through difficult trading times we have increased our turnover and made an operating profit. Turnover is up 135% to £127K (2007: £54K), operating profit of £7K is up 200% (2007: (£7k) Loss ). We have worked with our investments to try to ensure they carry on developing in a way that we hope will bring rewards in the future.
However we have had to write of £144,000 in respect of our investment in Smoking Gun Plc.
Financial performance
Key financial performance for the year has been analysed as follows:
|
|
Year to 30 June 2008 |
Year to 30 June 2007 |
Change
|
Change
|
|
|
£'000 |
£'000 |
£'000 |
% |
|
|
|
|
|
|
|
Turnover |
127 |
54 |
73 |
135 |
|
Operating profit / (loss) |
7 |
(7) |
14 |
200 |
|
Loss per share |
(1.79p) |
(3.6p) |
1.81p |
50 |
Strategy
Our strategy is to carry on work with our investments to help them develop and build on their success while at the same time looking for new opportunities that the company might benefit from.
Operating costs
Our costs are reasonably fixed and predictable and we do not see that changing in the immediate future.
Research and development
It is important that our investments continue to invest in the quality and design of our products. We believe continued investment in our research and development is fundamental to the continuing growth of the business.
Environmental policy
Management continued to look for ways to develop the company's environmental policy during the year. It is our objective to consistently improve our performance in this area.
Summary of key performance indicators
The directors have monitored the progress of the overall company strategy and the individual strategic elements by reference to certain financial and non-financial key performance indicators. These are based on indicators from our investments in ADVFN PLC and ALL IPO PLC and are as follows:-
|
ALLIPO |
2008 Actual |
2008 Target |
2007 Actual |
2007 Target |
|
|
|
|
|
|
|
Increase in registered users |
18% |
20% |
58% |
50% |
|
IPO's made available |
38 |
40 |
66 |
50 |
|
ADVFN |
2008 Actual |
2008 Target |
2007 Actual |
2007 Target |
|
|
|
|
|
|
|
Growth in sales (%) |
15% |
15% |
35% |
30% |
|
Staff turnover (%) |
35% |
25% |
18% |
20% |
|
Average head count |
54 |
55 |
54 |
55 |
|
Advfn registered users |
1.44M |
1.2M |
970K |
850K |
|
Group registered users |
4.0M |
3.5M |
3.3M |
2.5M |
Future developments for the business
We feel it is right for us to work with our investments and assist in their growth. This has seen them increase their business and allow new areas to be explored.
Principal risks and uncertainties
The management of the company and the nature of the company's strategy are subject to a number of risks. The directors have set out below the principal risks facing the business. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Where possible, processes are in place to monitor and mitigate such risks.
Economic downturn
The success of the world's stock markets might affect the business given the sector both our main investments operate in. Many things around the world can affect a stock market from war to human error. This can also have a knock on effect to consumer spending power as has been seen with the current credit crunch around the world, although in the past when we have seen a market downturn this has not impacted on usage of ADVFN, with customers generally wanting to know what is happening in the markets; be it good or bad. In response to this potential risk, senior management aim to keep abreast of economic conditions around the world; not only should senior management be aware of it, likewise so should our customers and members. In cases of severe economic downturn, marketing and pricing strategies are modified to reflect the new market conditions.
High proportion of fixed overheads and variable revenues
A large proportion of the company's overheads are reasonably fixed. There is the risk that any significant changes in revenue may lead to the inability to cover such costs. Management closely monitor fixed overheads against budget on a monthly basis and cost saving exercises would be implemented should there be an anticipated decline in revenues.Michael Hodges
Chairman
Profit and Loss Account
for the year ended 30 June 2008
|
Notes |
2008 |
2007 |
|
|
£'000 |
£'000 |
||
|
Turnover |
127 |
54 |
|
|
Administrative expenses |
(120) |
(61) |
|
|
Operating profit / (loss) |
7 |
(7) |
|
|
Profit on sale of investments |
- |
1 |
|
|
Amount written off investments |
(144) |
(273) |
|
|
Loss on ordinary activities before taxation |
(137) |
(279) |
|
|
Tax on loss on ordinary activities |
- |
- |
|
|
Loss on ordinary activities after taxation |
(137) |
(279) |
|
|
Basic and diluted loss per ordinary share from total and continuing operations |
2 |
(1.79p) |
(3.6p) |
All operations are continuing.
Balance Sheet
at 30 June 2008
|
2008 |
2007 |
||||
|
Notes |
£'000 |
£'000 |
|||
|
Fixed assets |
|||||
|
Investments |
871 |
1,015 |
|||
|
Current assets |
|||||
|
Debtors |
8 |
7 |
|||
|
Investments |
330 |
900 |
|||
|
Cash at bank and in hand |
60 |
46 |
|||
|
398 |
953 |
||||
|
Creditors: amounts falling due within one year |
(96) |
(88) |
|||
|
Net current assets |
302 |
865 |
|||
|
Total assets less current liabilities |
1,173 |
1,880 |
|||
|
Capital and reserves |
|||||
|
Called up share capital |
3,242 |
3,242 |
|||
|
Share premium account |
2,205 |
2,205 |
|||
|
Option valuation reserve |
11 |
11 |
|||
|
Profit and loss account |
(4,285) |
(3,578) |
|||
|
Shareholders' funds |
3 |
1,173 |
1,880 |
||
The financial statements were approved by the Board of Directors on 4th December 2008.
Cash Flow Statement
for the year ended 30 June 2008
|
2008 |
2007 |
||||
|
Notes |
£'000 |
£'000 |
|||
|
Net cash inflow from operating activities |
4 |
14 |
13 |
||
|
Capital expenditure and financial investment |
|||||
|
Proceeds of disposal of investments |
- |
10 |
|||
|
Loans to other entities |
- |
(4) |
|||
|
- |
6 |
||||
|
Net cash inflow before financing |
14 |
19 |
|||
|
Financing |
|||||
|
Net cash inflow from financing |
- |
- |
|||
|
Increase in cash |
5,6 |
14 |
19 |
||
Statement of Total Recognised Gains and Losses
for the year ended 30 June 2008
|
2008 |
2007 |
||||
|
£'000 |
£'000 |
||||
|
Loss for the financial year |
(137) |
(279) |
|||
|
Unrealised (loss) / gain on current asset investments |
(570) |
65 |
|||
|
Total recognised losses for the year |
(707) |
(214) |
On-line plc
Notes for the year ended 30 June 2008
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 Company's 2008 statutory financial statements upon which the auditors reported on 4th December 2008. Their opinion does not include any statement under section 237 of the Companies Act 1985.
The financial statements have been prepared in accordance with applicable United Kingdom Accounting Standards and under the historical cost convention. The principal accounting policies have remained unchanged since the previous year.
Copies of the annual report are being posted to shareholders and copies will be available from the company's registered office at Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA and the Company's website http://www.on-line.co.uk/. .
2. Loss per ordinary share
|
2008 |
2007 |
|||||
|
Number of |
Loss |
Number of |
Loss |
|||
|
Loss |
shares |
per share |
Loss |
shares |
per share |
|
|
£'000 |
'000 |
p |
£'000 |
'000 |
P |
|
|
Loss for the year |
(137) |
(279) |
||||
|
Weighted average number of shares |
7,662 |
7,662 |
||||
|
Loss per share |
(1.79p) |
(3.6p) |
The share options are anti-dilutive for both years due to the losses incurred.
3. Reconciliation of movements in shareholders' funds
|
2008 |
2007 |
|||
|
£'000 |
£'000 |
|||
|
Loss for the financial year |
(137) |
(279) |
||
|
Recognition of equity settled share based payments in the year (FRS20) |
- |
11 |
||
|
Unrealised (loss) / gain on investments |
(570) |
65 |
||
|
Net decrease in shareholders' funds in the year |
(707) |
(203) |
||
|
Shareholders' funds at 1 July 2007 |
1,880 |
2,083 |
||
|
Shareholders' funds at 30 June 2008 |
1,173 |
1,880 |
4. Reconciliation of operating profit / (loss) to net cash inflow from operating activities
|
2008 |
2007 |
|||
|
£'000 |
£'000 |
|||
|
Operating profit / (loss) |
7 |
(7) |
||
|
Recognition of equity settled share based payments in the year (FRS20) |
- |
11 |
||
|
(Increase) / decrease in debtors |
(1) |
3 |
||
|
Increase in creditors |
8 |
6 |
||
|
Net cash inflow from operating activities |
14 |
13 |
5. Reconciliation of net cash flow to movement in net funds
|
2008 |
2007 |
|
|
£'000 |
£'000 |
|
|
Increase in cash for the year |
14 |
19 |
|
Net funds at 1 July 2007 |
46 |
27 |
|
Net funds at 30 June 2008 |
60 |
46 |
6. Analysis of movement in net funds
|
At 1 July 2007 |
Cash flow |
At30 June 2008 |
|||
|
£'000 |
£'000 |
£'000 |
|||
|
Cash in hand and at bank |
46 |
14 |
60 |
Related Shares:
OBC.L