REG - ADVFN PLC - Final Results
21/11/2024 14:15
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RNS Number : 2060N ADVFN PLC 21 November 2024
For immediate release
21 November 2024
ADFVN PLC
("ADVFN" or the "Company")
Audited Results for the year ended 30 June 2024
The Board of ADVFN announces the audited annual results for the year ended 30
June 2024. The Annual Report and Accounts will shortly be sent to
shareholders and will be available on the Company's
website, http://www.advfnplc.com (http://www.advfnplc.com) . A copy of this
announcement is also available on the Company's
website, http://www.advfnplc.com (http://www.advfnplc.com) .
For further information please contact:
ADVFN plc +44 (0) 203 8794 460
Amit Tauman (CEO)
Beaumont Cornish Limited (Nominated Adviser) +44 (0) 207 628 3396
Michael Cornish
Roland Cornish
Peterhouse Capital Limited (Broker) +44 (0) 207 469 0930
Eran Zucker
Lucy Williams
Rose Greensmith
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018. The person who arranged for the release
of this announcement on behalf of the Company was Amit Tauman, Director.
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
Chairman's Statement
This year has been pivotal for ADVFN, as we continue to strengthen our
foundations for future success.
The Board remains robust, with the addition of a new, highly experienced
member, further enhancing our finance and business development team.
Whilst there remain headwinds in the industry, we remain confident in our
approach. The company continues to innovate and develop state-of-the-art
technologies, in part powered by AI, which empower retail investors and
position ADVFN at the forefront of financial technology.
We are resolved to steering the company through these challenges, always
aligning our long-term vision for growth with shareholders' best interests.
Lord Gold
Non-executive Chairman
Chief Executive's Statement
Dear Shareholders, Employees, and Stakeholders,
I am pleased to present to you the annual report for ADVFN PLC (ADVFN) ("the
Company") and its subsidiaries (together "the Group") for the fiscal year
2023-2024.
Our mission at ADVFN is to empower retail investors by connecting them
together in real-time, providing them with the tools and insights they need to
make informed investment decisions. Our vision is to become the leading
platform for trading ideas and live discussions, fostering a dynamic and
engaged community of investors. Our aim is to be positioned at the forefront
of the financial technology market. With our deep understanding of market
dynamics and our commitment to innovation, we are equipped to deliver
cutting-edge products and offerings.
This year has presented numerous challenges and opportunities for ADVFN. Our
revenues for this year stood at £4.4 million, reflecting the impact of the
downturn in advertising sales and strategic decisions to wind down certain
components of our site. However, we successfully reduced our net loss from
£2.2 million to £918,000, meeting our cost reduction targets.
This year has been marked by several key milestones and innovations:
· Partnerships: We established a new relationship with our Italian
partners, Prodesfin, strengthening our presence in the Italian market.
· Platform Revamp: We revamped our website, www.advfn.com
(http://www.advfn.com) , and initiated the rollout process to other countries,
enhancing user experience and engagement.
· New App Launches: We launched two new apps, which are expected to
have a positive impact and are paving our way to increase our revenue stream.
Additionally, we plan to open up Android subscription purchases and integrate
an ad network within our apps, further bolstering our revenue and expanding
our customer base.
· AI Intelligence and ADVFN Live Chat: We are particularly excited
about the release of AI Intelligence and the ADVFN Live Chat platform. AI
Intelligence utilizes the latest GPT-4 and other large language models (LLMs)
to transform how our users consume financial data, providing advanced insights
and analytics that empower investors to make smarter decisions. For these AI
tools, we plan to charge a premium subscription to users, ensuring high-margin
revenue streams.
The ADVFN Live Chat platform represents the next generation of ADVFN,
connecting users in real-time and sharing trading ideas while leveraging ADVFN
market data and tools. This platform is designed to be a cornerstone of our
community, enhancing user engagement and collaboration. We plan to start with
an advertising model focused on exclusive partnerships and eventually move
toward an Investor Relations B2B model, complemented by a premium subscription
service. These strategies are designed to diversify our revenue streams and
drive sustained growth.
These advancements exemplify our commitment to being a cutting-edge platform.
The advertising market continues to experience a downturn, presenting
challenges for us, our peers, and the entire space. This business model has
proven to be unpredictable, and as such, we are transitioning from a reliance
on advertising sales to a more focused products and tools platform.
Looking ahead to 2024-2025, our main focus will be on live discussions, AI,
and trading tools. We believe in our ability and skills to achieve our goals
in these areas, positioning them as central pillars of our growth strategy,
however these will take time to show a significant increase in revenue.
I extend my thanks to our dedicated employees for their hard work and
commitment. I also appreciate the continued support of our partners,
stakeholders, and shareholders, whose trust and confidence drive us forward.
Sincerely,
Amit Tauman
CEO
20 November 2024
Strategic Report
Financial Overview
The financial reporting framework that has been applied in the preparation of
the Group and Company financial statements is the applicable law and
UK-adopted international accounting standards.
The loss for the financial year after tax amounted to £918,000 (2023: a loss
of £2,169,000).
The business is focused on the new products and services that are being
launched in the coming months, with the intention of driving improved
subscription numbers in the long term. The Group has been through significant
changes in the past 2 years and the impact of these is still being felt.
While the spend was high this year, we are moving toward one of our goals and
seeing diminishing expenses and constantly reducing operational costs:
● Operational costs are down on average by 24.6% YoY £5,335k vs
£7,076k
● Headcount, reduced by 25% YoY from 31 to 23
ADVFN 2023-2024 financial highlights:
● Revenue was £4.4 million compared to £5.4 million in the prior
year.
● Net loss was £0.9 million compared to net loss of £2.2 million in
the prior year period.
● Cash and cash equivalents: £4.1 million compared to £5.6 million
in the prior year.
The Directors are not proposing payment of a dividend (2023: £Nil).
Business Review
We are working to grow our user base and improve engagement, with the goal of
gradually tapping into the potential of these platforms to support our overall
business growth.This is why we have been working on a modern, state-of-the-art
platform that will enable investors to interact in new ways, with a particular
focus on private groups that could evolve into a B2B model for financial
influencers. Given the current market landscape, where many competitors are
struggling with shrinking gross margins and declining revenues, we anticipate
a consolidation within the industry this year, as the space has shrunk since
2020-2022. We see many companies lacking a cash buffer, and with current
traffic levels and basic figures, it will be very challenging to achieve
profitability. We have strategically positioned ourselves with a strong cash
reserve and a clean balance sheet, enabling us to explore opportunities for
mergers and acquisitions in the realms of artificial intelligence and
community development. These initiatives will help us expand our reach and
integrate cutting-edge technologies that align with our long-term goals.
For ADVFN, the unpredictability and decline in the advertising market, which
has been significantly impacted, led us to pivot toward enhancing our
subscription model, including the development of a community premium model. We
plan to grow this model by expanding our product offerings, including
AI-driven tools and the introduction of new products including a premium
community model. The premium community model will focus on providing exclusive
access to private groups, specialized content, and advanced features tailored
for our most engaged users, which we hope will host their own private rooms.
Our business model hinges on driving traffic to our site, which we then
monetize through two primary streams: advertising and subscriptions. On the
advertising side, increased user engagement leads to more ad impressions and
higher revenue, while our subscription model benefits from robust product
offerings and effective funnel management, driving higher conversion rates and
recurring revenue (MRR).
We are committed to optimizing our traffic acquisition strategies and refining
our product offerings to improve user retention and enhance the overall user
experience. By doing so, we aim to boost both subscription conversions and ad
impressions, ultimately increasing revenue while maintaining the quality and
integrity of the user experience. As we move forward, we will continue to
monitor market trends and adjust our strategies to ensure sustainable growth
and long-term success.
Summary of key performance indicators
Our approach to Key Performance Indicators (KPIs) is designed to clearly show
our stakeholders where our targets, efforts, and priorities lie each year.
For example, last year, we set targets with a focus on operational cost
reductions. We are pleased to report that we met our cost-saving KPIs,
achieving a reduction that brought our operational expenses to less than £5.5
million.
Given this success, we no longer include cost reduction as a KPI for the
upcoming period. We believe that after 18 months of rigorous cost management,
we have made the company highly efficient. Each new cost and expense is now
closely tied to return on investment (ROI), ensuring that we maintain a lean
operation while continuing to scale. We are confident that we can sustain
growth without significantly increasing our fixed costs in relative terms.
In the coming financial year, the KPIs we will monitor will shift the focus
towards development and growth.
Why These are KPIs:
These KPIs are considered key drivers of our business because they directly
impact our ability to generate revenue, retain users, and expand our market
presence. By focusing on traffic growth, turnover, community engagement, and
subscription premium users, we are addressing the core components that fuel
our platform's success. These KPIs are critical as they reflect the health of
our business, guide our strategic decisions, and measure our progress toward
achieving our long-term goals.
· Traffic Growth: Building on our past efforts, traffic growth
remains a top priority. We aim to increase the number of unique visitors to
our platform through targeted SEO and marketing strategies, Live Chat, and
product offerings. This metric is crucial for our B2C business model as it
drives the initial stages of our engagement funnel, setting the stage for
increased revenue opportunities.
· Turnover: We anticipate that new products launched will
contribute to a substantial increase in turnover, albeit one that will take
time to materialize. Our monetization strategies are now optimized, ensuring
that the increased user base translates into higher revenue. This includes a
focus on attracting premium subscribers, enhancing advertising revenues, and
exploring new revenue streams to diversify our income sources.
· Community Engagement: Community engagement is a vital KPI because
it reflects the health and vibrancy of our platform. A highly engaged
community is more likely to generate valuable content, contribute to
discussions, and foster a collaborative environment that attracts new users
and retains existing ones. Engaged users are more likely to explore our
premium offerings and increase their usage of paid tools and services, driving
revenue growth. We measure this through the number of unique posters and the
frequency of posts, setting targets to increase these metrics by 20% this year
compared to the previous year. These targets are aligned with our efforts to
enhance Live Chat, improve SEO, and attract new users.
· Subscription Premium Users: The growth in the number of
subscription premium users is a key indicator of our ability to convert free
users into paying customers. This KPI is essential because premium subscribers
represent a significant and stable revenue stream with higher margins. We will
measure this by tracking the growth rate of premium subscriptions, setting a
target to increase the number of premium users by 25% compared to the previous
year. This growth will be driven by the introduction of new premium features
in AI tools, Live Chat, and mobile apps, as well as targeted marketing
efforts.
Principal risks and uncertainties
In the dynamic environment in which we operate, we face several principal
risks and uncertainties that could impact our business. We have identified key
areas where these risks are most prevalent and have developed strategies to
mitigate them.
1. Currency Fluctuations: Operating in multiple countries exposes us to
the risks associated with fluctuating exchange rates of the Euro, GBP, and the
US Dollar. These currency fluctuations can impact our revenues, expenses, and
overall financial stability, making it imperative to employ effective currency
risk management strategies. To mitigate these risks, we are reviewing our
pricing transfer agreements and primarily maintaining most of our revenues in
GBP. This approach helps stabilize our financial operations against currency
volatility.
2. Ad Networks Industry Volatility: The ad networks industry is witnessing
a decline in overall revenue, exemplified by the recent bankruptcy of
companies in that space. This is reflected in the Online Ad Revenue Index,
which has dropped by 20%. These industry-wide challenges necessitate a
proactive approach in diversifying our revenue streams and ensuring financial
stability. To address these industry-wide challenges, we are diversifying our
revenue streams by expanding our product offerings and focusing on increasing
subscriptions. This strategy is designed to reduce our dependence on ad
revenues and enhance financial stability.
3. Market Uncertainty Impacting Traffic: The unpredictability in global
markets and exchange pricing directly impacts our website traffic and user
engagement. During times of economic uncertainty and a steady downward trend,
users may reduce their online activity or shift their preferences, affecting
our platform's performance. Developing resilience and adaptability strategies
is essential to mitigate the adverse effects of market fluctuations on our
traffic and user engagement. To counteract these effects, we are continually
working on converting new traffic and intensively improving our SEO. These
efforts are aimed at maintaining and growing our user base despite market
fluctuations.
4. Regulatory Adherence: In today's rapidly evolving regulatory landscape,
we understand the increasing complexities that extend beyond GDPR to encompass
broader issues such as data privacy, User-Generated Content (UGC) compliance,
AI ethics, and online safety. These regulatory frameworks are critical in
shaping how we manage data and interact with our user base. To navigate these
changes effectively, we are steadfast in our commitment to staying abreast of
new regulations and governance practices. Our approach includes the
development of robust compliance guidelines and ongoing consultations with
legal experts and industry specialists.
Principal risks and uncertainties (continued)
5. Inadequate Disaster Recovery Procedures: Addressing the risks
associated with our on-premises data storage, especially in the event of a
disaster, is a top priority. Such events pose serious threats to our data
integrity and infrastructure. To mitigate these risks, we are transitioning to
cloud-based data storage for improved security and redundancy and are updating
our infrastructure by replacing old hardware with more robust and reliable
systems. This strategy is key to ensuring the protection and stability of our
operations under any circumstances.
6. Cybersecurity Risks: As we continue to expand our digital footprint,
cybersecurity risks become increasingly significant. Threats such as data
breaches, ransomware, and cyber-attacks can disrupt operations and compromise
sensitive information. We are committed to maintaining robust cybersecurity
measures, including regular security audits, penetration testing, and employee
training programs to protect against these threats. Our incident response plan
is continually updated to ensure rapid action in the event of a security
breach.
Consideration of the principal risks associated with financial instruments is
contained in note 23.
People
We would like to thank the whole team at ADVFN who have worked hard during a
tumultuous time in the markets.
Directors' statement of responsibilities under section 172 Companies Act 2006
The Directors have considered the requirements of Section 172(1) of the
Companies Act 2006 to prepare a statement explaining how the Directors have
considered the wider stakeholder needs when performing their duties under
Section 172 of the Companies Act 2006.
The Directors consider the stakeholders to be the people who work for us, work
with us, invest with us, own us, regulate us and live in the societies we
serve. The Directors recognise that building strong relationships with our
stakeholders will help deliver the Group's strategy in line with the long-term
values. The Directors are committed to effective engagement with all of our
stakeholders and seek to understand the interests and views of the Group's
stakeholders by engaging with them directly as appropriate.
Depending on the nature of the issue in question, the relevance of each
stakeholder group may differ and, as such, as part of the Group's engagement
with stakeholders, the Directors seek to understand the relative interests and
priorities of each group and to have regard to these, as appropriate, in their
decision making. The Directors acknowledge, however, that not every decision
the Board makes will necessarily result in a positive outcome for all
stakeholders. However, the Directors do challenge management to ensure all
stakeholder interests are considered in the day-to-day management and
operations of the Group.
As part of their deliberations and decision-making process, the Directors take
into account the following:
• the likely consequences of any decisions in the long term;
• interests of the Group's employees;
• need to foster the Group's business relationships with suppliers,
customers and others;
• impact of the Group's operations on the community and environment;
• desirability of the Group maintaining a reputation for high standards of
business conduct; and
• the need to act fairly as between members of the Group.
As a result of these activities, the Directors believe that they have
demonstrated compliance with their obligations under s.172 of the Companies
Act 2006.
Environmental Matters
The Directors' aim for the Group is to be and remain a contributing and good
"Corporate Citizen".
As a small AIM-listed company, we recognise the importance of understanding
and managing the risks and opportunities associated with climate change and
other environmental matters. Our business does not have a high carbon
footprint and we consider it to be a sustainable business. We try to ensure
that our planet's precious resources are used appropriately for the benefit of
current and future generations.
Although we are not required to report under the Task Force on Climate-related
Financial Disclosures (TCFD) framework, we are committed to monitoring our
exposure to climate related risks and identifying opportunities to contribute
to a low carbon economy. The Board considers that the business and strategic
decisions which it takes now, in furtherance of the Group's business
objectives, do not damage the global environment.
Employees
The Group has a small number of employees but those it has are situated and
are deployed on the Group's business around the World. We ensure that we
comply with all local labour laws and apply what the Directors believe are
appropriate standards and systems to monitor and ensure the welfare of those
employees.
Stakeholder engagement
The Group is entirely owned by the shareholders of ADVFN Plc and the shares of
the Group are traded on AIM. The stakeholders of the Group consist
predominantly of the shareholders, employees, advisers and suppliers. The
Directors recognise the importance of these relationships and take active
steps to develop and strengthen them through dialogue and engagement. These
relationships are regularly monitored at Board level.
Governance
Each Board meeting addresses compliance by the Group with its corporate
governance codes and reinforces the Board's requirement that its business be
conducted with integrity and with due regard for ethical standards.
ON BEHALF OF THE BOARD
Amit Tauman
CEO
20 November 2024
Consolidated income statement
30 June 30 June
2024 2023
Notes £'000 £'000
Revenue 3 4,441 5,445
Cost of sales (218) (316)
Gross profit 4,223 5,129
Share based payment 21 (26) 319
Amortisation of intangible assets 12 (156) (191)
Administrative expenses (5,153) (6,026)
Administrative expenses - non-recurring items 6 - (1,178)
Total administrative expenses (5,335) (7,076)
Operating loss 4 (1,112) (1,947)
Finance income 7 198 24
Finance expense 7 (1) (11)
Other income 2 20
Loss before tax (913) (1,914)
Taxation 8 63 58
Loss from continuing operations (850) (1,856)
Loss from discontinued operations 3 (68) (313)
Total loss for the period attributable to shareholders of the parent (918) (2,169)
Loss per share from continuing operations
Basic and diluted 9 (1.85p) (5.16p)
Loss per share from total operations
Basic and diluted (1.99p) (6.03p)
Consolidated statement of comprehensive income
30 June 30 June
2024 2023
£'000 £'000
Loss for the year (918) (2,169)
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 48 33
Total other comprehensive income 48 33
Total comprehensive loss for the year attributable to shareholders of the
parent
(870) (2,136)
The accompanying accounting policies and notes on pages 28 to 59 form an
integral part of these financial statements.
Consolidated balance sheet
30 June 30 June 1 July
2024 2023 2023
Notes £'000 £'000 £'000
(Restated) (Restated)
Assets
Non-current assets
Property, plant and equipment 10 115 160 98
Goodwill 11 - - 988
Intangible assets 12 311 218 339
Trade and other receivables 15 22 25 26
448 403 1,451
Current assets
Trade and other receivables 15 561 466 460
Cash and cash equivalents 4,091 5,557 915
4,652 6,023 1,375
Total assets 5,100 6,426 2,826
Equity and liabilities
Equity
Issued capital 20 93 92 53
Share premium 6,705 6,676 305
Share based payment reserve 48 22 341
Foreign exchange reserve 364 316 283
Retained earnings (3,531) (2,613) (445)
3,679 4,493 537
Non-current liabilities
Borrowing - bank loans 17 9 20 41
9 20 41
Current liabilities
Trade and other payables 19 1,402 1,903 2,148
Borrowing - bank loans 17 10 10 13
Borrowing - lease liabilities - - 87
1,412 1,913 2,248
Total liabilities 1,421 1,933 2,289
Total equity and liabilities 5,100 6,426 2,826
The comparative information has been restated as a result of an error as
discussed in note 2.
The financial statements on pages 21 to 59 were authorised for issue by the
Board of Directors on 20 November 2024 and were signed on its behalf by:
Amit Tauman
CEO
Company number: 02374988
The accompanying accounting policies and notes on pages 28 to 59 form an
integral part of these financial statements.
Company balance sheet At 30 June At 30 June
Note 2024 2023
£'000 £'000
Assets
Non-current assets
Property, plant and equipment 10 113 154
Intangible assets 12 311 218
Trade and other receivables 15 22 25
446 397
Current assets
Trade and other receivables 15 376 313
Cash and cash equivalents 4,026 5,301
4,402 5,614
Total assets 4,848 6,011
Equity and liabilities
Equity
Called up share capital 20 93 92
Share premium account 6,705 6,676
Share based payment reserve 48 22
Retained earnings (3,408) (2,653)
3,438 4,137
Non-current liabilities
Borrowings - bank loans 17 9 20
Deferred tax 104 104
113 124
Current liabilities
Trade and other payables 19 1,287 1,740
Borrowings - bank loans 17 10 10
1,297 1,750
Total liabilities 1,410 1,874
Total equity and liabilities 4,848 6,011
Company statement of comprehensive income
As permitted by Section 408 of the Companies Act 2006, the income statement
and statement of comprehensive income of the parent company is not presented
as part of these financial statements. The parent company's result after
taxation for the financial year was a loss of £755,000 (2023: loss of
£2,146,000).
The accompanying accounting policies and notes on pages 28 to 59 form an
integral part of these financial statements.
The financial statements on pages 21 to 59 were authorised for issue by the
Board of Directors on 20 November 2024 and were signed on its behalf:
Amit Tauman
CEO
Company number: 02374988
Consolidated statement of changes in equity
Note Share capital Share premium Share based payment reserve Foreign exchange reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2022 53 305 341 283 340 1,322
Effect of prior year adjustment (785) (785)
Balance at 1 July 2022 - As restated 53 305 341 283 (445) 537
Transactions with equity shareholders:
Share issues 19 39 6,448 - - - 6,487
Cost associated with the issue of shares - (77) - - - (77)
Issue of options 20 - - 1 - - 1
Lapsed options 20 - - (320) - - (320)
39 6,371 (319) - - 6,091
Loss for the year after tax - - - - (2,168) (2,168)
Other comprehensive income
Exchange differences on translation of foreign operations
- - - 33 - 33
Total other comprehensive income - - - 33 - 33
Total comprehensive income - - - 33 (2,168) (2,135)
At 30 June 2023 92 6,676 22 316 (2,613) 4,493
Transactions with equity shareholders:
Issue of shares 19 1 29 - - - 30
Issue of options 20 - - 26 - - 26
- 29 26 - - 56
Loss for the year after tax - - - - (918) (918)
Other comprehensive income
Exchange differences on translation of foreign operations - - - 48 - 48
48 - 48
Total other comprehensive income
Total comprehensive income - - - 48 (918) (870)
At 30 June 2024 93 6,705 48 364 (3,531) 3,679
The accompanying accounting policies and notes on pages 28 to 59 form an
integral part of these financial statements.
Company statement of changes in equity
Note Share capital Share premium Share based payment reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000
At 1 July 2022 53 305 341 (507) 192
Transactions with equity shareholders:
Issue of shares 19 39 6,448 - - 6,487
Cost associated with the issue of shares - (77) - - (77)
Issue of options 20 - - 1 - 1
Lapsed options 20 - - (320) - (320)
39 6,371 (319) - 6,091
Loss for the year after tax - - - (2,146) (2,146)
Total comprehensive income for the year - - - (2,146) (2,146)
At 30 June 2023 92 6,676 22 (2,653) 4,137
Transactions with equity shareholders:
Issue of shares 19 1 29 - - 30
Issue of options 20 - - 26 - 26
1 29 26 - 56
Loss for the year after tax - - - (755) (755)
Total comprehensive income for the year - - - (755) (755)
At 30 June 2024 93 6,705 48 (3,408) 3,438
The accompanying accounting policies and notes on pages 28 to 59 form an
integral part of these financial statements.
Consolidated cash flow statement
12 months to 12 months to
30 June 30 June
2024 2023
Notes £'000 £'000
Cash flows from continuing operating activities
Loss for the year from continuing operations (850) (1,855)
Net finance income received 7 (197) (13)
Depreciation of property, plant & equipment 10 49 75
Amortisation of intangible assets 12 156 191
Disposal of intangible assets 12 30 -
Write off goodwill 11 - 978
Share based payments 21 26 (319)
Issue of shares as directors' compensation 19 30 -
Increase in trade and other receivables (91) (20)
Decrease in trade and other payables (501) (226)
Net cash generated by continuing operations (1,348) (1,189)
Cashflow from discontinued operating activities
Loss for the year from discontinued operations (68) (313)
Amortisation of intangible assets 12 - 23
Write off intangible assets 12 - 83
Decrease in trade and other receivables - 14
Decrease in trade and other payables - (23)
Net cash generated by discontinued operations (68) (216)
Income tax receivable - -
Net cash generated by operating activities (1,416) (1,405)
Cash flows from financing activities
Proceeds from issue of share capital 20 - 6,410
Bank interest received 198 24
Repayment of loans 17 (9) (24)
Principal element of lease liability 17 - (91)
Lease interest paid 17 - (4)
Other interest paid (1) (1)
Net cash generated by financing activities 188 6,314
Cash flows from investing activities
Payments for property, plant and equipment 10 (6) (136)
Payment of website development costs 12 (279) (175)
Net cash used by investing activities (285) (311)
Net increase in cash and cash equivalents (1,513) 4,598
Exchange differences 47 44
Net increase in cash and cash equivalents (1,466) 4,642
Cash and cash equivalents at the start of the period 5,557 915
Cash and cash equivalents at the end of the period 4,091 5,557
All financing and investing activities were continuing.
The accompanying accounting policies and notes on pages 28 to 59 form an
integral part of these financial statements.
Company cash flow statement
12 months to 12 months to
30 June 30 June
2024 2023
Notes £'000 £'000
Cash flows from operating activities
Loss for the period (755) (2,146)
Net finance income (received)/paid (197) 1
Depreciation of property, plant & equipment 10 49 3
Amortisation of intangibles 12 156 191
Disposal of intangible assets 12 30 -
Impairment of investments - 1,001
Share based payments - options/warrants 21 26 (319)
Issue of shares as directors' compensation 19 30
(Increase)/decrease in trade and other receivables (58) 473
Decrease in trade and other payables (459) (509)
Net cash generated by operating activities (1,178) (1,305)
Cash flows from financing activities
Issue of share capital 20 - 6,410
Repayment of loans 17 (9) (24)
Bank interest received 198 -
Interest paid (1) (1)
Net cash generated by financing activities 188 6,385
Cash flows from investing activities
Payments for property, plant and equipment 10 (6) (133)
Payment of website development costs 12 (279) (175)
Net cash used by investing activities (285) (308)
Net increase/(decrease) in cash and cash equivalents (1,275) 4,772
Cash and cash equivalents at the start of the period 5,301 529
Cash and cash equivalents at the end of the period 4,026 5,301
The accompanying accounting policies and notes on pages 28 to 59 form an
integral part of these financial statements.
Notes to the financial statements
1. General information
The principal activity of ADVFN PLC ("the Company") and its subsidiaries
(together "the Group") is the development and provision of financial
information, primarily via the internet, research services and the development
and exploitation of ancillary internet sites.
The principal trading subsidiaries are InvestorsHub.com Inc and N A Data Inc,.
The Company is a public limited company which is quoted on the AIM of the
London Stock Exchange and is incorporated and domiciled in the UK. The address
of the registered office is Suite 28, Ongar Business Centre, The Gables,
Fyfield Road, Ongar, Essex, CM5 0GA.
The registered number of the company is 02374988.
2. Summary of significant accounting policies
Basis of preparation
The consolidated and company financial statements are for the year ended 30
June 2024. The financial reporting framework that has been applied in their
preparation is applicable law and UK-adopted international accounting
standards as at 30 June 2024. The consolidated and company financial
statements have been prepared under the historical cost convention and are
presented in Sterling rounded to the nearest thousand (£'000) except where
indicated otherwise.
The subsidiary companies Cupid Bay Limited, All IPO Plc and MJAC InvestorsHub
International Conferences Ltd were dissolved during the year (Cupid Bay
Limited and MJAC InvestorsHub International Conferences Ltd 21 November 2023,
All IPO Plc 2 April 2024).
Prior year adjustment
The financial statements for the year ended June 2023 have been restated to
correct for a prior period error. The intangible assets and the retained
earnings have both been reduced by £785,000 which represents an intangible
asset acquired as part of the historic acquisition of All IPO Plc. This asset
had, incorrectly, not been amortised since its acquisition. Note 12 (Group),
intangible assets, shows the effect of the restatement on the cost of the
website development costs as at 1 July 2022. There is no impact on the basic
or diluted earnings per share.
Assets had also been incorrectly allocated between the group companies, and
this has been corrected in the Company as shown in note 12 (Company). There
was no net impact of this on the Company financial statements.
Going concern
The financial statements have been prepared on the going concern basis which
assumes the Group will continue in existence for the foreseeable future. The
Directors have prepared a detailed forecast of future trading and cash flows
for at least 12 months from when the accounts were approved. The forecasts
take into consideration potential future growth of the business both in the UK
and USA, the development of products that will enhance the growth of the
business and the potential areas for additional cost saving if required. At 30
June 2024 the Group's cash balances amounted to £4,091,000. The Group's
forecasts are based on an amalgamation of pessimistic, realistic and
optimistic scenarios using a baseline of current year figures and applying
known and expected changes for costs as revenues as well as a 3% inflationary
increase. The forecasts show that the Group and the company have sufficient
funding to enable them to carry on as a going concern for the next twelve
months from the date of signing the audit report. The Directors are also
planning on developing new products that will enhance the growth of the
business and will consider further areas for additional cost saving if
required. The directors have given due consideration to the two subsidiaries
for whom ADVFN Plc has given guarantees under the audit exemption rules and do
not consider this will affect the Group's risk position. Accordingly, the
Directors have prepared these financial statements on the going concern basis.
Notes to the financial statements (continued)
Adoption of new and amended standards and interpretations
The following standards and interpretations apply for the first time to
financial reporting periods commencing on or after 1 January 2023:
New standard or amendment Effective date (annual periods beginning on or after):
IFRS 17 - Insurance Contracts 1 January 2023 1(st) January 2023
Amendments to IFRS 17 - Insurance Contracts; and Extension of the Temporary 1(st) January 2023
Exemption from Applying IFRS 9 (Amendments to IFRS 4 Insurance Contracts)
Disclosure of Accounting Policies - Amendments to IAS 1 IFRS Practice 1(st) January 2023
Statement 2
Definition of Accounting Estimates - Amendments to IAS 8 1(st) January 2023
Deferred Tax related to Assets and Liabilities arising from a Single 1(st) January 2023
Transaction - Amendments to IAS 12
International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) 1(st) January 2023
None of the standards or amendments which became effective in the year had a
significant impact on the company.
New standard or amendment - issued but not yet effective in the year
As at 30 June 2024, the following standards and interpretations had been
issued but were not mandatory for annual reporting periods ending on 30 June
2024.
New standard or amendment Effective date (annual periods beginning on or after):
Classification of Liabilities as Current or Non-current - Amendments to IAS 1, 1(st) January 2024
Non-current liabilities with Covenants - Amendments to IAS 1
Lease Liability in a Sale and Leaseback - Amendments to IFRS 16 1(st) January 2024
Supplier finance arrangements - Amendments to IAS 7 and IFRS 7 1(st) January 2024
Amendments to IAS 21 to clarify the accounting when there is a lack of 1(st) January 2025
exchangeability
Classification and Measurement of Financial Instruments (Amendments IFRS 7 and 1(st) January 2026
IFRS 9)
IFRS 18 Presentation and Disclosure in Financial Statements 1(st) January 2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures 1(st) January 2027
The following IFRS Sustainability standards had been issued but were not
mandatory for annual reporting periods ending on 30 June 2024.
New standard Effective date (annual periods beginning on or after):
IFRS S1: General requirements for disclosure of sustainability-related 1(st) January 2024
financial information
IFRS S2: Climate-related disclosures 1(st) January 2024
The company have not early adopted and standards or amendments which are not
yet effective.
The Directors continue to monitor developments in the relevant accounting
standards but do not believe that these changes will significantly impact the
Group.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Basis of Consolidation
The Group's financial statements consolidate those of the parent company and
all of its subsidiaries drawn up to 30 June 2024. The parent controls a
subsidiary if it is exposed, or has rights, to variable returns from its
involvement with the subsidiary and has the ability to affect those returns
through its power over the subsidiary. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered
when assessing whether the Group controls another entity. Subsidiaries are
fully consolidated from the date on which control is transferred to the Group.
They are deconsolidated on the date control ceases.
Inter-company transactions, balances and unrealised gains and losses (where
they do not provide evidence of impairment of the asset transferred) on
transactions between Group companies are eliminated.
Foreign currency translation
a) Functional and presentational currency
Items included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates (the functional currency). The Company's functional currency
and the Group's and Company's presentational currency is Sterling.
b) Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions
and from the translation at the reporting period end exchange rates of
monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement.
c) Group companies
The results and financial position of all Group entities that have a
functional currency different from the presentation currency are translated
into the presentation currency as follows:
· Assets and liabilities for each balance sheet presented are
translated at the closing rate at the date of the balance sheet.
· Income and expenses for each income statement are translated at the
rate of exchange at the transaction date. Where this is not possible, the
average rate for the period is used but only if there is no significant
fluctuation in the rate and;
· On consolidation, exchange differences arising from the translation
of the net investment in foreign entities are recognised in other
comprehensive income and accumulated in a separate component of equity. Post
transition exchange differences are recycled to profit or loss as a
reclassification adjustment upon disposal of the foreign operation.
Income and expense recognition
Revenue is the fair value of the total amount receivable by the Group for
supplies of services. VAT or similar local taxes and trade discounts are
excluded.
The revenues of the Group are accounted for under IFRS 15 'Revenue from
contracts with customers' and reported as follows:
· Subscriptions - both monthly and annual subscriptions are
offered and the price for the subscription is quoted on the website. Contract
liability for annual subscriptions is recognised on a time basis with equal
monthly transfers to the income statement to allocate the recognition across
the period of service provision. Payment is received in advance of
subscription fulfilment.
· Advertising - fees for advertising are recognised when the
service obligations are fulfilled and are subject to agreement by a written
contract which includes pricing. Where there are multiple obligations amounts
specific to that obligation are transferred to the income statement. Payment
terms are 30 days following invoicing.
Interest income and expenditure are reported on an accruals basis. Operating
expenses are recognised in the income statement upon utilisation of the
service or at the date of their origin.
Employee benefits
The cost of pensions in respect of the Group's defined contribution scheme is
charged to profit or loss in the period in which the related employee services
were provided.
Non-recurring items
In the prior year certain administrative costs have been shown separately
under the heading of "Administrative expenses - non-recurring items". The
Directors consider these items to be unusual, one-off costs that are unlikely
to reoccur in subsequent financial years. A breakdown of these costs is shown
in note 6.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Intangible assets
- Licences
Licences are recognised at cost less any subsequent impairment and
amortisation charges, they are amortised over a five-year period on a
straight-line basis.
- Internally generated intangible assets
An internally generated intangible asset (website and mobile application)
arising from development (or the development phase) of an internal project is
recognised if, and only if, all of the following have been demonstrated:
· the technical feasibility of completing the intangible
asset so that it will be available for use or sale
· the intention to complete the intangible asset and use
or sell it
· the ability to use or sell the intangible asset
· how the intangible asset will generate probable future
economic benefits
· the availability of adequate technical, financial and
other resources to complete the development and to use or sell the intangible
asset
· the ability to measure reliably the expenditure
attributable to the intangible asset during its development.
The amount initially recognised for internally generated intangible assets is
the sum of the expenditure incurred from the date when the intangible asset
first meets the recognition criteria listed above. Where no internally
generated intangible asset can be recognised, development expenditure is
charged to profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally generated intangible assets are
reported at cost less accumulated amortisation and accumulated impairment
losses. Internally generated intangibles not yet in use are subject to annual
impairment testing.
Internally generated intangible assets are amortised over three to five years.
Amortisation commences when the asset is made available for use.
Research expenditure is recognised as an expense in the period in which it is
incurred.
- Intangible assets purchased
Intangible assets are purchased when the opportunity arises and capitalised at
cost (fair value). Purchased intangible assets are amortised over their useful
lives estimated at between 5 and 10 years. Subsequent to initial recognition,
purchased intangible assets are reported at cost less accumulated amortisation
and accumulated impairment losses.
Property, plant and equipment
Property, plant and equipment are recorded at cost net of accumulated
depreciation and any provision for impairment. Depreciation is provided using
the straight-line method to write off the cost of the asset less any residual
value over its useful economic life. The residual values of assets are
reviewed annually and revised where necessary. Assets' useful economic lives
are as follows:
Leasehold improvements The shorter of the
useful life of the asset or the term of the lease (1 to 3 years)
Computer equipment 33% per
annum over 3 years
Office equipment 20% per annum
over 5 years
Right of use lease assets The earlier of
the end of the useful life of the asset or the end of the lease term
Impairment
For the purposes of assessing impairment, assets are grouped at the lowest
level for which there are separately identifiable cash flows. As a result,
some assets are tested individually for impairment and some are tested at
cash-generating unit level.
Goodwill, other individual assets or cash-generating units that include
goodwill and those intangible assets not yet available for use are tested for
impairment at least annually. All other individual assets or cash-generating
units are tested for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the carrying amount
exceeds the recoverable amount of the asset or cash-generating unit. The
recoverable amount is the higher of fair value, reflecting market conditions
less costs to sell, and value in use based on an internal discounted cash flow
evaluation. The cashflow evaluations are a result of the Director's estimation
of future sales and expenses based on their past experience and the current
market activity within the business. With the exception of goodwill, all
assets are subsequently reassessed for indications that an impairment loss
previously recognised may no longer exist.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Financial assets
On initial recognition, the financial assets of the Group were all classified
as financial assets at fair value through profit or loss. The classification
depends on the purpose for which the financial assets were acquired. At the
reporting year-end the financial assets of the Group were all classified as
financial assets at fair value through profit or loss.
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of
changes in value.
Trade receivables
These assets are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise principally
through the provision of goods and services to customers but also incorporate
other types of contractual monetary assets.
They are initially recognised at fair value and measured subsequent to initial
recognition at amortised cost using the effective interest method, less any
impairment loss.
The Group's financial assets comprise trade receivables, other receivables
(excluding prepayments) and cash and cash equivalents.
Trade and other receivables - impairment
The Group applies an expected credit loss model to calculate the impairment
losses on its trade receivables. The Group applies the simplified approach
to providing for expected credit losses prescribed by IFRS 9, which permits
the use of the lifetime expected loss provision for all trade receivables.
Trade receivables at the balance sheet date have been put into groups based on
days past the due date for payment and an expected loss percentage has been
applied to each group to generate the expected credit loss provision for each
group and a total expected credit loss provision has thus been calculated.
Other receivables
These assets are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise principally
through the deposits given for short term rental of properties. They are
initially recognised at fair value and measured subsequent to initial
recognition at the value expected to be received back when the properties are
vacated.
Financial liabilities
The Group's financial liabilities include trade and other payables and
borrowings which include lease liabilities.
Financial liabilities are recognised when the Group becomes a party to the
contractual agreements of the instrument. All interest related charges are
recognised as an expense in the income statement.
Trade payables are recognised initially at their fair value, net of
transaction costs and subsequently measured at amortised costs less settlement
payments.
Other liabilities are recognised initially at their fair value, net of
transaction costs and subsequently measured at amortised costs less settlement
payments
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Income taxes
Current income tax assets and liabilities comprise those obligations to fiscal
authorities in the countries in which the Group carries out its operations.
They are calculated according to the tax rates and tax laws applicable to the
fiscal period and the country to which they relate. All changes to current tax
liabilities are recognised as a component of tax expense in the income
statement unless the tax relates to an item taken directly to equity in which
case the tax is also taken directly to equity. Tax relating to items
recognised in other comprehensive income is recognised in other comprehensive
income.
Deferred income taxes are calculated using the liability method on temporary
differences. Deferred tax is generally provided on the difference between
the carrying amounts of assets and liabilities and their tax bases. However,
deferred tax is not provided on the initial recognition of goodwill, nor on
the initial recognition of an asset or liability unless the related
transaction is a business combination or affects tax or accounting profit.
Deferred tax on temporary differences associated with shares in subsidiaries
and joint ventures is not provided if reversal of these temporary differences
can be controlled by the Group and it is probable that reversal will not occur
in the foreseeable future. In addition, tax losses available to be carried
forward as well as other income tax credits to the Group are assessed for
recognition as deferred tax assets.
Deferred tax liabilities are always provided for in full. Deferred tax assets
such as those resulting from assessing deferred tax on the expense of
share-based payments, are recognised to the extent that it is probable that
future taxable profits will be available against which the temporary
differences can be utilised. Deferred tax assets and liabilities are
calculated at tax rates that are expected to apply to their respective period
of realisation, provided they are enacted or substantively enacted at the
balance sheet date.
Provisions, contingent liabilities and contingent assets
Provisions are recognised when the present obligations arising from legal or
constructive commitment resulting from past events, will probably lead to an
outflow of economic resources from the Group which can be estimated reliably.
Provisions are measured at the present value of the estimated expenditure
required to settle the present obligation, based on the most reliable evidence
available at the balance sheet date.
All provisions are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.
Share based employee compensation
The Group operates equity settled share-based compensation plans for
remuneration of its employees.
All employee services received in exchange for the grant of any share-based
compensation are measured at their fair values. These are indirectly
determined by reference to the share options awarded. Their value is appraised
at the grant date and excludes the impact of any non-market vesting conditions
(e.g. profitability or sales growth targets).
All share-based compensation is ultimately recognised as an expense in the
income statement with a corresponding credit to the share-based payment
reserve, net of deferred tax where applicable. If vesting periods or other
vesting conditions apply, the expense is allocated over the vesting period,
based on the best available estimate of the number of share options expected
to vest. Non-market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable. Estimates are
subsequently revised if there is any indication that the number of share
options expected to vest differs from previous estimates. No adjustment to
expense recognised in prior periods is made if fewer share options ultimately
are exercised than originally estimated.
Upon exercise of share options, the proceeds received, net of any directly
attributable transaction costs, up to the nominal value of the shares issued
are reallocated to share capital with any excess being recorded as additional
share premium.
Where modifications are made to the vesting or lapse dates of options the
excess of the fair value of the revised options over the fair value of the
original options at the modification date is expensed over the remaining
vesting period.
Dividends
During the year, no dividends (2023: £Nil) were paid. The board is not
recommending the payment of any further dividends in the current financial
year.
Final equity dividends to the shareholders of ADVFN plc are recognised in the
period that they are approved by shareholders. Interim equity dividends are
recognised in the period that they are paid.
Dividends receivable are recognised when the Company's right to receive
payment is established.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Equity
Issued capital
Ordinary shares are classified as equity. The nominal value of shares is
included in issued capital.
Share premium
The share premium account represents the excess over nominal value of the fair
value of consideration received for equity shares, net of the expenses of the
share issue.
Share based payment reserve
The share-based payment reserve represents equity settled share-based employee
remuneration until such share options are exercised.
Foreign exchange reserve
The foreign exchange reserve represents foreign exchange gains and losses
arising on translation of investments in overseas subsidiaries into the
consolidated financial statements.
Retained earnings
The retained earnings include all current and prior period results for the
Group and the post-acquisition results of the Group's subsidiaries as
determined by the income statement.
Use of key accounting estimates and judgements
Many of the amounts included in the financial statements involve the use of
judgement and/or estimation. These judgements and estimates are based on
management's best knowledge of the relevant facts and circumstances, having
regard to prior experience, but actual results may differ from the amounts
included in the financial statements. Information about such judgements and
estimates is contained in the accounting policies and/or the notes to the
financial statements and the key areas are summarised below:
Judgements in applying accounting policies
a) Capitalisation of development costs in accordance with IAS 38
requires analysis of the technical feasibility and commercial viability of the
project in the future. This in turn requires a long-term judgement to be made
about the development of the industry in which the development will be
marketed. Where the directors consider that sufficient evidence exists
surrounding the technical feasibility and commercial viability of the project,
which indicate that the costs incurred will be recovered they are capitalised
within intangible fixed assets. The amount of the capitalisation is based on
estimates to judge the percentage of the time relevant staff spend on projects
as specific timesheets are not maintained. Where insufficient evidence exists,
the costs are expensed to the income statement.
b) The directors have used their judgement to decide whether the
Group should be treated as a going concern and continue in existence for the
foreseeable future. Having considered the latest Group forecasts, which cover
a period of eighteen months from the balance sheet date, together with the
cash resources available to them, the directors have judged that it is
appropriate for the financial statements to be prepared on the going concern
basis.
c) The application of IFRS 15 - Revenue from contracts with
customers requires an assessment of the elements of the contract to separate
potentially bundled services requiring different treatment, the recognition of
revenue at the point of performance obligations and the assessment of the
correct amount of revenue for each of those obligations.
d) The directors have used their judgement to assess the valuation
of the call option agreed on 3 May 2023 to purchase 50% of ADVFN Brasil Ltda
within the next 3 years. Management have considered the future performance of
the business and have judged that this will remain out of the money for the
remainder of its existence and therefore continues to have no intrinsic value.
Sources of estimation uncertainty
Determining whether intangible assets are impaired requires an estimation of
the value in use of the cash generating unit to which the intangibles have
been allocated. The carrying value of the investments are also assessed
annually, to consider whether a reversal of the full impairment done in the
year ended 30 June 2024 would be appropriate. The value in use calculations
require an estimation of the future cash flows expected to arise from the cash
generating units and a suitable discount rate in order to calculate a suitable
present value.
Notes to the financial statements (continued)
3. Segmental analysis
The directors identify operating segments based upon the information which is
regularly reviewed by the chief operating decision maker. The Group considers
that the chief operating decision makers are the executive members of the
Board of Directors. The Group has identified two reportable operating
segments, being that of the provision of financial information and that of
other services. The provision of financial information is made via the Group's
various website platforms.
The parent entity's operations are entirely of the provision of financial
information.
Three minor operating segments, for which IFRS 8's quantitative thresholds
have not been met, are currently combined below under 'other'. The main
sources of revenue for these operating segments are the provision of financial
broking services, financial conference events and other internet services not
related to financial information. Segment information can be analysed as
follows for the reporting period under review.
2024 Continuing operations Discontinued
Provision of financial information Other Total Total
£'000 £'000 £'000 £'000 £'000
Revenue from external customers 4,441 - 4,441 - 4,441
Depreciation and amortisation (205) - (205) - (205)
Other operating expenses (4,989) (359) (5,348) (68) (5,416)
Segment operating loss (753) (359) (1,112) (68) (1,180)
Other income 2 - 2 - 2
Interest income 198 - 198 - 198
Interest expense (1) - (1) - (1)
Segment assets 5,074 26 5,100 - 5,100
Segment liabilities (1,420) (1) (1,421) - (1,421)
Purchases of non-current assets (285) - (285) - (285)
2023 Continuing operations Discontinued
Provision of financial information Other Total Total
£'000 £'000 £'000 £'000 £'000
Revenue from external customers 5,445 - 5,445 16 5,461
Depreciation and amortisation (266) - (266) (23) (289)
Other operating expenses (5,666) (282) (5,948) (306) (6,254)
Non-recurring iterms (1,178) - (1,178) - (1,178)
Segment operating loss (1,665) (282) (1,947) (313) (2,260)
Other income 20 - 20 - 20
Interest income 24 - 24 - 24
Interest expense (11) - (11) - (11)
Segment assets 6,135 981 7,116 95 7,211
Segment liabilities (1,784) (22) (1,806) (27) (1,833)
Purchases of non-current assets (311) - (311) - (311)
Notes to the financial statements (continued)
Segmental analysis (continued)
The Group's revenues from all operations, which wholly relate to the sale of
services, from external customers and its non-current assets, are divided into
the following geographical areas:
Revenue Non-current assets Revenue Non-current assets
2024 2024 2023 2023
£'000 £'000 £'000 £'000
UK (domicile) 2,370 497 2,651 1,184
USA 1,849 - 2,659 983
Other 222 - 151 -
4,441 497 5,461 2,167
Revenues are allocated to the country in which the customer resides. During
both 2024 and 2023 no single customer accounted for more than 10% of the
Group's total revenues.
4. Operating loss
2024 2023
Operating loss has been arrived at after charging: £'000 £'000
Foreign exchange loss 8 7
Depreciation and amortisation:
Depreciation of property, plant and equipment: 49 75
Amortisation of intangible assets from continuing and discontinued operations 156 214
Employee costs (Note 5) 2,228 2,837
Lease payments on land and buildings (Note 22) - 91
Audit and non-audit services:
Fees payable to the company's auditor for the audit of the Group's annual 89 87
accounts
Remuneration of key senior management for Group and Company
2024 2023
£'000 £'000
Key senior management comprises only directors
Salary and fees 494 697
Share based payments 17 1
Post-employment benefits - defined contribution pension plans - 6
511 704
Highest paid director
Salary and fees 200 200
Share based payments 15 1
215 201
Details of the directors' emoluments, together with other related information,
are set out in the Remuneration Report
on page 15.
Notes to the financial statements (continued)
5. Employees
GROUP
2024 2023
£'000 £'000
Employee costs (including directors):
Wages and salaries 1,991 2,581
Social security costs 160 224
Pension costs 21 31
Share based payments 26 1
Payments made in shares 30 -
2,228 2,837
The average number of employees during the year was made up as follows: No. No.
Development 6 4
Sales and Administration 17 27
23 31
COMPANY
2024 2023
£'000 £'000
Employee costs (including directors):
Wages and salaries 1,337 1,359
Social security costs 108 135
Pension 20 28
Share based payments 56 1
1,521 1,523
The average monthly number of employees during the year was as follows: No. No.
Development 3 3
Sales and Administration 13 13
16 16
Details of the directors' emoluments, together with other related information,
are set out in the Remuneration Report
on page 15.
6. Non-recurring items
GROUP AND COMPANY
2024 2023
£'000 £'000
Write off goodwill related to IHUB - 978
Costs relating to the exit of directors - 200
- 1,178
In the prior year the goodwill on the investment in IHUB was impaired during
the review of the valuation of the investments. There were further legal fees
incurred relating to the exit of the previous directors.
Notes to the financial statements (continued)
7. Finance income and expense
GROUP
2024 2023
£'000 £'000
Finance income:
Bank interest 198 24
Finance expense:
Lease interest - (4)
Bank interest (1) (7)
8. Income tax expense
GROUP
2024 2023
£'000 £'000
Current Tax:
UK corporation tax on losses for the year (38) (58)
Adjustments in respect of prior periods (25) -
Total current taxation (63) (58)
Deferred tax
Origination and reversal of timing differences 106 88
Carried forward losses (DTA) (106) (88)
Taxation (63) (58)
The tax assessed for the year is different from the standard rate of
corporation tax as applied in the respective trading domains where the Group
operates. The differences are explained below:
2024 2023
£'000 £'000
Loss before tax from total operations (981) (2,227)
Loss before tax multiplied by the respective standard rate of corporation tax
applicable in the UK (25.00%) (2023: 19.00%)
(245) (423)
Effects of:
Non-deductible expenses 3 178
Capital allowances 7 (25)
Enhanced Research & Development expenditure (44) (43)
Surrender of tax losses for R & D tax credit 96 77
Current year R&D tax credit (38) (58)
Effect of discontinued operations - 60
Effect of difference in tax rates 30 (21)
Effect of losses utilised against other income 49 -
Consolidation adjustments - no tax effect 104 197
Tax credit for the year (38) (58)
The Group has not applied the new Pillar 2 Model rules, as these apply only to
multinational entities with revenue in excess of €750 million.
Notes to the financial statements (continued)
9. Loss per share
12 months to 12 months to
30 June 30 June
2024 2023
£'000 £'000
Loss for the year attributable to equity shareholders from continuing (850) (1,856)
operations
Loss for the year attributable to equity shareholders from total operations (918) (2,169)
Weighted average number of shares
Prior year: number of shares in issue prior to rights issue - 26,315,318
Prior year correction for deemed rights issue - 169,179
Deemed number of shares before rights issue - 26,484,497
Weighted average shares
26,484,497 x 188/365 (prior to rights issue) - 13,641,330
46,004,758 x 177/365 (post rights issue) - 22,309,157
Weighted average number of shares used as the denominator for calculating 46,039,279 35,950,487
basic and diluted loss per share.
Loss per share for the year attributable to equity shareholders from
continuing operations:
Basic and diluted (1.85p) (5.16p)
Loss per share for the year attributable to equity shareholders from
discontinued operations:
Basic and diluted (0.14p) (0.87p)
Total loss per share for the year attributable to equity shareholders:
Basic and diluted (1.99p) (6.03p)
Where a loss has been recorded for the year the diluted loss per share does
not differ from the basic loss per share.
Where a profit has been recorded but the average share price for the year
remains under the exercise price the existence of options is not normally
dilutive. However, whilst the average exercise price of all outstanding
options is above the average share price there are a number of options which
are not. Under these circumstances those options where the exercise price is
below the average share price are treated as dilutive.
During the prior year, the company made a rights issue (Note 20). On 16 May
2024, 280,000 shares were issued.
Notes to the financial statements (continued)
10. Property, plant and equipment
GROUP
Leasehold property improvements Computer equipment Office equipment Right of use lease assets Total
£'000 £'000 £'000 £'000 £'000
Cost
At 1 July 2022 48 435 308 349 1,140
Additions - 132 4 - 136
Disposal - - - (349) (349)
FX difference - - (11) - (11)
At 30 June 2023 48 567 301 - 916
Additions - 6 - - 6
Disposal - (4) (6) - (10)
FX difference - - - - -
At 30 June 2024 48 569 295 - 912
Depreciation
At 1 July 2022 48 411 307 276 1,042
Charge for the year - 2 - 73 75
Disposal - - - (349) (349)
FX difference - - (12) - (12)
At 30 June 2023 48 413 295 - 756
Charge for the year - 47 2 - 49
Disposal - (4) (1) - (5)
FX difference - - (3) - (3)
At 30 June 2024 48 456 293 - 797
Net book value
At 30 June 2024 - 113 2 - 115
At 30 June 2023 - 154 6 - 160
Charge over assets
A fixed and floating charge is held by Barclays Bank which covers all the
property and undertakings of the company against the provision of any loan,
debenture or other bank liability.
Notes to the financial statements (continued)
Property, plant and equipment (continued)
COMPANY
Leasehold property improvements Computer equipment Office equipment Total
£'000 £'000 £'000 £'000
Cost
At 1 July 2022 48 430 106 584
Additions - 133 - 133
Disposals - - - -
At 30 June 2023 48 563 106 717
Additions - 6 - 6
At 30 June 2024 48 569 106 723
Depreciation
At 1 July 2022 48 406 106 560
Charge for the year - 3 - 3
At 30 June 2023 48 409 106 563
Charge for the year - 47 - 47
At 30 June 2024 48 456 106 610
Net book value
At 30 June 2024 - 113 - 113
At 30 June 2023 - 154 - 154
11. Goodwill
GROUP
£'000
At 1 July 2022 988
Exchange differences (10)
Impairment (978)
At 30 June 2023 -
Exchange differences -
Impairment -
At 30 June 2024 -
The goodwill carried in the balance sheet was attributable to InvestorsHub.com
Inc.
During the year ended 30 June 2023, the goodwill was fully impaired.
Notes to the financial statements (continued)
12. Other intangible assets
GROUP
Licences Brands & subscriber lists Website development costs Mobile application Software Crypto-currencies Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
As restated
Cost or valuation
At 1 July 2022 (restated) 162 2,129 1,764 10 220 1 4,286
Additions - - 175 - - - 175
Disposals - - - - (220) - (220)
At 30 June 2023 162 2,129 1,939 10 - 1 4,241
Additions - - 278 - - - 278
Disposals (62) (607) (182) - - - (851)
At 30 June 2024 100 1,522 2,035 10 - 1 3,668
Amortisation
At 1 July 2022 (restated) 162 2,129 1,531 10 115 - 3,947
Charge for the year - - 191 - 23 - 214
Disposals - - - - (138) (138)
At 30 June 2023 162 2,129 1,722 10 - - 4,023
Charge for the year - - 156 - - - 156
Disposals (62) (607) (153) - - - (822)
At 30 June 2024 100 1,522 1,725 10 - - 3,357
Net book value
At 30 June 2024 - - 310 - - 1 311
At 30 June 2023 - - 217 - - 1 218
Website development costs, mobile applications and software are internally
generated assets. £148,000 of the £278,000 additions during the year are
still 'under construction' and therefore do not meet the criteria for
amortisation yet.
The opening balances as at 1 July 2022 have been restated. Details of the
restatement can be found in Note 2.
All additions are internally generated by capitalisation of development work
on websites and software projects.
The directors are satisfied that no indication of impairment exists in respect
of these assets.
Notes to the financial statements (continued)
Other intangible assets (continued)
COMPANY
Licenses Mobile application Website development Crypto-currencies Total
£'000 £'000 £'000 £'000 £'000
As restated
Cost
At 1 July 2022 (restated) 100 10 1,764 1 1,875
Additions - - 175 - 175
Disposals - - - - -
At 30 June 2023 100 10 1,939 1 2,050
Additions - - 278 - 278
Disposals - - (182) - (182)
At 30 June 2024 100 10 2,035 1 2,146
Amortisation
At 1 July 2022 (restated) 100 10 1,531 - 1,641
Charge for the year - - 191 - 191
Disposals - - - - -
At 30 June 2023 100 10 1,722 - 1,832
Charge for the year - - 156 - 156
Disposals - - (153) (153)
At 30 June 2024 100 10 1,725 - 1,835
Net book value
At 30 June 2024 - - 310 1 311
At 30 June 2023 - - 217 1 218
Website development costs, mobile applications and software are internally
generated assets. £148,000 of the £278,000 additions during the year are
still 'under construction' and therefore do not meet the criteria for
amortisation yet.
The opening balances as at 1 July 2022 have been restated. Details of the
restatement can be found in Note 2.
All additions are internally generated by capitalisation of development work
on websites and software projects.
The directors are satisfied that no indication of impairment exists in respect
of these assets.
Notes to the financial statements (continued)
13. Subsidiary companies consolidated in these accounts
COMPANY
Subsidiaries
£'000
At 1 July 2022 1,001
Impairment (1,000)
Write offs (1)
30 June 2023 -
30 June 2024 -
In the prior year, the investment in InvestorsHub.com Inc was fully impaired.
There have been no indications that any reversal of the impairment should be
considered.
Country of incorporation % interest in Principal activity Registered address
ordinary shares
30 June 2024
Fotothing Limited England & Wales 100.00 Dormant Suite 28 Ongar Business Centre, The Gables, Ongar, England, CM5 0GA
NA Data Inc. USA 100.00 Office services P.O. Box 780
Harrisonville Mo. 64701
InvestorsHub.com Inc. USA 100.00 Financial information web site As NA Data Inc.
ADVFN Brazil Limited England & Wales 100.00 Dormant As Fotothing Limited
Advfn IL Limited Israel 100.00 Dormant Rothschild 45, Tel-Aviv.
Cupid Bay Limited (dissolved 21 November 2023) England & Wales 100.00 Dissolved N/A
MJAC InvestorsHub International Conferences Limited (Dissolved 21 November England & Wales 100.00 Dissolved N/A
2023)
All IPO Plc (Dissolved 2 April 2024) England & Wales 100.00 Dissolved N/A
Notes to the financial statements (continued)
14. Deferred tax
GROUP
The following are the major deferred tax liabilities and assets recognised by
the Group and the movements thereon during the current and prior periods:
Website development & software costs UK tax losses Total
£'000 £'000 £'000
At 30 June 2022 (387) 387 -
Credit/(charge) to profit or loss (88) 88 -
At 30 June 2023 (475) 475 -
Credit/(charge) to profit or loss (106) 106 -
At 30 June 2024 (581) 581 -
Deferred tax in ADVFN Plc amounted to £105,900 and nil in subsidiary
companies. The deferred tax liability for the temporary difference has been
recognised at 25% as per the future tax rate which has increased the deferred
tax liability by £105,900. The deferred tax asset for the losses has also
been recognised at 25% as per the future tax rate.
Certain deferred tax assets and liabilities have been offset. The following is
the analysis of the deferred tax balances, after offset, for the purposes of
financial reporting:
2024 2023
£'000 £'000
Deferred tax liabilities
- Website development & software costs (106) (88)
Deferred tax assets
- UK tax losses 106 88
- -
At the balance sheet date the Group had unused tax losses of £3,688,436
(2023: £5,802,000) available for offset against future profits. The Group has
surrendered losses of £382,000 for the R&D tax credit for the year. A
deferred tax asset has been recognised in respect of £423,000 (2023:
£350,000) of such losses, as these losses would offset any taxable profits
arising as a result of the unwinding of the deferred tax liability in respect
of website development costs. No deferred tax asset has been recognised in
respect of the remaining £3,260,000 (2023: £5,452,000) due to the
unpredictability of future profit streams. Substantially all of the losses may
be carried forward indefinitely.
COMPANY
The Deferred Tax Liability in the ADVFN company is due to the temporary
difference between the accounting base and tax base for the Intangible -
Website development, temporary difference £340,000 and deferred tax liability
£85,000 and for Computer Equipment, temporary difference £84,000 and
deferred tax liability £21,000.
Notes to the financial statements (continued)
15. Trade and other receivables
GROUP
2024 2023
£'000 £'000
Non-current assets
Other receivables 22 25
Current assets
Trade receivables - gross 368 257
Less: provision for impairment - expected loss (38) (14)
Less: provision for impairment - specific (3) (9)
Trade receivables - net 327 234
Prepayments and accrued income 87 124
Other receivables 27 26
Recoverable corporation tax 120 82
Total trade and other receivables 561 466
The ageing of trade receivables is as follows:
2024 2023
£'000 £'000
Not past due and not impaired 193 192
Past due but not impaired 172 56
Past due and fully impaired 3 9
Trade receivables - gross 368 257
Not past due and not impaired 193 192
Past due but not impaired:
Up to 30 days 4 28
31 to 60 days 11 1
61 to 90 days 24 15
Over 90 days 133 12
172 56
Receivables not impaired 365 248
Past due but fully impaired 3 9
Less impairment provision (41) (23)
Trade receivables - net 327 234
Provision for impairment:
2024 2023
£'000 £'000
Opening 23 20
Additional provision recognised 18 3
Closing 41 23
The Directors consider that the carrying amount of trade and other receivables
in both the Group and Company is approximately equal to their fair value.
Notes to the financial statements (continued)
COMPANY
2024 2023
£'000 £'000
Non-current assets
Other receivables 22 25
Current assets
Trade receivables - gross 167 123
Less: provision for impairment - expected loss (8) (7)
Less: provision for impairment - specific (1) (9)
Trade receivables - net 158 107
Prepayments and accrued income 83 102
Other receivables 15 21
Recoverable corporation tax 120 82
Amounts owed by Group undertakings - -
Total trade and other receivables 376 313
The ageing of trade receivables is as follows:
2024 2023
£'000 £'000
Not past due and not impaired 127 84
Past due but not impaired 39 30
Past due and fully impaired 1 9
Trade receivables - gross 167 123
Not past due and not impaired 127 84
Past due but not impaired:
Up to 30 days 2 21
31 to 60 days 2 -
61 to 90 days 3 7
Over 90 days 32 11
39 39
Receivables not impaired 166 114
Past due and fully impaired 1 9
Less impairment provision (9) (16)
Trade receivables - net 158 107
Provision for impairment:
2024 2023
£'000 £'000
Opening 16 10
Movement in the year (7) 6
Closing 9 16
The Directors consider that the carrying amount of trade and other receivables
in both the Group and Company is approximately equal to their fair value.
Notes to the financial statements (continued)
16. Credit quality of financial assets
An impairment provision has been calculated on the basis of expected credit
losses ("ECL") as required under IFRS 9.
GROUP
As of 30 June 2024, trade receivables of £172,000 (2023: £56,000) were past
due but not impaired (see note 15). These relate to a number of independent
customers for whom there is no recent history of default.
Expected credit loss provision 2024 2023
£'000 % £'000 £'000
Not past due 192 1% 2 192
Not more than 3 months 40 5% 2 28
More than 3 months but not more than 6 months 39 15% 6 1
More than 6 months but not more than 1 year 75 25% 18 15
More than 1 year 19 50% 10 12
365 38 248
Impaired receivables allowance account
2024 2023
Specific provision £'000 £'000
At 1 July 9 2
Utilised during the year (8) (3)
Created during the year 2 10
At 30 June 3 9
The carrying amount of the Group's trade receivables is denominated in the
following currencies:
2024 2023
£'000 £'000
Sterling 84 62
Euro 11 3
US dollar 232 169
327 234
Notes to the financial statements (continued)
Credit quality of financial assets (continued)
COMPANY
As of 30 June 2024, trade receivables of £39,000 (2023: £30,000) were past
due but not impaired (see note 15). These relate to a number of independent
customers for whom there is no recent history of default.
Expected credit loss provision 2024 2023
£'000 % £'000 £'000
Not past due 128 1% 1 84
Not more than 3 months 7 5% - 18
More than 3 months but not more than 6 months 14 15% 2 -
More than 6 months but not more than 1 year 15 25% 4 3
More than 1 year 2 50% 1 9
166 8 114
Impaired receivables allowance account
2024 2023
Specific provision £'000 £'000
At 1 July 9 2
Utilised during the year (10) (3)
Created during the year 2 10
At 30 June 1 9
The carrying amount of the Company's trade receivables is denominated in the
following currencies:
2024 2023
£'000 £'000
Sterling 85 70
Euro 11 3
US dollar 62 34
158 107
Notes to the financial statements (continued)
17. Interest bearing borrowings
Bank loans
As a result of the COVID-19 pandemic the Directors considered it prudent to
take further steps to ensure that short term cashflow did not present a
problem for the Group. Short term finance offered under the Business Bounce
Back loan scheme provided an additional layer of protection whilst the economy
rides out the effects of the pandemic. The UK loan is charged at 2.5% over 6
years with an interest and payment free period for the first 12 months.
Lease liabilities
The carrying value of the lease liabilities is included in the borrowing
classification. There are no leases carried in the Company. For further
details please see Note 22.
GROUP
2024 2023
£'000 £'000
Non-current
Bank loans 9 20
9 20
Brought forward 20 41
Cash flows (12) (22)
Interest and fees 1 1
As at 30 June 9 20
Current
Bank loans 10 10
Lease liability - -
10 10
Brought forward 10 100
Cash flows - (94)
Interest and fees - 4
As at 30 June 10 10
Notes to the financial statements (continued)
Interest bearing borrowings (continued)
COMPANY
2024 2023
£'000 £'000
Non-current
Bank loans 9 20
Brought forward 20 41
Cash flows (12) (20)
Interest and fees 1 1
As at 30 June 9 20
Current
Bank loans 10 10
Brought forward - 13
Cash flows - (4)
Interest and fees - 1
As at 30 June 10 10
Changes in liabilities arising from financing activities
GROUP
2023 Cash movements Non-cash movements 2024
£'000 £'000 £'000 £'000
Long term borrowing 30 (12) 1 19
COMPANY
2023 Cash movements Non-cash movements 2024
£'000 £'000 £'000 £'000
Long term borrowing 30 (12) 1 19
Notes to the financial statements (continued)
18. Financial instruments
GROUP
Categories of financial instrument 2024 2023
£'000 £'000
Non-current
Trade and other receivables - at amortised cost 22 25
Current
Trade and other receivables - at amortised cost 355 260
Cash and cash equivalents 4,091 5,557
Financial assets 4,468 5,842
Non-current
Borrowings 9 20
Current
Borrowings - at amortised cost 10 10
Trade and other payables - at amortised cost 743 1,136
Financial liabilities 753 1,146
COMPANY
Categories of financial instrument 2024 2023
£'000 £'000
Non-current
Trade and other receivables - at amortised cost 22 25
Current
Trade and other receivables - at amortised cost 172 107
Cash and cash equivalents 4,026 5,301
Financial assets 4,220 5,433
Non-current
Borrowings - at amortised cost 9 20
Current
Borrowings 10 10
Trade and other payables - at amortised cost 708 1,073
Financial liabilities 718 1,083
Notes to the financial statements (continued)
19. Trade and other payables
GROUP
2024 2023
£'000 £'000
Trade payables 447 771
Social security and other taxes 80 119
Accrued expenses 211 235
Contract liability 577 647
Other payables 85 131
1,402 1,903
During the reporting period, for the Group, £647,000 of revenue was
recognised that had been included in the contract liability at the beginning
of the period.
COMPANY
2024 2023
£'000 £'000
Trade payables 427 758
Other tax and social security 80 112
Accruals 199 207
Contract liability 498 554
Other payables 83 109
Amounts owed to Group undertakings - -
1,287 1,740
During the reporting period, for the Company, £554,000 of revenue was
recognised that had been included in the contract liability at the beginning
of the period.
20. Share capital
GROUP AND COMPANY
Shares £'000
Issued, called up and fully paid Ordinary shares of £0.002 each
At 30 June 2023 46,004,758 92
Share issued 280,000 1
At 30 June 2024 46,284,758 93
Shares issued
On 16 May 2024, 280,000 shares were issued to non-executive directors in lieu
of salary. The shares had a nominal value of £0.002 per share and were issued
at the market value on the date of issue of 10.5p per share, resulting in an
increase in share capital of £560 and share premium of £28,840. The shares
rank pari passu with the existing shares in issue.
On 6 December 2022, the company proposed an equity fundraise whereby
qualifying existing shareholders were able to subscribe for new shares at an
issue price of £0.33 on the basis of 11 offer shares for every 14 existing
ordinary shares. Under the issue, open offer warrants were issued to the
qualifying shareholders in relation to the purchase of shares on the basis of
one warrant for every 3 open offer shares. The warrants may be exercised from
the date of issue until 6 December 2026 at a price of £0.60 per share. On 6
January 2023 13,708,380 shares were admitted to the London Stock Exchange as a
result of this open offer. A further 5,981,059 shares were admitted on 14
March 2023 after approval from the Financial Conduct Authority. A total of
£6.5m was raised and 6,563,123 warrants were created.
Share price
The market value of the shares at 30 June 2024 was 13.00p (2023; 21.00p). The
range during the year was 10.5p to 21.0p (2023; 20.5p to 57.5p ). Shareholders
are entitled to one vote per Ordinary share held and dividends will be
apportioned and paid proportionately to the amounts paid up on the Ordinary
shares held.
Notes to the financial statements (continued)
21. Share based payments
GROUP AND COMPANY
The Group uses share options as remuneration for services of employees. The
fair value is expensed over the remaining vesting period.
The fair value of options granted during the year has been arrived at using
the Black-Scholes model. The assumptions inherent in the use of this model are
as follows:
§ The option life is assumed to be at the end of the allowed period
§ There are no vesting conditions which apply to the share
options/warrants other than continued service up to 3 years.
§ No variables change during the life of the option (e.g. dividend
yield must be zero).
§ Volatility has been calculated over the 3 years prior to the grant
date by reference to the daily share price.
Details of the number of share options and the weighted average exercise price
(WAEP) outstanding during the year are as follows:
2024 WAEP
Number Price (£)
Outstanding at the beginning of the year 630,000 0.3333
Granted during the year 825,300 0.1947
Outstanding at the year end 1,455,300 0.2813
Exercisable at the year end 887,232 0.2640
2023 WAEP
Number Price (£)
Outstanding at the beginning of the year 1,351,473 0.4437
Granted during the year 530,000 0.33
Exercised during the year - -
Lapsed during the year (1,251,473) 0.3570
Outstanding at the year end 630,000 0.3333
Exercisable at the year end 630,000 0.3333
Notes to the financial statements (continued)
Share based payments (continued)
The options outstanding at the year-end are set out below:
Expiry date Issue date Exercise 2024 2023
Price (£) Share options Remaining life (years) Share options Remaining life (years)
10 year expiry
24 November 2027 25 November 2017 0.4750 Options 50,000 3 50,000 4
24 November 2027 25 November 2017 1.0000 Options 50,000 3 50,000 4
3 year expiry
8 June 2026 7 June 2023 0.33 Options 530,000 2 530,000 3
18 September 2027 19 September 2024 0.16 Options 180,000 2 - -
25 April 2027 24 April 2024 0.13 Options 315,300 3 - -
4 year expiry
24 April 2028 23 April 2024 0.13 Options 90.000 4 - -
24 April 2028 23 April 2024 0.33 Options 240,000 4 - -
1,455,300 630,000
The total expense recognised during the year by the Group, for all schemes,
was £26,301 (2023: £1,000).
Notes to the financial statements (continued)
22. Lease liabilities
Property, plant and equipment comprises owned and leased assets.
GROUP
2024 2023
£'000 £'000
Right-of-use assets
The group leases office buildings:
Balance at 1 July - 73
Additions in the year - -
Depreciation charge for the year - (73)
Balance at 30 June - -
Total cash outflows of £nil (2023 £103,000) were made in relation to
right-of-use assets in the current year with £nil interest (2023 £5,000).
23. Financial risk management
The Group and Company's activities expose it to a variety of financial risks:
market risk (primarily foreign exchange risk, interest rate risk and price
risk), credit risk and liquidity risk. This year the Group and Company are
also exposed to global inflation risks. All companies within the Group apply
the same risk management programme. Overall, this focuses on the
unpredictability of financial markets and seeks to minimise potential adverse
effects on the Group's financial performance. Risk management is carried out
by the Board and their policies are outlined below.
a) Market risk
Foreign exchange risk
The Group is exposed to translation and transaction foreign exchange risk as
it operates within the USA and other countries around the world and therefore
transactions are denominated in Sterling, Euro, US Dollars and other
currencies. The Group policy is to try and match the timing of the settlement
of sales and purchase invoices so as to eliminate, as far as possible,
currency exposure. During the year, the weakening of Sterling has decreased
the impact of movements in US Dollars.
The Group does not currently hedge any transactions and therefore there are no
open forward contracts. Foreign exchange differences on retranslation of
foreign currency monetary assets and liabilities are taken to the income
statement.
GROUP
The carrying value of the Group's foreign currency denominated assets and
liabilities are set out below:
2024 2023
Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000
US Dollars 455 219 3,118 297
Euros 35 88 17 120
Yen 6 - 9 -
Other - 12 - -
496 319 3,144 417
COMPANY
The carrying value of the Company's foreign currency denominated assets and
liabilities are set out below:
2024 2023
Assets Liabilities Assets Liabilities
£'000 £'000 £'000 £'000
US Dollars 642 105 1,683 162
Euros 35 88 18 120
Yen 6 - 6 -
Other - 12 - 22
683 205 1,707 304
Notes to the financial statements (continued)
Financial risk management (continued)
Foreign exchange risk (continued)
The majority of the Group's financial assets are held in Sterling but
movements in the exchange rate of the US Dollar and the Euro against Sterling
have an impact on both the result for the year and equity. The Group considers
its most significant exposure is to movements in the US Dollar.
Sensitivity to reasonably possible movements in the US Dollar exchange rate
can be measured on the basis that all other variables remain constant. The
effect on profit and equity of strengthening or weakening of the US Dollar in
relation to sterling by 10% would result in a movement of:
Group: ±£63,000 (2023: ±£122,000).
Company: ±£69,000 (2023: ±£165,000).
Interest rate risk
The Group carries borrowings which are at fixed interest rates and as a result
the directors consider that there is no significant interest rate risk.
b) Credit risk
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Group. In order to
minimise this risk, the Group endeavours only to deal with companies which are
demonstrably creditworthy and this, together with the aggregate financial
exposure, is continuously monitored. The maximum exposure to credit risk is
the value of the outstanding amount:
Group: £460,000 (2023: £433,000).
Company: £230,000 (2023: £1,849,000).
Provision of services by members of the Group results in trade receivables
which the management consider to be of low risk, other receivables are
likewise considered to be low risk. The management do not consider that there
is any concentration of risk within either trade or other receivables. The
receivables are due from companies whose credit performance is constantly
monitored and, if an amount becomes overdue, immediate action is taken to
obtain payment. The population of clients is diverse, and this ensures no
concentration of risk with any specific customer. A default is assumed and
actioned when the Directors believe it will not be possible to obtain payment
for the service supplied. This is not generally measured exclusively on the
overdue period but judged on the basis of prior experience and the dialogue
with the customer that follows the recognition of an overdue payment. For
additional information on receivables see note 15.
Credit risk on cash and cash equivalents is considered to be small as the
counterparties are all substantial banks with high credit ratings. The maximum
exposure is the amount of the deposit.
c) Liquidity risk
The Group currently holds cash balances in Sterling, US Dollars and Euros to
provide funding for normal trading activity. The Group also has access to
additional equity funding, and, for short term flexibility, overdraft
facilities would be arranged with the Group's bankers. Trade and other
payables are monitored as part of normal management routine. Liabilities are
disclosed as follows:
Notes to the financial statements (continued)
Financial risk management (continued)
Liquidity risk (continued)
GROUP
2024 Within 1 year One to two years Two to five years Over five years
£'000 £'000 £'000 £'000
Trade payables 447 - - -
Accruals 212 - - -
Other payables 83 - - -
Borrowings 10 9 - -
2023 Within 1 year One to two years Two to five years Over five years
£'000 £'000 £'000 £'000
Trade payables 771 - - -
Accruals 236 - - -
Other payables 131 - - -
Borrowings 10 10 9 -
COMPANY
2024 Within 1 year One to two years Two to five years Over five years
£'000 £'000 £'000 £'000
Trade payables 427 - - -
Accruals 199 - - -
Other payables 83 - - -
Borrowings 10 9 - -
2023 Within 1 year One to two years Two to five years Over five years
£'000 £'000 £'000 £'000
Trade payables 758 - - -
Accruals 207 - - -
Other payables 109 - - -
Borrowings 10 10 9 -
d) Capital risk management
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern in a volatile and tight credit economy.
The Group will also seek to minimise the cost of capital and attempt to
optimise the capital structure, which currently means maintaining equity
funding and keeping debt levels to insignificant amounts of lease funding.
Share capital and premium together amount to £6,798,000.
During the year, the Group did not pay a dividend to shareholders (2023:
£Nil). The Group continues to plan for growth, and it will continue to be
important to maintain the Group's credit rating and ability to borrow should
acquisition targets become available.
Capital for further development of the Group's activities will, where
possible, be achieved by share issues and not by carrying significant debt.
Notes to the financial statements (continued)
Financial risk management (continued)
Liquidity risk (continued)
e) Inflation risk
Inflation risk refers to the risks posed to the Group due to rising inflation.
This increase in inflation could lead to increasing costs and potentially
decreasing revenue as companies seek to decrease their own costs. Management
have considered these factors in preparing their going concern forecasts and
will continue to monitor the level of expenses and revenue going forward.
24. Capital Commitments
GROUP AND COMPANY
At 30 June 2024 neither the Group nor the Company had any capital commitments
(2023: £Nil).
25. Related party transactions
GROUP AND COMPANY
The remuneration paid to Directors is disclosed on page 16 of the Directors'
Report. Shares held by the directors are disclosed on page 15. Subsequent to
the year ended 30 June 2024, CF Pro Limited became a management entity of the
Group and Company, by virtue of the provision of key management services. This
relationship commenced in August 2024. During the year ended 30 June 2024,
fees totalling £103,000 were paid to CF Pro Limited. There was an outstanding
balance owed to CF Pro Limited of £8,000 at the year end. Transactions with
related parties were carried out on an arm's length basis.
26. Events after the balance sheet date
There were no relevant events after the balance sheet date.
27. Accounts
Copies of these accounts are available from the Company's registered office at
Suite 28, Ongar Business Centre, The Gables, Fyfield Road, Ongar, Essex, CM5
0GA or from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
www.companieshouse.gov.uk (http://www.companieshouse.gov.uk)
and from the ADVFN plc website:
www.ADVFN.com (http://www.ADVFN.com)
ENDS
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