REG - ADVFN PLC - Half-year Report
21/02/2022 07:00
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RNS Number : 1982C ADVFN PLC 21 February 2022
21 February 2022
For immediate release
ADVFN PLC
("ADVFN" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December 2021
ADVFN today announces its unaudited interim results for the six months ended
31 December 2021
(the "Period").
Chief Executive's Statement
The Board is very pleased to report the results for the six months ended
31 December, when ADVFN consolidated the progress made last year.
Revenue was £4.2 million, the same level as the comparable period for the six
months ended 31 December 2020, with a profit after tax for the Period of
£202,000, which although lower by £62,000 than the previous year was
£601,000 better than the comparable period in 2019.
We have been a little more aggressive in investing for the future in this half
with the addition to our offerings of new features and data, with a special
focus on Crypto. We will continue to freshen our offerings which we see as
helping to sustain and grow our future revenue.
Financial Performance
The key financial performance for the period is summarised in the table below:
Six Months ended Six Months ended
31 December 2021 31 December 2020
£'000 £'000
Revenue 4,228 4,233
Profit / (loss) for the period 202 264
Operating profit / (loss) 229 277
Profit per share - basic (see note 3) 0.77p 1.03 p
Post Period Events
Following the Period end the Board announced that it had concluded its
strategic review of the Company's options and ended the "formal sale process"
of the Company which it had commenced previously in accordance with Rules 2.4
and 2.6 of the Takeover Code. The Board concluded that the Company should take
advantage of the available options to grow its business offering and
geographic reach through business partnerships and possible joint venture
arrangements or acquisitions.
While there can be no certainty as to whether these opportunities can be
consummated, the Board believes that these potential development opportunities
would enable the Group to build value for all shareholders.
Dividend Policy and Interim Dividend
As announced last year, while the Board will continue to deploy the Group's
cash resources to the growth of, and investment in, the business, the Board
concluded that as a result of the much-improved financial performance of the
Group, the Company was in a position to adopt a dividend policy to generate
returns for shareholders. The Board's adopted policy was to pay dividends
twice a year in equal instalments on a semi-annual basis following the release
of the interim and full year financial results. Accordingly, for the Period,
the Board is therefore pleased to announce that the Company will pay an
interim dividend of 0.75 pence per ordinary share, which is in line with last
year's dividend of 1.5 pence for the year as a whole. The interim dividend
will be payable as per the timetable below:
- Ex dividend dated: 24 March 2022
- Record date: 25 March 2022
- Payment date: 11 April 2022
Outlook
While we are focused on the successful future development of ADVFN, on 26
January 2022, the Board announced that it had received a letter from Mr Yair
Tauman in which Mr Yair Tauman requested that the Company convene a general
meeting under section 303 of the Companies Act, to consider to consider
proposed changes to the Board including my removal as a director of the
Company and the proposed appointment of Messrs Anthony Wollenberg, Amit Tauman
and Lord David Gold as directors of the Company. The Company requested
information from Mr Yair Tauman in respect of the individuals proposed by him
as directors of the Company and will make a further announcement in due
course.
This may well be my last CEO statement and as such I will take this
opportunity to wish shareholders, customers and staff my best wishes for a
good outcome for all.
Clem Chambers
CEO
21 February 2022
Enquiries:
For further information please contact:
ADVFN PLC +44 20 3868 670203
Clem Chambers
Beaumont Cornish Limited (Nominated Adviser)
www.beaumontcornish.com (http://www.beaumontcornish.com)
Roland Cornish/Michael Cornish +44 (0) 207 628 3396
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 Clem Chambers, Director.
A copy of this announcement is available on the Group's
website: www.ADVFNPLC.com (http://www.ADVFNPLC.com)
Consolidated income statement
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2021 2020 2021
£'000 £'000 £'000
unaudited unaudited audited
Notes
Revenue 4,228 4,233 9,059
Cost of sales (162) (244) (452)
Gross profit 4,066 3,989 8,607
Share based payment - (44) (43)
Amortisation of intangible assets (138) (128) (251)
Other administrative expenses (3,699) (3,540) (6,849)
Total administrative expense (3,837) (3,712) (7,143)
Government grant - - 162
Operating profit 229 277 1,626
Finance expense (27) (13) (22)
Other income - - 4
Profit/(loss) before tax 202 264 1,608
Taxation - - 10
Profit/(loss) for the period attributable to shareholders of the parent
202 264 1,618
Earnings per share
Basic 3 0.77p 1.03 p 6.28p
Diluted 0.74p 0.99 p 5.97p
Consolidated statement of comprehensive income
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2021 2020 2021
£'000 £'000 £'000
unaudited unaudited audited
Profit/ for the period 202 264 1,618
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations (50) (49) (95)
Total other comprehensive income (50) (49) (95)
Total comprehensive income for the year attributable to shareholders of the
parent
252 215 1,523
Consolidated balance sheet
31 Dec 31 Dec 30 June
2021 2020 2021
£'000 £'000 £'000
unaudited unaudited audited
Assets
Non-current assets
Property, plant and equipment 180 283 239
Goodwill 929 927 870
Intangible assets 1,584 1,460 1,562
Deferred tax asset - - -
Trade and other receivables 25 - 110
2,718 2,670 2,781
Current assets
Trade and other receivables 725 647 546
Cash and cash equivalents 2,032 931 1,939
2,757 1,578 2,485
Total assets 5,475 4,248 5,266
Equity and liabilities
Equity
Issued capital 52 51 52
Share premium 223 167 223
Share based payments reserve 343 411 343
Foreign exchange reserve 260 256 210
Retained earnings 2,497 874 2,295
3,375 1,759 3,123
Non-current liabilities
Borrowing - bank loans 47 83 54
Borrowing - lease liabilities 37 101 87
84 184 141
Current liabilities
Trade and other payables 1,902 2,082 1,886
Borrowing - bank loans 13 88 13
Borrowing - lease liabilities 101 135 103
2,016 2,305 2,002
Total liabilities 2,100 2,489 2,143
Total equity and liabilities 5,475 4,248 5,266
Consolidated statement of changes in equity
Share capital Share premium Share based payment reserve Foreign exchange Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2020 51 167 367 305 610 1,500
Share based payments 44 44
Profit for the period after tax - - - - 264 264
Other comprehensive income
Exchange differences on translation of foreign operations
- - - (49) - (49)
Total comprehensive income - - - (49) 264 215
At 31 December 2020 51 167 411 256 874 1,759
Transactions with equity shareholders:
Shares issued 1 56 - - - 57
Transfer on exercise - - (67) - 67 -
1 56 (67) - 67 57
Reprice share options - - (1) - - (1)
Profit for the period after tax - - - - 1,354 1,354
Other comprehensive income
Exchange differences on translation of foreign operations
- - - (46) - (46)
Total comprehensive income - - - (46) 1,354 1,308
At 30 June 2021 52 223 343 210 2,295 3,123
Share based payments - - - - - -
Profit for the period after tax - - - - 202 202
Other comprehensive income
Exchange differences on translation of foreign operations
- - - 50 - 50
Total comprehensive income - - - 50 202 252
At 31 December 2021 52 223 343 260 2,497 3,375
Consolidated cash flow statement
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2021 2020 2021
£'000 £'000 £'000
unaudited unaudited audited
Cash flows from operating activities
Profit for the year 202 264 1,618
Taxation expense - - (10)
Net finance expense in the income statement 27 13 22
Depreciation of property, plant and equipment 110 95 167
Amortisation 138 128 251
Forgiveness of US loan - (174)
Loss on disposal of PPE - - -
Share based payment - 44 43
(Increase) in trade and other receivables (94) (73) (72)
Increase / (Decrease) in trade and other payables 16 (254) (392)
Net cash generated by continuing operations 399 217 1,453
Income tax recovered - - -
Net cash generated/(used) by operating activities 399 217 1,453
Cash flows from financing activities
Issue of share capital - - 57
Repayment of lease principle (59) (41) (92)
Drawdown of loans - - 17
Lease interest paid (6) (9) (19)
Other interest paid (21) (4) (3)
Net cash (used)/generated by financing activities (86) (54) (40)
Cash flows from investing activities
Payments for property, plant and equipment (51) (13) (39)
Purchase of intangibles (160) (160) (385)
Net cash used by investing activities (211) (173) (424)
Net (decrease)/increase in cash and cash equivalents 102 (10) 989
Exchange differences (9) 26 35
Net increase/(decrease) in cash and cash equivalents 93 16 1024
Cash and cash equivalents at the start of the period 1,939 915 915
Cash and cash equivalents at the end of the period 2,032 931 1,939
1. Legal status and activities
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 All IPO Plc, InvestorsHub.com Inc, NA
Data Inc, MJAC InvestorsHub International Conferences Ltd and Cupid Bay
Limited.
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, Essex Business Centre, The Gables,
Fyfield Road, Ongar, Essex, CM5 0GA.
The registered number of the company is 02374988.
2. Basis of preparation
The unaudited consolidated interim financial information is for the six-month
period ended 31 December 2021. The financial information does not include
all the information required for full annual financial statements and should
be read in conjunction with the consolidated financial statements of the Group
for the year ended 30 June 2021, which were prepared under applicable law and
International Accounting Standards (IAS) in conformity with the requirements
of the Companies Act 2006 as at 30 June 2021.
The accounting policies adopted in this report are consistent with those of
the annual financial statements for the year to 30 June 2021 as described in
those financial statements.
The financial statements are presented in Sterling (£) rounded to the nearest
thousand except where specified.
The unaudited interim financial information does not include all the
information required for full annual financial statements and should be read
in conjunction with the financial statements of the Group for the year ended
30 June 2021.
The interim financial information has been prepared on the going concern basis
which assumes the Group will continue in existence for the foreseeable future.
No material uncertainties that cast significant doubt about the ability of the
Group to continue as a going concern have been identified by the directors.
Accordingly, the directors believe it is appropriate for the interim financial
statement to be prepared on the going concern basis.
The interim financial information has not been audited nor has it been
reviewed under ISRE 2410 of the Auditing Practices Board. The financial
information presented does not constitute statutory accounts as defined by
section 434 of the Companies Act 2006. The Group's statutory accounts for the
year to 30 June 2021 have been filed with the Registrar of Companies. The
auditors, Saffery Champness LLP reported on these accounts and their report
was unqualified and did not contain a statement under section 498(2) or
Section 498(3) of the Companies Act 2006.
3. Profit per share
6 months to 6 months to 12 months to
31 Dec 2021 31 Dec 2020 30 June 2021
£'000 £'000 £'000
Profit for the year attributable to equity shareholders 202 264 1,618
Earnings per share (pence)
Basic 0.77p 1.03 p 6.28p
Diluted 0.74p 0.99 p 5.97p
Shares Shares Shares
Weighted average number of shares in issue for the period 26,115,318 25,703,845 25,773,739
Dilutive effect of options 1,144,585 1,092,868 1,336,807
Weighted average shares for diluted earnings per share 27,259,903 26,796,713 27,110,546
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.
4. Dividends
A dividend was announced on 5 July 2021. 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
5. Financial statements
Copies of these accounts are available from ADVFN Plc'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.ADVFNPLC.com (http://www.ADVFNPLC.com)
ENDS
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