REG - ADVFN PLC - Half-year Report
06/03/2023 07:00
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RNS Number : 9043R ADVFN PLC 06 March 2023
6 March 2023
For immediate release
ADVFN PLC
("ADVFN" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December 2022
ADVFN today announces its unaudited interim results for the six months ended
31 December 2022 (the "Period").
Chief Executive's Statement
On behalf of the board of Directors, I am delighted to report that our recent
fundraising has been a success. As announced in January, we raised £4.52
million through the Open Offer and which will provide us with the necessary
resources to pursue our strategic objectives and drive growth.
We are grateful to our investors for their confidence in our ability to
execute on our mission and deliver value to our customers. With this infusion
of capital, we can invest in our business to drive growth and scale our
operations to meet the demand for our product offerings.
Looking ahead, we have a positive outlook for the future. Our roadmap includes
expanding our product portfolio, entering new geographic markets, and
strengthening our partnerships with our key stakeholders. We are confident
that these initiatives will drive further growth and establish our position as
a leader in our industry.
Financial performance
The half-year financial report for the Period is in line with the statements
made in the Open Offer document and our trading update. The changes in
management, structure and employees disrupted our normal workflow during the
Period and made it a challenge for the Company to meet its financial targets.
However, the Company remains optimistic and with the Open Offer completed and
the changes we are working on, we have confidence in our new team. The Company
acknowledges that changes take time and appreciates the efforts being made by
the team.
The key financial performance for the Period is summarised in the table below:
Six Months ended 31 December 2022 Six Months ended 31 December 2021
£'000 £'000
Revenue 3,061 4,228
Profit / (loss) for the period )616) 202
Operating profit / (loss) (622) 229
Profit per share - basic (see note 3) (2.36) p 0.77p
The Board is not recommending a dividend.
Outlook
As we move forward into 2023, I am excited to share with you our plans to
build new products and invest in our operations to drive growth and deliver
value to our users and shareholders.
With the proceeds from our recent fundraising efforts, we will be able to
accelerate our product development efforts and plan to bring innovative new
solutions to market. Our R&D team is working tirelessly to identify
emerging trends and technologies that will enable us to stay ahead of the
curve and deliver the next generation of products and services.
We also plan to invest in our operations to improve our efficiency and
scalability. This will involve upgrading our infrastructure, streamlining our
processes, and investing in our people to ensure that we have the talent and
capabilities to support our growth ambitions.
As we pursue these initiatives, we remain committed to maintaining a
disciplined approach to capital allocation and managing our resources in a way
that delivers the best returns for our shareholders. We will closely monitor
our progress and adjust our strategy as necessary to ensure that we achieve
good results.
In summary, we are confident that our focus on product innovation, operational
excellence, and disciplined capital allocation will enable us to achieve our
growth objectives and create long-term value for all our stakeholders.
We thank our shareholders for their continued support, and we look forward to
providing further updates on our progress in the months ahead.
Amit Tauman
CEO
6 March 2023
For further information please contact:
ADVFN plc
Amit Tauman (CEO)
+44 (0) 203 8794 460
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.
A copy of this announcement will be available on the Group's website:
www.advfnplc.com (http://www.advfnplc.com)
Condensed interim consolidated income statement
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2022 2021 2022
£'000 £'000 £'000
unaudited unaudited audited
Notes
Revenue 3,061 4,228 7,848
Cost of sales (196) (162) (374)
Gross profit 2,865 4,066 7,474
Amortisation of intangible assets (91) (138) (256)
Administrative expenses (3,390) (3,699) (7,176)
Administrative expenses - non-recurring items - (1,420)
Total administrative expense (3,481) (3,837) (8,852)
Operating (loss)/profit (616) 229 (1,378)
Finance expense (6) (27) (14)
(Loss)/profit before tax (622) 202 (1,392)
Taxation - 24
(Loss)/profit for the period attributable to shareholders of the parent
(622) 202 (1,368)
Earnings per share
Basic 3 (2.36p) 0.77p (5.22p)
Diluted (2.36p) 0.74p (5.22p)
Condensed interim consolidated statement of comprehensive income
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2022 2021 2022
£'000 £'000 £'000
unaudited unaudited audited
(Loss)/profit for the period (622) 202 (1,368)
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 41 50 73
Total other comprehensive income 41 50 73
Total comprehensive (loss)/income for the year attributable to shareholders of
the parent
(581) 252 (1,295)
Condensed interim consolidated balance sheet
31 Dec 31 Dec 30 June
2022 2021 2022
£'000 £'000 £'000
unaudited unaudited audited
Assets
Non-current assets
Property, plant and equipment (including right of use assets) 51 180 98
Goodwill and intangible assets 2,054 2,513 2,112
Other receivables 26 25 26
2,131 2,718 2,236
Current assets
Trade and other receivables 368 725 460
Cash and cash equivalents 647 2,032 915
1,015 2,757 1,375
Total assets 3,146 5,475 3,611
Equity and liabilities
Equity
Issued capital 53 52 53
Share premium 305 223 305
Share based payments reserve 341 343 341
Foreign exchange translation reserve 324 260 283
Retained earnings (282) 2,497 340
741 3,375 1,322
Non-current liabilities
Borrowing - bank loans 34 47 41
Lease liabilities - 37 -
34 84 41
Current liabilities
Trade and other payables 2,314 1,902 2,148
Borrowing - bank loans 13 13 13
Lease liabilities 44 101 87
2,371 2,016 2,248
Total liabilities 2,405 2,100 2,289
Total equity and liabilities 3,146 5,475 3,611
Condensed interim consolidated statement of changes in equity
Share capital Share premium Share based payment reserve Foreign exchange translation reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2021 52 223 343 210 2,295 3,123
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
Transactions with equity shareholders:
Shares issued 1 82 - - - 83
Transfer on exercise - - (2) - 2 -
1 82 (2) - 2 83
-
Distribution to owners
Dividends - - - - (589) (589)
Loss for the period after tax - - - - (1,570) (1,570))
Other comprehensive income
Exchange differences on translation of foreign operations
- - - 23 - 23
Total comprehensive (loss)/income - - - 23 (2,159) (2,136)
At 30 June 2022 53 305 341 283 340 1,322
Loss for the period after tax - - - - (622) (622)
Other comprehensive income
Exchange differences on translation of foreign operations
- - - 41 - 41
Total comprehensive (loss)/income - - - 41 (622) (581)
At 31 December 2022 53 305 341 324 (282) 741
Condensed interim consolidated cash flow statement
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2022 2021 2022
£'000 £'000 £'000
unaudited unaudited audited
Cash flows from operating activities
(Loss)/profit for the year (622) 202 (1,368)
Net finance expense in the income statement 6 27 14
Depreciation of property, plant and equipment 53 110 181
Amortisation of intangible assets 91 138 256
Write off of intangible asset - - 296
Decrease / (Increase) in trade and other receivables 92 (94) 170
Increase in trade and other payables 167 16 262
Net cash (used) / generated by operating activities (213) 399 (189)
Cash flows from financing activities
Issue of share capital - - 83
Dividend payments - - (589)
Repayment of loans (7) (59) (13)
Repayments of lease liabilities (44) - (103)
Lease interest paid (3) (6) (10)
Other interest paid (3) (21) (4)
Net cash (used)/generated by financing activities (57) (86) (636)
Cash flows from investing activities
Payments for property, plant and equipment (6) (51) (39)
Purchase of intangibles - (160) (114)
Net cash used by investing activities (6) (211) (153)
Net (decrease)/increase in cash and cash equivalents (276) 102 (978)
Gain / (loss) on foreign exchange 8 (9) (46)
Net increase/(decrease) in cash and cash equivalents (268) 93 (1,024)
Cash and cash equivalents at the start of the period 915 1,939 1,939
Cash and cash equivalents at the end of the period 647 2,032 915
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, N A
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
These condensed interim financial statements have been prepared in accordance
with IAS 34, "Interim Financial Reporting".
The financial information does not include all the information required for
full annual financial statements. The same accounting policies and methods of
computation have been followed in the interim financial statements as compared
with the full audited financial statements and should be read in conjunction
with the consolidated financial statements of the Group for the year ended 30
June 2022, which were prepared under applicable law and in accordance with
UK-adopted international accounting standards.
The unaudited consolidated interim financial information is for the six-month
period ended 31 December 2022.
The financial statements are presented in Sterling (£) rounded to the nearest
thousand except where specified.
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 principle risks and uncertainties of the Company remain the same as those
reported in the consolidated financial statements of the Group for the year
ended 30 June 2022.
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 2022 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. Earnings per share
6 months to 6 months to 12 months to
31 Dec 2022 31 Dec 2021 30 June 2022
£'000 £'000 £'000
(Loss) / profit for the year attributable to equity shareholders (622) 202 (1,368)
Shares Shares Shares
Weighted average number of shares in issue for the period 26,315,319 26,115,318 26,184,360
Dilutive effect of options - 1,144,585 -
Weighted average shares for diluted earnings per share 26,316,319 27,259,903 26,184,360
(Loss) / earnings per share (pence)
Basic (2.36p) 0.77p (5.22p)
Diluted (2.36p) 0.74p (5.22p)
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
The directors are not recommending payment of a dividend in the current
financial year.
5. Events after the balance sheet date
On 6 January 2023, the company raised £4.523m by way of an
open offer of shares to qualifying shareholders. A total of 20,676,322 shares
were offered to existing shareholders at a price of 33 pence per share.
13,708,300 shares were taken up.
6. 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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