REG - ADVFN PLC - Half-year Report
21/03/2024 10:00
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RNS Number : 7911H ADVFN PLC 21 March 2024
21 March 2024
For immediate release
ADVFN PLC
("ADVFN" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December 2023
ADVFN today announces its unaudited interim results for the six months ended
31 December 2023 (the "Period").
Chief Executive's Statement
As we release our interim report, the Board reaffirms its commitment to
implementing its long-term plans to improve financial results.
The first stages of this are in place. I wish to highlight our recent
partnership with Prodesfin S.R.L, who own and operate the financial website
Financiallounge.com
(file:///C:/Users/Felicity/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/HHCHDAR9/Financiallounge.com)
in Italy and also the changes and redesign of our product offering some of
which are evident on our www.advfn.com (http://www.advfn.com/) site. We're
on track to conclude these enhancements by the end of Q2 2024.
We have continued to reduce costs and the cash burn rate and we've maintained
a healthy cash balance of £4.7 million at the Period end , aligning with
the financial objectives outlined in previous reports. This has led to reduced
losses over the comparable period to last year of (£531k; 2023 £622k)
despite a decrease in revenues. The decrease in revenues was
primarily attributable to continued adverse market conditions
and the discontinuance of company units which no longer supported our
business goals.
We remain focused on continuing this improved trend in the upcoming H1 and H2
of 2024.
Amit Tauman
CEO
21 March 2024
Condensed interim consolidated income statement
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2023 2022 2023
£'000 £'000 £'000
unaudited unaudited audited
Notes
Revenue 2,294 3,061 5,445
Cost of sales (109) (196) (316)
Gross profit 2,185 2,865 5,129
Share based payment (9) - 319
Amortisation of intangible assets (84) (91) (191)
Administrative expenses (2,703) (3,390) (6,026)
Administrative expenses - non-recurring items - - (1,178)
Total administrative expense (2,796) (3,481) (7,076)
Operating loss (611) (616) (1,947)
Finance income 80 24
Finance expense (1) (6) (11)
Other income - - 20
Loss before tax (532) (622) (1,914)
Taxation 1 - 58
Loss from continuing operations (531) (622) (1,856)
Loss from discontinued operations - - (313)
Total loss for the period attributable to shareholders of the parent
(531) (622) (2,169)
Loss per share from continuing operations RESTATED
Basic - - (5.16p)
Diluted - - (5.16p)
Loss per share from total operations
Basic 3 (1.16p) (2.35p) (6.03p)
Diluted (1.16p) (2.35p) (6.03p)
Condensed interim consolidated statement of comprehensive income
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2023 2022 2023
£'000 £'000 £'000
unaudited unaudited audited
Loss for the period (531) (622) (2,169)
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 28 41 33
Total other comprehensive income 28 41 33
Total comprehensive loss for the period attributable to shareholders of the
parent
(503) (581) (2,136)
Condensed interim consolidated balance sheet
31 Dec 31 Dec 30 June
2023 2022 2023
£'000 £'000 £'000
unaudited unaudited audited
Assets
Non-current assets
Property, plant and equipment (including right of use assets) 145 51 160
Goodwill and intangible assets 959 2,054 1,003
Other receivables 22 26 25
1,126 2,131 1,188
Current assets
Trade and other receivables 460 368 466
Cash and cash equivalents 4,798 647 5,557
5,258 1,015 6,023
Total assets 6,385 3,146 7,211
Equity and liabilities
Equity
Issued capital 92 53 92
Share premium 6,676 305 6,676
Share based payments reserve 32 341 22
Foreign exchange translation reserve 344 324 316
Retained earnings (2,360) (282) (1,828)
4,783 741 5,278
Non-current liabilities
Borrowing - bank loans 15 34 20
15 34 20
Current liabilities
Trade and other payables 1,576 2,314 1,903
Borrowing - bank loans 10 13 10
Lease liabilities - 44 -
1,586 2,371 1,913
Total liabilities 1,601 2,405 1,933
Total equity and liabilities 6,384 3,146 7,211
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 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
Transactions with equity shareholders:
Shares issued 39 6,448 - - - 6,487
Cost associated with the issue of shares - (77) - - - (77)
Issue of options - - 1 - - 1
Lapsed options - - (320) - - (320)
39 6,371 (319) - - 6,091
Loss for the period after tax - - - - (1,546) (1,546)
Other comprehensive income
Exchange differences on translation of foreign operations
- - - (8) - (8)
Total other comprehensive income - - - (8) - (8)
Total comprehensive loss - - - (8) (1,546) (1,554)
At 30 June 2023 92 6,676 22 316 (1,828) 5,278
Transactions with equity shareholders:
Issue of options - - 10 - - 10
92 6,676 32 316 (1,828) 5,288
Loss for the period after tax - - - - (531) (531)
Other comprehensive income
Exchange differences on translation of foreign operations - - - 28 - 28
Total comprehensive (loss)/income - - - 28 (531) (503)
At 31 December 2023 92 6,676 32 344 2,359 4,785
Condensed interim consolidated cash flow statement
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2023 2022 2023
£'000 £'000 £'000
unaudited unaudited audited
Cash flows from continuing operating activities
Loss for the period from continuing operations (531) (622) (1,855)
Net finance (income)/expense in the income statement (79) 6 (13)
Depreciation of property, plant and equipment 16 53 75
Amortisation of intangible assets 84 91 191
Write off goodwill - - 978
Share based payments 10 (319)
Decrease / (Increase) in trade and other receivables (16) 92 (20)
Increase / (decrease) in trade and other payables (328) 167 (226)
Net cash used by continuing operations (844) (213) (1,189)
Cashflow from discontinued operating activities
Loss for the year from discontinued operations - - (313)
Amortisation of intangible assets - - 23
Write off intangible assets - - 83
Decrease in trade and other receivables - - 14
Decrease in trade and other payables - - (23)
Net cash used by discontinued operations - - (216)
Income tax receivable 25 - -
Net cash used by operating activities (819) (213) (1,405)
Cash flows from financing activities
Issue of share capital - - 6,410
Dividend payments - - (589)
Bank interest received 80 - 24
Repayment of loans (5) (7) (24)
Repayments of lease liabilities - (44) (91)
Lease interest paid - (3) (4)
Other interest paid (1) (3) (1)
Net cash (used)/generated by financing activities 74 (57) 6,314
Cash flows from investing activities
Payments for property, plant and equipment (2) (6) (136)
Purchase of intangibles (40) - (175)
Net cash used by investing activities (42) (6) (311)
Net (decrease)/increase in cash and cash equivalents (787) (276) 4,598
Gain on foreign exchange 28 8 44
Net increase/(decrease) in cash and cash equivalents (759) (268) 4,642
Cash and cash equivalents at the start of the period 5,557 915 915
Cash and cash equivalents at the end of the period 4,798 647 5,557
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 (strike off applied for),
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, Essex Business Centre, The Gables,
Fyfield Road, Ongar, Essex, CM5 0GA.
The registered number of the company is 02374988.
2. Basis of preparation of the half-year report
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 2023, 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 2023. These financial statements were approved for
issue on 19th March 2024.
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 principal 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 2023. The critical estimates and judgements remain the same as
those applied to the consolidated financial statements for the Group for the
year ended 30 June 2023.
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 2023 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. Loss per share
6 months to 6 months to 12 months to
31 Dec 2023 31 Dec 2022 30 June 2023
£'000 £'000 £'000
Loss for the year attributable to equity shareholders from continuing
operations
(531) (622) (1,856)
Loss for the year attributable to equity shareholders from total operations
(531) (622) (2,169)
Shares Shares
Weighted average number of shares
Number of shares in issue prior to rights issue (prior year: weighted average) 46,004,758 26,315,318 26,315,318
Correction for deemed rights issue - 169,179 169,179
Deemed number of shares before rights issue 46,004,758 26,484,497 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
Total weighted average number of shares 46,004,758 26,484,497 35,950,487
Loss per share for the year attributable to equity shareholders from
continuing operations:
Basic and diluted - - (5.16p)
Total loss per share for the year attributable to equity shareholders:
Basic and diluted (1.16p) (2.35p) (6.03p)
Basic and diluted loss per share as previously stated - (2.36p) -
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 year to 30 June 2023, the company made a rights issue. The prior
year earnings to 31 December 2022 have been restated to allow for the effects
of this rights issue.
4. Dividends
The directors are not recommending payment of an interim dividend in the
current financial year.
5. Events after the balance sheet date
An application for strike off has been submitted for All IPO
Plc, in line with the strategic plans for the business.
In February 2024 a partnership agreement was signed with Prodesfin S.r.l in
relation to the creation and maintenance of an ADVFN Italian website.
The company is in the process of issuing proceedings against a former director
in order to seek damages for various breaches of fiduciary duty. The Company
is also in the process of issuing proceedings against Online Blockchain PLC
for monies transferred to that company.
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