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RNS Number : 3835C ADVFN PLC 27 March 2025
27 March 2025
For immediate release
ADVFN PLC
("ADVFN" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December 2024
ADVFN today announces its unaudited interim results for the six months ended
31 December 2024 (the "Period").
Chief Executive's Statement
Since the change in management and Board in the second half of 2022, ADVFN has
witnessed an increasingly challenging market environment. The AIM market, the
broader stock market, and ADVFN specifically have faced significant headwinds.
One of the biggest challenges has been a decline in ADVFN's revenue, driven
primarily by a slowdown in sales, a challenge we have observed across our
sector.
Nonetheless, we have made significant progress in optimising our cost
structure and improving operational efficiency. This has been a long and
challenging process, but we have successfully reduced annual costs from £8
million to approximately less than £5 million and have maintained this saving
as more long-term projects take effect in Q1 2025. These efforts have ensured
that ADVFN is becoming a sustainable, flexible and more efficient
organisation.
As a legacy company, we have worked relentlessly to adapt and position ADVFN
as a technology-focused company. These efforts should not be underestimated,
as they have required more time and resources than initially expected. Our
efforts have been dedicated to:
● Restructuring and optimising our corporate structure while hiring
and onboarding top-tier talents.
● Restructuring, optimising and heavily investing in our platform to
make it more scalable, agile and frictionless.
● Building cutting-edge technologies and introducing state-of-the-art
tools that redefine how our users interact with our platform.
● Laying the groundwork for growth and long-term success.
Headline financial performance for the six month-period ended 31 December 2024
("Period") with a comparison to the six-month period ended 31 December 2023
("Prior Period") is as follows:
Revenue: £2.019 million (Prior Period: £2.294 million)
Gross Profit: £1.919 million (Prior Period: £2.185 million)
Operating Loss: £479k (Prior Period: £611k loss)
Administrative Expenses: £2.398 million (Prior Period: £2.796 million)
Net Loss: £393k (Prior Period: £531k loss)
Cash and Cash Equivalents: £3.535 million
Total Liabilities: £1.290 million
Total Equity: £3.238 million
The past 12 months have been a period of transformation - AI-driven tools, new
apps, Options Flow, and TraderChat, are just the beginning. These advancements
take time and patience, but I am confident in our team's dedication and hard
work. We remain committed to building the best platform for our users and
delivering long-term value for our shareholders. While ADVFN has made
significant strides in optimising its cost structure and reducing operational
losses, the focus moving forward will shift entirely to growth with a strong
focus on Monthly and Annual Recurrent Revenue Subscriptions. Our new
optimised operating model ensures that every £1 of marginal unit of revenue
contributes meaningfully to profitability, targeting an 80% gross margin and a
65%-70% operational margin. This shift from cost-cutting to revenue growth
will be the key driver of our future success.
While revenue and profit ratios have remained relatively stable, we still face
some challenges as revenues declined in 2024, albeit at a much slower pace.
Nevertheless, there are encouraging signs: traffic has increased by nearly
30%. The products and developments I have been highlighting over the past year
are now starting to take effect on our platform, and even more innovations are
on the horizon.
At the same time, the results for the Period reflected increased legal costs
from a dispute (now settled) with a former Board member, which significantly
burdened our bottom line.
While product optimisation and operational efficiency have been the
cornerstones of our success, we recognise that these elements alone will not
sustain our long-term growth. In today's dynamic market environment, there is
substantial opportunity to accelerate our expansion through strategic mergers
and acquisitions. We have observed that companies operating on a scale similar
to ADVFN, across diverse countries and markets, with consistent revenue trends
and robust advertising strategies are uniquely positioned to create
significant value when combined with our strengths. Therefore, our strategy
moving forward is built on three key pillars: a steadfast commitment to
enhancing our core products, the integration of advanced AI capabilities, and
a pursuit of M&A opportunities to acquire complementary platforms. By
pursuing these strategic initiatives, we aim not only to drive growth but also
to generate synergies that will significantly enhance our revenue potential
over the mid-long term.
Given this general trading and market background, we have carefully assessed
the benefits and drawbacks of remaining an AIM-listed company. This evaluation
has been ongoing for some time to determine how best to achieve our corporate
goals and unlock the company's full potential.
To achieve our ambitions as a small company, we need full focus from the
executive management team on operational and funding priorities, and to shift
our efforts from administrative and regulatory priorities arising from our
ongoing listing obligations, to development and product innovation.
Additionally, the Company's falling share price and low levels of liquidity
have deterred potential partners from accepting shares or options as
consideration, restricting deal-making flexibility. As a result of the low
market valuation, nearly every potential acquisition would have required us to
give up substantial equity, even for smaller transactions, on unattractive
terms for our existing shareholders. The persistently low liquidity and
suppressed share price have yielded minimal benefits for our shareholders,
making it hard to justify remaining public from a strategic standpoint
Accordingly, the Board has unanimously decided to pursue the delisting of the
company from AIM and a circular will be sent to shareholders in due course.
Over the past months, we have carefully evaluated all possible options and the
steps necessary for this transition and I want to assure you that this
decision has been made with a clear focus on the company's best interests and
goals.
Recognising the concerns and uncertainties that may arise from this
transition, I want to assure our shareholders that we are taking deliberate
steps to facilitate liquidity and maintain open, transparent communication. To
support ongoing shareholder engagement, we intend to transition to the JPJ
Bargain Match Engine, ensuring that some liquidity potentially remains
available despite the shift to a private structure.
In addition, we will launch a dedicated shareholder portal, accessible via
email login, to serve as a central hub for updates, FAQs, and a direct channel
for addressing any concerns promptly. This shareholder portal will also host
important reports, announcements, and periodic events to keep shareholders
informed and engaged.
Over the coming weeks, I will personally dedicate my full attention to
addressing shareholder concerns and ensuring a smooth transition. Every
shareholder who remains with us post-transition will have direct access to the
ADVFN team and myself, and we will be available for individual communication
to provide clarity and support.
I would like to reaffirm our commitment to taking the right steps for ADVFN's
long-term success while treating every shareholder with the utmost care and
respect. I invite you to embark on this journey with us, confident that
together we will achieve our shared vision and long-term goals.
I want to express my heartfelt gratitude for your unwavering support and
active engagement. It has been truly inspiring to see that so many of you
deeply care about the company, offering invaluable insights along the way.
While our journey as a public company may be coming to an end, our dedication
and ambition remain stronger than ever. The team and I are fully committed to
building a company that not only thrives, but is one in which you will be
proud to be a shareholder. I sincerely hope you will continue this journey
with us so that together we can achieve our shared vision and long-term
goals.
Thank you for being a vital part of this story.
Amit Tauman
CEO
27 March 2025
A copy of this announcement is available on the Company's website,
www.advfnplc.com (http://www.advfnplc.com) .
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.
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
Duncan Vasey
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.
Condensed interim consolidated income statement
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2024 2023 2024
£'000 £'000 £'000
Unaudited Unaudited Audited
Notes (RESTATED)
Revenue 2,019 2,294 4,441
Cost of sales (100) (109) (218)
Gross profit 1,919 2,185 4,223
Administrative expenses 4 (2,458) (2,796) (5,335)
Operating loss (539) (611) (1,112)
Finance income 86 80 198
Finance expense - (1) (1)
Other income - - 2
Loss before tax (453) (532) (913)
Taxation - 1 63
Loss from continuing operations (453) (531) (850)
Loss from discontinued operations - - (68)
Total loss for the period attributable to shareholders of the parent
(453) (531) (918)
Loss per share from continuing operations
Basic (0.98p) (1.16p) (1.85p)
Diluted (0.98p) (1.16p) (1.85p)
Loss per share from total operations
Basic 5 (0.98p) (1.16p) (1.99p)
Diluted (0.98p) (1.16p) (1.99p)
Condensed interim consolidated statement of comprehensive income
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2024 2023 2024
£'000 £'000 £'000
Unaudited Unaudited Audited
(RESTATED)
Loss for the period (453) (531) (918)
Other comprehensive (loss)/income:
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations (49) 28 48
Total other comprehensive (loss)/income (49) 28 48
Total comprehensive loss for the period attributable to shareholders of the (502) (503) (870)
parent
Condensed interim consolidated balance sheet
31 Dec 31 Dec 30 June
2024 2023 2024
£'000 £'000 £'000
(RESTATED)
Unaudited Unaudited Audited
Assets
Non-current assets
Property, plant and equipment (including right of use assets) 101 145 115
Intangible assets 3 479 174 311
Other receivables 25 22 22
605 341 448
Current assets
Trade and other receivables 388 460 561
Cash and cash equivalents 3,535 4,798 4,091
3,923 5,258 4,652
Total assets 4,528 5,599 5,100
Equity and liabilities
Equity
Issued capital 93 92 93
Share premium 6,705 6,676 6,705
Share based payments reserve 48 32 48
Foreign exchange translation reserve 315 344 364
Retained earnings (3,984) (3,144) (3,531)
3,177 4,000 3,679
Non-current liabilities
Borrowing - bank loans 4 15 9
4 15 9
Current liabilities
Trade and other payables 1,337 1,574 1,402
Borrowing - bank loans 10 10 10
1,347 1,584 1,412
Total liabilities 1,351 1,599 1,421
Total equity and liabilities 4,528 5,599 5,100
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 2023 as previously stated 92 6,676 22 316 (1,828) 5,278
Effect of prior year adjustment (Note 2) - - - - (785) (785)
Balance at 1 July 2023 - As restated 92 6,676 22 316 (2,613) 4,493
Transactions with equity shareholders:
Issue of options - - 10 - - 10
- - 10 - - 10
Loss for the period after tax - - - - (531) (531)
Other comprehensive income
Exchange differences on translation of foreign operations - - - 28 - 28
Total other comprehensive income - - - 28 - 28
Total comprehensive income/(loss) - - - 28 (531) (503)
At 31 December 2023 92 6,676 32 344 (3,144) 4,000
Transactions with equity shareholders:
Issue of shares (Note 2) 1 29 - - - 30
Issue of options - - 16 - - 16
1 29 16 - - 46
Loss for the period after tax - - - - (387) (387)
Other comprehensive income
Exchange differences on translation of foreign operations - - - 20 - 20
Total other comprehensive income - - - 20 - 20
Total comprehensive income/(loss) - - - 20 (387) (367)
At 30 June 2024 93 6,705 48 364 (3,531) 3,679
Loss for the period after tax - - - - (453) (453)
Other comprehensive income
Exchange differences on translation of foreign operations - - - (49) - (49)
Total other comprehensive loss - - - (49) - (49)
Total comprehensive loss - - - (49) (453) (502)
At 31 December 2024 93 6,705 48 315 (3,984) 3,177
Condensed interim consolidated cash flow statement
6 months to 6 months to 12 months to
31 Dec 31 Dec 30 June
2024 2023 2024
£'000 £'000 £'000
Unaudited unaudited audited
Cash flows from continuing operating activities
Loss for the period from continuing operations (453) (531) (850)
Net finance (income)/expense in the income statement (86) (79) (197)
Depreciation of property, plant and equipment 18 16 49
Amortisation of intangible assets (Note 3) 31 84 156
Disposal of intangible assets (Note 3) - - 30
Share based payments - 10 26
Issue of shares as directors' compensation (Note 2) - - 30
Decrease / (Increase) in trade and other receivables 171 (16) (91)
Decrease in trade and other payables (66) (328) (501)
Net cash used by continuing operations (385) (844) (1,348)
Cashflow from discontinued operating activities
Loss for the year from discontinued operations - - (68)
Net cash used by discontinued operations - - (68)
Income tax received - 25 -
Net cash used by operating activities (385) (819) (1,416)
Cash flows from financing activities
Bank interest received 86 80 198
Repayment of loans (5) (5) (9)
Other interest paid - (1) (1)
Net cash (used)/generated by financing activities 81 74 188
Cash flows from investing activities
Payments for property, plant and equipment (4) (2) (6)
Purchase of intangibles (199) (40) (279)
Net cash used by investing activities (203) (42) (285)
Net decrease in cash and cash equivalents (507) (787) (1,513)
(Loss)/gain on foreign exchange (49) 28 47
Net decrease in cash and cash equivalents (556) (759) (1,466)
Cash and cash equivalents at the start of the period 4,091 5,557 5,557
Cash and cash equivalents at the end of the period 3,535 4,798 4,091
Notes to the interim financial statements
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 2024, 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 2024. These financial statements were approved for
issue on 26 March 2025.
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 2024.
Estimates and Judgements
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
2024.
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.
Trade and 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 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 payables
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 interim financial statements
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 3. There was no net
impact of this on the Company financial statements.
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
Notes to the interim financial statements
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.
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 2024 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. Intangible assets
Licences Brands & subscriber lists Website development costs Mobile application Crypto-currencies Total
£'000 £'000 £'000 £'000 £'000 £'000
Cost or valuation
At 01 July 2024 (restated) 100 1,522 2,035 10 1 3,668
Additions - - 199 - - 199
Disposals - - - - - -
At 31 December 2024 100 1,522 2,234 10 1 3,867
Amortisation
At 1 July 2024 (restated) 100 1,522 1,725 10 - 3,357
Charge for the period - - 31 - - 31
Disposals - - - - - -
At 31 December 2024 100 1,522 1,756 10 - 3,388
Net book value
At 31 December 2024 - - 478 - 1 479
Cost or valuation
At 01 July 2023 (restated) 162 2,129 1,939 10 1 4,241
Additions - - 40 - - 40
Disposals - - - - - -
At 31 December 2023 162 2,129 1,979 10 1 4,281
Amortisation
At 1 July 2023 (restated) 162 2,129 1,722 10 - 4,023
Charge for the period - - 84 - - 84
Disposals - - - - -
At 31 December 2023 162 2,129 1,806 10 - 4,107
Net book value
At 31 December 2023 - - 173 - 1 174
Notes to the financial statements
3. Intangible assets (continued)
Licences Brands & subscriber lists Website development costs Mobile application Crypto-currencies Total
£'000 £'000 £'000 £'000 £'000 £'000
Cost or valuation
At 1 July 2023 (as previously stated) 162 2,129 2,724 10 1 5,026
Prior year adjustment (note 2) - - (785) - - (785)
At 1 July 2023 as restated 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 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
The opening balances as at 1 July 2023 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
4. Administrative expenses
6 months to 6 months to 12 months to
31 Dec 2024 31 Dec 2023 30 June 2024
£'000 £'000 £'000
Depreciation of property, plant and equipment 18 16 49
Amortisation of intangible assets 31 84 156
Employee costs 1,195 1,218 2,228
Legal & professional 235 127 333
Other administrative expenses 979 1,351 2,569
Total administrative expenses 2,458 2,796 5,335
5. Loss per share
6 months to 6 months to 12 months to
31 Dec 2024 31 Dec 2023 30 June 2024
£'000 £'000 £'000
Loss for the year attributable to equity shareholders from continuing
operations
(453) (531) (850)
Loss for the year attributable to equity shareholders from total operations
(453) (531) (918)
Shares Shares Shares
Number of shares
Number of shares in issue 46,284,758 46,004,758 46,284,758
Weighted average number of shares used as the denominator for calculating 46,284,758 46,004,758 46,039,279
basic and diluted loss per share
Loss per share for the year attributable to equity shareholders from
continuing operations:
Basic and diluted (0.98p) (1.16p) (1.85p)
Total loss per share for the year attributable to equity shareholders:
Basic and diluted (0.98p) (1.16p) (1.99p)
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.
On 16 May 2024, 280,000 shares were issued (note 2).
6. Dividends
The directors are not recommending payment of an interim dividend in the
current financial year.
7. Events after the balance sheet date
There were no relevant events after the balance sheet date.
ENDS
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