REG - Online Blockchain - Half-year Report
22/03/2022 07:00
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RNS Number : 5152F Online Blockchain PLC 22 March 2022
22nd March 2022
For immediate release
Online Blockchain PLC
("Online" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December 2021
Online today announces its unaudited interim results for the six months ended
31 December 2021 (the "Period").
CEO's Statement
We continue to operate in volatile times, but our Umbria project continues to
move forward.
Our focus for a number of years has been on Blockchain and our project with
the Umbria team has progressed well. Against a backdrop where Bitcoin and
Ethereum have rallied and slumped repeatedly, the Umbria project has managed
to establish itself within the Blockchain infrastructure initially bridging
the movement of tokens between the Ethereum and Polygon networks. After that
initial development, the Umbria bridge, named Narni after the famous Roman
bridge in Umbria, has expanded to enable tokens to move between Ethereum and
Avalanche, Ethereum and Binance Smart Chain and Ethereum and Fantom.
This initial progress has meant that, through staking in the Narni Bridge
liquidity pool, Online is accumulating unrealised income from the use of the
Narni Bridge. So, for example, in December 2021, Online's stake in bridging
Ethereum from the Ethereum Chain to the Polygon Chain, rose by 1.8 Ethereum
and by a further 2.3 Ethereum from the bridging back from the Polygon Chain to
Ethereum. Ethereum was priced at $3,764 on 1 January 2022. These are promising
developments for such an early-stage project and our Ethereum balances are
continuing to grow in the initial period of the current half.
We are excited to see how the Umbria project develops as the product continues
to grow in scope and becomes more known in the crypto community. We feel that
in its current configuration, especially with its potential to grow across
other blockchains while expanding to more tokens, that the Umbria Narni bridge
has the potential to generate significant future revenue for Online.
Although the Blockchain landscape will continue to be volatile, these risks
come with many opportunities for high potential rewards which we will be
looking to take advantage of.
Meanwhile, ADVFN PLC is also performing well with reported revenue for the six
months ended 31 December 2021 of £4.2 million, the same level as
the comparable period for the six months ended 31 December 2020, and with a
reported profit after tax for the period of £202,000.
As you may have seen, I have stepped down as a director of ADVFN PLC which
remains an important investment of Online Blockchain PLC. It is clear that
subsequent to ongoing corporate activity around ADVFN, that ADVFN will
experience an accelerate pace of change which we will work hard to ensure is
positive.
ADVFN Plc - Financial performance for the six months ended 31 December 2021
Key financial performance for the period has been summarised as follows:
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
Clement Chambers
CEO
22/03/2022
Enquiries:
For further information please contact:
Online Blockchain PLC
Clem Chambers +44 (0) 20 3868 6702
Beaumont Cornish Limited (Nominated Adviser)
www.beaumontcornish.com (http://www.beaumontcornish.com)
Roland Cornish/Michael Cornish +44 (0) 207 628 3396
Cassiopeia Ltd (Investor Relations)
Stefania Barbaglio stefania@cassiopeia-ltd.com (mailto:stefania@cassiopeia-ltd.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 Clem Chambers, Director
A copy of this announcement is available on the Group's website, at:
www.onlineblockchain.io (http://www.onlineblockchain.io)
Consolidated income statement
for the six months ended 31 December 2021
Six months ended Six months ended Year ended
31 December 31 December 30 June
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Note
Revenue 24 56 65
Cost of sales - - (5)
Gross profit 24 56 60
Other administrative expenses (528) (178) (425)
Other operating income - - 124
Operating loss (504) (122) (241)
Finance expense - (1) (1)
Impairment of investment in Encryptid Gaming - - (18)
Share of post-tax profit/(loss) of equity accounted associate 36 47 285
(Loss)/Profit before taxation (468) (76) 25
Taxation 38 - 4
(Loss)/Profit from continuing operations (430) (76) 29
Loss from discontinued operations - - (8)
(Loss)/Profit for the period attributable to shareholders of the parent (430) (76) 21
Profit/(Loss) per share from continuing operations
Basic loss per ordinary share 3 (3.01p) (0.86 p) 0.25p
Diluted loss per ordinary share 3 (3.05p) (0.86 p) 0.26p
Profit per share from discontinuing operations
Basic loss per ordinary share 3 - - 0.18p
Diluted loss per ordinary share 3 - - 0.19p
Consolidated statement of comprehensive income
for the six months ended 31 December 2021
Six months ended Six months ended Year ended
31 December 31 December 30 June
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
(Loss)/Profit for the period (430) (76) 21
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 8 (4) (6)
Total other comprehensive income 8 (4) (6)
Total comprehensive income for the year attributable to shareholders of the (422) (80) 15
parent
Consolidated balance sheet
at 31 December 2021
31 December 31 December 30 June
2021 2020 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Assets Note
Non-current assets
Property, plant and equipment 3 11 1
Other receivables - 6 -
Investment accounted for using the equity method 4 1,463 1,183 1,419
Other equity investments - 18 -
1,466 1,218 1,420
Current assets
Trade and other receivables 36 16 33
Cash and cash equivalents 1,060 384 1,497
1,096 400 1,530
Total assets 2,562 1,618 2,950
Equity and liabilities
Equity
Issued capital 3,574 3,383 3,574
Share premium 4,484 3,464 4,484
Share based payment reserve 65 69 65
Foreign exchange reserve (3) (3) (5)
Retained earnings (5,621) (5,346) (5,199)
2,499 1,567 2,919
Current liabilities
Borrowings - bank overdraft - - -
Borrowings - lease liabilities - 5 -
Trade and other payables 63 46 31
63 51 31
Total equity and liabilities 2,562 1,618 2,950
Statement of changes in equity
at 31 December 2021
Share Share premium Share based payment reserve Foreign exchange reserve Retained earnings Total
capital equity
£'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2020 3,292 3,155 64 1 (5,269) 1,243
Issue of shares 91 309 - - - 400
Equity settled share options - - 5 - - 5
Transactions with owners 91 309 5 - - 405
Net asset movements of associate - - - - (1) (1)
Loss for the period - - - - (76) (76)
Other comprehensive income
Exchange differences on translation of foreign operations
- - - (4) - (4)
Total other comprehensive income - - - (4) (76) (80)
Total comprehensive loss for the period - - - (4) (76) (80)
At 31 December 2020 3,383 3,464 69 (3) (5,346) 1,567
Issue of shares 191 1,161 - - - 1,352
Recycle option costs - - (52) 52 -
Share based payment (issue costs) - (53) 48 - - (5)
Share issue costs - (88) - - - (88)
Net asset movements of associate - - - - (2) (2)
Profit for the year after tax - - - - 97 97
Other comprehensive income
Exchange differences on translation of foreign operations
- - - (2) - (2)
Total other comprehensive income - - - (2) 97 95
Total comprehensive loss for the period (2) 97 95
At 30 June 2021 3,574 4,484 65 (5) (5,199) 2,919
Net asset movements of associate - - - - 8 8
Loss for the period - - - - (430) (430)
Other comprehensive income
Exchange differences on translation of foreign operations
- - - 2 - 2
Total other comprehensive income - - - 2 - 2
Total comprehensive loss for the period - - - 2 (430) (428)
At 31 December 2021 3,574 4,484 65 (3) (5,621) 2,499
Consolidated cash flow statement
for the six months ended 31 December 2021
Six months ended Six months ended Year ended
31 December 2021 31 December 2020 30 June 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Profit/(Loss) for the period from continuing operations (430) (76) 29
Loss for the period from discontinued operations - - (8)
Add back (profit)/loss from equity accounted associate (36) (47) (285)
Net finance charge in the income statement 1 1 1
Depreciation of property, plant & equipment (1) 19 29
Share based payments - 5 -
Impairment of investment in Encryptid Gaming - - 18
Decrease/(increase) in trade and other receivables (3) 98 87
Increase/(decrease) in trade and other payables 32 7 (8)
Net cash used by operating activities (437) 7 (137)
Income tax receivable - - -
Net cash used by operating activities (437) 7 (137)
Cash flows from financing activities
(Repay)/Draw down bank overdraft - - (27)
Issue equity shares - 400 1,664
Repay lease - - (13)
Interest paid (1) (1) (1)
Net cash generated/(used) by financing activities (1) 399 1,623
Cash flows from investing activities
Overdraft repaid - (27) -
Lease liability repaid - (8) -
Payments for property plant and equipment (1) - -
Payments for intangible assets - - -
Net cash used by investing activities (1) (35) -
(Decrease)/Increase in cash and cash equivalents (439) 371 1,486
Foreign exchange differences 2 (4) (6)
Cash and cash equivalents at the start of the period 1,497 17 17
Cash and cash equivalents at the end of the period 1,060 384 1,497
Notes to the interim statements
1. General information
The principal activity of Online Blockchain Plc ("the Company") and its
subsidiaries (together "the Group") is that of an incubator and investor in
internet and information businesses, developers, administrators and custodians
of blockchains and cryptocurrencies.
The principal trading subsidiaries are Awesome Animation Limited and Online
Development Inc.
The Company is a public limited company which is quoted on the AIM market of
the London Stock Exchange and is incorporated in England and Wales and
domiciled in the UK. The address of the registered office is Ongar Business
Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.
The registered number of the company is 03203042.
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.
Going concern
The interim financial information has been prepared on the going concern basis
which assumes the Group will continue in existence for the foreseeable future.
The Directors believe that trading will gradually improve over the next 12
months.
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 those 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.
Risks and uncertainties
The Group continuously assesses and monitors the key risks of the business.
The risks identified in the financial statements dated 30 June 2021 have not
substantially changed.
Notes to the interim statements
3. Loss per ordinary share
Six months to Six months to Year to
31 Dec 2021 31 Dec 2020 30 June 2021
£'000 £'000 £'000
Profit/(Loss) from continuing operations (430) (76) 29
(Loss) from discontinued operations - - (8)
Profit/(loss) for the year attributable to equity shareholders (430) (76) 21
Shares Shares
Weighted average number of Ordinary shares 14,311,709 8,800,688 11,423,439
Dilutive effect of options (192,979) - (164,090)
Weighted average Ordinary shares for diluted earnings per share
14,118,730 8,800,688 11,259,350
Loss per share for continuing operations
Basic earnings per share (pence) (3.01p) (0.86 p) 0.25p
Diluted earnings per share (pence) (3.05p) (0.86 p) 0.26p
Total loss per share
Basic earnings per share (pence) (3.01p) (0.86 p) 0.18p
Diluted earnings per share (pence) (3.05p) (0.86 p) 0.19p
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. Investments in associate undertakings
Six months ended Six months ended Year
ended
31 December 2021 31 December 2020 30 June
2021
£'000 £'000 £'000
Listed investments at cost 868 868 868
Listed investments at market value 3,316 875 3,017
Total net assets of ADVFN Plc 3,375 1,759 3,123
Percentage ownership interest held by the group 17.64% 17.92% 17.64%
Share of net assets of ADVFN Plc 595 315 551
Cost of investment in ADVFN Plc 868 868 868
1,463 1,183 1,419
The investment in ADVFN plc is treated for the
purposes of financial reporting as an associate due to the common
directorships held between ADVFN plc and Online Blockchain plc and the
resulting level of significant influence over the associate. It is an
investment accounted for using the equity method.
Online Blockchain Plc owns 17.64% (2020: 17.92%) of ADVFN plc which is
incorporated in England and Wales and whose principal activity is the
development and provision of financial information, primarily via the
internet, research services and the development and exploitation of ancillary
internet sites.
The carrying value of the associate in the
balance sheet of Online Blockchain Plc is £1,463,000 and is based on the
share of the balance sheet of the associate company.
Notes to the interim statements
5. Events after the balance sheet date
There are no events of significance occurring
after the balance sheet date to report.
6. Dividends
The directors do not recommend the payment of a dividend.
7. Financial statements
Copies of these accounts are available from
Online Blockchain 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 Online Blockchain plc website:
www.onlineblockchain.io (http://www.onlineblockchain.io)
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