REG - Online Blockchain - Half-year Report
31/03/2023 12:15
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230331:nRSe9747Ua&default-theme=true
RNS Number : 9747U Online Blockchain PLC 31 March 2023
30 March 2023
For immediate release
Online Blockchain PLC
("Online" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December 2022
Online today announces unaudited interim results for the six months ended 31
December 2022 (the "Period").
CEO's Statement
While the crypto asset market has continued to be depressed over the Period,
with moments of significant price volatility, we have not been caught up and
have continued to focus on the development of our two main projects, advisors
to Umbria and the Rocky Horror NFT.
Umbria (see www.umbria.network (http://www.umbria.network) ) enables token
transfers between independent blockchain platforms, such as Ethereum to
Polygon. Liquidity for exchange of tokens from one blockchain to another using
the bridge is provided by Umbria users staking Umbria tokens in a pool thereby
earning a share of all fees generated by the bridge. After high levels of
activity during early 2022, Umbria has settled into a lower but consistent
pattern of transactions and amounts staked on the platform.
Seasoning of decentralised finance products (DeFi) is key and the longer a
protocol goes without incident the more it is trusted by the market audience
and the more it is potentially worth and used. Umbria is now well seasoned and
provides a relatively fast and cheap bridge solution compared to other
offerings. If and when crypto assets move back into favour, we believe that
Umbria is potentially well positioned to benefit from increased trading
volumes. In the Period, total revenue from Umbria amounted to £14k (2022:
£24k).
Our principal focus in the Period has been the development of The Rocky Horror
Show non-fungible token ("NFT"), based on The Rocky Horror Show and we
continue to be pleased with its development. As we announced earlier this
year, we have entered into a worldwide licence with Interfishnet Limited,
rights holders of The Rocky Horror Show intellectual property, to create and
market a range of character NFTs. Non-fungible tokens (NFTs) are cryptographic
assets on a blockchain, with unique identification codes and metadata that
distinguish them from each other and are directly linked to one blockchain
address. Non-fungible tokens comprise a smart contract which can digitally
represent any asset, including online-only assets like digital artwork and
collectibles.
Our developers have created a number of collectible character-based NFTs from
The Rocky Horror Show and, under the terms of the licence agreement (for an
unlimited period), Online will receive a revenue share from sales of the NFTs.
The artwork for the NFTs has been completed, and initial soft marketing has
commenced to begin to create market awareness. We intend to release the NFTs
for sale to coincide with an expected one-off performance of The Rocky Horror
Show celebrating its 50th anniversary, which we believe is likely to be over
the Summer.
As we have previously explained, the commercial development of The Rocky
Horror Show NFTs is at an early stage and there is no certainty at this time
how, following the hard launch in the Summer, it may develop or to what extent
any income will be derived. We are however excited with the prospect of
bringing these NFTs to market at this time and with strong expected media and
social platform interest in The Rock Horror Show as a market background.
Finally, we have retained our interest in ADVFN plc, which following the
recent Open Offer has been diluted to 10 per cent. Based on the current market
price per ADVFN plc share of 35.5 pence, this interest has a current market
value of £1.6m and remains of importance to the Company. As explained in our
last Report and Accounts, the Company no longer has significant influence over
ADVFN plc and therefore it is treated as an arm's length investment.
While the crypto market is volatile, current asset prices and trading seem to
have stabilised at multiples of the previous all-time lows, and although we
expect continued turbulence over the next six months, this hopefully sets a
potential platform for the next cycle of general interest in the sector.
Clement Chambers
CEO
30(th) March 2023
Condensed interim consolidated income statement
for the six months ended 31 December 2022
Six months ended Six months ended Year ended
31 December 31 December 30 June
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Note
Revenue 14 24 107
Cost of sales - - -
Gross profit 14 24 107
Other administrative expenses (445) (528) (948)
Other operating income - - -
Operating loss (431) (504) (841)
Share of post-tax profit/(loss) of equity accounted associate - 36 (214)
Revaluation of ADVFN investment on ceasing as associate 932 - -
Profit / (loss) before taxation 501 (468) (1,055)
Taxation 5 38 37
Profit / (loss) for the period attributable to shareholders of the parent 506 (430) (1,018)
Earnings per share
Basic earnings / (loss) per ordinary share 3 3.53 (3.01) (8.91)
Diluted earnings / (loss) per ordinary share 3 3.23 (3.05) (8.91)
Condensed interim consolidated statement of comprehensive income
for the six months ended 31 December 2022
Six months ended Six months ended Year ended
31 December 31 December 30 June
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit/(loss) for the period 506 (430) (1,018)
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations - - 2
Total other comprehensive income - - 2
Total comprehensive income for the year attributable to shareholders of the 506 (430) (1,016)
parent
All items in the above statement derive from continuing operations.
Condensed interim consolidated balance sheet
at 31 December 2022
31 December 31 December 30 June
2022 2021 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Assets Note
Non-current assets
Intangible assets 53 - 36
Property, plant and equipment 3 3 4
Other receivables - - 1
Investment accounted for using the equity method 4 - 1,463 1,101
Other investments 5 2,034 - -
2,090 1,466 1,142
Current assets
Trade and other receivables 25 36 22
Corporation tax receivable - - 4
Cash and cash equivalents 366 1,060 765
391 1,096 791
Total assets 2,481 2,562 1,933
Equity and liabilities
Equity
Issued capital 3,574 3,574 3,574
Share premium 4,484 4,484 4,484
Share based payment reserve 65 65 65
Foreign exchange reserve (3) (3) (3)
Retained earnings (5,711) (5,621) (6,217)
2,409 2,499 1,903
Current liabilities
Trade and other payables 72 63 30
72 63 30
Total equity and liabilities 2,481 2,562 1,933
Condensed interim statement of changes in equity
at 31 December 2022
Share Share premium Share Foreign exchange reserve Retained earnings Total
capital based payment reserve equity
£'000 £'000 £'000 £'000 £'000 £'000
At 1 July 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 (422) (420)
At 31 December 2021 3,574 4,484 65 (3) (5,621) 2,499
Loss for the period - - - - (596) (596)
Total comprehensive loss for the period - - - - (596) (596)
At 30 June 2022 3,574 4,484 65 (3) (6,217) 1,903
Profit for the period - - - - 506 506
Total comprehensive profit for the period - - - - 506 506
At 31 December 2022 3,574 4,484 65 (3) (5,711) 2,409
Condensed interim consolidated cash flow statement
for the six months ended 31 December 2022
Six months ended Six months ended Year ended
31 December 2022 31 December 2021 30 June 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Profit/(loss) for the period from continuing operations 506 (430) (1,018)
Add back (profit)/loss from equity accounted associate - (36) 214
Intangible crypto assets received from Umbria Bridge (17) (36)
Net finance charge in the income statement - - -
Depreciation of property, plant & equipment 1 1 2
Gain on derecognition of associate (933) - -
Decrease/(increase) in trade and other receivables 2 (3) 7
Increase/(decrease) in trade and other payables 45 32 (2)
Net cash used by operating activities (396) (436) (833)
Cash flows from financing activities
Interest paid - (1) -
Net cash used by financing activities - (1) -
Cash flows from investing activities
Payments for property plant and equipment - (2) (5)
Payments for intangible assets - - 104
Net cash (used) / generated by investing activities - (2) 99
Decrease in cash and cash equivalents (396) (439) (734)
Foreign exchange differences (3) 2 2
Cash and cash equivalents at the start of the period 765 1,497 1,497
Cash and cash equivalents at the end of the period 366 1,060 765
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 of the
London Stock Exchange and is incorporated in England and Wales and domiciled
in the UK. The address of the registered office is 85 Great Portland Street,
First Floor, London, W1W 7LT.
The registered number of the company is 03203042.
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 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 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 Group's auditor, Saffery Champness LLP
reported on these accounts and their report was qualified as follows:
"Qualified opinion
We have audited the financial statements of Online Blockchain Plc (the 'parent
company') and its subsidiaries (the 'group') for the year ended 30 June 2022
which comprise the Consolidated Income Statement, Consolidated Statement of
Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet,
Consolidated Statement of Changes in Equity, Company Statement of Changes in
Equity, Consolidated Cash Flow Statement, Company Cash Flow Statement and
notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation
is applicable law and UK-adopted international accounting standards.
In our opinion, except for the possible effects of the matter described in the
basis for qualified opinion section of our report, the financial statements:
· give a true and fair view of the state of affairs of the group and of
the parent company as at 30 June 2022 and of the group's loss for the period
then ended;
· have been properly prepared in accordance with UK-adopted
international accounting standards; and
· have been prepared in accordance with the requirements of the Companies
Act 2006.
Basis for qualified opinion
We have been unable to satisfy ourselves over the initial recognition of
Umbria crypto coins together with income that the Company has earned when
trading on the Umbria Bridge. The directors have concluded that the coins were
gifted from a related party but that no initial accounting entry was required
due to the coins having no active market and at the year end the value of the
coins should be shown as £Nil for the years ended 30 June 2021 and 30 June
2022. Due to the lack of information available regarding the nature of the
initial investment we have been unable to determine whether the accounting
treatment is appropriate and in accordance with accounting standards and
therefore whether any adjustment is required to the income statement or equity
in respect of this.
We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those
standards are further described in the Auditor's responsibilities for the
audit of the financial statements section of our report. We are independent of
the group and the parent company in accordance with the ethical requirements
that are relevant to our audit of the financial statements in the UK,
including the FRC's Ethical Standard as applied to listed entities, and we
have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our qualified opinion."
.
3. Earnings / (loss) per ordinary share
Six months to Six months to Year to
31 Dec 2022 31 Dec 2021 30 June 2022
£'000 £'000 £'000
Profit/(loss) for the year attributable to equity shareholders 506 (430) (1,018)
Weighted average number of Ordinary shares 14,311,709 14,311,709 11,423,439
Dilutive effect of options 1,358,695 (192,979) -
Weighted average Ordinary shares for diluted earnings per share
15,670,404 14,118,730 11,423,439
Total loss per share
Basic earnings / (loss) per share (pence) 3.53 (3.01) (8.91)
Diluted earnings / (loss) per share (pence) 3.23 (3.05) (8.91)
Where a loss has been recorded for the year the diluted loss per share usually
does not differ from the basic loss per share. However in the six months to 31
December 2021, there were some options where the exercise price was below the
average share price. Under these circumstances those options where the
exercise price is below the average share price are treated as dilutive.
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.
Notes to the interim statements (continued)
4. Investments in associate undertakings
Six months ended Six months ended Year
Ended
31 December 2022 31 December 2021 30 June
2022
£'000 £'000 £'000
Listed investments at cost - 868 868
Listed investments at market value - 3,316 2,367
Total net assets of ADVFN Plc - 3,375 1,322
Percentage ownership interest held by the group - 17.64% 17.64%
Share of net assets of ADVFN Plc - 595 233
Cost of investment in ADVFN Plc - 868 868
- 1,463 1,101
Online Blockchain Plc owns 10% (2022 17.64%) 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.
Prior to August 2022, the investment in ADVFN plc was treated as an associate
for the purposes of financial reporting due to the common directorships held
between ADVFN plc and Online Blockchain plc and the resulting level of
significant influence over the associate. It was therefore accounted for under
the equity method of accounting.
The carrying value of the associate in the
balance sheet of Online Blockchain Plc was £1,101,000 at the end of the
financial year, based on the share of the balance sheet of the associate
company.
From August 2022, the number of common directors between the companies
decreased to 1 (2022: 3) and therefore there was no longer significant
influence. As such, at this date, ADVFN ceased to be an associate.
5. Investments
Six months ended Six months ended Year
Ended
31 December 2022 31 December 2021 30 June
2022
£'000 £'000 £'000
Investment in ADVFN plc 2,034 - -
Prior to August 2022 the investment in ADVFN
plc was treated as an associate as the 2 companies had common directors. On
23(rd) February 2022 Clem Chambers resigned as a director and on 8(th) August
2022 Michael Hodges resigned. New directors were brought into ADVFN plc and
therefore from 8(th) August 2022 OBC no longer had significant influence over
ADVFN plc and ADVFN plc should no longer be classed as an associate.
In accordance with IAS 28 the carrying amount
of the investment at the date the equity method was discontinued was
recognised as an investment and the difference has been recognised in the
income statement as a gain.
6. Events after the balance sheet date
There were no events after the balance sheet date.
7. Dividends
The directors do not recommend the payment of a dividend.
Notes to the interim statements (continued)
8. Financial statements
Copies of these accounts are available from
Online Blockchain Plc's registered office 85 Great Portland Street, First
Floor, London, W1W 7LT 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)
ENDS
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR SDSFSFEDSEIDRecent news on Online Blockchain
See all newsREG - AIM Online Blockchain - Cancellation - OnLine Blockchain Plc
AnnouncementREG - Online Blockchain - Result of AGM
AnnouncementREG - AIM Online Blockchain - Suspension - Online Blockchain PLC
AnnouncementREG - Online Blockchain - Change of Adviser
AnnouncementREG - Online Blockchain - Notice of AGM
Announcement