Half-year Report

Source: RNS
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 in Italy and also the changes and redesign of our product offering some of which are evident on our 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

 31 Dec

6 months to

 31 Dec

12 months to

 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

 31 Dec

6 months to

 31 Dec

12 months to

 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

 31 Dec

6 months to

 31 Dec

12 months to

 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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