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.