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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Advfn Plc | LSE:AFN | London | Ordinary Share | GB00BPT24C10 | ORD 0.2P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 10.50 | 10.00 | 11.00 | 10.50 | 10.50 | 10.50 | 9,567 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Information Retrieval Svcs | 5.46M | -2.17M | -0.0471 | -2.23 | 4.83M |
TIDMAFN
RNS Number : 5102Q
ADVFN PLC
20 October 2011
ADVFN PLC
Audited Results for the Year Ended 30 June 2011
ADVFN, Europe's leading stocks and shares website, announces its audited results for the year ended 30 June 2011
Highlights:
-- Turnover up 7% to GBP9,167,000 (2010 restated: GBP8,591,000) -- EBITDA* profit of GBP348,000 (2010 restated: GBP1,256,000) -- Cash and gilts balance to GBP2,397,000 (2010: GBP2,300,000) -- P&L (GBP862,000) (2010 restated: profit of GBP146,000) -- Positive cash flow; 'net cash generated from operations' GBP595,000 (2010: GBP1,417,000) -- ADVFN's registered users base now over 2,200,000
(2010: 2,000,000)
For further information, please contact:
Clem Chambers,
ADVFN PLC CEO
0207 0700 909
Gerry Beaney
Grant Thornton Corporate Finance (Nominated Adviser)
0207 7383 5100
*EBITDA is calculated as the operating loss for the year before depreciation and amortisation charges.
CHIEF EXECUTIVE'S STATEMENT
ADVFN has had another strong year with turnover up 7% to GBP9,167,000. 2011 has been a pivotal year where we have begun the next phase of growth outside the UK.
We have made very good progress this year against a background which could hardly be described as easy. Our product and geographical diversity has served us well so that we have avoided many of the challenges other media players have had to contend with.
Subscriptions have been robust and advertising income has led our growth. The advertising lead growth is a vanguard of growth as it accelerates the broadening of our business to important new markets
Having strong sites in the UK, US and Brazil, we believe we have the necessary template now to expand into the emerging markets where audiences are vibrant and huge. Our strategy is to penetrate markets via sales offices, using advertising income to fund growth in the territories that warrant it most.
In line with this we have been opening regional sales offices in Japan, India and the Middle East and we have been focusing on expanding in these territories. This process is delivering the platform for growth in the coming years leveraging the considerable investment we have made over the last 10 years.
All sites have performed robustly against a backdrop of global financial uncertainty. The UK continues to prosper, Brazil has remained strong and continues to develop and the US continues to grow for our ADVFN and Investors Hub brands. We feel very positive about next year's prospects whatever the outcome of the markets and expect to see further progress even in the teeth of another crash.
Financial overview
These accounts have been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union.
These figures show an increase in sales of 7%, an EBITDA of GBP348,000 and cash flow from operations of GBP595,000.
We have been operating against a backdrop of a weakening dollar which has masked further underlying growth but as we are earning income in euro, US dollar, UK pounds and Yen we are to some extent hedged against the currency fluctuations of recent times.
Strategy
We are building out the business for the next phase of ADVFN's development which we see as taking us towards sales of GBP20,000,000 a year.
This year is another year of growth; a yearly goal we have achieved every year for the last 11 years.
The market opportunity for us in India, The Middle East, Mexico and the Philippines is large and involves a modest level of investment. The bulk of our platform for entering such large markets is already made so that each new office is a small measured risk. We expect each territory to come on stream in a 12 month set up window and to be quickly income generative thereafter.
Exposure to fast growing economies with active markets is the way forward for us, taking positive developments in each market and feeding them back into our global offering.
The size of the opportunity is sufficiently large to keep us very busy for a long time to come.
Operating Costs
We spend a great deal of time focusing on our cost base making sure we optimise the return on our outgoings where ever possible. As we enter this new phase we are earmarking resources to invest in growth. We have been hiring, increasing our technical platform and increasing marketing. This has been funded solely from positive cash flow which represents a strong financial and operational performance.
Research and Development
As always ADVFN never stops developing its technology and platform. With growing traffic and giant spikes of usage set off by the global economic chaos of recent times, ADVFN has adapted to supply the demand of a world hungry for updates the moment financial information is available. These demands have grown and grown over the years and we have seamlessly managed to keep up with growth on all fronts. This process will continue and represents a valuable and unique asset.
Environmental policy
The company as a whole continues to look for ways to develop our environmental policy. It remains our objective to improve our performance in this area.
Cash and GILTS
We are very happy to say that our improved general performance has directly translated to our cash and gilts balance. Our cash and GILTS balance at the end of the year was up GBP97,000 to GBP2,397,000, an increase of 4%
Summary of key performance indicators
2011 2011 2010 2010 Actual Target Actual Target ------------------------ ------- ------- ------- ------- Average head count 54 60 46 50 ------------------------ ------- ------- ------- ------- ADVFN registered users 2.2M 2.1M 2.0M 1.9M ------------------------ ------- ------- ------- -------
Future outlook for the business
We are very comfortable of the prospects for next year and for that matter the years ahead. We are now rolling out ADVFN to more global audiences and feel assured that we have the people, the offerings and the technology to continue along the path we have set to be a global markets website with GBP100,000,000 in sales. In percentage terms we are as far away from that target today as we were from today's sales when we started out in 2001.
Principal risks and uncertainties:
Economic downturn
An extended economic down turn is not to be taken lightly. However the recent turmoil has been easily overcome and may even have benefitted the company. In addition this is the third time in the company's short life that it has had to navigate a financial crash and both times it has come through bigger and stronger.
High proportion of fixed overheads and variable revenues
A major proportion of the company's overheads are reasonably fixed. There is the risk that any significant changes in revenue may lead to the inability to cover such costs. Management closely monitor fixed overheads against budget on a monthly basis and cost saving exercises are implemented on a constant review basis. We have had a strong period of cost optimisations since our finance function was reorganised and this process continues.
Product obsolescence
The technology that we use and develop is always in flux. Products are subject to technological change and advance and resultant obsolescence. We are constantly innovating to keep up with growing demand, change in product and new developments both at a technical and a marketing level. The directors are committed to the Research and Development strategy in place, and are confident that the company is able to react effectively to the developments within the market.
Fluctuations in currency exchange rates
A growing proportion of our turnover relates to overseas operations. As a company, we are therefore exposed to foreign currency fluctuations. The company manages its foreign exchange exposure on a net basis, and if required uses forward foreign exchange contracts and other derivatives/financial instruments to reduce the exposure. Currently hedging is not employed. If currency volatility was extreme and hedging activity did not mitigate the exposure, then the results and the financial condition of the company might be adversely impacted by foreign currency fluctuations.
People
We have a very dedicated team that is focused on creating the best possible service we can provide. We are constantly building this team and have been hiring to enable us to grow during the next phase of our development. I would like to thank them all for their hard work and dedication over the past year.
Clem Chambers
CEO
19 October 2011
Consolidated income statement 12 months 12 months to to 30 June 30 June 2011 2010 Note GBP'000 GBP'000 Restated Revenue 9,167 8,591 Cost of sales (538) (404) ---------- ---------- Gross profit 8,629 8,187 Share based payment (84) (43) Amortisation of intangible assets (1,089) (1,149) All other administrative expenses (8,241) (6,963) ---------- ---------- Total administrative expenses (9,414) (8,155) Operating (loss)/profit (785) 32 Finance income 7 23 Finance expense (5) (8) Gain on bargain purchase and associated fair value loss on previously held equity investment - (214) Result from associates after taxation - (18) Loss before tax (783) (185) Taxation (79) 331 ---------- ---------- (Loss)/profit for the period attributable to shareholders of the parent (862) 146 (Loss)/earnings per share - from continuing operations Basic and diluted (pence per share) 3 (0.14) 0.02 Consolidated statement of comprehensive income 12 months 12 months to to 30 June 30 June 2011 2010 GBP'000 GBP'000 Restated (Loss)/profit for the period (862) 146 Other comprehensive income: Exchange differences on translation of foreign operations 253 (8) Deferred tax on translation of foreign (46) - held assets ---------- ---------- Total comprehensive income for the year attributable to shareholders of the parent (655) 138 ========== ========== Consolidated balance sheet 30 June 30 June 1 July 2011 2010 2009 GBP'000 GBP'000 GBP'000 Assets Restated Restated Non-current assets Property, plant and equipment 106 84 92 Goodwill 1,697 1,590 1,590 Intangible assets 2,584 2,973 2,297 Investments in associates - - 905 Trade and other receivables 119 113 204 --------- --------- --------- 4,506 4,760 5,088 Current assets Trade and other receivables 1,121 890 977 Current tax recoverable 75 92 65 Other financial assets (available for sale) 712 709 32 Cash and cash equivalents 1,716 1,599 1,509 --------- --------- --------- 3,624 3,290 2,583 --------- --------- --------- Total assets 8,130 8,050 7,671 ========= ========= ========= Equity and liabilities Equity Issued capital 6,249 6,238 6,156 Share premium 7,941 7,900 7,758 Merger reserve 221 221 221 Share based payment reserve 533 485 456 Foreign exchange reserve 181 (26) (18) Retained earnings (10,007) (9,181) (9,341) --------- --------- --------- 5,118 5,637 5,232 Non-current liabilities Deferred tax 533 342 314 Borrowings - obligations under finance leases 1 6 11 --------- --------- --------- 534 348 325 Current liabilities Trade and other payables 2,455 2,052 2,085 Current tax 18 - - Borrowings - obligations under finance leases 5 13 29 --------- --------- --------- 2,478 2,065 2,114 --------- --------- --------- Total liabilities 3,012 2,413 2,439 --------- --------- --------- Total equity and liabilities 8,130 8,050 7,671 ========= ========= =========
Consolidated statement of changes in equity
Share Share Merger Share Foreign Retained Total capital premium reserve based exchange earnings equity payment reserve reserve Restated Restated GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 1 July 2009 as previously stated 6,156 7,758 221 456 (18) (8,789) 5,784 Prior year adjustment - - - - - (552) (552) --------- --------- --------- --------- ---------- ---------- ---------- 6,156 7,758 221 456 (18) (9,341) 5,232 Issue of shares 82 142 - - - - 224 Exercise of share options - - - (14) - 14 - Equity settled share options - - - 43 - - 43 --------- --------- --------- --------- ---------- ---------- ---------- Transactions with owners 82 142 - 29 - 14 267 Profit for the period after tax - - - - - 146 146 Other comprehensive income Exchange differences on translation of foreign operations - - - - (8) - (8) --------- --------- --------- --------- ---------- ---------- ---------- Total comprehensive income for the year - - - - (8) 146 138 At 30 June 2010 6,238 7,900 221 485 (26) (9,181) 5,637 Issue of shares 11 41 - - - - 52 Exercise of share options - - - (36) - 36 - Equity settled share options - - - 84 - - 84 --------- --------- --------- --------- ---------- ---------- ---------- Transactions with owners 11 41 - 48 - 36 136 Loss for the period after tax - - - - - (862) (862) Other comprehensive income Exchange differences on translation of foreign operations - - - - 253 - 253 Deferred tax on translation of foreign held assets - - - - (46) - (46) --------- --------- --------- --------- ---------- ---------- ---------- Total comprehensive income for the year - - - - 207 (862) (655) At 30 June 2011 6,249 7,941 221 533 181 (10,007) 5,118 ========= ========= ========= ========= ========== ========== ========== Consolidated cash flow statement 12 months 12 months to to 30 June 30 June 2011 2010 GBP'000 GBP'000 Restated Cash flows from operating activities Loss for the period before tax (783) (185) Net finance income in the income statement (2) (15) Loss from associates - 18 Depreciation of property, plant & equipment 44 75 Amortisation 1,089 1,149 Gain on bargain purchase and associated fair value loss on previously held equity investment - 214 Impairment of financial assets (3) 24 Share based payments 84 43 Decrease in trade and other receivables (237) 236 Increase/(decrease) in trade and other payables 403 (142) Net cash generated from operations 595 1,417 Interest paid (5) (8) Income tax (payable) / receivable 101 (17) ---------- ---------- Net cash generated by operating activities 691 1,392 Cash flows from investing activities Interest received 7 23 Payments for property plant and equipment (66) (30) Purchase of intangibles (571) (570) Purchase of UK Government gilts - (701) Acquisition of subsidiary (net of cash with subsidiary) - (22) Net cash used in investing activities (630) (1,300) Cash flows from financing activities Proceeds from issue of equity shares 52 27 Loans repaid (finance leases) (13) (21) Net cash generated by financing activities 39 6 ---------- ---------- Net increase in cash and cash equivalents 100 98 Exchange differences 17 (8) ---------- ---------- Total increase in cash and cash equivalents 117 90 Cash and cash equivalents at the start of the period 1,599 1,509 ---------- ---------- Cash and cash equivalents at the end of the period 1,716 1,599 ========== ========== 1. Prior year adjustment
During the year the Group upgraded its reporting systems for its subscription website which enabled it to generate more accurate information over the unexpired level of live subscriptions at any period end. The information generated by the new reports has enabled the Group to accurately quantify the level of deferred subscription levels at 30 June 2011 and prior year ends. In prior years the Group had calculated deferred revenue using the information available to it, together with certain estimation techniques.
The new reports have identified that the deferred income calculated and reflected in the financial statements for prior periods was materially incorrect. In accordance with IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors' the comparative financial statements have been restated. The effect of the prior year adjustment on each line item within the prior year financial statements is set out below:
Consolidated income statement As originally reported As restated 12 months Prior year 12 months to 30 June adjustment to 30 June 2010 2010 GBP'000 GBP'000 GBP'000 Revenue 8,475 116 8,591 Profit for the period attributable to shareholders of the parent 30 116 146 (Loss)/earnings per share - from continuing operations Basic and diluted (pence per share) - 0.02 0.02 Consolidated statement of comprehensive income As originally reported As restated 12 months Prior year 12 months to 30 June adjustment to 30 June 2010 2010 GBP'000 GBP'000 GBP'000 Restated Total comprehensive income for the year attributable to shareholders of the parent 22 116 138 ============== ============ ============= Consolidated cash flow statement As originally reported As restated 12 months Prior year 12 months to 30 June adjustment to 30 June 2010 2010 Loss for the period before tax (301) 116 (185) Decrease in trade and other payables (26) (116) (142) Other movements 1,744 - 1,744 Net cash generated from operations 1,417 - 1,417 2. Segmental analysis
The directors identify reportable segments based upon the information which is regularly reviewed by the chief operating decision maker. The Group considers that the chief operating decision maker is the Board of Directors. The Group has identified two reportable operating segments, being that of the provision of financial information and that of research services. The provision of financial information is made via the Group's various website platforms. Research activities are provided by the Group's staff, primarily to corporate customers.
Two minor operating segments, for which IFRS 8's quantitative thresholds have not been met, are currently combined below under 'other'. The main sources of revenue for these operating segments is the provision of financial broking services and other internet services not related to financial information. Segment information can be analysed as follows for the reporting period under review:
2011 Provision Research Other Total of financial services information GBP'000 GBP'000 GBP'000 GBP'000 Revenue from external customers 8,422 604 141 9,167 Depreciation and amortisation (1,177) (6) (3) (1,186) Other operating expenses (8,254) (589) 45 (8,798) Segment operating (loss)/profit (1,009) 9 183 (817) Interest income 7 - - 7 Interest expense (4) (1) - (5) Segment assets 9,178 216 23 9,417 Segment liabilities (2,357) (162) (5) (2,524) Purchases of non-current assets (662) - - (662) ============== ========== ======== ======== 2010 Provision Research Other Total of financial services information GBP'000 GBP'000 GBP'000 GBP'000 Restated Restated Revenue from external customers 7,979 526 102 8,607 Depreciation and amortisation (1,327) (7) (3) (1,337) Other operating expenses (6,514) (684) (61) (7,259) -------------- ---------- -------- --------- Segment operating (loss)/profit 138 (165) 38 11 Results from associates (18) - - (18) Interest income 23 - - 23 Interest expense (5) (3) - (8) Segment assets 9,618 196 26 9,840 Segment liabilities (1,958) (127) (8) (2,093) Purchases of non-current assets (895) (10) (1) (906) ============== ========== ======== =========
The Group's revenues, which wholly relate to the sale of services, from external customers and its non-current assets are divided into the following geographical areas:
Revenue Non-current Revenue Non-current assets assets 2011 2011 2010 2010 GBP'000 GBP'000 GBP'000 GBP'000 Restated UK (domicile) 4,802 4,326 4,906 3,119 USA 3,419 1,456 3,071 1,641 Other 946 - 630 - -------- ------------ --------- ------------ 9,167 5,782 8,607 4,760 ======== ============ ========= ============
Revenues are allocated to the country in which the customer resides. During both 2011 and 2010 no single customer accounted for more than 10% of the Group's total revenues.
The segmental information regularly reviewed by the Board is presented under UK GAAP and, as a result, a key reconciling item between the segmental and the Group financial information relates to IFRS conversion.
The totals presented for the Group's operating segments reconcile to the entity's key financial figures as presented in its financial statements as follows:
2011 2010 GBP'000 GBP'000 Restated Segment revenues Total segment revenues 9,167 8,607 Consolidation adjustments - (16) -------- --------- 9,167 8,591 ======== ========= Segment profit or loss Total segment operating (loss)/profit (817) 11 Consolidation adjustments (324) (15) IFRS conversion adjustments 356 36 -------- --------- Group operating (loss)/profit (785) 32 Finance income 7 23 Finance expense (5) (8) Negative goodwill and associated fair value loss on previously held equity investment - (214) Result from associate after taxation - (18) -------- --------- Group loss before tax (783) (185) ======== ========= 2011 2010 2009 GBP'000 GBP'000 GBP'000 Restated Restated Segment assets Total segment assets 9,417 9,840 7,950 Consolidation adjustments (2,113) (1,777) (1,382) IFRS conversion adjustments 826 (13) 1,103 -------- --------- --------- Total Group assets 8,130 8,050 7,671 ======== ========= ========= Segment liabilities Total segment liabilities (2,524) (2,093) (2,128) Consolidation adjustments (46) - - IFRS conversion adjustments (442) (320) (311) -------- --------- --------- Total Group liabilities (3,012) (2,413) (2,439) ======== ========= =========
Consolidation adjustments primarily relate to the elimination of investments and the calculation of goodwill. IFRS conversion adjustments primarily relate to the different accounting bases for the Group's intangible and tangible assets under IFRS and UK GAAP.
3. (Loss) / earnings per share 12 months 12 months to to 30 June 30 June 2011 2010 GBP'000 GBP'000 (Loss) / profit for the year from continuing operations attributable to equity shareholders (862) 146 ============ ============ (Loss) / earnings per share from continuing operations Basic (loss) / earnings per share (pence) (0.14) 0.02 Diluted (loss) / earnings per share (pence) (0.14) 0.02 Shares Shares Issued ordinary shares at start of the year 623,764,505 615,568,903 Ordinary shares issued in the year (Note 23) 1,149,999 8,195,602 ------------ ------------ Issued ordinary shares at end of the year 624,914,504 623,764,505 ============ ============ Weighted average number of shares in issue for the year 624,207,656 622,267,954 Dilutive effect of options - 7,100,433 ------------ ------------ Weighted average shares for diluted earnings per share 624,207,656 629,368,387 ============ ============
Where a loss has been recorded for the year the diluted loss per share does not differ from the basic loss per share as the exercise of share options would have the effect of reducing the loss per share and is therefore not dilutive under the terms of IAS 33.
4. Publication of Non Statutory Accounts
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006.
The consolidated balance sheet at 30 June 2011 and the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated cash flow statement and associated notes for the year then ended have been extracted from the Company's 2011 statutory financial statements upon which the auditors' opinion is unqualified and does not include any statement under Section 498(2) or (3) of the Companies Act 2006.
The annual report and accounts will shortly be sent to shareholders and will be available on the Company's website, http://www.advfn.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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