On-Line PLC
30 March 2007
Embargoed for release until 30th March 2007
On-line PLC
('On-line' or 'the Company')
Unaudited Interim Results for the Six Months Ended 31 December 2006
On-line today announces unaudited interim results for the six months ended 31
December 2006.
Chairman's Statement
As a shareholder in On-line, you will know that the company's primary focus is
its investments. Our efforts are concentrated on helping these to grow and
become not just leaders in their field, but investments with real value.
You will see that we have made a loss of £211,000 in the period, which is
predominantly due to £207,000 being written off our investments. This related to
our investment in ALL IPO in which the share price fell over the period and
under accounting conventions is required to be stated at the lower of cost and
net realisable value. It is worth noting however that accounting conventions do
not allow us to include a similar uplift in the value of ADVFN which has a
market value of over £2M more than the cost at which it is included within the
balance sheet.
ADVFN PLC
ADVFN has increased its turnover by 45.6% for the last six months to £2.644M
compared to the same period last year. This continued growth is of course great
news but more importantly, ADVFN is now moving to its next stage and is on track
to become cash flow positive by the end of this year. Having spent the last few
years developing its platform it now appears that this hard work will start to
reap the rewards expected.
In addition to the ADVFN site with its core share information and bulletin board
business, there are now several other properties under the ADVFN umbrella that
are all helping the group achieve profitability: Equity Development Ltd, one of
the UK's leading independent research companies, InvestorsHub and Silicon
Investor, USA-based stocks and shares web sites; CupidBay - a dating website and
Fotothing, a photo blogging site.
.
Subscriptions and advertising sales are at an all time high and as new products
are added and the quality increases these numbers continue to grow. InvestorsHub
and Silicon Investor are now very much assimilated into ADVFN and the team in
the US are very keen to see the integration of ADVFN's products into the sites.
This has already started with Silicon Investor and received a warm welcome from
its user base, which bodes well for future developments.
We believe that ADVFN has a strong stable of products and businesses and a team
focused on the next phase of its life.
ALL IPO PLC
ALL IPO has also made great steps forward. Though not yet revenue-generating, it
has worked very hard to build up important alliances with brokers and
institutions. This has resulted in an increase in the flow of products that have
been made available to private investors. It recently started its ALL IPO
discretionary service, which enables members to fund an account and have ALL IPO
and Redmayne-Bentley manage a portfolio of IPOs for them. By utilising
Redmayne's discretionary managers and ALL IPO's ability to source IPO
opportunities, the service provides a route for private investors to access the
IPO market. ALL IPO has also expanded its offering to include secondaries and
bonds. The next year will see the company broaden its scope and start to make a
wider selection of financial products available to its clients which now number
in the thousands.
Michael Hodges
Chairman
30th March 2007
On-line PLC
Profit and Loss Accounts
for the six months ended 31 December 2006
Six months ended Six months ended Year ended
31 December 2006 31 December 2005 30 June 2006
Unaudited Unaudited Audited
£'000 £'000 £'000
Turnover 27 19 36
Administrative expenses (31) (31) (54)
Operating loss (4) (12) (18)
Amount written off of investments (207) - (85)
Net interest - - -
Loss on ordinary activities before taxation (211) (12) (103)
Tax on loss on ordinary activities - - -
Loss on ordinary activities after taxation (211) (12) (103)
Loss per ordinary share (2.75p) (0.16p) (1.3p)
On-line PLC
Balance Sheets
at 31 December 2006
31 December 2006 31 December 2005 30 June 2006
Unaudited Unaudited Audited
£'000 £'000 £'000
Fixed assets
Investments 1,081 1,373 1,288
Current assets
Debtors 58 60 56
Investments 796 1,002 794
Cash at bank and in hand 21 21 27
875 1,083 877
Creditors: amounts falling due within
one year (82) (73) (82)
Net current assets 793 1,010 795
Total assets less current liabilities 1,874 2,383 2,083
Capital and reserves
Called up share capital 3,242 3,242 3,242
Share premium account 2,205 2,205 2,205
Option valuation reserve 59 - -
Profit and loss account (3,632) (3,064) (3,364)
Total shareholders funds 1,874 2,383 2,083
On-line PLC
Cash Flow Statements
for the six months ended 31 December 2006
Six months ended Six months ended Year ended
31 December 2006 31 December 2005 30 June 2006
Unaudited Unaudited Audited
£'000 £'000 £'000
Net cash (outflow) / inflow from operating (6) 21 (4)
activities
Capital expenditure
Purchase of current asset investments - (48) (49)
Loans made to other entities - - 32
- (48) (17)
Net cash outflow before financing (6) (27) (21)
Financing
Issue of ordinary share capital - - -
Net cash inflow from financing - - -
Decrease in cash (6) (27) (21)
On-line PLC
Statement of Total Recognised Gains and Losses
for the six months ended 31 December 2006
Six months ended Six months ended Year ended
31 December 2006 31 December 2005 30 June 2006
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss for the period (211) (12) (103)
Unrealised gain / (loss) on current asset 2 - (209)
investments
Total recognised gains and losses for the period (209) (12) (312)
On-line PLC
Notes to the interim statement
for the six months ended 31 December 2006
1. Loss per ordinary share
Six months ended Six months ended Year ended
31 December 2006 31 December 2005 30 June 2006
Loss for the period £'000 (211) (12) (103)
Weighted average number of shares '000 7,662 7,662 7,662
Loss per share p (2.75p) (0.16p) (1.3p)
2. Reserves
Profit and loss Option valuation Share premium
account reserve account
£'000 £'000 £'000
At 1 July 2006 (3,364) - 2,205
Prior year adjustment re FRS20 option valuations (59) 59 -
Unrealised gain on investments 2 - -
Loss retained for the period (211) -
At 31 December 2006 (3,632) 59 2,205
3. Reconciliation of operating loss to net cash outflow from
operating activities
Six months ended Six months ended Year ended
31 December 2006 31 December 2005 30 June 2006
Operating loss (4) (12) (18)
Decrease / (increase )in debtors (2) 35 7
Increase / (decrease) in creditors - (2) 7
Net cash outflow from operating activities (6) 21 (4)
4. The directors do not recommend the payment of a dividend.
5. The financial information contained in this document does not
constitute statutory accounts within the meaning of Section 240 of the Companies
Act 1985. The financial information for the year ended 30 June 2006 is extracted
from the audited financial statements for that period on which the auditors gave
an unqualified report. A copy of those financial statements has been filed with
the Registrar of Companies
6. The interim financial information has been prepared in accordance
with applicable accounting standards and under the historical cost convention.
The principal accounting policies of the Company have remained unchanged from
those set out in the Company's June 2006 Annual Report and Financial Statements
except for the adjustments resulting from the adoption of FRS20 in the period as
described below.
The Company has adopted FRS20 with effect from 1 July 2006.
FRS20 requires the recognition of a charge to the profit and loss account for
all applicable share based payments, including share options. The Company has
equity-settled share based payments but no cash-settled share based payments.
All share based payments awards granted after 7 November 2002 which had not
vested prior to 1 July 2006 are recognised in the financial statements at their
fair value at the date of grant.
As vesting periods and non-market based vesting conditions
apply, the expense is allocated over the vesting period, based on the best
available estimate of share options expected to vest. Estimates are revised
subsequently if there is any indication that the number of share options
expected to vest differs from previous estimates. Any cumulative adjustment
prior to vesting is recognised in the current period. All equity-settled share
based payments are ultimately recognised as an expense in the profit and loss
account with a corresponding credit to the option valuation reserve.
The adoption of FRS20 requires a prior period adjustment to be
made for awards granted before 1 July 2006. This has created an opening balance
within the option valuation reserve at 1 July 2006 of £59,000.
7. Copies of this statement are being posted to shareholders shortly
and will be available from the company's
registered office at Suite 27, Essex Technology Centre, The
Gables, Fyfield Road, Ongar, Essex, CM5 0GA.
This information is provided by RNS
The company news service from the London Stock Exchange