TIDMAFN
RNS Number : 6546I
ADVFN PLC
06 December 2022
6 December 2022
For immediate release
ADVFN PLC
(" ADVFN " or the "Company")
Audited Results for the year ended 30 June 2022
Annual General Meeting
The Board of ADVFN announces the audited annual results for the
year ended 30 June 2022. The Annual Report and Accounts will
shortly be sent to shareholders and will be available on the
Company's website, http://www.advfnplc.com . A copy of this
announcement is also available on the Company's website,
http://www.advfnplc.com .
The Annual General Meeting is due to be held at 10.00am on 29
December 2022 at RPC, Tower Bridge House, St Katherine's Way,
London E1W 1AA. Notice of the Annual General Meeting is included in
the Company's Annual Report.
For further information please contact:
ADVFN PLC
Jonathan Mullins +44 (0) 203 8794 460
Beaumont Cornish Limited (Nominated
Adviser)
www.beaumontcornish.com
Roland Cornish/Michael Cornish +44 (0) 207 628 3396
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018. The person who arranged for the release of this announcement
on behalf of the Company was Jon Mullins, Director.
Chairman's Statement
I'm delighted to have joined the Board as Non-Executive Chairman
of ADVFN, where the opportunities for the future appear to be
manifest. The appointment of Amit Tauman as CEO on 25(th) November
2022 provides the company with a talented leader who the Board is
confident is ideally placed to achieve the necessary objectives as
he describes in his report below. While the company has maintained
an average revenue of circa GBP8 million per year over the last ten
years, there are several areas of the company that need to be
strengthened and this is uppermost in the Board's thinking. By
working closely with our new CEO we believe that this will be
achieved.
Lord Gold
Non-executive Chairman
5 December 2022
Chief Executive's Statement
I am proud to serve on the Board of ADVFN and to have been
appointed as CEO. As the Chairman reports there are considerable
opportunities for ADVFN and to achieve them I set out three
long-term priorities on which everyone in the company is now
focused: Innovation, User Experience and management decisions
driven by enterprise data.
I believe these priorities enable us not only to leverage our
key strengths, but they also allow us to capitalise on market
trends and to innovate and grow. I'm excited about the
opportunities and confident about the future. I want to take this
opportunity to thank all ADVFN employees for the warm welcome and
motivation towards this new journey together.
Amit Tauman
CEO
5 December 2022
Strategic Report
Financial Overview
The financial reporting framework that has been applied in their
preparation is applicable law and UK-adopted international
accounting standards.
The loss for the financial year after tax amounted to
GBP1,368,000 (2021: a profit of GBP1,618,000). The Directors are
not proposing payment of a dividend.
As mentioned in the trading and corporate update published on
6th June 2022, there were several extraordinary, non-recurring
items incurred this year which were responsible for the majority of
the loss. Prior to the appointment of the new directors, Mr.
Chambers was awarded a settlement of GBP 830,639 when he resigned
as chief executive shortly before the requisition to appoint the
new directors. Subsequently, significant legal costs of GBP106,200
(before VAT) were incurred in reaching settlements with two
additional outgoing directors and amending the terms of employment
of then existing directors.
ADVFN 2021-2022 financial highlights:
-- Revenue was GBP7.8 million compared to GBP9.1 million in the
prior year period
-- Net loss was GBP1.8 million compared to net income of GBP1.6
million in the prior year period
-- Cash and cash equivalents: GBP0.9million compared to GBP1.9m
in the prior year.
Business Review
Despite a challenging economic environment, in the first half of
the financial year the company maintained operational profit which
is heartening.
In the second half we encountered a number of challenges,
including worsening market conditions, changes to Google search
algorithms and changes in senior management and Board composition.
This led to a decline in revenue from sales and one-off settlement
costs. These challenges have continued into the first quarter of
the financial year ending June 2023 with operational losses similar
to those of the last quarter of the prior financial year.
I'm pleased to report that changes in senior management and
Board composition have created an opportunity to revisit and
challenge many of the operations, the organisational structure, and
offerings. We have focused our efforts in defining our long-term
strategy and detailing our growth engines and roadmap. In addition,
we have put great emphasis on empowering and engaging our employees
around the world with our mission and vision. We have focused on
our users' experience and are creating a data driven infrastructure
and culture to enhance and support it. We are excited, committed,
and confident that this new and dynamic mindset will drive
prospects and growth.
Looking ahead to the next calendar year, we are putting a firm
emphasis on our user interface and user experience including the
introduction of exciting new real time tools and content. We aim to
build a strong and sustainable market-leading financial community.
In addition to continued optimisation of our business, with focus
on execution and enhancement of our core offering, we are taking
actions to maintain margin and strong cash flow generation. We are
constantly reviewing our cost structure and have already adjusted
staffing levels for less profitable parts of the business. We also
aim to optimise our exchange and license fee costs. We adjusted
subscription pricing and will be optimising the subscription funnel
further in the new year. We have a number of exciting new products
in development that will be released in 2023 that will revitalise
our subscription offering. We will continue to look for efficiency
opportunities across our organisation and will capitalise on
investments that position us for long-term sustainable growth.
Operating Costs
We continue to monitor the operating costs of the Group and
there is currently no plan for further significant change to our
virtual organisation.
Research and Development ("R&D")
As a media company with highly technical products Research and
Development is very important to us. Innovation is necessary to
drive growth.
Our R & D investment this year has been GBP74,000 (2021:
GBP294,000) and all this investment has been capitalised.
This represents a reduced figure primarily due to key personnel
being involved in the series of corporate actions during the year.
Along with new KPIs, the board is in the process of developing a
new research and development plan.
Environmental policy
As always, we continue to look for ways to develop in an
environmental way. It remains our objective to improve our
performance in this area.
Summary of key performance indicators
Our key indicators have not yet changed, as they are an
important part of the business. The current Board is in the process
of reviewing KPIs and targets, with changes expected for the
financial year 2022/2023.
The Directors monitor the Key Performance Indicators on an
ongoing basis. The chart below shows the level of performance
achieved in the financial year. The individual items are as
follows:
2022 2022 2021 2021
Actual Target Actual Target
-------- --------- --------- ---------
Turnover GBP7.8M GBP8.70M GBP9.06M GBP8.70M
--------- ---------
Average head count 37 40 38 42
-------- --------- ---------
ADVFN registered users 5.16M 5.20M 5.10M 5.00M
-------- --------- --------- ---------
Market conditions have led to a lower than budgeted turnover for
both subscriptions and advertising and registered user count. We
have adjusted staff levels in line with business performance.
Turnover - An important indicator that gives an overall view of
our place in the market.
Head count - represents a very significant part of the costs of
the Group and is fixed as an overhead. Talented people are a vital
part of the business.
Registered users - give us an indication of our audience pool
and the potential available for marketing our service.
COVID-19
COVID-19 continues to have little measurable impact on the
company, in part due to the international and distributed nature of
the Group. In the UK the Company continues to employ remote
working.
Principal risks and uncertainties
The principal risks and uncertainties are summarised in the
Corporate Governance Report.
Consideration of the principal risks associated with financial
instruments is contained in note 23.
People
I would like to thank the whole team at ADVFN who worked hard
during a tumultuous time in the markets .
Directors' statement of responsibilities under section 172
Companies Act 2006
The Director s have considered the requirements of Section
172(1) of the Companies Act 2006 to prepare a statement explaining
how the Directors have considered the wider stakeholder needs when
performing their duties under Section 172 of the Companies Act
2006.
The Directors consider the stakeholders to be the people who
work for us, work with us, invest with us, own us, regulate us and
live in the societies we serve. The Directors recognise that
building strong relationships with our stakeholders will help
deliver the Group 's strategy in line with the long-term values.
The Directors are committed to effective engagement with all of our
stakeholders and seek to understand the interests and views of the
Group 's stakeholders by engaging with them directly as
appropriate.
Depending on the nature of the issue in question, the relevance
of each stakeholder group may differ and, as such, as part of the
Group 's engagement with stakeholders, the Directors seek to
understand the relative interests and priorities of each group and
to have regard to these, as appropriate, in their decision making.
The Directors acknowledge, however, that not every decision the
Board makes will necessarily result in a positive outcome for all
stakeholders. However, t he D irectors do challenge management to
ensure all stakeholder interests are considered in the day-to-day
management and operations of the Group .
.
As part of their deliberations and decision making process, the
Directors take into account the following:
-- the likely consequences of any decisions in the long
term;
-- interests of the Group 's employees;
-- need to foster the Group 's business relationships with
suppliers, customers and others;
-- impact of the Group 's operations on the community and
environment;
-- desirability of the Group maintaining a reputation for high
standards of business conduct; and
-- need to act fairly as between members of the Group .
As a result of these activities, the Directors believe that they
have demonstrated compliance with their obligations under s.172 of
the Companies Act 2006
Business
The Directors' aim for the Group is to be and remain a
contributing and good "Corporate Citizen".
Our business does not have a high carbon footprint and we
consider it to be a sustainable business. We try to ensure that our
planet's precious resources are used appropriately for the benefit
of current and future generations. The Board considers that the
business and strategic decisions which it takes now, in furtherance
of the Group's business objectives, do not damage the global
environment.
Employees
The Group has a small number of employees but those it has are
situated and are deployed on the Group's business around the World.
We ensure that we comply with all local labour laws and apply what
the Directors believe are appropriate standards and systems to
monitor and ensure the welfare of those employees.
Stakeholder engagement
The Group is entirely owned by the shareholders of ADVFN Plc and
the shares of the Group are traded on AIM. The stakeholders of the
Group consist predominantly of the shareholders, employees,
advisers and suppliers. The Directors recognise the importance of
these relationships and take active steps to develop and strengthen
them through dialogue and engagement. These relationships are
regularly monitored at Board level.
Governance
Each Board meeting addresses compliance by the Group with its
corporate governance codes and reinforces the Board's requirement
that its business be conducted with integrity and with due regard
for ethical standards.
ON BEHALF OF THE BOARD
Amit Tauman
CEO
5 December 2022
Consolidated income statement
30 June 30 June
2022 2021
Notes GBP'000 GBP'000
Revenue 3 7,848 9,059
Cost of sales (374) (452)
---------- --------
Gross profit 7,474 8,607
Share based payment 21 - (43)
Amortisation of intangible assets 12 (256) (251)
Administrative expenses (7,176) (6,849)
Administrative expenses - non-recurring
items 6 (1,420) -
---------- --------
Total administrative expenses (8,852) (7,143)
Government grant - 162
---------- --------
Operating (loss)/profit 4 (1,378) 1,626
Finance expense 7 (14) (22)
Other income - 4
(Loss)/profit before tax (1,392) 1,608
Taxation 8 24 10
---------- --------
Total (loss)/profit for the period attributable
to shareholders of the parent (1,368) 1,618
(Loss)/profit per share
Basic 9 (5.22p) 6.28p
Diluted 9 (5.22p) 5.97p
Consolidated statement of comprehensive
income
30 June 30 June
2022 2021
GBP'000 GBP'000
(Loss)/profit for the year (1,368) 1,618
Other comprehensive income:
Items that will be reclassified subsequently
to profit or loss:
Exchange differences on translation of
foreign operations 73 (95)
Total other comprehensive income 73 (95)
Total comprehensive income for the year
attributable to shareholders of the parent (1,295) 1,523
========== ========
The accompanying accounting policies and notes form an integral
part of these financial statements.
Consolidated balance sheet
30 June 30 June
2022 2021
Notes GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 10 98 239
Goodwill 11 988 870
Intangible assets 12 1,124 1,562
Trade and other receivables 15 26 110
2,236 2,781
Current assets
Trade and other receivables 15 460 546
Cash and cash equivalents 915 1,939
-------- --------
1,375 2,485
Total assets 3,611 5,266
Equity and liabilities
Equity
Issued capital 20 53 52
Share premium 305 223
Share based payment reserve 341 343
Foreign exchange reserve 283 210
Retained earnings 340 2,295
-------- --------
1,322 3,123
Non-current liabilities
Borrowing - bank loans 17 41 54
Borrowing - lease liabilities 17 - 87
41 141
-------- --------
Current liabilities
Trade and other payables 19 2,148 1,886
Borrowing - bank loans 17 13 13
Borrowing - lease liabilities 17 87 103
2,248 2,002
Total liabilities 2,289 2,143
-------- --------
Total equity and liabilities 3,611 5,266
======== ========
The financial statements on pages 22 to 63 were authorised for
issue by the Board of Directors on 3 December 2022 and were signed
on its behalf by:
Amit Tauman
CEO
Company number: 02374988
The accompanying accounting policies and notes form an integral
part of these financial statements.
Company balance sheet At 30 June At 30 June
Note 2022 2021
GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 10 24 64
Intangible assets 12 234 382
Trade and other receivables 15 24 108
Investments 13 1,001 2,276
---------- ----------
1,283 2,830
---------- ----------
Current assets
Trade and other receivables 15 786 709
Cash and cash equivalents 529 1,650
---------- ----------
1,315 2,359
---------- ----------
Total assets 2,598 5,189
========== ==========
Equity and liabilities
Equity
Called up share capital 20 53 52
Share premium account 305 223
Share based payment reserve 341 343
Retained earnings (507) 2,311
---------- ----------
192 2,929
---------- ----------
Non-current liabilities
Borrowings - bank loans 17 41 54
Deferred tax 104 104
---------- ----------
145 158
Current liabilities
Trade and other payables 19 2,248 2,089
Borrowings - bank loans 17 13 13
2,261 2,102
---------- ----------
Total liabilities 2,406 2,260
---------- ----------
Total equity and liabilities 2,598 5,189
========== ==========
The financial statements on pages 22 to 63 were authorised for
issue by the Board of Directors on 3 December 2022 and were signed
on its behalf:
Amit Tauman
CEO
Company number: 02374988
Company statement of comprehensive income
As permitted by Section 408 of the Companies Act 2006, the
income statement and statement of comprehensive income of the
parent company is not presented as part of these financial
statements. The parent company's result after taxation for the
financial year was a loss of GBP2,231,000 (202 1 : profit of GBP
1,126,000 ).
The accompanying accounting policies and notes on pages 29 to 63
form an integral part of these financial statements.
Consolidated statement of changes in equity
Share Share Share Foreign Retained Total
capital premium based exchange earnings equity
payment reserve
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2020 51 167 367 305 610 1,500
Transactions with equity
shareholders:
Share issues 1 56 - - - 57
Transfer on exercise - - (67) - 67 -
--------- --------- --------- ---------- ---------- --------
1 56 (67) - 67 57
Reprice share options - - 43 - - 43
Profit for the year after
tax - - - - 1,618 1,618
Other comprehensive income
Exchange differences on translation
of foreign operations - - - (95) - (95)
Total other comprehensive
income - - - (95) - (95)
--------- --------- --------- ---------- ---------- --------
Total comprehensive income - - - (95) 1,618 1,523
--------- --------- --------- ---------- ---------- --------
At 30 June 2021 52 223 343 210 2,295 3,123
Transactions with equity
shareholders:
Share issues 1 82 83
Transfer on exercise (2) 2 -
--------- --------- --------- ---------- ---------- --------
1 82 (2) - 2 83
Distributions to owners
Dividends - - - - (589) (589)
--------- --------- --------- ---------- ---------- --------
- - - - (589) (589)
Loss for the year after tax - - - - (1,368) (1,368)
Other comprehensive income
Exchange differences on translation
of foreign operations - - - 73 - 73
--------- --------- --------- ---------- ---------- --------
Total other comprehensive
income - - - 73 - 73
--------- --------- --------- ---------- ---------- --------
Total comprehensive income - - - 73 (1,957) (1,884)
--------- --------- --------- ---------- ---------- --------
At 30 June 2022 53 305 341 283 340 1,322
========= ========= ========= ========== ========== ========
The accompanying accounting policies and notes form an integral
part of these financial statements.
Company statement of changes in equity
Share Share Share Retained Total
capital premium based earnings equity
payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2020 51 167 367 1,118 1,703
Transactions with equity shareholders:
Share issues 1 56 - - 57
Transfer on exercise - - (67) 67 -
--------- --------- --------- ---------- --------
1 56 (67) 67 57
Reprice share options - - 43 - 43
Profit for the year after tax - - - 1,126 1,126
--------- --------- --------- ---------- --------
Total comprehensive income for
the year - - - 1,126 1,126
--------- --------- --------- ---------- --------
At 30 June 2021 52 223 343 2,311 2,929
Transactions with equity shareholders:
Share issues 1 82 83
Transfer on exercise (2) 2 -
--------- --------- --------- ---------- --------
1 82 (2) 2 83
Distributions to owners
Dividends - - - (589) (589)
--------- --------- --------- ---------- --------
- - - (589) (589)
Loss for the year after tax - - - (2,231) (2,231)
--------- --------- --------- ---------- --------
Total comprehensive income for
the year - - - (2,637) (2,637)
--------- --------- --------- ---------- --------
At 30 June 2022 53 305 341 (507) 192
========= ========= ========= ========== ========
The accompanying accounting policies and notes form an integral
part of these financial statements.
Consolidated cash flow statement
12 months 12 months
to to
30 June 30 June
2022 2021
Notes GBP'000 GBP'000
Cash flows from operating activities
(Loss)/Profit for the year (1,368) 1,618
Taxation - (10)
Net finance income in the income statement 7 14 22
Depreciation of property, plant & equipment 10 181 167
Amortisation of intangible assets 12 256 251
Forgiveness of US loan - (174)
Write off of intangible assets 296 -
Share based payments - options/warrants 21 - 43
Decrease/(increase) in trade and other
receivables 170 (72)
Increase/(decrease) in trade and other
payables 262 (392)
Net cash generated by continuing operations (189) 1,453
Income tax receivable - -
---------- ----------
Net cash generated by operating activities (189) 1,453
Cash flows from financing activities
Issue of share capital 83 57
Dividend payments (589) -
Drawdown loans - 17
Repayment of loans (13) -
Repay lease liability (103) (92)
Lease interest paid (10) (19)
Other interest paid (4) (3)
Net cash generated by financing activities (636) (40)
Cash flows from investing activities
Payments for property, plant and equipment 10 (39) (39)
Purchase of intangibles 12 (114) (385)
Net cash used by investing activities (153) (424)
Net increase in cash and cash equivalents (978) 989
Exchange differences (46) 35
---------- ----------
Net increase in cash and cash equivalents (1,024) 1,024
Cash and cash equivalents at the start
of the period 1,939 915
---------- ----------
Cash and cash equivalents at the end of
the period 915 1,939
========== ==========
The accompanying accounting policies and notes form an integral
part of these financial statements.
Company cash flow statement
12 months 12 months
to to
30 June 30 June
2022 2021
Notes GBP'000 GBP'000
Cash flows from operating activities
(Loss)/profit for the period (2,231) 1,126
Taxation - 104
Net finance expense in the income statement 1 3
Depreciation of property, plant & equipment 10 72 63
Amortisation of intangibles 12 223 234
Impairment of investments 1,275 -
Share based payments - options/warrants 21 - 43
(Increase)/decrease in trade and other
receivables 7 247
Decrease/(increase) in trade and other
payables 159 (417)
Net cash generated by operating activities (494) 1,403
Income tax payable - -
---------- ----------
Net cash generated by operating activities (494) 1,403
Cash flows from financing activities
Issue of share capital 83 57
Dividend payments (589) -
Repayment of loans (13) -
Drawdown loans - 17
Interest paid (1) (3)
---------- ----------
Net cash generated by financing activities (520) 71
Cash flows from investing activities
Payments for property, plant and equipment 10 (32) (39)
Purchase of intangibles 12 (75) (294)
Net cash used by investing activities (107) (333)
Net increase/(decrease) in cash and cash
equivalents (1,121) 1,141
Cash and cash equivalents at the start
of the period 1,650 509
---------- ----------
Cash and cash equivalents at the end of
the period 529 1,650
========== ==========
The accompanying accounting policies and notes form an integral
part of these financial statements.
Notes to the financial statements
1. General information
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,
InvestorsHub.com Inc, N A Data Inc, MJAC InvestorsHub International
Conferences Ltd and Cupid Bay Limited.
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, Ongar
Business Centre, The Gables, Fyfield Road, Ongar, Essex, CM5
0GA.
The registered number of the company is 02374988.
Exemption from audit
For the year ended 30 June 2022 ADVFN Plc has provided a
guarantee in respect of all liabilities due by its subsidiary
companies Cupid Bay Limited (Company No. 04001650) and MJAC
InvestorsHub International Conferences Ltd (Company No. 11000464)
thus entitling them to exemption from audit under section 479A of
the Companies Act 2006 relating to subsidiary companies.
2. Summary of significant accounting policies
Basis of preparation
The consolidated and company financial statements are for the
year ended 30 June 2022. The financial reporting framework that has
been applied in their preparation is applicable law and UK-adopted
international accounting standards as at 30 June 2022. The
consolidated and company financial statements have been prepared
under the historical cost convention and are presented in Sterling
rounded to the nearest thousand (GBP'000) except where indicated
otherwise.
The subsidiary companies Cupid Bay Limited and MJAC InvestorsHub
International Conferences Ltd are exempt from an audit under s479A
of the Companies Act 2006.
Going concern
The financial statements have been prepared on the going concern
basis which assumes the Group will continue in existence for the
foreseeable future. The Directors are pleased to report that the
Group's profit is in line with the expectations announced earlier
in the year. The Directors have prepared a detailed forecast of
future trading and cash flows for the next three years after the
accounts are approved. The forecasts take into potential future
growth of the business both in the UK and USA, the development of
products that will enhance the growth of the business and the
potential areas for additional cost saving if required. The group
is also looking at additional fund raising to help with the
continued research and development work that is required to enhance
the products available to new and existing customers.
Standards and amendments to existing standards adopted in these
accounts
IAS 1 Presentation of Financial Statements and IAS 8 Accounting
policies, Changes in Accounting Estimates and Errors (Amendment -
Definition of Material)
Interest Rate Benchmark Reform - IBOR 'phase 2' (Amendments to
IFRS 7)
IFRS 3 Business Combinations (Amendment - Definition of
Business)
COVID-19 Related Rent Concessions (Amendments to IFRS 16)
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Standards, amendments and interpretations to existing standards
that are not yet effective and have not been early adopted by the
Company in the 30 June 2022 financial statements
Revised Conceptual Framework for Financial Reporting
Onerous Contracts - Cost of Fulfilling a Contract (Amendments to
IAS 37)
Property Plant and Equipment: Proceeds before intended use
(Amendments to IAS 16)
Annual improvements to IFRS Standards 2018-2020
References to Conceptual Framework (Amendments to IFRS 3)
Classification of liabilities as Current or Non-current
(Amendments to IAS 1)
IFRS 17 - Insurance Contracts
Amendments to IFRS 17 - Insurance Contracts; and Extension of
the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4
Insurance Contracts)
Disclosure of Accounting Policies (Amendments to IAS 1
Presentation of Financial Statements and IFRS Practice Statement 2
Making Materiality Judgements)
Definition of Accounting Estimates (Amendments to IAS 8
Accounting Policies, Changes in Accounting Estimates and
Errors)
Deferred Tax related to Assets and Liabilities arising from a
Single Transaction (Amendments to IAS 12 Income Taxes)
The Directors continue to monitor developments in the accounting
standards they see as relevant but do not believe that these
changes will significantly impact the Group.
Consolidation
The Group's financial statements consolidate those of the parent
company and all of its subsidiaries drawn up to 30 June 2022. The
parent controls a subsidiary if it is exposed, or has rights, to
variable returns from its involvement with the subsidiary and has
the ability to affect those returns through its power over the
subsidiary. The existence and effect of potential voting rights
that are currently exercisable or convertible are considered when
assessing whether the Group controls another entity. Subsidiaries
are fully consolidated from the date on which control is
transferred to the Group. They are deconsolidated on the date
control ceases.
Inter-company transactions, balances and unrealised gains and
losses (where they do not provide evidence of impairment of the
asset transferred) on transactions between Group companies are
eliminated.
Business combinations
The Group uses the acquisition method of accounting for the
acquisition of a subsidiary. The consideration transferred is
measured at the fair value of the assets given, equity instruments
issued and liabilities incurred or assumed at the date of exchange.
Costs directly attributable to the acquisition are expensed in the
period.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured
initially at their fair values at the acquisition date irrespective
of the extent of any non-controlling interest.
Goodwill is recognised at the acquisition date measured as the
excess of the aggregate of:
-- The fair value of the consideration transferred
-- The fair value or, alternatively, the share of net assets of
the non-controlling interest in the acquiree
-- In a combination achieved in stages, the fair value of the
acquirer's previously held equity interest in the acquiree over the
net of the acquisition date fair value of the identifiable assets
acquired and the liabilities assumed.
Where the goodwill calculation results in a negative amount
(bargain purchase) this amount is taken to the income statement in
the period in which it is derived.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Foreign currency translation
a) Functional and presentational currency
Items included in the financial statements of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates (the functional
currency). The Company's functional currency and the Group's
presentational currency is Sterling.
b) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at the
reporting period end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the
income statement.
c) Group companies
The results and financial position of all Group entities that
have a functional currency different from the presentation currency
are translated into the presentation currency as follows:
-- Assets and liabilities for each balance sheet presented are
translated at the closing rate at the date of the balance
sheet.
-- Income and expenses for each income statement are translated
at the rate of exchange at the transaction date. Where this is not
possible, the average rate for the period is used but only if there
is no significant fluctuation in the rate and;
-- On consolidation, exchange differences arising from the
translation of the net investment in foreign entities are
recognised in other comprehensive income and accumulated in a
separate component of equity. Post transition exchange differences
are recycled to profit or loss as a reclassification adjustment
upon disposal of the foreign operation.
Income and expense recognition
Revenue is the fair value of the total amount receivable by the
Group for supplies of services. VAT or similar local taxes and
trade discounts are excluded.
The revenues of the group are now accounted for under IFRS 15
'Revenue from contracts with customers' and reported as
follows:
-- Subscriptions - both monthly and annual subscriptions are
offered and the price for the subscription is quoted on the
website. Revenue for annual subscriptions is deferred on a time
basis with equal monthly transfers to the income statement to
allocate the recognition across the period of service provision.
Payment is received in advance of subscription fulfilment.
-- Advertising - fees for advertising are recognised when the
service obligations are fulfilled and are subject to agreement by a
written contract which includes pricing. Where there are multiple
obligations amounts specific to that obligation are transferred to
the income statement. Payment terms are 30 days following
invoicing.
Interest income and expenditure are reported on an accruals
basis. Operating expenses are recognised in the income statement
upon utilisation of the service or at the date of their origin.
Employee benefits
The cost of pensions in respect of the Group's defined
contribution scheme is charged to profit or loss in the period in
which the related employee services were provided.
Government grants
The Directors have taken advantage of the short-term finance
offered under the Business Bounce Back loan scheme and its US
equivalent. As part of the UK loans the first 12 months of the
interest charges have been reimbursed by the UK Government. This
has been treated as a government grant where the receipt has been
offset against the expense in the same period and the remainder
deferred if already received. The US loan was drawn down on the
basis that the loan would be over a period of 2 years, however,
this loan has now been 'forgiven' by the US Government and has been
treated as a grant and utilised immediately.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Intangible assets
- Licences
Licences are recognised at cost less any subsequent impairment
and amortisation charges, they are amortised over a five-year
period on a straight-line basis.
- Goodwill
Goodwill is capitalised as an intangible asset and allocated to
cash generating units (with separately identifiable cash flows) and
is subject to impairment testing on an annual basis or more
frequently if circumstances indicate that the asset may have been
impaired.
- Internally generated intangible assets
An internally generated intangible asset (website and mobile
application) arising from development (or the development phase) of
an internal project is recognised if, and only if, all of the
following have been demonstrated:
-- the technical feasibility of completing the intangible asset
so that it will be available for use or sale
-- the intention to complete the intangible asset and use or sell it
-- the ability to use or sell the intangible asset
-- how the intangible asset will generate probable future economic benefits
-- the availability of adequate technical, financial and other
resources to complete the development and to use or sell the
intangible asset
-- the ability to measure reliably the expenditure attributable
to the intangible asset during its development.
The amount initially recognised for internally generated
intangible assets is the sum of the expenditure incurred from the
date when the intangible asset first meets the recognition criteria
listed above. Where no internally generated intangible asset can be
recognised, development expenditure is charged to profit or loss in
the period in which it is incurred.
Subsequent to initial recognition, internally generated
intangible assets are reported at cost less accumulated
amortisation and accumulated impairment losses. Internally
generated intangibles not yet in use are subject to annual
impairment testing.
Internally generated intangible assets are amortised over three
to five years.
Research expenditure is recognised as an expense in the period
in which it is incurred.
- Intangible assets acquired as part of a business
combination
Intangible assets acquired in a business combination are
identified and recognised separately from goodwill where they
satisfy the definition of an intangible asset. The cost of such
intangible assets is their fair value at the acquisition date and
comprises brand names, subscriber lists, certain website
development costs and licenses. All intangible assets acquired
through business combination are amortised over their useful lives
estimated at between 5 and 10 years.
Subsequent to initial recognition, intangible assets acquired in
a business combination are reported at cost less accumulated
amortisation and accumulated impairment losses.
- Intangible assets purchased
Intangible assets are purchased when the opportunity arises and
capitalised at cost (fair value). Purchased intangible assets are
amortised over their useful lives estimated at between 5 and 10
years. Subsequent to initial recognition, purchased intangible
assets are reported at cost less accumulated amortisation and
accumulated impairment losses.
Property, plant and equipment
Property, plant and equipment are recorded at cost net of
accumulated depreciation and any provision for impairment.
Depreciation is provided using the straight-line method to write
off the cost of the asset less any residual value over its useful
economic life. The residual values of assets are reviewed annually
and revised where necessary. Assets' useful economic lives are as
follows:
Leasehold improvements The shorter of the useful life of the
asset or the term of the lease (1 to 3 years)
Computer equipment 33% per annum over 3 years
Office equipment 20% per annum over 5 years
Right of use lease assets The earlier of the end of the useful
life of the asset or the end of the lease term
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Intangible assets (continued)
Impairment
For the purposes of assessing impairment, assets are grouped at
the lowest level for which there are separately identifiable cash
flows. As a result some assets are tested individually for
impairment and some are tested at cash-generating unit level.
Goodwill, other individual assets or cash-generating units that
include goodwill and those intangible assets not yet available for
use are tested for impairment at least annually. All other
individual assets or cash-generating units are tested for
impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the
carrying amount exceeds the recoverable amount of the asset or
cash-generating unit. The recoverable amount is the higher of fair
value, reflecting market conditions less costs to sell, and value
in use based on an internal discounted cash flow evaluation. The
cashflow evaluations are a result of the Director's estimation of
future sales and expenses based on their past experience and the
current market activity within the business. With the exception of
goodwill, all assets are subsequently reassessed for indications
that an impairment loss previously recognised may no longer
exist.
Financial assets
On initial recognition, the Group classifies its financial
assets as either financial assets at fair value through profit or
loss, at amortised cost or fair value through comprehensive income,
as appropriate. The classification depends on the purpose for which
the financial assets were acquired. At the reporting year-end the
financial assets of the Group were all classified as loans or
receivables.
Trade receivables
These assets are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. They
arise principally through the provision of goods and services to
customers but also incorporate other types of contractual monetary
assets.
They are initially recognised at fair value and measured
subsequent to initial recognition at amortised cost using the
effective interest method, less any impairment loss.
The Group's financial assets comprise trade receivables, other
receivables (excluding prepayments) and cash and cash
equivalents.
Trade and other receivables - impairment
The group applies an expected credit loss model to calculate the
impairment losses on its trade receivables. The group applies the
simplified approach to providing for expected credit losses
prescribed by IFRS 9, which permits the use of the lifetime
expected loss provision for all trade receivables. Trade
receivables at the balance sheet date have been put into groups
based on days past the due date for payment and an expected loss
percentage has been applied to each group to generate the expected
credit loss provision for each group and a total expected credit
loss provision has thus been calculated.
Financial liabilities
The Group's financial liabilities include trade and other
payables and borrowings which include lease liabilities.
Financial liabilities are recognised when the Group becomes a
party to the contractual agreements of the instrument. All interest
related charges are recognised as an expense in the income
statement.
Trade payables are recognised initially at their fair value, net
of transaction costs and subsequently measured at amortised costs
less settlement payments.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Leases
The Group previously classified leases as operating or finance
leases based on its assessment of whether the lease transferred
significantly all of the risks and rewards incidental to the
ownership of the underlying asset to the Group.
The Group is a lessee of office premises and, under IFRS 16,
where the Group had recognised a lease as an operating lease and
payments made under the lease were recognised in profit or loss on
a straight-line basis over the term of the lease, the Group now
recognises a right-of-use asset and a lease liability for most
leases i.e. these leases are on-balance sheet.
The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made before the commencement date, plus any
initial direct costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the underlying asset
or the site on which it is located, less any lease incentive
received.
The right-of-use asset is subsequently depreciated using the
straight-line method from the commencement date to the earlier of
the end of the useful life of the right-of-use asset or the end of
the lease term. The estimated useful lives of right-of-use assets
are determined on the same basis as those of property and
equipment. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
Lease payments included in the measurement of the lease
liability comprise the following:
- fixed payments, including in-substance fixed payments
- variable lease payments that depend on an index or rate,
initially measured using the index or rate at the commencement
date
- amounts expected to be payable under a residual value guarantee, and
- the exercise price under a purchase option that the group is
reasonably certain to exercise, lease payments in an optional
renewal period if the group is reasonably certain to exercise such
an option to extend and penalties for early termination of a lease
unless the group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the
effective interest method. It is remeasured when there is a change
in future lease payments arising from a change in an index or rate,
if there is a change in the group's estimate of the amount expected
to be payable under a residual value guarantee or if the group
changes its assessment of whether it will exercise a purchase,
extension or termination option.
When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount of the
right-of-use asset or is recorded in profit or loss if the carrying
amount of the right-of-use asset has been reduced to zero.
The group presents right-of-use assets in 'property, plant and
equipment' and lease liabilities in 'loans and borrowings' in the
balance sheet.
Income taxes
Current income tax assets and liabilities comprise those
obligations to fiscal authorities in the countries in which the
Group carries out its operations. They are calculated according to
the tax rates and tax laws applicable to the fiscal period and the
country to which they relate. All changes to current tax
liabilities are recognised as a component of tax expense in the
income statement unless the tax relates to an item taken directly
to equity in which case the tax is also taken directly to equity.
Tax relating to items recognised in other comprehensive income is
recognised in other comprehensive income.
Deferred income taxes are calculated using the liability method
on temporary differences. Deferred tax is generally provided on the
difference between the carrying amounts of assets and liabilities
and their tax bases. However, deferred tax is not provided on the
initial recognition of goodwill, nor on the initial recognition of
an asset or liability unless the related transaction is a business
combination or affects tax or accounting profit. Deferred tax on
temporary differences associated with shares in subsidiaries and
joint ventures is not provided if reversal of these temporary
differences can be controlled by the Group and it is probable that
reversal will not occur in the foreseeable future. In addition, tax
losses available to be carried forward as well as other income tax
credits to the group are assessed for recognition as deferred tax
assets.
Deferred tax liabilities are always provided for in full.
Deferred tax assets such as those resulting from assessing deferred
tax on the expense of share-based payments, are recognised to the
extent that it is probable that future taxable profits will be
available against which the temporary differences can be utilised.
Deferred tax assets and liabilities are calculated at tax rates
that are expected to apply to their respective period of
realisation, provided they are enacted or substantively enacted at
the balance sheet date.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Provisions, contingent liabilities and contingent assets
Provisions are recognised when the present obligations arising
from legal or constructive commitment resulting from past events,
will probably lead to an outflow of economic resources from the
Group which can be estimated reliably.
Provisions are measured at the present value of the estimated
expenditure required to settle the present obligation, based on the
most reliable evidence available at the balance sheet date.
All provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.
Share based employee compensation
The Group operates equity settled share-based compensation plans
for remuneration of its employees.
All employee services received in exchange for the grant of any
share-based compensation are measured at their fair values. These
are indirectly determined by reference to the share options
awarded. Their value is appraised at the grant date and excludes
the impact of any non-market vesting conditions (e.g. profitability
or sales growth targets).
All share-based compensation is ultimately recognised as an
expense in the income statement with a corresponding credit to the
share-based payment reserve, net of deferred tax where applicable.
If vesting periods or other vesting conditions apply, the expense
is allocated over the vesting period, based on the best available
estimate of the number of share options expected to vest.
Non-market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable.
Estimates are subsequently revised if there is any indication that
the number of share options expected to vest differs from previous
estimates. No adjustment to expense recognised in prior periods is
made if fewer share options ultimately are exercised than
originally estimated.
Upon exercise of share options, the proceeds received, net of
any directly attributable transaction costs, up to the nominal
value of the shares issued are reallocated to share capital with
any excess being recorded as additional share premium.
Where modifications are made to the vesting or lapse dates of
options the excess of the fair value of the revised options over
the fair value of the original options at the modification date is
expensed over the remaining vesting period.
Dividends
During the year, dividends totalling GBP589,000 were paid. The
board is not recommending the payment of any further dividends in
the current financial year.
Final equity dividends to the shareholders of ADVFN plc are
recognised in the period that they are approved by shareholders.
Interim equity dividends are recognised in the period that they are
paid.
Dividends receivables are recognised when the Company's right to
receive payment is established
Equity
Issued capital
Ordinary shares are classified as equity. The nominal value of
shares is included in issued capital.
Share premium
The share premium account represents the excess over nominal
value of the fair value of consideration received for equity
shares, net of the expenses of the share issue.
Share based payment reserve
The share-based payment reserve represents equity settled
share-based employee remuneration until such share options are
exercised.
Foreign exchange reserve
The foreign exchange reserve represents foreign exchange gains
and losses arising on translation of investments in overseas
subsidiaries into the consolidated financial statements.
Retained earnings
The retained earnings include all current and prior period
results for the Group and the post-acquisition results of the
Group's subsidiaries as determined by the income statement.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
Use of key accounting estimates and judgements
Many of the amounts included in the financial statements involve
the use of judgement and/or estimation. These judgements and
estimates are based on management's best knowledge of the relevant
facts and circumstances, having regard to prior experience, but
actual results may differ from the amounts included in the
financial statements. Information about such judgements and
estimates is contained in the accounting policies and/or the notes
to the financial statements and the key areas are summarised
below:
Judgements in applying accounting policies
a) Capitalisation of development costs in accordance with IAS 38
requires analysis of the technical feasibility and commercial
viability of the project in the future. This in turn requires a
long-term judgement to be made about the development of the
industry in which the development will be marketed. Where the
directors consider that sufficient evidence exists surrounding the
technical feasibility and commercial viability of the project,
which indicate that the costs incurred will be recovered they are
capitalised within intangible fixed assets. The amount of the
capitalisation is based on estimates to judge the percentage of the
time relevant staff spend on projects as specific timesheets are
not maintained. Where insufficient evidence exists, the costs are
expensed to the income statement.
b) The directors have used their judgement to decide whether the
Group should be treated as a going concern and continue in
existence for the foreseeable future. Having considered the latest
Group forecasts, which cover a period of three years from the
balance sheet date, together with the cash resources available to
them, the directors have judged that it is appropriate for the
financial statements to be prepared on the going concern basis.
c) The application of IFRS 15 - Revenue from contracts with
customers requires an assessment of the elements of the contract to
separate potentially bundled services requiring different
treatment, the recognition of revenue at the point of performance
obligations and the assessment of the correct amount of revenue for
each of those obligations.
Sources of estimation uncertainty
a) Determining whether goodwill and other intangible assets are
impaired requires an estimation of the value in use of the cash
generating unit to which the goodwill and intangibles have been
allocated. The carrying value of the investments are also assessed.
The value in use calculations require an estimation of the future
cash flows expected to arise from the cash generating units and a
suitable discount rate in order to calculate a suitable present
value. During the current year, the review led to an impairment of
the investments in Group Companies of GBP1,275,000.
Notes to the financial statements (continued)
Summary of significant accounting policies (continued)
3. Segmental analysis
The directors identify operating segments based upon the
information which is regularly reviewed by the chief operating
decision maker. The Group considers that the chief operating
decision makers are the executive members of the Board of
Directors. The Group has identified two reportable operating
segments, being that of the provision of financial information and
that of other services. The provision of financial information is
made via the Group's various website platforms.
The parent entities operations are entirely of the provision of
financial information.
Three 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, financial
conference events and other internet services not related to
financial information. Segment information can be analysed as
follows for the reporting period under review:
2022 Provision Other Total
of financial
information
GBP'000 GBP'000 GBP'000
Revenue from external customers 7,796 52 7,848
Depreciation and amortisation (405) (32) (437)
Other operating expenses (9,338) 551 (8,787)
Other operating income - - -
-------------- -------- --------
Segment operating (loss)/profit (1,947) 571 (1,376)
Interest income - - -
Interest expense (14) - (14)
============== ======== ========
Segment assets 1,718 1,896 3,597
Segment liabilities (2,232) (58) (2,290)
Purchases of non-current assets 155 - 155
============== ======== ========
2021 Provision Other Total
of financial
information
GBP'000 GBP'000 GBP'000
Revenue from external customers 9,020 39 9,059
Depreciation and amortisation (408) (21) (429)
Other operating expenses (6,763) (403) (7,166)
Other operating income 162 - 162
-------------- -------- --------
Segment operating profit/(loss) 2,011 (385) 1,626
Interest income - - -
Interest expense (21) (1) (22)
============== ======== ========
Segment assets 4,451 815 5,266
Segment liabilities (2,113) (30) (2,143)
Purchases of non-current assets 424 - 424
============== ======== ========
Revenue recognition per IFRS 15
Point in Over time Total
time
GBP'000 GBP'000 GBP'000
Revenue during 2021 5,266 3,793 9,059
Revenue during 2022 4,183 3,668 7,851
========= ========== ========
Notes to the financial statements (continued)
Segmental analysis (continued)
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
2022 2022 2021 2021
GBP'000 GBP'000 GBP'000 GBP'000
UK (domicile) 3,198 1,172 3,655 1,734
USA 4,525 1,064 5,240 1,047
Other 125 - 164 -
7,848 2,236 9,059 2,781
======== ============ ======== ============
Revenues are allocated to the country in which the customer
resides. During both 2022 and 2021 no single customer accounted for
more than 10% of the Group's total revenues.
4. Operating loss
2022 2021
Operating (loss)/profit has been arrived at GBP'000 GBP'000
after charging:
Foreign exchange (gain)/loss (2) 50
Depreciation and amortisation:
Depreciation of property, plant and equipment:
Depreciation on owned property, plant and equipment 181 167
Amortisation of intangible assets 256 251
Employee costs (Note 5) 4,650 3,612
Lease payments on land and buildings (Note 22) 103 100
Audit and non-audit services:
Fees payable to the company's auditor for the
audit of the Group's annual accounts 45 38
Remuneration of key senior management for Group and Company
2022 2021
GBP'000 GBP'000
Key senior management comprises only directors
Salary and fees 1,502 1,328
Compensation for loss of office 831 -
Benefits in kind - -
Annual bonus 80 40
Share based payments - 43
Post-employment benefits - defined contribution
pension plans 60 72
2,473 1,483
======== ========
Highest paid director
Salary and fees 381 440
Compensation for loss of office 831 -
Benefits in kind - -
Annual bonus 25 15
Share based payments - 15
Post-employment benefits - defined contribution
pension plans 24 36
1,261 506
====== ====
Details of the directors' emoluments, together with other
related information, are set out in the Remuneration Report
on page 13.
Notes to the financial statements (continued)
5. Employees
GROUP
2022 2021
GBP'000 GBP'000
Employee costs (including directors):
Wages and salaries 3,325 3,129
Compensation for loss of office 831 -
Annual bonus 80 40
Social security costs 309 280
Pension costs 105 120
Share based payments - 43
-------- --------
4,650 3,612
======== ========
The average number of employees during the year
was made up as follows:
Development 10 9
Sales and Administration 30 29
40 38
======== ========
COMPANY
2022 2021
GBP'000 GBP'000
Employee costs (including directors):
Wages and salaries 2,140 2,036
Compensation for loss of office 831 -
Social security costs 225 198
Pension 103 118
Share based payments - 43
-------- --------
3,299 2,395
======== ========
The average monthly number of employees during the year was as
follows:
Development 4 4
Sales and Administration 15 16
--- ---
19 20
=== ===
Details of the directors' emoluments, together with other
related information, are set out in the Remuneration Report
on page 13.
Notes to the financial statements (continued)
6. Non-recurring items
GROUP AND COMPANY
2022 2021
GBP'000 GBP'000
Exceptional corporate and shareholder activity 252 -
Costs relating to the exit of directors 1,114 -
Early termination costs 54 -
1,420 -
======== ========
During the year, the company went through a period of
shareholder and management changes, during which time the company
incurred legal and advisory fees. The culmination of the activity
was the resignation of Mr Clement Chambers, for which the company
incurred further fees in relation to his exit.
The company also chose to vacate the Throgmorton Street offices
and incurred early termination costs on this lease.
Finally, the goodwill on the investment in IHUB has impaired
during the review of the valuation of the investments.
7. Finance expense
GROUP
2022 2021
GBP'000 GBP'000
Finance expense
Lease interest 10 19
Bank interest 4 3
======== ========
8. Income tax expense
GROUP
2022 2021
GBP'000 GBP'000
Current Tax:
UK corporation tax on profits for the year (24) (10)
Adjustments in respect of prior periods - -
-------- --------
Total current taxation (24) (10)
Deferred tax
Origination and reversal of timing differences 84 303
Carried forward losses (DTA) (84) (303)
Effect of rate change -
-------- --------
Taxation (24) (10)
======== ========
Notes to the financial statements (continued)
Income tax expense (continued)
The tax assessed for the year is different from the standard
rate of corporation tax as applied in the respective trading
domains where the Group operates. The differences are explained
below:
2022 2021
GBP'000 GBP'000
(Loss)/Profit before tax (1,782) 1,608
(Loss)/Profit before tax multiplied by the respective
standard rate of corporation tax applicable
in the UK (19.00%) (2021: 19.00%) (339) 306
Effects of:
Non-deductible expenses 434 (13)
Capital allowances (9) (9)
Carried forward losses utilised against profits (27) (165)
Enhanced Research & Development expenditure (18) (96)
Overseas tax rates - -
Surrender of tax losses for R & D tax credit 27 14
Adjustments in respect of prior periods - -
Current year R&D tax credit (24) (11)
Effect of difference in tax rates 63 6
Consolidation adjustments - no tax effect (131) (42)
Deferred tax - prior period adjustment - -
Deferred tax - difference between opening and - -
current year tax rates
Movements in unrecognised deferred tax - -
Tax credit for the year (24) (10)
======== ========
9. (Loss) / Profit per share
12 months 12 months
to to
30 June 30 June
2022 2021
GBP'000 GBP'000
(Loss)/profit for the year attributable to equity
shareholders (1,368) 1,618
Total (loss) / profit per share - basic and
diluted
Basic (5.22p) 6.28p
Diluted (5.22p) 5.97p
Shares
Weighted average number of shares in issue for
the year 26,184,360 25,773,739
Dilutive effect of options - 1,336,807
----------- -----------
Weighted average shares for diluted earnings
per share 26,184,360 27,110,546
=========== ===========
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.
Notes to the financial statements (continued)
10. Property, plant and equipment
GROUP
Leasehold Right of
property Computer use lease
improvements equipment Office equipment assets Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 July 2020 48 364 298 349 1,059
Additions - 39 - - 39
FX difference - - (28) - (28)
-------------- ----------- ----------------- ----------- --------
At 30 June 2021 48 403 270 349 1,070
Additions - 32 7 - 39
FX difference - - 31 - 31
-------------- ----------- ----------------- ----------- --------
At 30 June 2022 48 435 308 349 1,140
============== =========== ================= =========== ========
Depreciation
At 1 July 2020 48 276 293 77 694
Charge for the
year - 63 3 101 167
FX difference - - (30) - (30)
-------------- ----------- ----------------- ----------- --------
At 30 June 2021 48 339 266 178 831
Charge for the
year - 72 11 98 181
FX difference - - 30 - 30
-------------- ----------- ----------------- ----------- --------
At 30 June 2022 48 411 307 276 1,042
============== =========== ================= =========== ========
Net book value
At 30 June
2022 - 24 1 73 98
At 30 June 2021 - 64 4 171 239
============== =========== ================= =========== ========
Charge over assets
A fixed and floating charge is held by Barclays Bank which
covers all the property and undertakings of the company against the
provision of any loan, debenture or other bank liability.
Notes to the financial statements (continued)
Property, plant and equipment (continued)
COMPANY
Leasehold property Computer Office equipment Total
improvements equipment
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 July 2020 48 359 106 513
Additions - 39 - 39
Disposals - - - -
------------------- ----------- ----------------- --------
At 30 June 2021 48 398 106 552
Additions - 32 - 32
Disposals - - - -
------------------- ----------- ----------------- --------
At 30 June 2022 48 430 106 584
=================== =========== ================= ========
Depreciation
At 1 July 2020 48 271 106 425
Charge for the year - 63 - 63
Disposals - - - -
------------------- ----------- ----------------- --------
At 30 June 2021 48 334 106 488
Charge for the year - 72 - 72
Disposals - - - -
------------------- ----------- ----------------- --------
At 30 June 2022 48 406 106 560
=================== =========== ================= ========
Net book value
At 30 June 2022 - 24 - 24
At 30 June 2021 - 64 - 64
=================== =========== ================= ========
11. Goodwill
GROUP
GBP'000
At 1 July 2020 1,002
Exchange differences (132)
At 30 June 2021 870
========
Exchange differences 118
At 30 June 2022 988
========
The goodwill carried in the balance sheet is attributable to
InvestorsHub.com Inc.
Impairment testing - InvestorsHub.com Inc .
The Group tests goodwill annually for impairment. During the
year, impairment tests were undertaken over the goodwill of
InvestorsHub.com Inc. which is considered to be a single CGU. The
recoverable amount was determined using a value in use calculation
based upon management forecasts for the trading results for the
three and a half years ending 31 December 2025.
A discount rate of 10% has been used for this exercise based on
the estimated likely rate of debt financing for the company. The
key assumptions utilised within the forecast model relate to the
level of future sales. Increases have been estimated at between 0%
and 5%. The closing exchange rate of $1.25/GBP has been used (2021:
$1.42/GBP). The value in use calculations indicate that
InvestorsHub.com Inc. has a recoverable amount of GBP1,000,000
compared to an investment by ADVFN of GBP1,651,000 and a goodwill
carrying value of GBP988,000. The Company's investment in
InvestorsHub.com has been impaired, however goodwill has not been
impaired based on the recoverable amount being greater than the
carrying value.
Notes to the financial statements (continued)
12. Other intangible assets
GROUP
Licences Brands & Website Mobile application Software Crypto-currencies Total
subscriber development
lists costs
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost or valuation
At 1 July 2020 162 2,129 2,181 10 386 - 4,868
Additions - - 294 - 91 - 385
Disposals - - - - - -
-------- ----------- ----------------- ------------------ -------- ----------------- -------
At 30 June
2021 162 2,129 2,475 10 477 - 5,253
Additions - - 74 - 39 1 114
Disposals - - - - (296) - (296)
-------- ----------- ----------------- ------------------ -------- ----------------- -------
At 30 June
2022 162 2,129 2,549 10 220 1 5,071
======== =========== ================= ================== ======== ================= =======
Amortisation
At 1 July 2020 162 2,129 1,076 10 63 - 3,440
Charge for
the year - - 232 - 19 - 251
Disposals - - - - - - -
-------- ----------- ----------------- ------------------ -------- ----------------- -------
At 30 June
2021 162 2,129 1,308 10 82 - 3,691
Charge for
the year - - 223 - 33 - 256
Disposals - - - - - - -
-------- ----------- ----------------- ------------------ -------- ----------------- -------
At 30 June
2022 162 2,129 1,531 10 115 - 3,947
======== =========== ================= ================== ======== ================= =======
Net book value
At 30 June
2022 - - 1,018 - 105 1 1,124
At 30 June
2021 - - 1,167 - 395 - 1,562
======== =========== ================= ================== ======== ================= =======
All additions are internally generated by capitalisation of
development work on websites and software projects.
The directors are satisfied that no indication of impairment
exists in respect of these assets.
Notes to the financial statements (continued)
Other intangible assets (continued)
COMPANY
Licenses Mobile application Website development Crypto-currencies Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 July 2020 100 10 1,768 - 1,878
Additions - - 294 - 294
Disposals - - - - -
--------- ------------------- -------------------- ------------------ --------
At 30 June 2021 100 10 2,062 - 2,172
Additions - - 74 1 75
Disposals - - - - -
--------- ------------------- -------------------- ------------------ --------
At 30 June 2022 100 10 2,136 1 2,247
========= =================== ==================== ================== ========
Amortisation
At 1 July 2020 90 10 1,456 - 1,556
Charge for the
year 10 - 224 - 234
Disposals - - - - -
--------- ------------------- -------------------- ------------------ --------
At 30 June 2021 100 10 1,680 - 1,790
Charge for the
year - - 223 - 223
Disposals - - - - -
--------- ------------------- -------------------- ------------------ --------
At 30 June 2022 100 10 1,903 - 2,013
========= =================== ==================== ================== ========
Net book value
At 30 June
2022 - - 233 1 234
At 30 June 2021 - - 382 - 382
--------- ------------------- -------------------- ------------------ --------
All additions are internally generated by capitalisation of
development work on websites.
The directors are satisfied that no indication of impairment
exists in respect of these assets.
Notes to the financial statements (continued)
13. Subsidiary companies consolidated in these accounts
COMPANY
Subsidiaries
GBP'000
At 1 July 2020 2,276
Impairment -
------------
30 June 2021 2,276
============
Impairment (1,275)
30 June 2022 1,001
============
The Group tests investments annually for impairment. During the
year, impairment tests were undertaken over the investments of
InvestorsHub.com Inc. and All IPO Plc which are each considered to
be a single CGU. The recoverable amount was determined using a
value in use calculation based upon management forecasts for the
trading results for the three years ending 30 June 2023 and
extended by another 2 years without growth. This 5-year forecast is
then extended to perpetuity.
A discount rate of 10% has been used for this exercise based on
the estimated likely rate of debt financing for the company. The
key assumptions utilised within the forecast model relate to the
level of future sales. Increases have been estimated at between 0%
and 5%. The closing exchange rate of $1.25/GBP has been used (2021:
$1.42/GBP). The value in use calculations indicate that
InvestorsHub.com Inc. has a recoverable amount of GBP1,000,000
compared to an investment by ADVFN of GBP1,651,000. The Company's
investment in InvestorsHub.com has been impaired to the expected
recoverable amount. The value in use calculations indicate that the
value of use in All IPO is minimal and therefore the full
investment, to the value of GBP624,000, has been impaired.
Country of % interest Principal activity Registered address
incorporation in
ordinary
shares
30 June 2022
Cupid Bay Limited England & 100.00 Internet dating Suite 28 Ongar
Wales web site Business Centre,
The Gables, Ongar,
England, CM5 0GA
England & 100.00 Dormant As Cupid Bay Limited
Fotothing Limited Wales
NA Data Inc. USA 100.00 Office services P.O. Box 780
Harrisonville
Mo. 64701
InvestorsHub.com USA 100.00 Financial information As NA Data Inc.
Inc. web site
ADVFN Brazil Limited England & 100.00 Dormant As Cupid Bay Limited
Wales
E O Management Limited England & 100.00 Dormant As Cupid Bay Limited
Wales
Throgmorton Street England & 100.00 Dormant As Cupid Bay Limited
Capital Limited Wales
England & 100.00 Dormant As Cupid Bay Limited
Advessel Limited Wales
All IPO Plc England & 100.00 Brokerage and As Cupid Bay Limited
Wales software development
England & 100.00 Dormant As Cupid Bay Limited
Writer Pub Limited Wales
MJAC InvestorsHub England & 100.00 Dormant As Cupid Bay Limited
International Conferences Wales
Ltd
The subsidiary companies Cupid Bay Limited and MJAC InvestorsHub
International Conferences Ltd are exempt from audit under s479A of
the Companies Act 2006.
Notes to the financial statements (continued)
14. Deferred tax
GROUP
The following are the major deferred tax liabilities and assets
recognised by the Group and the movements thereon during the
current and prior periods:
Intangible Website US temporary UK tax Total
assets development differences losses
& software
costs
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 30 June 2020 80 (271) (80) 271 -
Credit/(charge) to profit
or loss (80) (32) 80 32 -
At 30 June 2021 - (303) 303 -
Credit/(charge) to profit
or loss - (84) - 84 -
At 30 June 2022 - (387) - 387 -
=========== ============= ============= ======== ========
Deferred tax in ADVFN Plc amounted to GBP57,800 and in
subsidiary companies amounted to GBP26,000 in All IPO Plc. The
deferred tax liability for the temporary difference has been
recognised at 25% as per the future tax rate which has increased
the deferred tax liability by GBP21,000. The deferred tax asset for
the losses has also been recognised at 25% as per the future tax
rate.
Certain deferred tax assets and liabilities have been offset.
The following is the analysis of the deferred tax balances, after
offset, for the purposes of financial reporting:
2022 2021
GBP'000 GBP'000
Deferred tax liabilities
* Website development & software costs (84) (303)
* US temporary differences - 80
Deferred tax assets
* Intangible assets - (80)
* UK tax losses 84 303
- -
At the balance sheet date the Group had unused tax losses of
GBP5,340,000 (2021: GBP5,175,000) available for offset against
future profits. The Group has surrendered losses of GBP169,000 for
the R&D tax credit for the year. A deferred tax asset has been
recognised in respect of GBP338,000 (2021: GBP1,212,000) of such
losses, as these losses would offset any taxable profits arising as
a result of the unwinding of the deferred tax liability in respect
of website development costs. No deferred tax asset has been
recognised in respect of the remaining GBP5,002,000 (2021:
GBP3,963,000) due to the unpredictability of future profit streams.
Substantially all of the losses may be carried forward
indefinitely.
COMPANY
The Deferred Tax Liability in the ADVFN company is due to the
temporary difference between the accounting base and tax base for
the Intangible - Website development, temporary difference
GBP232,000 and deferred tax liability GBP58,000
Notes to the financial statements (continued)
15. Trade and other receivables
GROUP
2022 2021
GBP'000 GBP'000
Non-current assets
Other receivables 26 110
======== ========
Current assets
Trade receivables - gross 320 416
Less: provision for impairment - expected loss (18) (10)
Less: provision for impairment - specific (2) (7)
Trade receivables - net 300 399
Prepayments and accrued income 130 132
Other receivables 6 5
Recoverable corporation tax 24 10
Total trade and other receivables 460 546
The ageing of trade receivables is as follows:
2022 2021
GBP'000 GBP'000
Not past due and not impaired 222 325
Past due but not impaired 96 84
Past due and fully impaired 2 7
-------- --------
Trade receivables - gross 320 416
Not past due and not impaired 222 325
Past due but not impaired:
Up to 30 days - 5
31 to 60 days 12 57
61 to 90 days 30 2
Over 90 days 54 20
----- -----
96 84
Receivables not impaired 318 409
Past due but fully impaired 2 7
Less impairment provision (20) (17)
----- -----
Trade receivables - net 300 399
===== =====
Provision for impairment:
2022 2021
GBP'000 GBP'000
Opening 17 29
Movement in the year 3 (12)
-------- --------
Closing 20 17
======== ========
The Directors consider that the carrying amount of trade and
other receivables in both the Group and Company is approximately
equal to their fair value.
Notes to the financial statements (continued)
COMPANY
2022 2021
GBP'000 GBP'000
Non-current assets
Other receivables 24 108
======== ========
Current assets
Trade receivables - gross 175 180
Less: provision for impairment - expected loss (8) (6)
Less: provision for impairment - specific (2) (5)
Trade receivables - net 165 169
Prepayments and accrued income 97 102
Other receivables - -
Recoverable corporation tax 24 -
Amounts owed by Group undertakings 500 438
Total trade and other receivables 786 709
The ageing of trade receivables is as follows:
2022 2021
GBP'000 GBP'000
Not past due and not impaired 133 120
Past due but not impaired 40 55
Past due and fully impaired 2 5
-------- --------
Trade receivables - gross 175 180
Not past due and not impaired 133 120
Past due but not impaired:
Up to 30 days - 2
31 to 60 days 5 37
61 to 90 days 14 2
Over 90 days 21 14
----- -----
40 55
Receivables not impaired 173 175
Past due and fully impaired 2 5
Less impairment provision (10) (11)
----- -----
Trade receivables - net 165 169
===== =====
Provision for impairment:
2022 2021
GBP'000 GBP'000
Opening 11 11
Movement in the year (1) -
-------- --------
Closing 10 11
======== ========
The Directors consider that the carrying amount of trade and
other receivables in both the Group and Company is approximately
equal to their fair value.
Notes to the financial statements (continued)
16. Credit quality of financial assets
Under IFRS 9 Financial Instruments the allowance account for
doubtful debts is calculated using an Expected Credit Loss (ECL)
model which takes a view on the lifetime expected credit loss to be
suffered by the current receivables. On that basis the allocation
to the allowance account for receivables at 30 June 2022 is
calculated using the percentage credit loss expectations shown.
GROUP
As of 30 June 2022, trade receivables of GBP96,000 (2021:
GBP84,000) were past due but not impaired (see note 15). These
relate to a number of independent customers for whom there is no
recent history of default.
Expected credit loss provision 2022 2021
GBP'000 % GBP'000 GBP'000
Not past due 222 1.00 2 325
Not more than 3 months 42 5.00 2 64
More than 3 months but not more
than 6 months 21 15.00 3 11
More than 6 months but not more
than 1 year 24 25.00 6 9
More than 1 year 9 50.00 5 -
318 18 409
======== ====== ======== ========
Impaired receivables allowance account
2022 2021
Specific provision GBP'000 GBP'000
At 1 July 7 17
Utilised during the year (12) (26)
Created during the year 7 16
At 30 June 2 7
======== ========
The carrying amount of the Group's trade receivables is
denominated in the following currencies:
2022 2021
GBP'000 GBP'000
Sterling 135 104
Euro 1 1
US dollar 164 294
300 399
======== ========
Notes to the financial statements (continued)
Credit quality of financial assets (continued)
COMPANY
As of 30 June 2022, trade receivables of GBP40,000 (2021:
GBP55,000) were past due but not impaired (see note 15). These
relate to a number of independent customers for whom there is no
recent history of default.
Expected credit loss provision 2022 2021
GBP'000 % GBP'000 GBP'000
Not past due 133 1.00 1 120
Not more than 3 months 19 5.00 1 41
More than 3 months but not more
than 6 months 5 15.00 1 10
More than 6 months but not more
than 1 year 13 25.00 3 4
More than 1 year 3 50.00 2 -
173 8 175
======== ====== ======== ========
Impaired receivables allowance account
2022 2021
Specific provision GBP'000 GBP'000
At 1 July 5 6
Utilised during the year (10) (16)
Created during the year 7 15
At 30 June 2 5
======== ========
The carrying amount of the Company's trade receivables is
denominated in the following currencies:
2022 2021
GBP'000 GBP'000
Sterling 122 104
Euro 1 1
US dollar 42 64
165 169
======== ========
Notes to the financial statements (continued)
17. Interest bearing borrowings
Bank loans
As a result of the COVID-19 pandemic the Directors considered it
prudent to take further steps to ensure that short term cashflow
did not present a problem for the Group. Short term finance offered
under the Business Bounce Back loan scheme and the US equivalent
has provided an additional layer of protection whilst the economy
rides out the effects of the pandemic. The US loan was drawn down
on the basis that the loan would be over 2 years at 1% interest
with a payment free period. However, this loan has now been
'forgiven' by the US Government and has become a grant, The UK loan
is charged at 2.5% over 6 years with an interest and payment free
period for the first 12 months.
Lease liabilities
The carrying value of the lease liabilities is included in the
borrowing classification. There are no leases carried in the
Company. For further details please see Note 22.
GROUP
2022 2021
GBP'000 GBP'000
Non-current
Bank loans 41 54
Lease liability - 87
------- -------
41 141
Brought forward 141 238
Cash flows (103) (106)
Interest and fees 3 9
------- -------
As at 30 June 41 141
======= =======
Current
Bank loans 13 13
Lease liability 87 103
------- -------
100 116
Brought forward 116 268
Cash flows (25) (160)
Interest and fees 9 8
------- -------
As at 30 June 100 116
======= =======
Notes to the financial statements (continued)
Interest bearing borrowings (continued)
COMPANY
2022 2021
GBP'000 GBP'000
Non-current
Bank loans 41 54
Brought forward 54 39
Cash flows (14) 15
Interest and fees 1 -
------- -------
As at 30 June 41 54
======= =======
Current
Bank loans 13 13
Brought forward - 11
Cash flows - 2
Interest and fees - -
------- -------
As at 30 June 13 13
======= =======
Changes in liabilities arising from financing activities
GROUP
2021 Cash Loan 2022
GBP'000 flows forgiven GBP'000
Long term borrowing 67 (13) - 54
Lease liabilities 190 (103) - 87
COMPANY
2021 Cash New 2022
GBP'000 flows leases GBP'000
Long term borrowing 67 (13) - 54
======= ===== ====== =======
Notes to the financial statements (continued)
18. Financial instruments
GROUP
Categories of financial instrument 2022 2021
GBP'000 GBP'000
Non-current
Trade and other receivables - at amortised
cost 26 110
======== ========
Current
Trade and other receivables - at amortised
cost 306 404
Trade and other receivables - non-financial
assets 130 142
-------- --------
436 546
======== ========
Cash and cash equivalents 915 1,939
======== ========
Financial assets 1,221 2,343
======== ========
Non-current
Borrowings 41 141
======== ========
Current
Borrowings 100 116
Trade and other payables - at amortised cost 1,184 1,002
Trade and other payables - non-financial liabilities 963 884
-------- --------
2,147 1,886
======== ========
Financial liabilities 1,284 1,118
======== ========
COMPANY
Categories of financial instrument 2022 2021
GBP'000 GBP'000
Non-current
Trade and other receivables - at amortised
cost 24 108
======== ========
Current
Trade and other receivables - at amortised
cost 848 607
Trade and other receivables - non-financial
assets 96 102
-------- --------
944 709
======== ========
Cash and cash equivalents 529 1,650
======== ========
Financial assets 1,376 2,257
======== ========
Non-current
Borrowings 41 54
======== ========
Current
Borrowings 13 13
Trade and other payables - at amortised cost 1,411 1,310
Trade and other payables - non financial liabilities 837 779
-------- --------
2,248 2,089
======== ========
Financial liabilities 1,424 1,323
======== ========
Notes to the financial statements (continued)
19. Trade and other payables
GROUP
2022 2021
GBP'000 GBP'000
Trade payables 849 811
Social security and other taxes 191 179
Accrued expenses and deferred income 1,074 874
Other payables 34 22
Amounts owed to related parties - -
2,148 1,886
======== ========
COMPANY
2022 2021
GBP'000 GBP'000
Trade payables 801 790
Other tax and social security 166 160
Accruals and deferred
income 941 765
Other payables 8 16
Amounts owed to related - -
parties
Amounts owed to Group
undertakings 332 358
------- -------
2,248 2,089
======= =======
20. Share capital
GROUP AND COMPANY
Shares GBP'000
Issued, called up and fully paid Ordinary
shares of GBP0.002 each
At 30 June 2021 26,115,319 52
Share issued 200,000 1
At 30 June 2022 26,315,319 53
=========== ========
Shares issued
On 29 April 2021 Mr Clement Chambers exercised 40,000 ordinary
shares of at exercise price of 31.25p per share and 160,000
ordinary s hares at an exercise price of 43.75p per share. The
total paid was GBP 82,500.
Share price
The market value of the shares at 30 June 202 2 was 51.00p (202
1 ; 65.50p). The range during the year was 49.00p to 87.20p (202 1
; 11.50p to 75.50p). Shareholders are entitled to one vote per
Ordinary share held and dividends will be apportioned and paid
proportionately to the amounts paid up on the Ordinary shares
held.
Notes to the financial statements (continued)
21. Share based payments
GROUP AND COMPANY
The Group uses share options as remuneration for services of
employees. The fair value is expensed over the remaining vesting
period.
The fair value of options granted after 7 November 2002 has been
arrived at using the Black-Scholes model. The assumptions inherent
in the use of this model are as follows:
-- The option life is assumed to be at the end of the allowed period
-- There are no vesting conditions which apply to the share
options/warrants other than continued service up
to 3 years.
-- No variables change during the life of the option (e.g. dividend yield must be zero).
-- Volatility has been calculated over the 3 years prior to the
grant date by reference to the daily share price.
Details of the number of share options and the weighted average
exercise price (WAEP) outstanding during the year are as
follows:
2022 WAEP
Number Price (GBP)
Outstanding at the beginning of the year 1,751,473 0.4100
Granted during the year - -
Exercised during the year (200,000) 0.4125
Expired during the year (200,000) 0.7950
---------- ------------
Outstanding at the year end 1,351,473 0.4437
========== ============
Exercisable at the year end 1,351,473 0.4437
========== ============
2021 WAEP
Number Price (GBP)
Outstanding at the beginning of the year 2,162,946 0.7740
Repriced during the year (1,222,946) 0.7740
1,222,946 0.1400
Granted during the year - -
Exercised during the year (411,473) 0.1400
Expired during the year - -
------------ ------------
Outstanding at the year end 1,751,473 0.4100
============ ============
Exercisable at the year end 1,751,473 0.4100
============ ============
Notes to the financial statements (continued)
Share based payments (continued)
The options outstanding at the year-end are set out below:
Expiry date Exercise 2022 2021
Price Share Remaining Share Remaining
(GBP) options life (years) options life (years)
10 year expiry
31 December
2022 0.1400 Options 80,000 0.5 80,000 2
31 December
2022 0.1400 Options 80,000 0.5 80,000 2
31 December
2022 0.1400 Options 120,000 0.5 120,000 2
31 December
2022 0.1400 Options 31,473 0.5 31,473 2
12 December
2024 0.1400 Options 500,000 2 500,000 4
12 December
2024 0.7950 Options 300,000 2 500,000 4
24 November
2027 0.4750 Options 50,000 4 50,000 6
24 November
2027 1.0000 Options 50,000 4 50,000 6
7 year expiry
12 December
2024 0.4375 Options 60,000 2 220,000 4
12 December
2024 0.3125 Options 80,000 2 120,000 4
1,351,473 2 1,751,473 6
========== ==========
The total expense recognised during the year by the Group, for
all schemes, was GBPnil (2021: GBP43,000).
Notes to the financial statements (continued)
22. Lease commitments
Property, plant and equipment comprises owned and leased
assets.
GROUP
2022 2021
GBP'000 GBP'000
Property, plant and equipment - owned 25 58
Right-of-use assets except for investment
property 73 172
-------- --------
98 230
Right-of-use assets
The group leases office buildings:
Balance at 1 July 171 272
Additions in the year - -
Depreciation charge for the year (98) (101)
-------- --------
Balance at 30 June 73 171
Lease Liability
Maturity analysis - contractual discounted
cash flows
Within one year 87 103
Two to five years - 87
Over five years - -
-------- --------
Total lease liabilities at 30 June 87 190
-------- --------
2022 2021
GBP'000 GBP'000
Lease liabilities per the balance sheet
As at 30 June
Current 87 103
Non-current - 87
-------- --------
87 190
-------- --------
Amounts recognised in profit or loss
Interest on lease liabilities 11 18
Amounts recognized in the statement of
cashflows
Total cash outflow for leases 103 100
Notes to the financial statements (continued)
Lease commitments (continued)
The following payments are due to be made on operating lease
commitments which are all leases on office accommodation:
Land & buildings 2022 2021
GBP'000 GBP'000
Within one year 90 113
Two to five years - 90
Over five years - -
90 203
======== ========
When measuring lease liabilities, the Group discounted lease
payments using its incremental borrowing rate at 1 July 2022. The
weighted average rate applied is 7.5%.
COMPANY
At the reporting date ADVFN Plc company does not carry any
reportable leases. This results from:
-- The closure of the Throgmorton Street offices during early 2020
-- Taking the exemption under IFRS 16 for the Ongar premises
which allows all leases of less than 12 months to be excluded.
During the year to 30 June 2022 the Company did not renew leases
on office premises.
Notes to the financial statements (continued)
23. Financial risk management
The Group and Company's activities expose it to a variety of
financial risks: market risk (primarily foreign exchange risk,
interest rate risk and price risk), credit risk and liquidity risk.
This year the Group and Company are also exposed to global
inflation risks. All companies within the group apply the same risk
management programme, overall this focuses on the unpredictability
of financial markets and seeks to minimise potential adverse
effects on the Group's financial performance. Risk management is
carried out by the Board and their policies are outlined below.
a) Market risk
Foreign exchange risk
The Group is exposed to translation and transaction foreign
exchange risk as it operates within the USA and other countries
around the world and therefore transactions are denominated in
Sterling, Euro, US Dollars and other currencies. The Group policy
is to try and match the timing of the settlement of sales and
purchase invoices so as to eliminate, as far as possible, currency
exposure. During the year, the weakening of Sterling has decreased
the impact of movements in US Dollars.
The Group does not currently hedge any transactions and
therefore there are no open forward contracts. Foreign exchange
differences on retranslation of foreign currency monetary assets
and liabilities are taken to the income statement.
GROUP
The carrying value of the Group's foreign currency denominated
assets and liabilities are set out below:
2022 2021
Assets Liabilities Assets Liabilities
GBP'000 GBP'000 GBP'000 GBP'000
US Dollars 1,448 468 1,802 450
Euros 28 59 51 19
Yen 18 - 14 -
Other - 11 - 2
1,494 538 1,867 471
======== ============ ======== ============
COMPANY
The carrying value of the Company's foreign currency denominated
assets and liabilities are set out below:
2022 2021
Assets Liabilities Assets Liabilities
GBP'000 GBP'000 GBP'000 GBP'000
US Dollars 726 199 337 133
Euros 28 59 51 19
Yen 18 - 14 -
Other - 11 - 2
772 269 402 154
======== ============ ======== ============
Notes to the financial statements (continued)
Financial risk management (continued)
Foreign exchange risk (continued)
The majority of the group's financial assets are held in
Sterling but movements in the exchange rate of the US Dollar and
the Euro against Sterling have an impact on both the result for the
year and equity. The Group considers its most significant exposure
is to movements in the US Dollar.
Sensitivity to reasonably possible movements in the US Dollar
exchange rate can be measured on the basis that all other variables
remain constant. The effect on profit and equity of strengthening
or weakening of the US Dollar in relation to sterling by 10% would
result in a movement of:
Group: +/-GBP50,000 (2021: +/-GBP148,000).
Company: +/-GBP57,000 (2021: +/-GBP41,000).
Interest rate risk
The Group carries borrowings which are at fixed interest rates
and as a result the directors consider that there is no significant
interest rate risk.
b) Credit risk
Credit risk refers to the risk that a counterparty will default
on its contractual obligations resulting in financial loss to the
Group. In order to minimise this risk the Group endeavours only to
deal with companies which are demonstrably creditworthy and this,
together with the aggregate financial exposure, is continuously
monitored. The maximum exposure to credit risk is the value of the
outstanding amount:
Group: GBP1,325,000 (2021: GBP2,453,000).
Company: GBP1,473,000 (2021: GBP2,365,000).
Provision of services by members of the Group results in trade
receivables which the management consider to be of low risk, other
receivables are likewise considered to be low risk. The management
do not consider that there is any concentration of risk within
either trade or other receivables. The receivables are due from
companies whose credit performance is constantly monitored and, if
an amount becomes overdue, immediate action is taken to obtain
payment. The population of clients is diverse and this ensures no
concentration of risk with any specific customer. A default is
assumed and actioned when the Directors believe it will not be
possible to obtain payment for the service supplied. This is not
generally measured exclusively on the overdue period but judged on
the basis of prior experience and the dialogue with the customer
that follows the recognition of an overdue payment. For additional
information on receivables see note 15.
Credit risk on cash and cash equivalents is considered to be
small as the counterparties are all substantial banks with high
credit ratings. The maximum exposure is the amount of the
deposit.
c) Liquidity risk
The Group currently holds cash balances in Sterling, US Dollars
and Euros to provide funding for normal trading activity. The Group
also has access to additional equity funding and, for short term
flexibility, overdraft facilities would be arranged with the
Group's bankers. Trade and other payables are monitored as part of
normal management routine. Liabilities are disclosed as
follows:
Notes to the financial statements (continued)
Financial risk management (continued)
Liquidity risk (continued)
GROUP
2022 Within One to Two to Over five
1 year two years five years years
GBP'000 GBP'000 GBP'000 GBP'000
Trade payables 849 - - -
Accruals 303 - - -
Other payables 32 - - -
Amounts owed to related parties - - - -
2021 Within One to Two to Over
1 year two years five years five years
GBP'000 GBP'000 GBP'000 GBP'000
Trade payables 811 - - -
Accruals 168 - - -
Other payables 22 - - -
Amounts owed to related parties - - - -
COMPANY
2022 Within One to Two to Over five
1 year two years five years years
GBP'000 GBP'000 GBP'000 GBP'000
Trade payables 801 - - -
Accruals 272 - - -
Other payables 8 - - -
Amounts owed to related parties - - - -
Amounts owed to Group undertakings 332 - - -
2021 Within One to Two to Over
1 year two years five years five years
GBP'000 GBP'000 GBP'000 GBP'000
Trade payables 790 - - -
Accruals 146 - - -
Other payables 16 - - -
Amounts owed to related parties - - - -
Amounts owed to Group undertakings 358 - - -
d) Capital risk management
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern in a volatile
and tight credit economy.
The Group will also seek to minimise the cost of capital and
attempt to optimise the capital structure, which currently means
maintaining equity funding and keeping debt levels to insignificant
amounts of lease funding. Share capital and premium together amount
to GBP358,000.
During the year, the Group paid a dividend to shareholders of
GBP589,000 as part of its capital strategy to provide returns to
shareholders and benefits for other members. The Group continues to
plan for growth, and it will continue to be important to maintain
the Group's credit rating and ability to borrow should acquisition
targets become available.
Capital for further development of the Group's activities will,
where possible, be achieved by share issues and not by carrying
significant debt.
Notes to the financial statements (continued)
Financial risk management (continued)
e) Inflation risk
Inflation risk refers to the risks posed to the Group due to
rising inflation. This increase in inflation could lead to
increasing costs and potentially decreasing revenue as companies
seek to decrease their own costs. Management have considered these
factors in preparing their going concern forecasts and will
continue to monitor the level of expenses and revenue going
forward.
24. Capital commitments
GROUP AND COMPANY
At 30 June 2022 neither the Group nor the Company had any
capital commitments (2021: GBPnil).
25. Related party transactions
GROUP
Online Blockchain Plc is related by virtue of having common
directors, M J Hodges and J B Mullins and as Online Blockchain Plc
holds approximately 17.64% of the shares in the Company.
Advertising recharges were paid to Online Blockchain Plc Group
amounting to GBPnil (2021: GBP53,000). Online Blockchain Plc was
owed GBPnil (2021: GBPNil) by ADVFN Plc at the balance sheet
date.
The remuneration paid to Directors is disclosed on page 14 of
the Directors' Report; there were no other related party
transactions. Transactions with related parties were carried out on
an arm's length basis.
COMPANY
Online Blockchain Plc is related by virtue of having common
directors, M J Hodges, C H Chambers and J B Mullins and as Online
Blockchain Plc holds approximately 17.64% of the shares in the
company. Advertising recharges were paid to Online Blockchain Plc
Group amounting to GBPnil (2021: GBP53,000). Online Blockchain Plc
was owed GBPnil (2021: GBPNil) by ADVFN Plc at the balance sheet
date.
The remuneration paid to Directors is disclosed on page 13 of
the Directors' Report; there were no other related party
transactions. Transactions with related parties were carried out on
an arm's length basis.
26. Events after the balance sheet date
There were no significant events to report after the balance
sheet date.
27. Accounts
Copies of these accounts are available from the Company's
registered office at Suite 28, Ongar Business Centre, The Gables,
Fyfield Road, Ongar, Essex, CM5 0GA or from Companies House, Crown
Way, Maindy, Cardiff, CF14 3UZ.
www.companieshouse.gov.uk
and from the ADVFN plc website:
www.ADVFN.com
ENDS
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END
FR BKPBNABDDOBK
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December 06, 2022 02:00 ET (07:00 GMT)
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