Online Blockchain PLC Half-year Report

Datum : 25/03/2020 @ 18h00
Quelle : UK Regulatory (RNS & others)
Name : Online Blockchain Plc (OBC)
Kurs : 15.0  -0.5 (-3.23%) @ 13h27
Online Blockchain share price Chart

Online Blockchain PLC Half-year Report

Online Blockchain (LSE:OBC)
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Von Mär 2020 bis Jun 2020

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TIDMOBC

RNS Number : 6195H

Online Blockchain PLC

25 March 2020

25 March 2020

For immediate release

Online Blockchain PLC

("Online" or the "Group")

Unaudited Interim Results for the Six Months Ended 31 December 2019

Online today announces unaudited interim results for the six months ended 31 December 2019 (the "Period").

CEO's Statement

Since the last report we have made good progress. Of particular note is the continuing development of Freefaucet, which has gone beyond the initial phase of pure development faster than our expectations. Freefaucet lets people claim small amounts of cryptocurrency free or buy cryptocurrency on subscription. Freefaucet is a "freemium" advertising supported model which is now generating small, but useful, amounts of revenue while still being very early stage.

While the Bitcoin price has been volatile during the emerging Coronavirus emergency, this has generally boosted cryptocurrency activity. Our main cryptocurrency blockchains are now established and, while they remain very small, they are building their brands.

Our other products are also developing within the boundaries of our expectations and the Board believes that 2020 is shaping up to be a positive period for OBC. In May, Bitcoin (BTC) is expected to see its next "halvening", the process by which there is a reduction of the reward for successfully mining a block. At present, the reward for mining a block is 12.5 BTC; in May, the reward for successfully adding a block to the blockchain will drop to 6.25 BTC per block. The Directors believe that the Bitcoin "halvening" offers the possibility of increased crytpocurrency activity from which OBC is in a good position to benefit.

Our reaction to the onset of Covid-19 has been to examine the potential impact of the virus on our operations and our market. We need to ensure that the welfare of our staff and the continued provision of our service is our priority. We are already a company of home-based staff and we have looked at reasonable worst-case scenarios and discussed potential mitigating strategies to ensure the continuity of our service. In addition, to maintain liquidity, the Group has access to an overdraft facility amounting to GBP50,000 and, if necessary, the option is available to raise additional funds on the market or, ultimately, to sell shares in ADVFN Plc.

Our investment in ADVFN Plc remains our largest asset and we show below an extract from the ADVFN Plc interim financial statements:

ADVFN PLC - Chief Executive's Statement

As previously reported, sales during the first half were generally flat, although in the lead up to Brexit, advertising sales volumes were below management's expectations while traffic levels and subscription levels remained unaffected. The impact of this lower than expected advertising demand in the first half can be seen in the reported loss, which is further increased by higher overheads which represented an effort to grow sales during the Autumn of 2019.

The uncertainty created by this change to our revenue from advertising led us to significantly adjust our cost base at the end of the year and in January. As it turns out, with the uncertain and adverse impact of the Covid-19 on markets and general business activity, this pre-emptive action has proved to be fortunate.

Our reaction to the onset of Covid-19 has been to examine the potential impact of the virus on our operations and our market. We need to ensure that the welfare of our staff and the continued provision of our service is our priority. We are currently a company of home-based staff and we have looked at reasonable worst-case scenarios and discussed potential mitigating strategies to ensure the continuity of our service.

The Board believes it has reduced its cost base sufficiently to ride out the current business environment and we are beginning to see the return of advertising revenues. We are also experiencing a growth in subscriptions levels which, if sustained, will over time make up for suppressed advertising levels.

At the moment, our business seems to be performing well and with February a profitable month we are feeling confident that we are able to weather the storm.

One of the results of the disruption to advertising revenues is that the Group's cash levels decreased to GBP557,000 at the period end, whereas we would have hoped to see them improve. The Directors believe this has now stabilised and we look to benefit from the reductions made to the cost base, reflected in an improvement in performance in the second half, to restore our usual cash levels in the near future.

While it is clear there are many challenges ahead, your Board is committed to seeing the business through these, suddenly, extremely unpredictable times.

ADVFN Plc - Financial performance for the six months ended 31 December 2019

Key financial performance for the period has been summarised as follows:

 
                            Six Months ended   Six Months ended 
                            31 December 2019   31 December 2018 
-------------------------                     ----------------- 
                                GBP'000            GBP'000 
-------------------------                     ----------------- 
 
 Revenue                         3,748              4,265 
-------------------------                     ----------------- 
 (Loss)/profit for the 
  period                         (399)              (214) 
-------------------------                     ----------------- 
 Operating (loss)/profit         (397)              (210) 
-------------------------                     ----------------- 
 (Loss)/profit per share        (1.56 p)           (0.84 p) 
-------------------------                     ----------------- 
 

Clement Chambers

CEO

25 March 2020

A copy of this announcement is available on the Group's website, at: www.onlineblockchain.io

Enquiries:

For further information please contact:

 
 
 Online Blockchain PLC 
  Clem Chambers                                     44 (0) 207 070 0909 
 
 Beaumont Cornish Limited (Nominated 
  Adviser) 
  www.beaumontcornish.com                          +44 (0) 207 628 3396 
 Roland Cornish/Michael Cornish 
 Cassiopeia Ltd (Investor Relations) 
  Stefania Barbaglio                        stefania@cassiopeia-ltd.com 
 
 
 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. The person who arranged for the release of this announcement on behalf of the Group was Clem Chambers, Director.

Consolidated statement of comprehensive income

for the six months ended 31 December 2019

 
                                        Six months   Six months 
                                             ended        ended  Year ended 
                                       31 December  31 December     30 June 
                                              2019         2018        2019 
                                         Unaudited    Unaudited     Audited 
                                           GBP'000      GBP'000     GBP'000 
                                 Note 
Revenue                                         44           26          50 
Cost of sales                                    -          (7)       (150) 
                                       -----------  -----------  ---------- 
 
                                                44           19       (100) 
 
Share based payment                              -         (14)        (13) 
Other administrative expenses                (116)        (243)       (480) 
                                       -----------  -----------  ---------- 
 
Total administrative expenses                (116)        (257)       (493) 
                                       -----------  -----------  ---------- 
 
Operating loss                                (72)        (238)       (593) 
 
Finance income and expense                     (1)            -           - 
Share of post-tax loss of 
 equity accounted associate                   (71)         (38)        (73) 
                                       -----------  -----------  ---------- 
 
Loss before taxation                         (144)        (276)       (666) 
Taxation                                         -            -           - 
                                       -----------  -----------  ---------- 
Loss and total comprehensive 
 income 
 for the period attributable 
 to shareholders of the parent               (144)        (276)       (666) 
                                       ===========  ===========  ========== 
 
 
Loss per share 
Basic loss per ordinary share     3       (1.66 p)     (3.19 p)    (7.69 p) 
Diluted loss per ordinary 
 share                            3       (1.66 p)     (3.19 p)    (7.69 p) 
                                       ===========  ===========  ========== 
 
 
 

.

Consolidated balance sheet

at 31 December 2019

 
                                           31 December       31 December           30 June 
                                                  2019              2018              2019 
                                             Unaudited         Unaudited           Audited 
                                               GBP'000           GBP'000           GBP'000 
Assets                          Note 
Non-current assets 
Property, plant and equipment                       46                56                36 
Intangibles                                          3                 -                 - 
Other receivables                                    6                 6                 6 
Investment in associate          4               1,104             1,210             1,173 
Other equity investments                            36                 4                36 
                                      ----------------  ----------------  ---------------- 
 
                                                 1,195             1,276             1,251 
Current assets 
Trade and other receivables                        117               214                95 
Cash and cash equivalents                           35               389               154 
                                      ----------------  ----------------  ---------------- 
 
                                                   152               603               249 
 
Total assets                                     1,347             1,879             1,500 
                                      ================  ================  ================ 
 
Equity and liabilities 
Equity 
Issued capital                                   3,292             3,292             3,292 
Share premium                                    3,155             3,155             3,155 
Share based payment reserve                         64                66                64 
Retained earnings                              (5,210)           (4,680)           (5,072) 
                                      ----------------  ----------------  ---------------- 
 
                                                 1,301             1,833             1,439 
 
Current liabilities 
Trade and other payables                            46                46                61 
 
                                                    46                46                61 
 
Total equity and liabilities                     1,347             1,879             1,500 
                                      ================  ================  ================ 
 
 
 

Statement of changes in equity

at 31 December 2019

 
                                        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 2018                         3,292      3,155         51     (4,409)     2,089 
 
 Equity settled share options               -          -         15           -        15 
                                    ---------  ---------  ---------  ----------  -------- 
 
 Transactions with owners                   -          -         15           -        15 
 
 Net asset movements of associate           -          -          -           5         5 
 
 Total comprehensive loss for 
  the period                                -          -          -       (276)     (276) 
                                    ---------  ---------  ---------  ----------  -------- 
 
 At 31 December 2018                    3,292      3,155         66     (4,680)     1,833 
 
 Equity settled share options               -          -        (2)           -       (2) 
                                    ---------  ---------  ---------  ----------  -------- 
 
 Transactions with owners                   -          -        (2)           -       (2) 
 
 Net asset movements of associate           -          -          -         (2)       (2) 
 
 Total comprehensive loss for 
  the period                                -          -          -       (390)     (390) 
                                    ---------  ---------  ---------  ----------  -------- 
 
 At 30 June 2019                        3,292      3,155         64     (5,072)     1,439 
 Net asset movements of associate           -          -          -           6         6 
 
 Total comprehensive loss for 
  the period                                -          -          -       (144)     (144) 
 
 At 31 December 2019                    3,292      3,155         64     (5,210)     1,301 
                                    =========  =========  =========  ==========  ======== 
 

Consolidated cash flow statement

for the six months ended 31 December 2019

 
                                               Six months      Six months 
                                                    ended           ended      Year ended 
                                              31 December     31 December 
                                                     2019            2018    30 June 2019 
                                                Unaudited       Unaudited         Audited 
                                                  GBP'000         GBP'000         GBP'000 
 
Cash flows from operating activities 
Loss for the period                                 (144)           (276)           (666) 
 
Add back loss from equity accounted 
 associate                                             75              38              73 
Net finance income in the income 
 statement                                              -               -               - 
Depreciation of property, plant 
 & equipment                                           11              12              24 
Share based payments                                    -              15              13 
(Increase)/decrease in trade and 
 other receivables                                   (22)            (31)              88 
(Decrease)/increase in trade and 
 other payables                                      (15)            (14)               1 
                                          ---------------  --------------  -------------- 
 
Net cash used by operating activities                (95)           (256)           (467) 
Income tax receivable                                   -               -               - 
                                          ---------------  --------------  -------------- 
 
Net cash used by operating activities                (95)           (256)           (467) 
 
Cash flows from financing activities 
Issue of share capital                                  -               -               - 
Interest paid                                           -               -               - 
                                          ---------------  --------------  -------------- 
 
Net cash generated/(used) by financing 
 activities                                             -               -               - 
 
Cash flows from investing activities 
Investment in equity shares                             -             (4)               - 
Payments for property plant and 
 equipment                                         (2921)             (3)               5 
Payments for intangible assets                        (3)               -               - 
Financial asset held at fair value 
 through profit and loss                                -               -            (36) 
                                          ---------------  --------------  -------------- 
 
Net cash used by investing activities                (24)             (7)            (31) 
                                          ---------------  --------------  -------------- 
 
Decrease in cash and cash equivalents               (119)           (263)           (498) 
Cash and cash equivalents at the 
 start of the period                                  154             652             652 
                                          ---------------  --------------  -------------- 
 
Cash and cash equivalents at the 
 end of the period                                     35             389             154 
                                          ===============  ==============  ============== 
 
 

Cash and cash equivalents

 
                                Six months    Six months 
                                     ended         ended    Year ended 
                               31 December   31 December 
                                      2019          2018  30 June 2018 
                                 Unaudited     Unaudited       Audited 
                                   GBP'000       GBP'000       GBP'000 
 
Cash at bank                            35           389           154 
Borrowings (bank overdraft)              -             -             - 
                               -----------  ------------  ------------ 
 
                                        35           389           154 
                               ===========  ============  ============ 
 
 

Notes to the interim statements

   1.              Legal status and activities 

Online Blockchain Plc is principally acting as an incubator and developer of businesses in internet and information-based technologies including developers, administrators and custodians of blockchains and cryptocurrencies.

Online Blockchain Plc is a public limited liability company incorporated and domiciled in England and Wales. The address of its registered office is Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.

Online Blockchain Plc is quoted on the Alternative Investment Market ("AIM") of the London Stock Exchange.

   2.             Basis of preparation 

The unaudited consolidated financial information is for the six month period ended 31 December 2019. The financial information does not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2019, which were prepared under IFRS as adopted by the European Union (EU).

The accounting policies adopted in this report are consistent with those of the annual financial statements for the year to 30 June 2019 except as described below.

The financial statements are presented in Sterling (GBP) rounded to the nearest thousand except where specified.

The interim financial information does not include all the information required for full annual financial statements and should be read in conjunction with the financial statements of the Group for the year ended 30 June 2019.

The interim financial information has been prepared on the going concern basis which assumes the Group will continue in existence for the foreseeable future. The Directors have prepared a detailed forecast of future trading and, as our products continue to build as planned, the Directors believe that trading will gradually improve. This improvement in trading and the resulting increased income over the next 12 months will mean that the current bank balance will stabilize and then increase.

Our reaction to the onset of Covid-19 has been to examine the potential impact of the virus on our operations and our market. We need to ensure that the welfare of our staff and the continued provision of our service is our priority. We are already a company of home-based staff and we have looked at reasonable worst-case scenarios and discussed potential mitigating strategies to ensure the continuity of our service. In addition, to maintain liquidity, the Group has access to an overdraft facility amounting to GBP50,000 and, if necessary, the option is available to raise additional funds on the market or, ultimately, to sell shares in ADVFN Plc. Accordingly, the Directors have prepared these financial statements on the going concern basis.

The interim financial information has not been audited nor has it been reviewed under ISRE 2410 of the Auditing Practices Board. The financial information presented does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. The Group's statutory accounts for the year to 30 June 2019 have been filed with the Registrar of Companies. The auditors, Grant Thornton UK LLP reported on these accounts and their report was unqualified and did not contain a statement under section 498(2) or Section 498(3) of the Companies Act 2006.

New standards adopted in the period:

IFRS 16 Leases

The standard has replaced IAS 17 and introduces a single lessee accounting model. Under the provisions of the new standard most leases, including the majority of those previously classified as operating leases, are brought onto the financial position statement as a right-of-use asset and as an offsetting lease liability. Both asset and liability are based on present values of the lease payments due over the term of the lease with the asset being depreciated in accordance with IAS 16 'Property, plant and equipment' and the liability increased by the addition of interest and reduced as lease payments are made.

Notes to the interim statements

   3.             Loss per ordinary share 
 
                                Six months   Six months       Year to 
                                        to           to 
                               31 Dec 2019  31 Dec 2018  30 June 2019 
                                   GBP'000      GBP'000       GBP'000 
 
Loss for the period                  (144)        (276)         (666) 
 
                                    Shares       Shares        Shares 
Weighted average number of 
 Ordinary shares                 8,662,348    8,662,348     8,662,348 
Dilutive effect of options               -            -             - 
                               -----------  -----------  ------------ 
Weighted average Ordinary 
 shares for diluted earnings 
 per share                       8,662,348    8,662,348     8,662,348 
                               ===========  ===========  ============ 
 
Loss per share 
Basic earnings per share          (1.66 p)     (3.19 p)      (7.69 p) 
Diluted earnings per share        (1.66 p)     (3.19 p)      (7.69 p) 
                               ===========  ===========  ============ 
 
 
 

Where a loss occurs the diluted loss per share does not differ from the basic loss per share as the exercise of share options would have the effect of reducing the loss per share and is therefore not dilutive.

In addition, where a profit has been recorded but the average share price for the period remains under the exercise price the existence of options is not dilutive.

   4.             Investments in associate undertakings 
 
                                 Six months   Six months     Year 
                                      ended        ended    ended 
                                31 December  31 December  30 June 
                                       2019         2018     2019 
                                    GBP'000      GBP'000  GBP'000 
 
At historical cost                      868          868      868 
 
At market value                         874        1,175    1,267 
 
Percentage ownership                 17.92%       17.98%   17.92% 
 
 
Total net assets of ADVFN 
 Plc                                  1,319        1,902    1,702 
Percentage ownership interest 
 held by the group                   17.92%       17.98%   17.92% 
 
Share of net assets of ADVFN 
 Plc                                    236          342      305 
Cost of investment in ADVFN 
 Plc                                    868          868      868 
                                -----------  -----------  ------- 
 
                                      1,104        1,210    1,173 
                                ===========  ===========  ======= 
 

Notes to the interim statements

Investments in associate undertakings (continued)

Online Blockchain Plc owns 17.92% (2018: 17.98%) of ADVFN plc (ADVFN) which is incorporated in England and Wales and whose principal activity is the development and provision of financial information, primarily via the internet, research services and the development and exploitation of ancillary internet sites.

The investment in ADVFN plc is treated for the purposes of financial reporting as an associate due to the common directorships held between ADVFN plc and Online Blockchain plc and the resulting level of significant influence over the associate.

   5.            Events after the balance sheet date 

Our assessment of the impact of the COVID-19 virus is set out in Note 2. There are no other events of significance occurring after the balance sheet date to report.

   6.             Dividends 

The directors do not recommend the payment of a dividend.

   7.            Financial statements 

Copies of these accounts are available from the Online Blockchain Plc's registered office at Suite 27, Essex Technology 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 Online Blockchain plc website:

www.onlineblockchain.io

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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