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
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of this information may apply. For further information, please
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END
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