TIDMOBC

RNS Number : 5152F

Online Blockchain PLC

22 March 2022

22nd March 2022

For immediate release

Online Blockchain PLC

("Online" or the "Group")

Unaudited Interim Results for the Six Months Ended 31 December 2021

Online today announces its unaudited interim results for the six months ended 31 December 2021 (the "Period").

CEO's Statement

We continue to operate in volatile times, but our Umbria project continues to move forward.

Our focus for a number of years has been on Blockchain and our project with the Umbria team has progressed well. Against a backdrop where Bitcoin and Ethereum have rallied and slumped repeatedly, the Umbria project has managed to establish itself within the Blockchain infrastructure initially bridging the movement of tokens between the Ethereum and Polygon networks. After that initial development, the Umbria bridge, named Narni after the famous Roman bridge in Umbria, has expanded to enable tokens to move between Ethereum and Avalanche, Ethereum and Binance Smart Chain and Ethereum and Fantom.

This initial progress has meant that, through staking in the Narni Bridge liquidity pool, Online is accumulating unrealised income from the use of the Narni Bridge. So, for example, in December 2021, Online's stake in bridging Ethereum from the Ethereum Chain to the Polygon Chain, rose by 1.8 Ethereum and by a further 2.3 Ethereum from the bridging back from the Polygon Chain to Ethereum. Ethereum was priced at $3,764 on 1 January 2022. These are promising developments for such an early-stage project and our Ethereum balances are continuing to grow in the initial period of the current half.

We are excited to see how the Umbria project develops as the product continues to grow in scope and becomes more known in the crypto community. We feel that in its current configuration, especially with its potential to grow across other blockchains while expanding to more tokens, that the Umbria Narni bridge has the potential to generate significant future revenue for Online.

Although the Blockchain landscape will continue to be volatile, these risks come with many opportunities for high potential rewards which we will be looking to take advantage of.

Meanwhile, ADVFN PLC is also performing well with reported revenue for the six months ended 31 December 2021 of GBP4.2 million, the same level as the comparable period for the six months ended 31 December 2020, and with a reported profit after tax for the period of GBP202,000.

As you may have seen, I have stepped down as a director of ADVFN PLC which remains an important investment of Online Blockchain PLC. It is clear that subsequent to ongoing corporate activity around ADVFN, that ADVFN will experience an accelerate pace of change which we will work hard to ensure is positive.

ADVFN Plc - Financial performance for the six months ended 31 December 2021

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

 
                                   Six Months ended   Six Months ended 
                                   31 December 2021   31 December 2020 
--------------------------------                     ----------------- 
                                            GBP'000            GBP'000 
--------------------------------                     ----------------- 
 
 Revenue                                      4,228              4,233 
--------------------------------                     ----------------- 
 Profit / (loss) for the period                 202                264 
--------------------------------                     ----------------- 
 Operating profit / (loss)                      229                277 
--------------------------------                     ----------------- 
 Profit per share - basic (see 
  note 3)                                     0.77p             1.03 p 
--------------------------------                     ----------------- 
 

Clement Chambers

CEO

22/03/2022

Enquiries:

For further information please contact:

 
 
 Online Blockchain PLC 
  Clem Chambers                                    +44 (0) 20 3868 6702 
 
 Beaumont Cornish Limited (Nominated 
  Adviser) 
  www.beaumontcornish.com 
 Roland Cornish/Michael Cornish                    +44 (0) 207 628 3396 
 Cassiopeia Ltd (Investor Relations) 
  Stefania Barbaglio                        stefania@cassiopeia-ltd.com 
 
 
 

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 Clem Chambers, Director

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

Consolidated income statement

for the six months ended 31 December 2021

 
                                                   Six months        Six months 
                                                        ended             ended  Year ended 
                                                  31 December       31 December     30 June 
                                                         2021              2020        2021 
                                                    Unaudited         Unaudited     Audited 
                                                      GBP'000           GBP'000     GBP'000 
                                        Note 
Revenue                                                    24                56          65 
Cost of sales                                               -                 -         (5) 
                                              ---------------  ----------------  ---------- 
Gross profit                                               24                56          60 
 
Other administrative expenses                           (528)             (178)       (425) 
Other operating income                                      -                 -         124 
                                              ---------------  ----------------  ---------- 
Operating loss                                          (504)             (122)       (241) 
Finance expense                                             -               (1)         (1) 
Impairment of investment in 
 Encryptid Gaming                                           -                 -        (18) 
Share of post-tax profit/(loss) 
 of equity accounted associate                             36                47         285 
                                              ---------------  ----------------  ---------- 
(Loss)/Profit before taxation                           (468)              (76)          25 
Taxation                                                   38                 -           4 
                                              ---------------  ----------------  ---------- 
(Loss)/Profit from continuing 
 operations                                             (430)              (76)          29 
Loss from discontinued operations                           -                 -         (8) 
(Loss)/Profit for the period attributable 
 to shareholders of the parent                          (430)              (76)          21 
                                              ===============  ================  ========== 
 
 
Profit/(Loss) per share from 
 continuing operations 
Basic loss per ordinary share            3            (3.01p)          (0.86 p)       0.25p 
Diluted loss per ordinary 
 share                                   3            (3.05p)          (0.86 p)       0.26p 
 
Profit per share from discontinuing 
 operations 
Basic loss per ordinary share            3                  -                 -       0.18p 
Diluted loss per ordinary 
 share                                   3                  -                 -       0.19p 
                                              ===============  ================  ========== 
 
 

Consolidated statement of comprehensive income

for the six months ended 31 December 2021

 
                                           Six months   Six months 
                                                ended        ended  Year ended 
                                          31 December  31 December     30 June 
                                                 2021         2020        2021 
                                            Unaudited    Unaudited     Audited 
                                              GBP'000      GBP'000     GBP'000 
 
(Loss)/Profit for the period                    (430)         (76)          21 
Other comprehensive income: 
Items that will be reclassified 
 subsequently to profit or loss: 
Exchange differences on translation 
 of foreign operations                              8          (4)         (6) 
                                          -----------  -----------  ---------- 
 
Total other comprehensive income                    8          (4)         (6) 
                                          -----------  -----------  ---------- 
 
Total comprehensive income for 
 the year attributable to shareholders 
 of the parent                                  (422)         (80)          15 
                                          ===========  ===========  ========== 
 
 

Consolidated balance sheet

at 31 December 2021

 
                                            31 December       31 December           30 June 
                                                   2021              2020              2021 
                                              Unaudited         Unaudited           Audited 
                                                GBP'000           GBP'000           GBP'000 
Assets                           Note 
Non-current assets 
Property, plant and equipment                         3                11                 1 
Other receivables                                     -                 6                 - 
Investment accounted for using 
 the equity method                4               1,463             1,183             1,419 
Other equity investments                              -                18                 - 
                                       ----------------  ----------------  ---------------- 
 
                                                  1,466             1,218             1,420 
Current assets 
Trade and other receivables                          36                16                33 
Cash and cash equivalents                         1,060               384             1,497 
                                       ----------------  ----------------  ---------------- 
 
                                                  1,096               400             1,530 
 
Total assets                                      2,562             1,618             2,950 
                                       ================  ================  ================ 
 
Equity and liabilities 
Equity 
Issued capital                                    3,574             3,383             3,574 
Share premium                                     4,484             3,464             4,484 
Share based payment reserve                          65                69                65 
Foreign exchange reserve                            (3)               (3)               (5) 
Retained earnings                               (5,621)           (5,346)           (5,199) 
                                       ----------------  ----------------  ---------------- 
 
                                                  2,499             1,567             2,919 
 
Current liabilities 
Borrowings - bank overdraft                           -                 -                 - 
Borrowings - lease liabilities                        -                 5                 - 
Trade and other payables                             63                46                31 
 
                                                     63                51                31 
 
Total equity and liabilities                      2,562             1,618             2,950 
                                       ================  ================  ================ 
 
 
 

Statement of changes in equity

at 31 December 2021

 
                                    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                     3,292      3,155         64           1     (5,269)     1,243 
 
 Issue of shares                       91        309          -           -           -       400 
 Equity settled share options           -          -          5           -           -         5 
 
 Transactions with owners              91        309          5           -           -       405 
 
 Net asset movements of 
  associate                             -          -          -           -         (1)       (1) 
 
 Loss for the period                    -          -          -           -        (76)      (76) 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign 
  operations                            -          -          -         (4)           -       (4) 
                                ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total other comprehensive 
  income                                -          -          -         (4)        (76)      (80) 
                                ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total comprehensive loss 
  for the period                        -          -          -         (4)        (76)      (80) 
                                ---------  ---------  ---------  ----------  ----------  -------- 
 
 At 31 December 2020                3,383      3,464         69         (3)     (5,346)     1,567 
 
 Issue of shares                      191      1,161          -           -           -     1,352 
 Recycle option costs                   -          -       (52)                      52         - 
 Share based payment (issue 
  costs)                                -       (53)         48           -           -       (5) 
 Share issue costs                      -       (88)          -           -           -      (88) 
 
 Net asset movements of 
  associate                             -          -          -           -         (2)       (2) 
 
 Profit for the year after 
  tax                                   -          -          -           -          97        97 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign 
  operations                            -          -          -         (2)           -       (2) 
                                ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total other comprehensive 
  income                                -          -          -         (2)          97        95 
                                ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total comprehensive loss 
  for the period                                                        (2)          97        95 
                                ---------  ---------  ---------  ----------  ----------  -------- 
 
 At 30 June 2021                    3,574      4,484         65         (5)     (5,199)     2,919 
 
 
 Net asset movements of 
  associate                             -          -          -           -           8         8 
 
 Loss for the period                    -          -          -           -       (430)     (430) 
 
 Other comprehensive income 
 Exchange differences on 
  translation of foreign 
  operations                            -          -          -           2           -         2 
                                ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total other comprehensive 
  income                                -          -          -           2           -         2 
                                ---------  ---------  ---------  ----------  ----------  -------- 
 
 Total comprehensive loss 
  for the period                        -          -          -           2       (430)     (428) 
                                ---------  ---------  ---------  ----------  ----------  -------- 
 
 At 31 December 2021                3,574      4,484         65         (3)     (5,621)     2,499 
                                =========  =========  =========  ==========  ==========  ======== 
 

Consolidated cash flow statement

for the six months ended 31 December 2021

 
                                              Six months     Six months 
                                                   ended          ended      Year ended 
                                             31 December    31 December 
                                                    2021           2020    30 June 2021 
                                               Unaudited      Unaudited         Audited 
                                                 GBP'000        GBP'000         GBP'000 
 
Cash flows from operating activities 
Profit/(Loss) for the period from 
 continuing operations                             (430)           (76)              29 
Loss for the period from discontinued 
 operations                                            -              -             (8) 
 
Add back (profit)/loss from equity 
 accounted associate                                (36)           (47)           (285) 
Net finance charge in the income 
 statement                                             1              1               1 
Depreciation of property, plant 
 & equipment                                         (1)             19              29 
Share based payments                                   -              5               - 
Impairment of investment in Encryptid 
 Gaming                                                -              -              18 
Decrease/(increase) in trade and 
 other receivables                                   (3)             98              87 
Increase/(decrease) in trade and 
 other payables                                       32              7             (8) 
                                          --------------  -------------  -------------- 
 
Net cash used by operating activities              (437)              7           (137) 
Income tax receivable                                  -              -               - 
                                          --------------  -------------  -------------- 
 
Net cash used by operating activities              (437)              7           (137) 
 
Cash flows from financing activities 
(Repay)/Draw down bank overdraft                       -              -            (27) 
Issue equity shares                                    -            400           1,664 
Repay lease                                            -              -            (13) 
Interest paid                                        (1)            (1)             (1) 
                                          --------------  -------------  -------------- 
 
Net cash generated/(used) by financing 
 activities                                          (1)            399           1,623 
 
Cash flows from investing activities 
Overdraft repaid                                       -           (27)               - 
Lease liability repaid                                 -            (8)               - 
Payments for property plant and 
 equipment                                           (1)              -               - 
Payments for intangible assets                         -              -               - 
 
Net cash used by investing activities                (1)           (35)               - 
                                          --------------  -------------  -------------- 
 
(Decrease)/Increase in cash and 
 cash equivalents                                  (439)            371           1,486 
Foreign exchange differences                           2            (4)             (6) 
Cash and cash equivalents at the 
 start of the period                               1,497             17              17 
                                          --------------  -------------  -------------- 
 
Cash and cash equivalents at the 
 end of the period                                 1,060            384           1,497 
                                          ==============  =============  ============== 
 
 

Notes to the interim statements

   1.              General information 

The principal activity of Online Blockchain Plc ("the Company") and its subsidiaries (together "the Group") is that of an incubator and investor in internet and information businesses, developers, administrators and custodians of blockchains and cryptocurrencies.

The principal trading subsidiaries are Awesome Animation Limited and Online Development Inc.

The Company is a public limited company which is quoted on the AIM market of the London Stock Exchange and is incorporated in England and Wales and domiciled in the UK. The address of the registered office is Ongar Business Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA.

The registered number of the company is 03203042.

   2.             Basis of preparation 

The unaudited consolidated interim financial information is for the six-month period ended 31 December 2021. 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 2021, which were prepared under applicable law and International Accounting Standards (IAS) in conformity with the requirements of the Companies Act 2006 as at 30 June 2021.

The accounting policies adopted in this report are consistent with those of the annual financial statements for the year to 30 June 2021 as described in those financial statements.

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

Going concern

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 believe that trading will gradually improve over the next 12 months.

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 2021 have been filed with the Registrar of Companies. The auditors, Saffery Champness LLP reported on those 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.

Risks and uncertainties

The Group continuously assesses and monitors the key risks of the business. The risks identified in the financial statements dated 30 June 2021 have not substantially changed.

Notes to the interim statements

   3.             Loss per ordinary share 
 
                                         Six months   Six months       Year to 
                                                 to           to 
                                        31 Dec 2021  31 Dec 2020  30 June 2021 
                                            GBP'000      GBP'000       GBP'000 
 
Profit/(Loss) from continuing 
 operations                                   (430)         (76)            29 
(Loss) from discontinued operations               -            -           (8) 
Profit/(loss) for the year 
 attributable to equity shareholders          (430)         (76)            21 
 
                                                          Shares        Shares 
Weighted average number of 
 Ordinary shares                         14,311,709    8,800,688    11,423,439 
Dilutive effect of options                (192,979)            -     (164,090) 
                                       ------------  -----------  ------------ 
Weighted average Ordinary 
 shares for diluted earnings 
 per share                               14,118,730    8,800,688    11,259,350 
                                       ============  ===========  ============ 
 
Loss per share for continuing 
 operations 
Basic earnings per share (pence)            (3.01p)     (0.86 p)         0.25p 
Diluted earnings per share 
 (pence)                                    (3.05p)     (0.86 p)         0.26p 
                                       ============  ===========  ============ 
 
Total loss per share 
Basic earnings per share (pence)            (3.01p)     (0.86 p)         0.18p 
Diluted earnings per share 
 (pence)                                    (3.05p)     (0.86 p)         0.19p 
                                       ============  ===========  ============ 
 
 
 

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.

   4.             Investments in associate undertakings 
 
                                 Six months   Six months     Year 
                                      ended        ended    ended 
                                31 December  31 December  30 June 
                                       2021         2020     2021 
                                    GBP'000      GBP'000  GBP'000 
 
Listed investments at cost              868          868      868 
 
Listed investments at market 
 value                                3,316          875    3,017 
 
 
Total net assets of ADVFN 
 Plc                                  3,375        1,759    3,123 
Percentage ownership interest 
 held by the group                   17.64%       17.92%   17.64% 
 
Share of net assets of ADVFN 
 Plc                                    595          315      551 
Cost of investment in ADVFN 
 Plc                                    868          868      868 
                                -----------  -----------  ------- 
 
                                      1,463        1,183    1,419 
                                ===========  ===========  ======= 
 

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. It is an investment accounted for using the equity method.

Online Blockchain Plc owns 17.64% (2020: 17.92%) of ADVFN plc 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 carrying value of the associate in the balance sheet of Online Blockchain Plc is GBP1,463,000 and is based on the share of the balance sheet of the associate company.

Notes to the interim statements

   5.            Events after the balance sheet date 

There are no 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 Online Blockchain Plc'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 Online Blockchain plc website:

www.onlineblockchain.io

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END

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March 22, 2022 03:00 ET (07:00 GMT)

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