TIDMOBC
RNS Number : 0973R
Online Blockchain PLC
04 March 2021
4 March 2021
For immediate release
Online Blockchain PLC
("Online" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December
2020
Online today announces unaudited interim results for the six
months ended 31 December 2020 (the "Period").
CEO's Statement
We are pleased to report that since the last update, the
blockchain ecosystem has experienced revitalised interest, driven
largely by the recovery and increase in the value of Bitcoin,
Ethereum and various other crypto projects and assets.
We were approached at the end of 2020, and again earlier this
year, to raise capital to support our development and we took the
opportunity to secure sufficient funds to meet our needs over the
medium term and provide additional resources to broaden our
development efforts. The funding enables us to continue our
development and we believe that we have a small group of highly
skilled staff capable of delivering innovative work.
In addition to our previously reported projects that continue to
make progress, we believe that the Umbria decentralised finance
("DeFi") development is our most promising project. DeFi itself is
a disruptive segment of blockchain and there is the potential for
OBC and Umbria to make an impact.
We do remain however, cautious with our cash resources as crypto
is a volatile asset segment and it is possible at any time that
blockchain may be about to enter another cycle of boom, bubble and
bust. The potential upside we expect will be delivered in the
medium to long term rather in the shorter time frame that so many
new entrants and investors in this this field expect. While
impossible to accurately predict the short-term outlook for
blockchain based assets and businesses, we continue to believe that
the blockchain technologies we are working with are part of a
development as potentially fundamentally promising as computing in
the 1970's and the internet in the 1990s.
There remains, nevertheless, a significant challenge from
institutional resistance and scepticism to emerging blockchain
technology businesses. At times, it is hard to come to any
conclusion other than that blockchain is not yet welcome reflecting
the position of established 'gatekeepers' whose commercial position
is threatened by blockchain. The disintermediation of gatekeepers
is blockchain's great power as it enables efficiencies by
digitising business processes and opening up markets to new
entrants by removing the need for the extensive overheads that
support legacy business. As illustration, neither NYSE or Nasdaq
currently enable the exchange of crypto assets and the regulations
have not yet permitted the listing of a Bitcoin ETF while, as I
write, Coinbase a major crypto exchange, plans to list on Nasdaq at
a market valuation which is expected to exceed the combined market
value of Intercontinental Exchange Inc (the parent of the NYSE
Stock Exchange) and Nasdaq Inc, demonstrating the potential
challenge to legacy exchanges' supremacy.
Whilst being wary of these institutional and regulatory
challenges, we are hopeful of continuing progress for our existing
products in the months ahead and for new developments. We remain
excited at the prospects for blockchain, irrespective of the value
of bitcoin in 2021, and our plans to develop a potentially major
blockchain protocol.
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
These are very uncertain times, but as I have often alluded to,
times of uncertainty are good for ADVFN. People become more engaged
with their investments when the future looks difficult and the
rolling confinements and the new work-from-home environments
("WFH") have provided impetus to our audience's desire to trade and
invest. Market volatility has also helped. Counter-intuitively it
is not necessarily a bullish period that has helped drive ADVFN
revenue, because it turns out that solid profits for investors only
fuels complacency and complacency is not good for our sales.
Advertising and subscriptions have been growing and so revenue,
which sees us producing a solid bottom-line profit. At the end of
2019 and the beginning of 2020, a sudden and unexpected drop in
advertising sales, coupled with a lack of subscription growth,
caused us to re-evaluate our processes and reorganise the business
from top to bottom.
With great good fortune, we decided to become a fully 'WFH'
enterprise with a new, much reduced cost base and re-engineered
business processes around the turn of that year. This dramatic
change was almost complete when the pandemic started, which by good
fortune we were then pre-prepared for.
This intersection of events has meant we have made good progress
across 2020 with the end of the first half showing a profit of
GBP264,000. At this stage there seems no end in sight to the
disruption of the pandemic and even with an end of the pandemic
itself, be it hopefully soon, the global economic aftermath will,
we believe, be with us for years to come. We will therefore remain
an important destination for those wishing to actively navigate the
trying times ahead and we feel a period of investor complacency is
not a prospect for the foreseeable future. As such we believe that
we will continue to grow for the foreseeable future.
While we expect growth at a similar pace in the coming half, our
strategy is to be very conservative and we will expend our energies
growing our platform's capacity rather than looking to broaden our
audience. We are very optimistic about our near and medium-term
prospects, but it seems foolish to contemplate anything but a
conservative risk profile to at least the year end.
While we cannot take credit for fate suddenly providing us with
a strong hand, we can lay claim to having reshaped ADVFN during the
pandemic's disruption into a profitable business that looks set for
a strong performance in 2021.
ADVFN Plc - Financial performance for the six months ended 31
December 2020
Key financial performance for the period has been summarised as
follows:
Six Months ended Six Months ended
31 December 2020 31 December 2019
-------------------------------- -----------------
GBP'000 GBP'000
-------------------------------- -----------------
Revenue 4,233 3,748
-------------------------------- -----------------
Profit / (loss) for the period 264 (399)
-------------------------------- -----------------
Operating profit / (loss) 277 (397)
-------------------------------- -----------------
Loss per share - basic (see
note 3) 1.03 p (1.56 p)
-------------------------------- -----------------
Clement Chambers
CEO
4 March 2021
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 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.
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 2020
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2020 2019 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Note
Revenue 56 44 109
Share based payment (5) - -
Other administrative expenses (173) (116) (250)
----------- ----------- ----------
Total administrative expenses (178) (116) (250)
----------- ----------- ----------
Operating loss (122) (72) (141)
Finance expense (1) (1) (2)
Impairment of investment in
Encryptid Gaming - - (18)
Share of post-tax profit/(loss)
of equity accounted associate 47 (71) (40)
----------- ----------- ----------
Loss before taxation (76) (144) (201)
Taxation - - -
----------- ----------- ----------
Loss for the period attributable
to shareholders of the parent (76) (144) (201)
=========== =========== ==========
Loss per share
Basic loss per ordinary share 3 (0.86 p) (1.66 p) (2.32 p)
Diluted loss per ordinary
share 3 (0.86 p) (1.66 p) (2.32 p)
=========== =========== ==========
Consolidated statement of comprehensive income
for the six months ended 31 December 2020
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2020 2019 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss for the period (76) (144) (201)
Other comprehensive income:
Items that will be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations (4) - 1
----------- ----------- ----------
Total other comprehensive income (4) - 1
----------- ----------- ----------
Total comprehensive income for
the year attributable to shareholders
of the parent (80) (144) (200)
=========== =========== ==========
Consolidated balance sheet
at 31 December 2020
31 December 31 December 30 June
2020 2019 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Assets Note
Non-current assets
Property, plant and equipment 11 46 30
Intangibles - 3 -
Other receivables 6 6 6
Investment accounted for using
the equity method 4 1,183 1,104 1,137
Other equity investments 18 36 18
---------------- ---------------- ----------------
1,218 1,195 1,191
Current assets
Trade and other receivables 16 117 114
Cash and cash equivalents 384 35 17
---------------- ---------------- ----------------
400 152 131
Total assets 1,618 1,347 1,322
================ ================ ================
Equity and liabilities
Equity
Issued capital 3,383 3,292 3,292
Share premium 3,464 3,155 3,155
Share based payment reserve 69 64 64
Foreign exchange reserve (3) - 1
Retained earnings (5,346) (5,210) (5,269)
---------------- ---------------- ----------------
1,567 1,301 1,243
Current liabilities
Borrowings - bank overdraft - - 27
Borrowings - lease liabilities 5 - 13
Trade and other payables 46 46 39
51 46 79
Total equity and liabilities 1,618 1,347 1,322
================ ================ ================
Statement of changes in equity
at 31 December 2020
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 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
Net asset movements of
associate - - - - (2) (2)
Loss for the period - - - - (57) (57)
Other comprehensive income
Exchange differences on
translation of foreign
operations - - - 1 - 1
--------- --------- --------- ---------- ---------- --------
Total other comprehensive
income - - - 1 - 1
--------- --------- --------- ---------- ---------- --------
Total comprehensive loss
for the period - - - 1 (57) (56)
--------- --------- --------- ---------- ---------- --------
At 30 June 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
========= ========= ========= ========== ========== ========
Consolidated cash flow statement
for the six months ended 31 December 2020
Six months Six months
ended ended Year ended
31 December 31 December
2020 2019 30 June 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Loss for the period (76) (144) (201)
Add back (profit)/loss from equity
accounted associate (47) 75 40
Net finance charge in the income
statement 1 - 2
Depreciation of property, plant
& equipment 19 11 20
Share based payments 5 - -
Impairment of investment in Encryptid
Gaming - - 18
Decrease/(increase) in trade and
other receivables 98 (22) (19)
Increase/(decrease) in trade and
other payables 7 (15) (22)
------------- -------------- --------------
Net cash used by operating activities 7 (95) (162)
Income tax receivable - - -
------------- -------------- --------------
Net cash used by operating activities 7 (95) (162)
Cash flows from financing activities
Draw down bank overdraft - - 27
Issue equity shares 400 - -
Interest paid (1) - (2)
------------- -------------- --------------
Net cash generated/(used) by financing
activities 399 - 25
Cash flows from investing activities
Overdraft repaid (27) - -
Lease liability repaid (8) - -
Payments for property plant and
equipment - (21) (1)
Payments for intangible assets - (3) -
Net cash used by investing activities (35) (24) (1)
------------- -------------- --------------
Decrease in cash and cash equivalents 371 (119) (138)
Foreign exchange differences (4) - 1
Cash and cash equivalents at the
start of the period 17 154 154
------------- -------------- --------------
Cash and cash equivalents at the
end of the period 384 35 17
============= ============== ==============
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 28, Ongar Business 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 2020. 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 2020,
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 2020 except as described below.
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 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. In addition, a placing
was made in December 2020 resulting in cash subscriptions of
GBP362,000 net of commission and other costs.
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 the placing mentioned
above, the Group has access to an overdraft facility amounting to
GBP50,000 and, if necessary, the option is available to raise
further 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 2020 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 2020 have not substantially changed.
Notes to the interim statements
3. Loss per ordinary share
Six months Six months Year to
to to
31 Dec 2020 31 Dec 2019 30 June 2020
GBP'000 GBP'000 GBP'000
Loss for the period (76) (144) (201)
Shares Shares Shares
Weighted average number of
Ordinary shares 8,800,688 8,662,348 8,662,348
Dilutive effect of options - - -
----------- ----------- ------------
Weighted average Ordinary
shares for diluted earnings
per share 8,800,688 8,662,348 8,662,348
=========== =========== ============
Loss per share
Basic earnings per share (pence) (0.86 p) (1.66 p) (2.32 p)
Diluted earnings per share
(pence) (0.86 p) (1.66 p) (2.32 p)
=========== =========== ============
Where a loss is reported for the period 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 under the terms of IAS 33.
In addition, where a profit has been recorded but the average
share price for the period remains under the exercise price of a
specific grant of options, the existence of those options is not
dilutive.
4. Investments in associate undertakings
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2020 2019 2020
GBP'000 GBP'000 GBP'000
Listed investments at cost 868 868 868
Listed investments at market
value 875 874 737
Total net assets of ADVFN
Plc 1,759 1,319 1,500
Percentage ownership interest
held by the group 17.92% 17.92% 17.92%
Share of net assets of ADVFN
Plc 315 236 269
Cost of investment in ADVFN
Plc 868 868 868
----------- ----------- -------
1,183 1,104 1,137
=========== =========== =======
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 17.92% (2019: 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 GBP1,183,000 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
On 2 February 2021 the Company announced a placing of 2,717,391
Ordinary 5.0p shares at a price of 36.8p per share. This resulted
in subscriptions of GBP950,000 net of commission and other costs.
In addition warrants have been issued to participants in the
placing at the rate of 1 warrant for every 2 placing shares.
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 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
IR SSDFADEFSEED
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March 04, 2021 02:00 ET (07:00 GMT)
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