On-line PLC

('On-line' or 'the Company')

Unaudited Interim Results for the Six Months Ended 31 December 2016

On-line today announces unaudited interim results for the six months ended 31 December 2016.

Chairman's Statement

Here are our interim accounts and statement.

On-Line plc results have remained stable and as you know we are working hard to push ADVFN which has made good progress in the past 6 months with the value of our shareholding improving.

ADVFN PLC

Below are a few extracts from ADVFN's interim statement:

"2016 was a year of change at ADVFN. We have, after many years of striving for growth, realigned ourselves to work towards profit. These interim results for the six month period to 31 December 2016 sees us hit this target and realise a profit after tax, albeit this was due largely to foreign exchange gains.

Turning away from growth in order to cut costs has resulted in our sales falling to £3,826,000 from £4,274,000. However, the P&L during this period has gone from a £442,000 loss after tax to an £18,000 profit after tax, a considerable reversal. Whilst this profit may be a meagre one it is, never the less, a milestone.

This result has been produced as a consequence of a number of proactive changes in our business: our headcount reduced, the closure of non-core markets, restrained marketing and the decommissioning of localised web content.

The second half of the 2016 calendar year improved due to the surprise turn-up results of Brexit and President Trump. The outlook, while stronger, is still mixed with much fragility in our marketplace.

We are on an even keel and we expect to remain on the current course. In the short term, this will be heavily dependent on the appetite for trading and investing in our key markets. This outcome in our view is, to some extent, hedged because our main markets are in the UK, US and Brazil and as such are disparate.

We believe that by this time next year we will be in a good position to re-examine a strategy for growth. This will depend on our success in the next 12 months, which in the era of Brexit and President Trump is difficult to predict.

This new politico-economic era could pan out well for ADVFN as, in the past, chaos and uncertainty has worked in our favour. In the meantime, we will continue to work further to improve our performance."

Financial performance

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

Michael Hodges

Chairman

27 March 2017

On-line PLC

Statement of comprehensive income

for the six months ended 31 December 2016

.   

On-line PLC

Balance sheet

at 31 December 2016

On-line PLC

Statement of changes in equity

at 31 December 2016

On-line PLC

Cash flow statements

for the six months ended 31 December 2016

Cash and cash equivalents

On-line PLC

Notes to the interim statement
for the six months ended 31 December 2016

1.             Basis of preparation

The financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' (FRS 102), and with the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

The unaudited interim financial information is for the six month period ended 31 December 2016.  The 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 company for the year ended 30 June 2016.

The interim financial information has been prepared on the going concern basis which assumes the company will continue in existence for the foreseeable future. No material uncertainties that cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.  Accordingly, the directors, believe it is appropriate for the interim financial statement to be prepared 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 company statutory accounts for the year to 30 June 2015 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.

2.             Earnings per ordinary share

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, the share price of On-Line plc has moved to the point where the options are no longer dilutive and therefore the basic and diluted earnings per share are the same.

3.             Fixed asset investments

The Company owns 18.05% (2015: 18.13%) of ADVFN plc (ADVFN) which is incorporated in England and Wales and its 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 On-line plc and the resulting level of significant influence over the associate.  

4.             Dividends

The directors do not recommend the payment of a dividend.

5.            Accounts

                Copies of this statement are being posted to shareholders shortly and will be available from the company's registered office at Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA and in electronic form from the Company's website, http://www.on-line.co.uk/.