ADVFN PLC on Tuesday reported it swung to an annual loss amid worsening market conditions and one-off settlements with its former directors. The company also proposed an open offer of shares to raise up to £6.8 million.
ADVFN is a London-based operator of financial information websites for private investors. Its shares were down 20% at 38.17 pence on Tuesday morning in London. They are down 52% over the past 12 months.
In the year ended June 30, ADVFN swung to a pretax loss of £1.4 million from a profit of £1.6 million the previous year.
This came as ADVFN booked a non-recurring administrative expense of £1.4 million in the recent year, compared to none the previous year. The company explained this was due to legal costs relating to the departure of two directors and the amendment of terms of employment with existing directors. It also awarded its former chief executive, Clement Chambers, a settlement following his resignation.
In February, former CEO and co-founder Chambers stepped down from his role after major shareholder Yair Tauman demanded his removal. Fellow co-found Michael Hodges stepped down from his role as chair shortly after in August. Amit Tauman, another shareholder, is now the firm’s CEO.
The Tuaman’s have a combined 12% stake in ADVFN, according to the company’s website. Chambers holds a 4.6% stake.
Revenue fell 13% year-on-year to £7.8 million from £9.1 million. ADVFN said the second half of its financial year was impacted by worsening market conditions, changes to search algorithms and changes in senior management. This, it said, led to a decline in revenue.
ADFVN added that the challenges seen in its second half have continued into the first quarter of its new financial year ending June 2023.
The company did not declare a dividend.
Separately, the company proposed an equity fundraise of up to £6.8 million, before expenses, through an open offer.
The company is offering qualifying shareholders to subscribe at an issue price of 33 pence per open offer share on the basis of 11 open offer shares for every 14 existing ordinary shares.
The issue price of 33p represents a discount of 30.5% to the closing price on Monday of 47.50p.
It added the open offer is conditional on the company raising at least £2 million from its existing shareholders and from new investors.
The company said it will use the funds to develop new products and tolls, including a new mobile app, as well as improving and enhancing its existing offering.
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