TIDMOBC
RNS Number : 9747U
Online Blockchain PLC
31 March 2023
30 March 2023
For immediate release
Online Blockchain PLC
("Online" or the "Group")
Unaudited Interim Results for the Six Months Ended 31 December
2022
Online today announces unaudited interim results for the six
months ended 31 December 2022 (the "Period").
CEO's Statement
While the crypto asset market has continued to be depressed over
the Period, with moments of significant price volatility, we have
not been caught up and have continued to focus on the development
of our two main projects, advisors to Umbria and the Rocky Horror
NFT.
Umbria (see www.umbria.network ) enables token transfers between
independent blockchain platforms, such as Ethereum to Polygon.
Liquidity for exchange of tokens from one blockchain to another
using the bridge is provided by Umbria users staking Umbria tokens
in a pool thereby earning a share of all fees generated by the
bridge. After high levels of activity during early 2022, Umbria has
settled into a lower but consistent pattern of transactions and
amounts staked on the platform.
Seasoning of decentralised finance products (DeFi) is key and
the longer a protocol goes without incident the more it is trusted
by the market audience and the more it is potentially worth and
used. Umbria is now well seasoned and provides a relatively fast
and cheap bridge solution compared to other offerings. If and when
crypto assets move back into favour, we believe that Umbria is
potentially well positioned to benefit from increased trading
volumes. In the Period, total revenue from Umbria amounted to
GBP14k (2022: GBP24k).
Our principal focus in the Period has been the development of
The Rocky Horror Show non-fungible token ("NFT"), based on The
Rocky Horror Show and we continue to be pleased with its
development. As we announced earlier this year, we have entered
into a worldwide licence with Interfishnet Limited, rights holders
of The Rocky Horror Show intellectual property, to create and
market a range of character NFTs. Non-fungible tokens (NFTs) are
cryptographic assets on a blockchain, with unique identification
codes and metadata that distinguish them from each other and are
directly linked to one blockchain address. Non-fungible tokens
comprise a smart contract which can digitally represent any asset,
including online-only assets like digital artwork and
collectibles.
Our developers have created a number of collectible
character-based NFTs from The Rocky Horror Show and, under the
terms of the licence agreement (for an unlimited period), Online
will receive a revenue share from sales of the NFTs. The artwork
for the NFTs has been completed, and initial soft marketing has
commenced to begin to create market awareness. We intend to release
the NFTs for sale to coincide with an expected one-off performance
of The Rocky Horror Show celebrating its 50th anniversary, which we
believe is likely to be over the Summer.
As we have previously explained, the commercial development of
The Rocky Horror Show NFTs is at an early stage and there is no
certainty at this time how, following the hard launch in the
Summer, it may develop or to what extent any income will be
derived. We are however excited with the prospect of bringing these
NFTs to market at this time and with strong expected media and
social platform interest in The Rock Horror Show as a market
background.
Finally, we have retained our interest in ADVFN plc, which
following the recent Open Offer has been diluted to 10 per cent.
Based on the current market price per ADVFN plc share of 35.5
pence, this interest has a current market value of GBP1.6m and
remains of importance to the Company. As explained in our last
Report and Accounts, the Company no longer has significant
influence over ADVFN plc and therefore it is treated as an arm's
length investment.
While the crypto market is volatile, current asset prices and
trading seem to have stabilised at multiples of the previous
all-time lows, and although we expect continued turbulence over the
next six months, this hopefully sets a potential platform for the
next cycle of general interest in the sector.
Clement Chambers
CEO
30(th) March 2023
Condensed interim consolidated income statement
for the six months ended 31 December 2022
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Note
Revenue 14 24 107
Cost of sales - - -
------------ -------------- ----------
Gross profit 14 24 107
Other administrative expenses (445) (528) (948)
Other operating income - - -
------------ -------------- ----------
Operating loss (431) (504) (841)
Share of post-tax profit/(loss)
of equity accounted associate - 36 (214)
Revaluation of ADVFN investment
on ceasing as associate 932 - -
------------ -------------- ----------
Profit / (loss) before taxation 501 (468) (1,055)
Taxation 5 38 37
------------ -------------- ----------
Profit / (loss) for the period
attributable to shareholders of
the parent 506 (430) (1,018)
============ ============== ==========
Earnings per share
Basic earnings / (loss) per
ordinary share 3 3.53 (3.01) (8.91)
Diluted earnings / (loss)
per ordinary share 3 3.23 (3.05) (8.91)
Condensed interim consolidated statement of comprehensive
income
for the six months ended 31 December 2022
Six months Six months
ended ended Year ended
31 December 31 December 30 June
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit/(loss) for the period 506 (430) (1,018)
Other comprehensive income:
Items that will be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations - - 2
----------- ----------- ----------
Total other comprehensive income - - 2
----------- ----------- ----------
Total comprehensive income for
the year attributable to shareholders
of the parent 506 (430) (1,016)
=========== =========== ==========
All items in the above statement derive from continuing
operations.
Condensed interim consolidated balance sheet
at 31 December 2022
31 December 31 December 30 June
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Assets Note
Non-current assets
Intangible assets 53 - 36
Property, plant and equipment 3 3 4
Other receivables - - 1
Investment accounted for using
the equity method 4 - 1,463 1,101
Other investments 5 2,034 - -
---------------- --------------------------- ----------------
2,090 1,466 1,142
Current assets
Trade and other receivables 25 36 22
Corporation tax receivable - - 4
Cash and cash equivalents 366 1,060 765
---------------- --------------------------- ----------------
391 1,096 791
Total assets 2,481 2,562 1,933
================ =========================== ================
Equity and liabilities
Equity
Issued capital 3,574 3,574 3,574
Share premium 4,484 4,484 4,484
Share based payment reserve 65 65 65
Foreign exchange reserve (3) (3) (3)
Retained earnings (5,711) (5,621) (6,217)
---------------- --------------------------- ----------------
2,409 2,499 1,903
Current liabilities
Trade and other payables 72 63 30
72 63 30
Total equity and liabilities 2,481 2,562 1,933
================ =========================== ================
Condensed interim statement of changes in equity
at 31 December 2022
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 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 (422) (420)
--------- --------- --------- ---------- ---------- --------
At 31 December 2021 3,574 4,484 65 (3) (5,621) 2,499
Loss for the period - - - - (596) (596)
Total comprehensive loss
for the period - - - - (596) (596)
--------- --------- --------- ---------- ---------- --------
At 30 June 2022 3,574 4,484 65 (3) (6,217) 1,903
Profit for the period - - - - 506 506
Total comprehensive profit
for the period - - - - 506 506
--------- --------- --------- ---------- ---------- --------
At 31 December 2022 3,574 4,484 65 (3) (5,711) 2,409
========= ========= ========= ========== ========== ========
Condensed interim consolidated cash flow statement
for the six months ended 31 December 2022
Six months Six months
ended ended Year ended
31 December 31 December
2022 2021 30 June 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit/(loss) for the period from
continuing operations 506 (430) (1,018)
Add back (profit)/loss from equity
accounted associate - (36) 214
Intangible crypto assets received
from Umbria Bridge (17) (36)
Net finance charge in the income
statement - - -
Depreciation of property, plant
& equipment 1 1 2
Gain on derecognition of associate (933) - -
Decrease/(increase) in trade and
other receivables 2 (3) 7
Increase/(decrease) in trade and
other payables 45 32 (2)
-------------- -------------- ----------------
Net cash used by operating activities (396) (436) (833)
Cash flows from financing activities
Interest paid - (1) -
-------------- -------------- ----------------
Net cash used by financing activities - (1) -
Cash flows from investing activities
Payments for property plant and
equipment - (2) (5)
Payments for intangible assets - - 104
Net cash (used) / generated by
investing activities - (2) 99
-------------- -------------- ----------------
Decrease in cash and cash equivalents (396) (439) (734)
Foreign exchange differences (3) 2 2
Cash and cash equivalents at the
start of the period 765 1,497 1,497
-------------- -------------- ----------------
Cash and cash equivalents at the
end of the period 366 1,060 765
============== ============== ================
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 of the London Stock Exchange and is incorporated in England and
Wales and domiciled in the UK. The address of the registered office
is 85 Great Portland Street, First Floor, London, W1W 7LT.
The registered number of the company is 03203042.
2. Basis of preparation
These condensed interim financial statements have been prepared
in accordance with IAS 34, "Interim Financial Reporting".
The financial information does not include all the information
required for full annual financial statements.
The same accounting policies and methods of computation have
been followed in the interim financial statements as compared with
the full audited financial statements and should be read in
conjunction with the consolidated financial statements of the Group
for the year ended 30 June 2022, which were prepared under
applicable law and in accordance with UK-adopted international
accounting standards.
The unaudited consolidated interim financial information is for
the six-month period ended 31 December 2022.
The financial statements are presented in Sterling (GBP) rounded
to the nearest thousand except where specified.
The interim financial information has been prepared on the going
concern basis which assumes the Group will continue in existence
for the foreseeable future.
No material uncertainties that cast significant doubt about the
ability of the Group 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 principal risks and uncertainties of the Company remain the
same as those reported in the consolidated financial statements of
the Group for the year ended 30 June 2022.
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 2022 have
been filed with the Registrar of Companies. The Group's auditor,
Saffery Champness LLP reported on these accounts and their report
was qualified as follows:
"Qualified opinion
We have audited the financial statements of Online Blockchain
Plc (the 'parent company') and its subsidiaries (the 'group') for
the year ended 30 June 2022 which comprise the Consolidated Income
Statement, Consolidated Statement of Comprehensive Income,
Consolidated Balance Sheet, Company Balance Sheet, Consolidated
Statement of Changes in Equity, Company Statement of Changes in
Equity, Consolidated Cash Flow Statement, Company Cash Flow
Statement and notes to the financial statements, including
significant accounting policies. The financial reporting framework
that has been applied in their preparation is applicable law and
UK-adopted international accounting standards.
In our opinion, except for the possible effects of the matter
described in the basis for qualified opinion section of our report,
the financial statements:
-- give a true and fair view of the state of affairs of the
group and of the parent company as at 30 June 2022 and of the
group's loss for the period then ended;
-- have been properly prepared in accordance with UK-adopted
international accounting standards; and
-- have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
We have been unable to satisfy ourselves over the initial
recognition of Umbria crypto coins together with income that the
Company has earned when trading on the Umbria Bridge. The directors
have concluded that the coins were gifted from a related party but
that no initial accounting entry was required due to the coins
having no active market and at the year end the value of the coins
should be shown as GBPNil for the years ended 30 June 2021 and 30
June 2022. Due to the lack of information available regarding the
nature of the initial investment we have been unable to determine
whether the accounting treatment is appropriate and in accordance
with accounting standards and therefore whether any adjustment is
required to the income statement or equity in respect of this.
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial
statements section of our report. We are independent of the group
and the parent company in accordance with the ethical requirements
that are relevant to our audit of the financial statements in the
UK, including the FRC's Ethical Standard as applied to listed
entities, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide
a basis for our qualified opinion."
.
3. Earnings / (loss) per ordinary share
Six months Six months Year to
to to
31 Dec 2022 31 Dec 2021 30 June 2022
GBP'000 GBP'000 GBP'000
Profit/(loss) for the year
attributable to equity shareholders 506 (430) (1,018)
Weighted average number of
Ordinary shares 14,311,709 14,311,709 11,423,439
Dilutive effect of options 1,358,695 (192,979) -
------------ ------------ ------------
Weighted average Ordinary
shares for diluted earnings
per share 15,670,404 14,118,730 11,423,439
============ ============ ============
Total loss per share
Basic earnings / (loss) per
share (pence) 3.53 (3.01) (8.91)
Diluted earnings / (loss)
per share (pence) 3.23 (3.05) (8.91)
============ ============ ============
Where a loss has been recorded for the year the diluted loss per
share usually does not differ from the basic loss per share.
However in the six months to 31 December 2021, there were some
options where the exercise price was below the average share price.
Under these circumstances those options where the exercise price is
below the average share price are treated as dilutive.
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.
Notes to the interim statements (continued)
4. Investments in associate undertakings
Six months Six months Year
ended ended Ended
31 December 31 December 30 June
2022 2021 2022
GBP'000 GBP'000 GBP'000
Listed investments at cost - 868 868
Listed investments at market
value - 3,316 2,367
Total net assets of ADVFN
Plc - 3,375 1,322
Percentage ownership interest
held by the group - 17.64% 17.64%
Share of net assets of ADVFN
Plc - 595 233
Cost of investment in ADVFN
Plc - 868 868
----------- ----------- -------
- 1,463 1,101
=========== =========== =======
Online Blockchain Plc owns 10% (2022 17.64%) 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.
Prior to August 2022, the investment in ADVFN plc was treated as
an associate for the purposes of financial reporting due to the
common directorships held between ADVFN plc and Online Blockchain
plc and the resulting level of significant influence over the
associate. It was therefore accounted for under the equity method
of accounting.
The carrying value of the associate in the balance sheet of
Online Blockchain Plc was GBP1,101,000 at the end of the financial
year, based on the share of the balance sheet of the associate
company.
From August 2022, the number of common directors between the
companies decreased to 1 (2022: 3) and therefore there was no
longer significant influence. As such, at this date, ADVFN ceased
to be an associate.
5. Investments
Six months Six months Year
ended ended Ended
31 December 31 December 30 June
2022 2021 2022
GBP'000 GBP'000 GBP'000
Investment in ADVFN plc 2,034 - -
Prior to August 2022 the investment in ADVFN plc was treated as
an associate as the 2 companies had common directors. On 23(rd)
February 2022 Clem Chambers resigned as a director and on 8(th)
August 2022 Michael Hodges resigned. New directors were brought
into ADVFN plc and therefore from 8(th) August 2022 OBC no longer
had significant influence over ADVFN plc and ADVFN plc should no
longer be classed as an associate.
In accordance with IAS 28 the carrying amount of the investment
at the date the equity method was discontinued was recognised as an
investment and the difference has been recognised in the income
statement as a gain.
6. Events after the balance sheet date
There were no events after the balance sheet date.
7. Dividends
The directors do not recommend the payment of a dividend.
Notes to the interim statements (continued)
8. Financial statements
Copies of these accounts are available from Online Blockchain
Plc's registered office 85 Great Portland Street, First Floor,
London, W1W 7LT or from Companies House, Crown Way, Maindy,
Cardiff, CF14 3UZ.
www.companieshouse.gov.uk
and from the Online Blockchain plc website:
www.onlineblockchain.io
ENDS
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END
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