Stockcube PLC
LSE : SKC

September 18, 2009 02:00 ET

Half year report

 
Stockcube plc Interim Report 2009

                                                  
The Stockcube group produces research and technical analysis of the relative strengths and weaknesses
of price trends of stocks, stock and sector indices, currencies, bonds and financial data to assist
institutional and private investors with the timing of investment decisions.

Highlights for the six months ended 30 June, 2009
    
    *     Turnover of £1,214,000 (2008: £1,372,000)
    
    *     Operating profit of £36,000 (2008: £111,000)

    *     Profit before tax of £75,000 (2008: £165,000)

    *     Earnings per share of 0.61p (2008: 0.77p)


" We have been weathering these extraordinary economic conditions, and in particular the caution
being exercised by clients in our institutional business, as well as can be expected. We have
witnessed an unprecedented period of market turbulence which had impacted our institutional clients
negatively with consequent knock-on effects to us. We continue to improve our services and certainly
there is little doubt that we have had early sight, and so have our customers, of what significant
trend changes there have been in the major markets.
"While it is important that we continue to improve our products and continually upgrade our services
we also have to be mindful of a relatively fixed cost base. We will continue to monitor the
efficiency of our research production and respond accordingly if the market for our services shifts
significantly in relation to recent events."

Julian Burney
Chief Executive of Stockcube,
17 September, 2009

Enquiries:
Julian Burney                     Chief Executive Officer            +44 (0)207-352-4001
Shirley Yeoh                      Finance Director                   +44 (0)207-352-4001
William Vandyk                    Astaire Securities Plc             +44 (0)207-448-4400
Our website is:                   www.stockcube.com                  
Chairman's Statement


Introduction

We have continued to provide our customers with clear and valuable timing advice during the first six
months of the year when market direction has shown sharp reversals of  trends.

Financial review

Turnover for the six months ended 30 June, 2009 was down 12% to £1,214,000 (2008: £1,372,000) and
group operating profit decreased by 68% from £111,000 to £36,000 in 2009. Like for like, before the
tax on the grant of share of share options of £30,000, this is a decrease of 41%.


Profit before tax amounted to £75,000 a decrease of 55% from £165,000 in 2008. Like for like, a
decrease of 36%.

Basic earnings per share of 0.61p compared to 0.77p in 2008, a fall of 21%. Like for like, a decrease
of 12%.

The group balance sheet showed net tangible assets of 27p per share at 30 June, 2009 of which cash,
cash equivalents and marketable bonds of £2,652,000 (June 2008: £2,590,000) represented 28p per
share.

Review of operations

Our institutional investor consultancy, although ahead of budget, continues to reflect the
uncertainties with which our institutional customers are grappling, recording a 26% drop in revenues
in the first six months of the year. We do not expect such uncertainty to diminish until these
customers have greater visibility in the trends of their business.

Demand for Fullermoney, our global investment strategy service has weakened with a drop of 13% in
revenues as private investors have indicated they are prepared to sit out current market conditions.

More positively, income from our US business, Chartcraft Inc, showed an 11% increase in US$ terms
(and a flattering 38% increase in sterling terms due to favourable £/US$ exchange movements) and our
non-US wider market activities conducted through Investors Intelligence showed a 12% increase in
income between 2008 and 2009.

Ecube, our website developer, continues to expand its customer base with an encouraging 38% increase
in third party development and hosting and licensing income, partly reflecting the impact of new work
deferred by customers from the first half of 2008 to first half of 2009. Ecube is building a valuable
reputation for website development and integrated online financial research production and
distribution systems.







Trading outlook

The trading outlook is uncertain and we do not see any signs of an imminent recovery in stock market
activity although there is a general consensus that the economic shocks suffered in the last eighteen
months are being absorbed.

We will continue to develop and improve our analysis and systems so we are in the best possible
position to service and benefit from any increase in investor activity.




Edward Forbes,
Chairman
London
17 September 2009




Stockcube Plc
Consolidated Income Statement
for the six months ended 30 June 2009
                                                                Unaudited        Unaudited       Audited
                                                            Six Months to    Six Months to       Year to
                                                   Notes          30 June          30 June        31 Dec
                                                                     2009             2008          2008
                                                                    £'000            £'000         £'000
                                                                                                                  
Revenue                                              3,4            1,214            1,372         2,586
Cost of sales                                                        (157)             (119)        (328)
                                                                  --------         --------       -------
Gross Profit                                                        1,057            1,253         2,258
                                                                                                                
Administrative expenses                                            (1,021)          (1,142)       (2,184)
                                                                  --------         --------      --------
Group operating profit                                                 36              111            74
                                                                                                                  
                                                                                                                 
Investment revenues                                                                                          
                                                                       39               54           118
                                                                  --------         --------      --------
Profit before taxation                                                 75              165           192
                                                                                                                  
Taxation                                                 5            (16)             (91)         (110)
                                                                  --------          -------       -------
Profit  for the period attributable to equity holders                                                            
of the parent                                                          59               74            82
                                                                  --------         --------       -------
Earnings per share                                        6                                                 
Basic                                                               0.61p            0.77p         0.85p
Diluted                                                             0.61p            0.77p         0.85p
















Stockcube Plc
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2009
                                                                  Unaudited         Unaudited       Audited
                                                              Six Months to     Six Months to       Year to
                                                                    30 June           30 June        31 Dec
                                                                       2009              2008          2008
                                                                      £'000             £'000         £'000
                                                                                                                    
Profit for the period                                                    59                74            82
                                                                   --------          --------      --------
Other comprehensive income                                                                                          
Fair  value  unrecognised gain on available-for-sale  financial           -                 -             9
assets
Exchange differences on translation of subsidiary                        13                (2)          (27)
                                                                    --------          --------     --------
Total  comprehensive  income  for the  period  attributable  to          72                72            64
equity holders of the parent
                                                                    --------          --------     --------
                                                                                                                    



Stockcube Plc
Consolidated Statement of Financial Position
as at 30 June 2009

                                                                 Unaudited        Unaudited          Audited
                                                                     As at            As at            As at
                                                                   30 June          30 June           31 Dec
                                                                      2009             2008             2008
                                                                     £'000            £'000            £'000
            Non Current Assets                                                                              
Intangible assets                                                       17               17               17
Available- for- sale investments                                     1,127                -              700
Property, plant and equipment                                          314              333              329
                                                                  --------         --------         --------
                                                                     1,458              350            1,046
                                                                  --------         --------         --------
Current assets                                                                                              
Trade and other receivables                                            311              856              229
Available- for- sale investments                                       584                -              515
Cash and cash equivalents                                              941            2,590            1,413
                                                                  --------         --------         --------
                                                                     1,836            3,446            2,157
                                                                  --------         --------         --------
Current Liabilities                                                                                         
Trade and other payables                                             (692)          (1,050)            (603)
Current tax payable                                                   (50)             (41)             (60)
Financial Liability                                                     -             (170)               -
                                                                  --------         --------         --------
                                                                     (742)          (1,261)            (663)
                                                                  --------         --------         --------
                                                                                                            
Net current assets                                                   1,094            2,185            1,494
                                                                  --------         --------         --------
Total assets less current liabilities                                2,552            2,535            2,540
                                                                  --------         --------         --------
Equity                                                                                                      
Share Capital                                                          961              961              961
Share premium account                                                1,294            1,322            1,294
Merger reserve                                                         568              568              568
Share options reserve                                                   71                -               41
Investments  revaluation reserve                                       (9)                -                9
Translation reserve                                                    (7)                5              (20)
Retained earnings                                                    (326)             (321)            (313)
                                                                  --------          --------         --------
Equity shareholders' funds                                           2,552            2,535            2,540
                                                                  --------          --------         --------
                                                                                                            
Approved by Order of the Board on 17 September 2009

Julian Burney
Director

Stockcube Plc
Consolidated Statement of Changes in Equity
for the six months ended 30 June 2009

Group                                                                                                                          
                          Share       Share        Merger  Translation     Share     Investments   Retained    
                          Capital    Premium       Reserve     Reserve     Option    Revaluation   earnings    
                                                                           reserve   reserve                  Total
                           £'000       £'000       £'000          £'000      £'000        £'000      £'000    £'000
Balance at 1 January 2008    961       1,327         568              7         -             -       (275)   2,588
Total comprehensive income     
for the period                 -           -           -             (2)        -             -          74      72
Capital reorganisation -       
legal expenses                 -         (5)           -              -         -             -           -      (5)
Dividends paid                 -           -           -              -         -             -        (120)   (120)
                          -------     -------     -------        -------    ------     ---------     -------  ------
Balance at 30 June 2008      961       1,322         568              5         -             -        (321)  2,535
(Unaudited)
                          -------     -------     -------        -------    ------     ---------     -------  ------
                                                                                                                               
Balance at 1 January 2008    961       1,327         568              7         -             -       (275)   2,588
Total comprehensive income     
for the period                 -           -           -            (27)        -             9         82       64
Capital reorganisation -             
legal expenses                 -         (33)          -              -         -             -          -      (33)
Share options charge           -           -           -              -        41             -          -       41
Dividends paid                 -           -           -              -         -             -       (120)    (120)
                           -------     -------     -------     ---------    ------     ---------    -------  -------
Balance at 31 December 2008  961       1,294         568            (20)       41             9       (313)   2,540
(Audited)                                                                                                      
                           -------     -------     -------     ----------    ------     ---------   -------  -------
                                                                                                                               
Balance at 1 January 2009    961       1,294         568           (20)        41              9      (313)  2,540
Total comprehensive income        
for the period                 -           -           -            13          -              -        59      72
AFS revaluation recognised     
in profit during the year      -           -           -             -          -             (18)       -     (18)
Share options charge           -           -           -             -         30               -        -      30
Dividends paid                 -           -           -             -          -               -      (72)    (72)
                           -------     -------     -------     ----------    ------     ---------   -------  -------
Balance at 30 June 2009      961       1,294         568            (7)        71             (9)     (326)  2,552
(Unaudited)                                                                                                
                           -------     -------     -------        -------    ------     ---------   -------  -------


Stockcube Plc
Consolidated Statement of Cash Flows
for the six months ended 30 June 2009

Group
                                                            Unaudited       Unaudited         Audited
                                                        Six months to      Six months         Year to
                                                                                   to
                                                              30 June         30 June     31 December
                                                                 2009            2008            2008
                                                Notes           £'000           £'000           £'000
Net cash from operating activities                  8              59             357             526
                                                                --------    --------        --------
Net cash flows from investing activities                                                             
Interest and other income received                                 39              54             118
Purchases of property, plant and equipment                        (2)             (4)            (10)
Sales of available-for-sale investments                           645               -               -
Purchases of available-for-sale investments                   (1,141)               -         (1,206)
                                                             --------        --------        --------
Net cash generated from investing activities                    (459)              50         (1,098)
                                                             --------        --------        --------
Cash flows from financing activities                                                                 
Capital reorganisation - associated expenses                        -             (5)           (203)
Equity dividends paid                                            (72)           (120)           (120)
                                                             --------        --------        --------
Net cash used in financing activities                            (72)           (125)           (323)
                                                             --------        --------        --------
                                                                                                     
Net increase/ (decrease) in cash and cash                       (472)             282           (895)
equivalents
                                                                                                     
Cash and cash equivalents at beginning of                       1,413           2,308           2,308
period
                                                             --------        --------        --------
Cash and cash equivalents at end of period          9             941           2,590           1,413
                                                             --------        --------        --------














Stockcube Plc
Notes to the Interim Report
for the six months ended 30 June 2009


1. Statement of Compliance

The  consolidated financial information has been prepared using accounting policies  consistent  with
International  Financial  Reporting Standards ("IFRS") as adopted by the European  Union  applied  in
accordance  with  the  provisions of the Companies Act 1985 and in accordance with  IAS  34,  Interim
Financial Reporting.

The results for the year ended 31 December 2008  have been audited whilst the results for the six months
ended  30  June  2009 and 30 June 2008 are un-audited.  The financial information contained  in  this
interim report does not constitute statutory accounts as defined in section 240 of the Companies  Act
1985.  The  statutory  accounts  for the previous year, which were  prepared  under  IFRS  have  been
delivered to the Registrar of Companies. The auditors' opinion on those accounts was unqualified  and
did not contain a statement made under s237 (2) or s237 (3) of the Companies Act 1985

2. Accounting Policies
Basis of preparation of interim financial statements
The interim financial information has been prepared using accounting policies consistent with IFRS, as set
out in the last annual report to 31 December 2008, except as described below:
The Group has applied the following standards which are effective for the period beginning on or after
January 1, 2009. The adoption of these standards only impacts the presentation and the extent of the
disclosures presented in the financial statements:

*     IAS 1 revised, Presentation of Financial Statements
*     IFRS 8, Operating Segments

Principle risks and uncertainties for the remaining six months of the financial year
The group does not have any gearing which would impact the results over the remaining six months of the
year.
Further, the group has surplus cash available and should be in a strong position to take advantage of
situations arising out of the current economic environment.

3. Revenue
Revenue, which is stated net of value added tax, represents the sales value of work done in the period or
year.
Revenue is attributable mainly to the continuing activity of the provision of research and analysis of price
trends in stocks, commodities, currencies and interest rates.

An analysis of the Group's revenue is as follows:
                                                          Unaudited            Unaudited        Audited
                                                      Six months to        Six months to        Year to
                                                            30 June              30 June    31 December
                                                               2009                 2008           2008
                                                              £'000                £'000          £'000
Rendering of services                                         1,214                1,372          2,586
                                                           --------             --------       --------



4.     Operating segments

In accordance with IFRS 8, Operating Segments, the information presented in this note is the same as that
reported to the Chief Operating Decision Maker for the purposes of making decisions about allocating
resources to the segment and assessing its performance.

The segments presented in this note reflect the separate companies within the Group and is how management
information is presented to the Chief Operating Decision Maker.

30 June 2009              Stockcube       Stockcube        Ecube    Chartcraft   Eliminations    Total
(unaudited)                     plc        Research      Limited          Inc.
                                            Limited
                                                                                                               
                              £'000           £'000        £'000         £'000         £'000      £'000
 Revenues                                                                                                      
Third party                       -             930           84           200             -      1,214
Inter segment                     -               -           99             -          (99)          -
Total Revenue                     -             930          183           200          (99)      1,214
                                                                                                              
Profit/(loss) before           (62)             112         (35)            59            1          75
tax
                                                                                                               
Total assets                  4,201           3,065           92           254       (4,318)      3,294

                                                                                                               
31 December /2008         Stockcube       Stockcube        Ecube    Chartcraft   Eliminations      Total
(audited)                       plc        Research      Limited          Inc.
                                            Limited
                                                                                                               
                              £'000           £'000        £'000         £'000         £'000       £'000
 Revenues                                                                                                      
Third party                       -           2,094          145           347             -       2,586
Inter segment                     -               -          273             -          (273)          -
Total Revenue                     -           2,094          418           347          (273)      2,586
                                                                                                             
Profit/(loss) before             49             117         (40)            65             1         192
tax
                                                                                                               
Total assets                  4,303           2,799          102           234          (4,235)    3,203


30 June 2008              Stockcube       Stockcube        Ecube    Chartcraft   Eliminations      Total
(unaudited)                     plc        Research      Limited          Inc.
                                            Limited
                                                                                                               
                              £'000           £'000        £'000         £'000         £'000       £'000
 Revenues                                                                                                      
Third party                       -           1,160           68           144             -       1,372
Inter segment                     -               -          117            -           (117)         -
Total Revenue                     -           1,160          185           144          (117)      1,372
                                                                                                               
Profit/(loss) before           (36)             198         (55)            57             1         165
tax                                                                                                               
Total assets                  4,400           3,275           52           165         4,096)      3,796



There has been no alteration from the last annual financial statements in the basis of segmentation,
however the information has been restated in order to reflect the adoption of IFRS 8.

5. Tax on profit on ordinary activities
The taxation charge is comprised as follows:
                                                                   Unaudited    Unaudited     Audited
                                                                     30 June      30 June       31Dec
                                                                        2009         2008        2008
                                                                       Total        Total       Total
                                                                       £'000        £'000       £'000
Current tax                                                               16           36          56
Adjustments for prior periods                                             -             -          (1)
Deferred tax charge                                                       -            55          55
                                                                     ------        ------      ------
                                                                         16            91         110
                                                                     ------        ------      ------

6. Earnings per share
                                                                  Unaudited     Unaudited     Audited
                                                                     30 Jun        30 Jun       31Dec
                                                                       2009          2008        2008
Earnings                                                              £'000         £'000       £'000
Earnings for the purposes of basic and diluted earnings per                                          
share being net profit attributable to equity shareholders               59            74          82
                                                                   --------      --------    --------
Number of shares                                                       '000          '000        '000
Weighted average number of ordinary shares for the purposes of                                       
basic earnings per  share                                             9,611         9,611       9,611
Number of dilutive shares under option                                    -             -           -
                                                                   --------      --------    --------
Weighted average number of ordinary shares for the purposes of                                       
basic earnings per  share                                             9,611         9,611       9,611
                                                                   --------      --------    --------

Profit per ordinary share (pence):
Basic                                                                  0.61p        0.77p       0.85p
Normalised basic                                                       0.93p        1.34p       1.85p
Diluted                                                                0.61p        0.77p       0.85p
Normalised diluted                                                     0.93p        1.34p       1.85p

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary  shares
outstanding to assume conversion of all dilutive potential ordinary shares.  A calculation is done to
determine the number of shares that could have been acquired at fair value (determined as the average
annual  market  share price of the company's shares) based on the monetary value of the  subscription
rights  attached to outstanding share options. The number of shares calculated as above  is  compared
with  the  number of shares that would have been issued assuming the exercise of the  share  options.
Based on these calculations there were no dilutive potential ordinary shares in 2009 (2008: nil).

Normalised basic and diluted earnings per share are calculated by adding back the notional charge  of
£30,000  (Dec 2008:£41,000; June 2008: nil)  in respect  of the cost of  share options  and  deferred
tax charge of £nil (December 2008: £55,000; June 2008: £55,000) to earnings.







7. Dividends and other appropriations
                                                         Unaudited          Unaudited          Audited
                                                     Six Months to      Six Months to          Year to
                                                           30 June            30 June           31 Dec
                                                              2009               2008             2008
                                                             £'000              £'000             £000
Equity dividends on ordinary shares -Paid                       72                120              120
                                                          --------           --------         --------
                                                                                                      

8. Cash generated from operations

Group                                                    Unaudited         Unaudited          Audited
                                                     Six Months to     Six Months to          Year to
                                                           30 June           30 June           31 Dec
                                                              2009              2008             2008
                                                             £'000             £'000            £'000
Operating profit                                                36               111               74
Depreciation                                                    17                 9               20
Exchange differences                                            13                 -              (27)
Share Option benefits charge                                    30                 -               41
AFS investments charge                                         (18)                -                -
(Increase)/decrease in trade receivables                       (82)              (65)             562
Increase/(decrease)/increase in trade payables                  89               352              (95)
                                                          --------          --------         --------
Cash generated from operations                                  85               407              575
Tax (paid)                                                     (26)              (50)             (49)
                                                          --------          --------         --------
Net cash from operating activities                              59               357              526
                                                          --------          --------         --------
                                                                                                     

9. Reconciliation of net cash flow

Group                                                    Unaudited         Unaudited          Audited
                                                     Six Months to     Six Months to          Year to
                                                           30 June           30 June           31 Dec
                                                              2009              2008             2008
                                                             £'000             £'000            £'000
Cash at bank and in hand                                                                             
At start of period                                           1,413             2,308            2,308
Net (decrease)/increase in cash flow                         (472)               282            (895)
                                                          --------          --------         --------
At end of period                                               941             2,590            1,413
                                                          --------          --------         --------


10. Share-based payments

    The following options were outstanding:

                                        Founders    Executive      Approved      EMI      Total
                                                         No.2        Scheme
At 30 June 2008                           43,000       70,000        95,647   1,464,500     1,673,147
Renunciations                                  -            -             -           -             -
New Options                                    -            -             -           -             -
At 31 December 2008                       43,000       70,000        95,647   1,464,500     1,673,147
Renunciations                                  -            -             -           -             -
New Options                                    -            -             -           -             -
At 30 June 2009                           43,000       70,000        95,647   1,464,500     1,673,147
                                                                                                         



By order of the board



--------------------------------------                          -------------------------------------------
Edward Forbes                                    Julian Burney
Chairman                                        Chief Executive













Contact Information

  • Stockcube PLC