Advfn pleased with progress on untangling legacy issues

Advfn updated the market on its recent progress and trading performance on Friday, reporting that it had successfully overcome legacy constraints and complexities through significant investments in technology and infrastructure.

The AIM-traded financial markets platform said that, coupled with a change in leadership and organisational structure, had paved the way for a clean break from the issues.

Over the coming 12 months, Advfn was planning to undergo changes aimed at enhancing user experience, improving product offerings, and achieving key performance indicators (KPIs), particularly in terms of revenue growth and long-term profitability.

One of the notable developments was Advfn’s expansion into the Korean market, opening up new opportunities and offering significant value to its targeted user base.

Additionally, Advfn said it had successfully concluded a deal with its joint venture partners in Brazil.

The agreement had resulted in the integration of the Brazilian operation into Advfn, including the absorption of costs and revenues.

As part of the agreement, the company said it had also secured the terms of a call option to acquire its partner's 50% interest in the Brazilian joint venture in due course.

“Current market conditions remained challenging, with revenue running at low levels, mostly derived by low advertising sales, reflecting the continuing soft market for financial media,” Advfn’s board said in its statement.

“However, we are currently experiencing a positive upturn as there are signs of a change in direction for both traffic and sales.”

At an operational level, Advfn said costs had increased, reflecting its investment in the business and its technology platform, with the board adding that it expected the current trading period to the end of June to continue to be loss-making.

“We believe that we are now increasingly better positioned to develop and expand Advfn, and are confidently looking towards the future.”

At 1002 BST, shares in Advfn were flat at 23.5p.

Reporting by Josh White for Sharecast.com.