ADVFN Shares Dive 60% as Board Moves to Take the Company Private

The board of ADVFN (LSE: AFN), a financial markets website operator, has proposed taking the company private by cancelling the admission of its ordinary shares on the AIM exchange. The proposal requires approval from shareholders at the upcoming General Meeting on 25 April 2025.

“Significant Challenges”

The London-listed company closed the six months ending 31 December 2024 with revenue of £2.019 million, about a 12 per cent decline from the corresponding period in the previous fiscal year. However, the company managed to reduce its net loss to £393K from £531K.

“The AIM market, the broader stock market, and ADVFN specifically have faced significant challenges,” noted Amit Tauman, ADVFN’s CEO, in a statement. “One of the biggest issues has been a decline in ADVFN's revenue, driven primarily by a slowdown in sales, a challenge we have observed across our sector.”

However, he highlighted that the company had made solid progress in optimising its cost structure and improving operational efficiency, reducing annual costs from £8 million to under £5 million.

“This has been a long and difficult process,” Tauman added.

According to the company's unaudited figures, its gross profit for the six months fell to £1.919 million from £2.185 million. On the positive side, it reduced administrative expenses to £2.398 million from £2.796 million.

Meanwhile, ADVFN shares opened today (Thursday) about 62 per cent below yesterday’s (Wednesday’s) closing price. However, the shares have seen some recovery as trading continues.

A Tech-Focused Future

The company is now in the process of transforming its products and operations with modern technologies.

“The past 12 months have been a period of transformation – AI-driven tools, new apps, Options Flow, and TraderChat are just the beginning,” said Tauman, adding that the company’s aim is “growth with a strong focus on Monthly and Annual Recurring Revenue Subscriptions.”

He further revealed that the company’s new optimised operating model ensures that every £1 of additional revenue contributes meaningfully to profitability, targeting an 80 per cent gross margin and a 65–70 per cent operational margin.

“While revenue and profit ratios have remained relatively stable, we still face some challenges as revenues declined in 2024, albeit at a much slower pace,” Tauman added. “Nevertheless, there are encouraging signs: traffic has increased by nearly 30 per cent.”