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It started off by reminding investors how bullish the company was at the time of the interim results in May, but then goes on to point out that since March there has been a significant decline in equity market activity (as if we didn't know). As a result the company has suffered from lower transaction volumes and reduced revenues derived from equity transactions, mostly IPO related. There have also been other knock-on effects that will all combine to give the company only modest revenue growth over the first half.
However, its website is still very active registering 3.8m visits in May from 1.3m unique users generating 43m page impressions. Large though that number is, it is almost half the level of March when it got to 93m. Even so, the user base of registered accounts is still growing and now stands at 1.1m.
The great thing that "triple I" has going for it is the cash raised from flotation, of which it still has £65m left. However, its market capitalisation has fallen to £95m which implies that the market thinks that value of the business itself is only £30m. It is common practice to net off the cash, or add the debt back, to the market capitalisation to calculate a figure that represents the market value of the underlying business. That figure is commonly called Enterprise Value.
In the business environment existing today that cash pile is clearly a huge asset and the company says it plans to increase the emphasis on managing its available cash resources. I think that means it won't be spending much money.
During its first half it had negative operating cash flow of £5.5m, so in fact it could survive for a long time without additional funding. That may be just as well.
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