Wrap Text
Baroness Lynda Chalker has been appointed as a director of the company with
effect from 21st February 2001.
Ends
#CORPCOM UNAUDITED INTERIM RESULTS 28/02/2001 AND FURTHER CAUTIONARY
Corpcom Limited
Unaudited Interim Results 28 February 2001 and Further Cautionary Announcement
Headline earnings per share up 8%
Turnover up 14%
Operating income before depreciation (EBITDA) up 23%
taking great brands into the great outdoors
Group Income Statement
Six months Six months Year ended
to 28/2/2001 to 29/2/2000 31/8/2000
Unaudited Unaudited Increase Audited
Turnover 131 681 115 198 14 239 888
Operating income before
depreciation (EBITDA) 38 471 31 342 23 71 943
Depreciation (10 149) (6 002) 69 (13 619)
Amortisation of goodwill (538) - -
Operating income 27 784 25 340 10 58 324
Income from associates 1 276 875 2 026
Income before taxation 27 613 25 949 6 61 549
Taxation (4 436) (4 396) (9 079)
Income after taxation 23 177 21 553 8 52 470
Attributable to minority
shareholders (26) (32) 94
Attributable earnings 23 151 21 521 8 52 564
Amortisation of goodwill 538 - -
Headline earnings 23 689 21 521 10 52 564
Headline earnings per
share (cents) 6,9 6,4 8 15,5
(cents) 6,7 6,4 5 15,5
Weighted average shares
in issue and to be
issued (000) 344 593 336 151 339 814
EBITDA as a % of turnover 29 27 30
Group Cash Flow Statement
Unaudited Unaudited Audited
R'000 R'000 R'000
Operating activities 14 499 19 561 44 108
Cash generated from operations 31 226 29 343 66 095
Movement in working capital (13 332) (9 123) (19 730)
Net interest paid (1 447) (266) 1 199
Taxation paid (1 948) (393) (3 456)
Net cash generated 14 499 19 561 44 108
Investing activities (22 402) (33 194) (64 802)
Net additions to property, plant
and equipment (19 592) (28 028) (54 434)
Movement in investments and loans (1 099) (250) 1 745
Net cash utilised (7 903) (13 633) (20 694)
Financing activities 17 910 11 143 30 087
Movement in debt and loans and
unrealised exchange gains 17 910 11 143 30 087
Net movement in cash resources 10 007 (2 490) 9 393
Closing cash resources 103 801 81 911 93 794
Comments
Overview
Corpcom's focus on developing high-quality Outdoor advertising opportunities,
which generate long-term sustainable income serviced through our sub-Saharan
branch infrastructure, has proven resilient in difficult economic circumstances
Review of Operations
Turnover of R131,7 million was up 14% on the prior period. Headline earnings
increased 10% to R23,7 million, with headline earnings per share increasing by
8% to 6,9 cents from 6,4 cents. Operating income before depreciation (EBITDA)
of R38,5 million increased by 23% compared with R31,3 million in the prior
level, comparable to the 30% at year end, and 27% at the interim stage last
year.
We continue to build our business organically with an increase in property,
plant and equipment (predominantly advertising structures) to R141,4 million.
This increase in revenue-generating structures has resulted in depreciation of
R10,1 million, 69% higher than the R6,0 million in the previous period. The
debt funding. Cash generated from operations has increased to R31,2 million
from R29,3 million in the prior period. Foreign denominated earnings continue
to grow, with approximately 31% of EBITDA received from our businesses in
Africa outside of South Africa and Poland. Subsequent to the interim period,
the initial tranche of the outstanding purchase consideration for Suburban and
Industrial Sign Design was paid.
Prospects
During the review period, Corpcom erected its first advertising structures in
the Indian Ocean Islands and Cameroon in West Africa. This development extends
our territorial dominance in the sub-Saharan region and further enhances our
ability to provide marketers of global brands with a complete Outdoor
hard currency earnings.
The period also saw the first Parisian style "CitiLite" erected in South
Africa, heralding the introduction of more aesthetically advanced,
environmentally friendly illuminated Outdoor advertising units to our markets,
in line with global trends.
The imminent launch of "packaged" Outdoor holdings will provide more flexible
and mapping system which quantifies portfolio performance, will assist in
further justifying the advertiser's investment in the Outdoor advertising
medium.
Although the anticipated upturn in consumer spending has not materialised,
recent increases in client spend, from both our existing customers and new
advertisers, augurs well for an uplift in future performance.
Dividend
Our policy is to consider the declaration of an annual dividend on publication
of the year-end results.
Further Cautionary Announcement
Shareholders are referred to the cautionary announcement published on 1 March
concluded, may have an effect on Corpcom's share price. Shareholders are
accordingly advised to exercise further caution when dealing in their shares.
Jeff Liebesman Barry Sayer
Chairman Managing Director
26 March 2001
Condensed statement of changes in ordinary shareholders' funds
to 28/2/2001 to 29/2/2000 31/8/2000
Unaudited Unaudited Audited
R'000 R'000 R'000
Balance at the beginning
of the period 112 954 228 952 255 586
Change in accounting policy
for deferred taxation - 32 430 8 243
Shares issued and to be
issued 3 672 - 8 168
Goodwill and trademarks
written off - (4 916) (212 272)
reserve 1 095 - 665
Attributable earnings 23 151 21 521 52 564
Balance at the end of the
period 140 872 277 987 112 954
Group Balance Sheet
28/2/2001 31/8/2000 29/2/2000
R'000 R'000 R'000
Assets
Non-current assets 204 689 174 354 306 616
Property, plant and equipment 141 362 131 895 111 827
Goodwill 20 618 - -
Trademarks - - 154 400
Investments and loans 13 816 11 440 10 601
Deferred taxation 28 893 31 019 29 788
Current assets 190 128 175 845 150 752
Inventories 18 257 18 379 15 905
Debtors and prepayments 68 070 63 672 52 936
394 817 350 199 457 368
Equity and liabilities
Equity 141 348 113 404 278 563
Ordinary shareholders' equity 140 872 112 954 277 987
Minority shareholder's
interest 476 450 576
Interest-bearing debt 8 081 8 435 13 387
Deferred taxation 10 049 10 437 10 038
Current liabilities 235 339 217 923 155 380
Creditors and provisions 65 142 73 402 62 373
Purchase consideration
payable 128 099 112 370 80 397
Interest-bearing debt 42 098 32 151 11 970
Interest-free loan - - 640
394 817 350 199 457 368
Net asset value per share (cents)
- ordinary shareholders'
- tangible assets 34,1 32,4 36,4
Shares in issue and to be
issued (000) 352 725 348 368 339 579
Note 1: The interim report has been prepared using accounting policies that
are consistent with those applied in the prior year except for the adoption of
AC 129 for intangible assets. This has resulted in the recognition of goodwill
life.
Note 2: Comparative figures have been restated to achieve fair presentation.
Segmental Information
Six months Year ended Six months
to 28/2/2001 to 31/8/2000 to 29/2/2000
Unaudited Audited Unaudited
R'000 R'000 R'000
Turnover
South Africa 98 456 184 670 87 847
International 33 225 55 218 27 351
131 681 239 888 115 198
South Africa 26 438 56 158 21 878
International 12 033 15 785 9 464
38 471 71 943 31 342
Corpcom Limited ("Corpcom") Reg. No. 97/01284/06
Directors: JM Liebesman* (Chairman), B Sayer (Managing Director) GB Liebmann*,
B Rodkin (Financial Director), MH Sacks*
66 Peter Place, Hurlingham, Extension 5. Private Bag x91, Bryanston 2021
Telephone: +2711 348 1800. fax: +2711 348 1829.
Transfer Secretaries: Mercantile Registrars Limited, 10th Floor, 11 Diagonal
Street, Johannesburg 2001.
PO Box 1053, Johannesburg, 2000.
Telephone: +2711 370 5272. fax: +2711 370 5487
these results may be viewed at www.corpcomlimited.com
CORPCOM SHOWS POSITIVE GROWTH DESPITE LOSS OF TOBACCO ADVERTISING
CORPCOM - MEDIA RELEASE
Monday, 26 March 2001
Despite the loss of tobacco advertising worth more than R1-million a month and
turnover by 14% to R131,6-million for the six months to 28 February 2001.
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) grew 23%
to R38,5-million, from R31,3-million for the same period last year. This is
largely due to a continued focus on cost management and better utilisation of
assets.
"These results are satisfying in light of the loss of tobacco advertising
advertising generally, " says group managing director, Barry Sayer. "The local
market was characterised by a general lack of confidence, aggravated by the
economic slowdown elsewhere in the world."
The ban on tobacco advertising, increasingly a worldwide phenomenon, has been
devastating for many outdoor companies both here and abroad. "We managed to
find alternative sources of revenue to replace this loss, much of it at higher
prices, which is fair testimony to both the quality of our portfolios and the
ability of our sales teams," adds Sayer. "Our turnover growth for the six month
period was understandably slower than it has been historically, but we have
seen a noticeable pick-up in sales since January this year."
A heavier depreciation charge - the result of strong growth in income-earning
10% to R27,8-million for the period.
Net interest paid climbed to R1,45-million from R266,000 for the same period
last year. This was the result of a R10-million increase in interest-bearing
debt to R42-million. This increase in debt went to fund an expansion in revenue
generating assets, now valued at R141,3-million, versus R111,8-million a year
ago.
now accounts for 31% of EBITDA and 25% of turnover. Cameroon is the latest
country in its portfolio, where Corpcom has been appointed sole outdoor
advertising supplier to Guinness, now Corpcom's largest single advertiser
outside SA. It is also expanding into the Indian Ocean Islands on behalf of
clients such as Barclays Bank of the U.K.
"After a period of intense acquisition in order to quickly achieve critical
mass and total coverage in all major outdoor media type, we are now sticking to
a carefully mapped out plan of organic expansion," says Sayer. "Our
international operations are growing steadily, thereby increasing our foreign
currency earnings. We continue to grow our African business, particularly among
multi-national advertisers who pay in Rand hedged currency and generally sign
On the domestic front, the group erected its first CitiLite signs in Pretoria,
with plans to expand this medium countrywide in the short term. These are part
of a new generation of more environmentally friendly internally illuminated 3 X
6m signs that have revolutionised outdoor advertising in Europe. Advertisers
are being offered shorter-term exposures than those typically available on
Super Signs (large billboards located on highways), with the option to "walk"
viewer.
Another major development during the period was the completion of Corpcom's
planning and mapping system, a powerful outdoor marketing and planning tool
which will evaluate the performance of an outdoor advertising campaign on
similar criteria available on other media. Corpcom has teamed up with Telmar,
an international advertising research house, with a view to offering clients a
suite of media planning tools to assist in the planning of outdoor advertising
campaigns. Sayer believes this will help Corpcom increase its share of adspend.
"Outdoor is the world's oldest advertising medium," he says. "It is tried and
trusted, and cost-effective. With the fragmentation in other media and
outdoor's ability to deliver mass markets at low cost, I expect to see more of
Cash generated from operations was R31,2-million, up from R29,3-million for the
same period in 2000. Higher tax, interest and working capital requirements
reduced net cash generation to R14,5-million from R19,6-million for the interim
period ended February 2000. There was a slowdown in investment in
revenue-generating advertising signs and other fixed assets to R19,6-million
from R28-million for the previous comparable period. Group financial director
but is expected to increase in the second half of the year with planed growth
in Africa and South
Africa; projects such as CitiLites and growth in our retail advertising
divisions. Some 90% of Corpcom's fixed assets are advertising signs.
Sayer says there is evidence of a sharp recovery in business confidence in the
early part of 2001: "We've seen some big orders coming in, and many new clients
from sectors which are not traditional outdoor advertisers - such as financial
services. This is very encouraging for the rest of the year," he says.
Rodkin adds that the group is not pursuing growth for its own sake: "We have
rationalised our billboard holding, taking out poorly performing advertising
signs and erecting new ones which will generate an acceptable return." "We are
opportunities, by developing new lucrative territories in South Africa and in
selected African territories" Rodkin says.
Ends
Issued on behalf of:
Barry Sayer
Corpcom
Hurlingham
Tel: 011 348 1902
Fax: 011 348 1829
Cell: 083 407 5456
by:
Fasedemi Newman Leo Burnett Contact: Jenni Newman
Leo Burnett House Tel: 011 235 4323
3 Simba Road Fax: 011 235 4301
Sunninghill Cell: 082 882 8888
Contact: Megann Murdoch
Tel: 011 235 4240
Cell: 083 320 7577
#Northern Engineering Industries Africa Ltd. - Cautionary announcement
Northern Engineering Industries Africa Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1978/001240/06)
CAUTIONARY ANNOUNCEMENT
Shareholders are advised that Northern Engineering Industries Africa Limited
has entered into negotiations, which if successfully concluded may have a
material effect on the price of the company's securities. Accordingly,
shareholders are advised to exercise caution when dealing in the company's
securities until a full announcement is made.
Johannesburg
Sponsor
KPMG
#UNION ALLIANCE MEDIA INTERIM RESULTS ANNOUNCEMENT
Union Alliance Media
Highlights
Turnover 14%
Net profit from operations 32%
Net profit attributable 14%
Headline earnings 26%
Tangible NAV 75.4c
Interim results for the twelve months ended 31 December 2000
Group income statement
12 months 12 months
31 Dec. 31 Dec.
2000 1999
Unaudited Audited %
R'000 R'000 Change
Revenue 125,299 109,625 14
Net profit from operations 32,235 24,481 32
Share of associated
companies' retained profit 1,140 2,452
Net profit before tax 30,408 28,422 7
Taxation (7,784) (8,431)
Net profit before
extraordinary items 22,624 19,991
Extraordinary items 47 -
Net profit for the year 22,671 19,991 13
Outside shareholders interest
in subsidiaries (5,634) (5,027) 12
Net profit attributable
Total weighted number of shares
in issue at 31 December 2000 164,603 183,160
Earnings per share
(fully diluted) (cents) 10.4 8.2 27
Headline earnings per share
(fully diluted) (cents) 10.3 8.2 26
12 months 12 months
to to
31 Dec. 31 Dec.
2000 1999
Unaudited Audited %
R'000 R'000 Change
ASSETS
Non-current assets 155,535 144,811
Fixed assets 12,104 10,584
Investments and
loans receivable 143,431 134,227
Inventories 8,014 2,948
Accounts receivable 40,764 30,510
Total Assets 204,313 178,269
EQUITY AND LIABILITIES
Capital and reserves 141,326 120,489
Share capital and
Distributable reserves 33,298 14,964
Non-current liabilities 14,215 15,776
Outside shareholders' interest 10,717 7,577
Long-term liabilities 1,558 6,451
Deferred taxation 1,941 1,748
Current liabilities 48,772 42,004
Accounts payable 23,842 41,110
Bank overdraft 24,930 894
Total equity and liabilities 204,313 178,269
Tangible net asset value
(fully diluted) (cents) 75.4 65.8 15
Introduction
The directors are proud to present the results of Union Alliance Media Limited
("UAM"), for the twelve month period to 31 December 2000.
UAM is a technology media company, listed on the JSE Securities Exchange in the
media sector. The company focuses on technologies, which facilitate new, cost
effective delivery platforms. It currently operates across 4 divisions namely:
Marketing and Publishing.
Income Statement
In light of the tough economic conditions, the directors are pleased with the
results. The salient points are increases in turnover by 14%, net profit from
operations by 32%, attributable income by 14% and headline earnings per share
("Headline EPS") by 26%. The comparative figures have been restated to take
account of the disposal of Continuum Solutions (Pty) Ltd and SLK Word and
Pictures (Pty) Ltd, the adjustment of the purchase price of Technology
Communication Holdings (Pty) Ltd and the recognition of certain contracts in
Twilight Advertising and Entertainment Channel (Pty) Ltd.
Organic growth has once again been the major contributor to the increase in
respectively: TV, Radio & Telecommunications (20%, 26%); IT and Electronic
Media (32%, 35%); Advertising & Marketing (28%, 23%) and Publishing (20%, 16%).
UAM has a 22.5% equity stake in NextCom. In light of the award of the third
cell phone license, the investment in NextCom has been written-off, despite the
expectation that NextCom will be successful in the judicial review scheduled
for 2 May 2001.
Tangible net asset value increased by 15% from 65,8 cents to 75,4 cents. The
accounts receivable and bank overdraft are higher than usual as large amounts
invoiced prior to 31 December 2000 were only paid in the new year.
Divisional Highlights
TV, Radio & Telecommunications - Yfm remains the largest regional radio station
in South Africa with a listenership of 1.322 million. The Yfm format will be
duplicated throughout Africa. Yarona FM was launched in Botswana during August
1999 and has already achieved a listenership of 100,000 and 10% of local
adspend. UAM increased its shareholding in Yarona to 75% during the period.
Africa Pay Television is now operational in eight cities throughout Africa.
IT and Electronic Media - The rollout of Twilight to 600 ABSA branches has
throughout Africa. Other international initiatives are also in the pipeline.
Air Media has signed a contract with leading direct marketer, Glomail, to
provide video-on-demand for Glomail's retail stores.
Advertising & Marketing - Off The Wall secured the contract for interior floor
baggage belt advertising in all 9 airports managed by the Airports Company of
SA. Clients for this service include Engen, Maserati, Sanlam and Medisage. The
Borges Olive Oil, Moet & Chandon, Jack Daniels, Intec College, amongst others.
A Joint Venture with the Gauteng Taxi Council has been concluded to facilitate
and manage all media assets on their behalf.
Publishing - Radio and TV Talk, the SABC programme guide published by Creative
Publishing, is South Africa's most widely read magazine with an increase in
readership from 2.7 million to over 3.8 million.
Dividends
In line with company policy, funds are retained to finance growth and future
acquisitions and accordingly no dividend has been declared.
Year- End
The year-end of the Company has, with the approval of the JSE Securities
cycle of the group.
Future Prospects
The directors are confident that the Group will continue to perform well during
the next 6 months. All companies are positioned to deliver continued solid
organic growth. Other prospects including Southern African radio opportunities,
the third cellular license and strategic acquisitions and partnerships could
By order of the board
AM Glass
Chief Executive Officer
C de Beer
Financial director
Johannesburg
27 March 2001
Transfer Secretaries - Mercantile Registrars Limited, 10th Floor, 11 Diagonal
Street, Johannesburg, 2001, PO Box 1053, Johannesburg, 2000
Registered Office - 83 St Patrick Road, Houghton, PO Box 1851, Houghton, 2041
internet address - www.uam.co.za
#PEPKOR LIMITED - DEALINGS IN SECURITIES BY A DIRECTOR
In accordance with rule 3.72 to 3.75 of the JSE Listing Requirements the
following should be noted:
DIRECTOR : DR C H WIESE
DATE OF TRANSACTION : 20 MARCH 2001
PRICE : R2,52 PER SHARE
AMOUNT : 50 000
CLASS OF SECURITY : ORDINARY SHARES
NATURE OF TRANSACTION : PURCHASE ON JSE
EXTENT OF INTEREST : INDIRECT BENEFICIAL
DIRECTOR : DR C H WIESE
PRICE : R2,26 PER SHARE
AMOUNT : 100 000
CLASS OF SECURITY : ORDINARY SHARES
NATURE OF TRANSACTION : PURCHASE ON JSE
EXTENT OF INTEREST : INDIRECT BENEFICIAL
DIRECTOR : DR C H WIESE
PRICE : R2,50 PER SHARE
AMOUNT : 50 000
CLASS OF SECURITY : ORDINARY SHARES
NATURE OF TRANSACTION : PURCHASE ON JSE
EXTENT OF INTEREST : INDIRECT BENEFICIAL
ENDS
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