Wrap Text
AME - African Media Entertainment Limited - Reviewed results for the year ended
31 March 2011
African Media Entertainment Limited
(Incorporated in the Republic of South Africa)
(Registration number 1926/008797/06)
Share code: AME ISIN:ZAE000055802
Website: www.ame.co.za
("AME" or "the company" or "the group")
REVIEWED RESULTS for the year ended 31 March 2011
CONSOLIDATED ABRIDGED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
year ended year ended
31 March 31 March
% 2011 2010
change R`000 R`000
Revenue 12 177 366 158 373
Cost of sales (54 663) (46 641)
Gross profit 122 703 111 732
Operating expenses (86 118) (75 628)
Operating profit 1 36 585 36 104
Investment income 1 184 -
Finance income 3 901 5 098
Finance cost (149) (203)
Losses attributable to associates (425) (2 207)
Net profit before taxation 6 41 096 38 792
Taxation (12 806) (14 683)
SA normal taxation (12 160) (11 477)
Deferred taxation (396) (1 222)
Secondary taxation on companies (250) (1 984)
Total comprehensive income for the year 17 28 290 24 109
Total comprehensive income attributable to:
Non-controlling interest holders 2 041 2 668
Equity holders of the parent 22 26 249 21 441
Earnings per share (cents) 22 307,4 251,1
Headline earnings per share (cents) 16 310,3 266,8
Diluted earnings per share (cents) 21 302,5 249,4
Diluted headline earnings per share (cents) 15 305,3 265,0
Dividends per share (cents) - 200
Number of shares in issue (000`s) 8 539 8 539
Diluted average number of shares in issue (000`s) 8 678 8 597
Headline earnings reconciliation
Profit attributable to equity holders 26 249 21 441
Loss on disposal of fixed assets 47 42
Impairment of loans to associate 199 1 295
Headline earnings 26 495 22 778
CONSOLIDATED ABRIDGED STATEMENT OF CASH FLOWS
Reviewed Audited
year ended year ended
31 March 31 March
2011 2010
R`000 R`000
Cash generated by operating activities 39 700 37 947
Net interest received 3 752 4 895
Taxation paid (13 663) (14 634)
Decrease in working capital 9 289 117
Cash flows from operating activities 39 078 28 325
Dividends paid (16 870) (17 257)
Cash flows from investing activities (19 271) (12 838)
Cash flows from financing activities (2 504) (5 700)
Net increase/(decrease) in cash and cash equivalents 433 (7 470)
Cash and cash equivalents at beginning of year 46 148 53 618
Cash and cash equivalents at end of year 46 581 46 148
CONSOLIDATED ABRIDGED STATEMENT OF FINANCIAL POSITION
Reviewed Audited
31 March 31 March
2011 2010
R`000 R`000
ASSETS
Non-current assets 80 753 61 362
Property, plant and equipment 25 412 20 258
Investments 10 914 635
Goodwill 39 785 35 431
Deferred taxation 4 642 5 038
Current assets 90 955 79 383
Trade receivables 41 906 31 520
Other receivables 2 468 1 715
Cash and cash equivalents 46 581 46 148
Total assets 171 708 140 745
EQUITY AND LIABILITIES
Total equity 113 976 87 960
Non-current liabilities 717 939
Operating lease accrual 518 647
Interest-bearing borrowings 199 292
Current liabilities 57 015 51 846
Trade payables 28 498 16 719
Other payables 26 694 14 954
Dividend payable 387 17 257
Operating lease accrual and
interest-bearing borrowings 224 451
Taxation 1 212 2 465
Total equity and liabilities 171 708 140 745
CONSOLIDATED ABRIDGED STATEMENT OF CHANGES IN EQUITY
Reviewed Audited
year ended year ended
31 March 31 March
2011 2010
R`000 R`000
Issued capital
Balance at beginning and end of year 8 539 8 539
Share premium
Balance at beginning and end of year 31 909 31 909
Retained profit
Balance at beginning of year 43 988 39 803
Total comprehensive income for the year 26 249 21 441
Dividend - (17 256)
Balance at end of year 70 237 43 988
Non-distributable reserve
Balance at beginning of year 1 869 1 608
Share-based payment expense 204 261
Balance at end of year 2 073 1 869
Non-controlling interests
Balance at beginning of year 1 655 4 687
Share of dividend (2 478) (5 700)
Share of total comprehensive income for the year 2 041 2 668
Balance at end of year 1 218 1 655
Total capital and reserves 113 976 87 960
SEGMENTAL REPORTING
Radio broadcasters Sales houses
Revenue 2011 2010 2011 2010
Total revenue 160 030 147 292 30 249 21 587
Internal revenue (12 913) (10 506)
External revenue 160 030 147 292 17 336 11 081
Profitability
Segment profit from operations 37 023 37 567 774 1 233
Unallocated/Eliminated corporate
expenses and intercompany
consolidation
Investment income
- Finance income
- Finance cost
Taxation
Total comprehensive income
for the year
Assets
Segment assets 69 223 66 234 33 425 18 847
Investment in associates 1 031
Cash and cash equivalents
Total assets
Liabilities
Segment liabilities 19 821 16 321 27 617 12 868
Capital expenditure 4 686 1 820 3 433 5 350
Depreciation 2 478 1 657 742 446
Company Group total
Revenue 2011 2010 2011 2010
Total revenue 4 513 4 569 194 792 173 448
Internal revenue (4 513) (4 569) (17 426) (15 075)
External revenue - - 177 366 158 373
Profitability
Segment profit from operations (1 212) (2 696) 36 585 36 104
Unallocated/Eliminated corporate
expenses and intercompany
consolidation (425) (2 207)
36 160 33 897
Investment income 1 184 -
- Finance income 3 901 5 098
- Finance cost (149) (203)
Taxation (12 806) (14 683)
Total comprehensive income
for the year 28 290 24 109
Assets
Segment assets 21 448 9 516 124 096 94 597
Investment in associates 1 031 -
125 127 94 597
Cash and cash equivalents 46 581 46 148
Total assets 171 708 140 745
Liabilities
Segment liabilities 10 294 23 596 57 732 52 785
Capital expenditure 453 40 8 572 7 210
Depreciation 40 7 3 260 2 110
COMMENTARY
Basis of preparation
This report has been prepared in accordance with the group`s accounting policies
that comply with International Financial Reporting Standards, IAS 34, the AC 500
Series of Interpretation, the Companies Act and the Listings Requirements of the
Johannesburg Stock Exchange, on a basis consistent with the policies and methods
of computation as used in the Annual Financial Statements for the year ended 31
March 2010.
Review by Auditors
The results for the year to 31 March 2011 have been reviewed by the auditors,
PKF (Jhb) Inc. and their unqualified review report is available for inspection
at the company`s registered office.
Financial results
Revenue for the year increased by 12% to R177,4 million. Comprehensive income
increased by 17% over the previous year to R28,3 million.
The comprehensive income attributable to equity holders of the parent amounted
to R26,2 million (2010: R21,4 million) with earnings per share of 307,4 cents
(2010: 251,1 cents). Headline earnings per share were 310,3 cents
(2010: 266,8 cents).
After paying tax of R13,7 million, the group generated R39,1 million in cash
from its operating activities during the year. The group invested R9,2 million
to acquire a 5% economic interest in Kaya FM (Pty) Limited, R0,7 million
invested in Moneyweb Limited, R0,3 million invested in the acquisition of Free
Sport (Pty) Limited and spent R8,6 million on capital expenditure. After paying
dividends of R16,9 million, the group ended the year with cash resources of
R46,6 million.
Algoa FM and OFM radio operations
In line with the industry our radio operations faced a number of challenges
during the year. The World Cup provided some additional opportunities that
our radio stations took full advantage of and managed to maintain a stable
operating profit.
The radio stations continued to diversify into other local media brands and
revenues from website development and related activities are starting to
contribute to the revenue line.
Algoa FM acquired a 50% stake in a local monthly free-sheet newspaper; "Sport
Elizabeth", with a distribution of approximately 35 000 in the Nelson Mandela
Bay Metropolitan area. This is being treated as a joint venture and is
proportionately consolidated.
Both radio stations` listenership during the period remained stable and they are
well positioned to take full advantage of recovering markets.
Sales house operations
Specialist media sales house United Stations performed well during the current
year. The company entered into an agreement to represent Kaya FM (Pty) Limited
in the national sales market. This combined with an aggressive brand specific
sales strategy shielded the business from soft advertising demand throughout the
period.
RadioHeads has a team of radio specialists offering radio skills specifically in
the provision of advertiser-funded programming, station imaging, creative,
campaign management and Direct Response Radio solutions. Under adverse economic
conditions, the planned strategies for the period proved to be difficult to
implement and as a result, the company performed well below expectation. The
strategic plan for the current financial year is focused on revenue streams that
have been largely unaffected by the prevailing business climate and that will
take full advantage of the recovering markets.
Post year-end events
Subsequent to the year-end we settled a dispute by agreeing to pay an additional
R4 million towards the 2002 acquisition of United Stations (Pty) Limited. This
has been treated as an adjusting event and has increased the goodwill on
consolidation.
OFM`s 50% print media joint venture purchased Krant, a local community free
sheet with a distribution of 40 000 copies, that is distributed weekly in twenty
four Free State towns.
Dividends
The board believes that the group is well positioned to acquire further radio
interests and consequently no dividend has been proposed.
Prospects
The new financial year has started on a positive note and the board is
optimistic that the earnings for the 2012 year will compare favourably with
those of the prior year.
By order of the board
ACG Molusi Chairman M Mynhardt Director
Johannesburg
2 June 2011
African Media Entertainment Limited
(Incorporated in the Republic of South Africa)
(Registration number 1926/008797/06)
Share code: AME ISIN: ZAE000055802
Website: www.ame.co.za
("AME" or "the company" or "the group")
Registered office
Unit Block A, Oxford Office Park, No. 5, 8th Street, Houghton Estate,
Johannesburg, 2198, PO Box 3014, Houghton, 2041
Transfer secretaries
Computershare Investor Services (Proprietary) Limited, 70 Marshall Street,
Marshalltown, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
3 Anerley Road, Parktown, Johannesburg, 2193
PO Box 62397, Marshalltown, 2107
Directors
ACG Molusi (Chairman)*, AJ Davies, M Mynhardt, MJ Prinsloo*,
N Sooka#, W Tshuma* *Independent non-executive, #Non-executive
WWW.AME.CO.ZA
Date: 02/06/2011 16:58:12 Supplied by www.sharenet.co.za
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