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MNY - Moneyweb - Reviewed provisional condensed financial results for the year ended 31 March 2011 Moneyweb Holdings Limited (Incorporated in the Republic of South Africa) (Registration No: 1998/025067/06) JSE code: MNY ISIN: ZAE000025409 ("Moneyweb" or "the company" or "the group") REVIEWED PROVISIONAL CONDENSED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2011 Second year of circa 30% revenue growth looklocal successfully launched with 29 community sites live First iPad application launched Condensed Group Statement of Comprehensive Income Reviewed Audited 12 months 12 months
31-Mar-11 31-Mar-10 R`000 R`000 Revenue 35 367 27 159 (Loss)/profit before investment (2 159) 3 478 income, fair value adjustment, depreciation, amortisation, impairments and exchange gain/loss Depreciation and (1 212) (962) amortisation Investment income 840 358 Finance cost (139) (34) Fair value adjustment of 1 7 investment and financial instruments Impairment of financial (116) (1 118) assets Exchange (loss)/gain (112) 463 Loss on disposal of (843) - intangible asset Loss on disposal of tangible - (9) asset Net (loss)/profit before (3 740) 2 183 taxation Taxation (287) (732) Profit from joint ventures 271 175 Net (loss)/profit for the (3 756) 1 626 year Other comprehensive income Exchange differences on (32) (516) translating foreign operations Total comprehensive (3 788) 1 110 (loss)/income for the year Reconciliation of headline (loss)/earnings Net (loss)/profit for the (3 756) 1 626 period Loss on disposal of 843 - intangible asset Loss on disposal of tangible - 9 asset Headline (loss)/earnings (2 913) 1 635
Basic and diluted (3.94) 2.15 earnings/(loss) per share (cents) Basic and diluted headline (3.06) 2.16 (loss)/earnings per share (cents) Number of shares (000`s) - Issued closing (net of 106 575 75 775 treasury) - weighted average 95 352 75 777 Condensed Group Statement of Financial Position Reviewed Audited 31-Mar-11 31-Mar-10 ASSETS R`000 R`000 Non-current assets Tangible assets 1 988 2 226 Intangible assets 2 808 4 077 Investment in joint ventures 1 334 1 108 Other investment 15 14 Deferred taxation 136 147 6 281 7 572 Current assets Trade and other receivables 8 838 8 820 Income tax prepaid 824 - Other financial asset 15 015 - Cash and cash equivalents 9 209 5 935 33 886 14 755
Total assets 40 167 22 327 EQUITY AND LIABILITIES Capital and reserves Share capital and premium 32 732 11 788 Accumulated profit (1 352) 3 194 Ordinary shareholders` 31 380 14 982 interest Non-current liabilities Current liabilities Trade and other payables 3 749 2 520 Deferred revenue 5 038 3 873 Income tax payable - 952 8 787 7 345 Total equity and liabilities 40 167 22 327 Net asset value per share 29.4 19.8 (cents) Net tangible asset value per 26.8 14.4 share (cents) Condensed Group Statement of Changes in Equity Share Share Translation Accumulated Total capital premium of foreign profit operations R`000 R`000 R`000 R`000 R`000
Balance at 1 April 76 11 729 (363) 3 205 14 647 2009 Total comprehensive - - (516) 1 626 1 110 income for the year ended 31 March 2010 Ordinary dividend (758) (758) paid Treasury shares (17) (17) purchased Balance at 1 April 76 11 712 (879) 4 073 14 982 2010 Total comprehensive (32) (3 756) (3 788) income for the year ended 31 March 2010 Ordinary dividend (758) (758) paid Ordinary shares 31 20 913 20 944 issued Balance at 31 March 107 32 625 (911) (441) 31 380 2011 Condensed Group Statement of Cash Flow Reviewed Audited 12 months 12 months
31-Mar-11 31-Mar-10 R`000 R`000 Cash flows from operating activities Cash (1 231) 3 156 (utilised)/generated by operations Movements in working 1 211 (800) capital Cash (utilised) (20) 2 356 generated by operating activities Investment income 842 364 Finance costs (139) (34) Taxation paid (2 063) (353) Dividend paid (758) (758) Net cash flows (2 138) 1 575 (utilised by)/from operating activities Cash flows from investing activities Acquisition of - (1 795) intangible assets Acquisition of (553) (1 948) tangible assets Advance from joint 37 - venture Investment in other (15 015) - financial asset Repayment of loan - 90 receivable Net cash flows (15 531) (3 653) (utilised by)/from investing activities Cash flows from financing activities Shares issued for 20 944 - cash Acquisition of - (17) treasury shares Net cash flows from 20 944 (17) financing activities Net movement in cash and 3 275 (2 095) cash equivalents for the period Cash and cash equivalents 5 935 8 030 at beginning Cash and cash equivalents 9 210 5 935 at end of period Financial results The group achieved another year of strong revenue growth of 30% (2010: 29%). This was achieved by solid growth across our existing platforms and the first effects of looklocal revenues. Current year profits have been negatively impacted by the fraudulent activities of the previous Financial Director, the write-off of irrecoverable receivables, an increase in the provision for doubtful debts and the initial costs relating to launching looklocal. The Group has initiated a criminal charge against the previous Financial Director. The earnings enhancing benefit of looklocal is only expected to be evident following the completion of the initial roll-out plan towards the end of the financial year ending 31 March 2012. looklocal is an important strategic initiative for the group. Investment income increased significantly reflecting the benefit of the issue of 30.8 million shares for R20.9 million cash in August 2010. The aforegoing has resulted in a net loss of R3.76 million for the year (2010: net profit R1.63 million), representing a loss of 3.94 cents per share (2010: 2.15 cents profit per share). While the group`s operating cash flow for the year reflects the trading loss reported, the group had in excess of R24 million in cash reserves and highly liquid investments at year-end and remains debt free. Operating results Another year of circa 30% revenue growth confirms that our strategy over the last 18 months of extending and deepening our various web and broadcast platforms is producing the desired financial result. During the year we concluded an arrangement with the Caxton group in terms of which Moneyweb will build, manage and operate a portfolio of geographically focused (hyper-local) community websites, under the looklocal brand. By year-end, 29 looklocal sites had gone live and we expect to complete the initial roll-out by 31 March 2012. Subsequent to year end we have launched our first iPad application for Mineweb, which is available for download on the Apple iTunes store. Plans are well advanced for additional applications, both on the Apple and Android platforms. Prospects We will continue to increase our focus by looking to drive additional revenues across our flagship platforms. Our decision post year end to discontinue Mineweb`s joint venture arrangements with Infomine will allow us to pursue revenue opportunities from which we were previously precluded. Furthermore, as indicated above, we anticipate increasing contributions from both looklocal and the roll-out of our Apps strategy as these gain traction. Post balance sheet events There are no other material events subsequent to the year-end that have not been reflected in the reviewed financial results for the year ended 31 March 2011 or that require further disclosure. Basis of preparation Statement of compliance The reviewed condensed financial statements for the year ended 31 March 2011 have been prepared in accordance with the framework concepts and the recognition and measurement requirements of International Financial Reporting Standards ("IFRS") and the AC500 Standards as issued by the Accounting Practices Board or its successor, and contains the information required by IAS34: Interim Financial Reporting, and is in compliance with the requirements of the Companies Act of South Africa and the Listing Requirements of the JSE Limited The principal accounting policies used in the preparation of the results for the year ended 31 March 2011 are consistent with those applied for the year ended 31 March 2010 and are in terms of IFRS, except for the adoption of IAS1: Presentation of Financial Statements (Revised) which has had no impact on the results but affects presentation. International Financial Reporting Standard 8: Operating Segments is not applicable as the group is a single segment business. Basis of measurement The reviewed condensed financial statements for the year ended 31 March 2011 have been prepared on the historical cost basis with the exception of certain financial instruments that are stated at fair value. Going concern The reviewed condensed financial statements for the year ended 31 March 2011 have been prepared on the going-concern basis since the directors have every reason to believe that the company has adequate resources in place to continue in operation for the foreseeable future. Review opinion The group`s auditors, BDO South Africa Inc. have reviewed the provisional condensed financial results for the year ended 31 March 2011 contained in this announcement and have issued an unmodified conclusion with emphasis being drawn to the reportable irregularity, as defined in the Auditing Profession Act, being reported. Particulars of the reportable irregularity are that suspected fraud took place by a member of management. The board of directors has reported the matter to the South African Police Service. Due to the matter being dealt with the reportable irregularity is not continuing. Dividend No dividend is proposed. Changes to the board On 8 April 2011 Mr. Danie Wessels resigned as Financial Director and Company Secretary of the company and Mr. John Donnelly was appointed to these positions. On behalf of the Board Dr Andrew Smith Executive Chairman 24 June 2011 Corporate Information Non executive directors: E A Jay; L Sipoyo; T Ncube; L M Hogg; T D Moolman; P Greyling Executive directors: Dr A Smith (Chairman), (CEO); A B Hogg; J M Donnelly Registration number: 1998/025067/06 Registered address: 20 The Piazza, Second Floor, Melrose Arch, 2196 Postal address: PO Box 8, Melrose Arch, 2076 Company secretary: J M Donnelly Telephone: (011) 344 8600 Facsimile: (011) 344 8601 Transfer secretaries: Computershare Investor Services (Pty) Limited Auditors: BDO South Africa Incorporated Designated Adviser: Vunani Corporate Finance Date: 24/06/2011 14:38:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). 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