Wrap Text
AME - African Media Entertainment Limited - Reviewed Results for the year ended
31 March 2012
African Media Entertainment Limited
(Incorporated in the Republic of South Africa)
(Registration number 1926/008797/06)
Share code: AME ISIN: ZAE000055802
("AME", "the company" or "the group")
REVIEWED RESULTS
for the year ended 31 March 2012
CONSOLIDATED ABRIDGED STATEMENTS OF COMPREHENSIVE INCOME
Reviewed Audited
year ended year ended
Change 31 March 2012 31 March 2011
% R`000 R`000
Revenue 16 206 075 177 366
Cost of sales (54 068) (54 663)
Gross profit 152 007 122 703
Operating expenses (102 020) (86 118)
Operating profit 37 49 987 36 585
Investment income 1 241 1 184
Finance income 2 942 3 901
Finance cost (73) (149)
Losses attributable to associates (201) (425)
Net profit before taxation 31 53 896 41 096
Taxation (13 173) (12 806)
SA normal taxation (15 766) (12 160)
Deferred taxation 2 593 (396)
Secondary Taxation on Companies - (250)
Total comprehensive income for the 44 40 723 28 290
year
Total comprehensive income
attributable to:
Non-controlling interest holders 4 324 2 041
Equity holders of the parent 39 36 399 26 249
Earnings per share (cents) 40 428,8 307,4
Headline earnings per share 38 428,9 310,3
(cents)
Diluted earnings per share (cents) 42 428,8 302,5
Diluted headline earnings per 40 428,9 305,3
share (cents)
Weighted average number of shares 8 488 8 539
in issue (`000)
Diluted average number of shares 8 488 8 678
in issue (`000)
Headline earnings reconciliation:
Profit attributable to equity 36 399 26 249
holders
Loss on disposal of fixed assets 2 47
Impairment of loans to associate - 199
Headline earnings 36 401 26 495
CONSOLIDATED ABRIDGED STATEMENTS OF FINANCIAL POSITION
Reviewed Audited
31 March 2012 31 March 2011
R`000 R`000
ASSETS
Non-current assets 89 028 80 753
Property, plant and equipment 29 130 25 412
Investments 12 883 10 914
Goodwill 39 780 39 785
Deferred taxation 7 235 4 642
Current assets 116 320 90 955
Trade receivables 56 563 41 906
Other receivables 2 621 2 468
Tax paid in advance 26 -
Cash and cash equivalents 57 110 46 581
Total assets 205 348 171 708
EQUITY AND LIABILITIES
Total equity 134 091 113 976
Non-current liabilities 315 717
Operating lease accrual 200 518
Interest-bearing borrowings 115 199
Current liabilities 70 942 57 015
Trade payables 33 531 28 498
Other payables 34 738 26 694
Dividend payable 777 387
Operating lease accrual and interest- 375 224
bearing borrowings
Taxation 1 521 1 212
Total equity and liabilities 205 348 171 708
CONSOLIDATED ABRIDGED STATEMENTS OF CHANGES IN EQUITY
Reviewed Audited
year ended year ended
31 March 2012 31 March 2011
R`000 R`000
Issued capital
Balance at beginning of year 8 539 8 539
Shares repurchased (368) -
Balance at end of year 8 171 8 539
Share premium
Balance at beginning of year 31 909 31 909
Shares repurchased (18 167) -
Balance at end of year 13 742 31 909
Retained profit
Balance at beginning of year 70 237 43 988
Change in shareholding (1 606) -
Total comprehensive income for year 36 399 26 249
Dividend - -
Balance at end of year 105 030 70 237
Non-distributable reserve
Balance at beginning of year 2 073 1 869
Re-allocations to creditors on cash (2 073) -
settled options
Share-based payment expense - 204
Balance at end of year - 2 073
Non-controlling interests
Balance at beginning of year 1 218 1 655
Share of dividend - (2 504)
Change in shareholding 1 606 26
Share of total comprehensive income for 4 324 2 041
year
Balance at end of year 7 148 1 218
Total capital and reserves 134 091 113 976
CONSOLIDATED ABRIDGED STATEMENTS OF CASH FLOWS
Reviewed Audited
year ended year ended
31 March 2012 31 March 2011
R`000 R`000
Cash generated by operating activities 52 807 39 700
Net interest received 2 869 3 752
Taxation paid (15 483) (13 663)
Decrease in working capital 1 080 9 289
Cash flows from operating activities 41 273 39 078
Dividends paid - (16 870)
Cash flows from investing activities (30 744) (19 271)
Cash flows from financing activities - (2 504)
Net increase in cash and cash equivalents 10 529 433
Cash and cash equivalents at beginning of 46 581 46 148
year
Cash and cash equivalents at end of year 57 110 46 581
SEGMENTAL REPORTING
Reviewed Audited
year ended year ended
31 March 2012 31 March 2011
R`000 R`000
Revenue
Radio Broadcasting 178 682 160 030
Sales houses 27 393 17 336
Company - -
Total 206 075 177 366
Profitability
Radio Broadcasting 37 148 37 023
Sales houses 10 941 774
Company 1 898 (1 212)
Total operating profit 49 987 36 585
Unallocated/Eliminated corporate net (201) (425)
expense and inter-company consolidation
Investment income 1 241 1 184
Interest received 2 942 3 901
Interest paid (73) (149)
Taxation (13 173) (12 806)
Total comprehensive income for year 40 723 28 290
Assets
Radio Broadcasting 52 465 69 223
Sales houses 49 543 33 425
Company 43 250 21 448
Total 145 258 124 096
Investment in associate 2 980 1 031
Cash 57 110 46 581
Total assets 205 348 171 708
Liabilities
Radio Broadcasting 31 870 19 821
Sales houses 35 871 27 617
Company 3 516 10 294
Total 71 257 57 732
Capital expenditure
Radio Broadcasting 3 023 4 686
Sales houses 608 3 433
Company 4 091 453
Total 7 722 8 572
Depreciation
Radio Broadcasting 2 927 2 478
Sales houses 975 742
Company 66 40
Total 3 968 3 260
CHAIRMAN`S REPORT
Review of the year
The year under review delivered an excellent performance with a 16% increase in
revenue to R206,1 million (2011: R177,4 million). Comprehensive income
increased by 44% to R40,7 million (2011: R28,3 million).
The comprehensive income attributable to equity holders of the parent amounted
to R36,4 million (2011: R26,2 million) with earnings per share of 428,8 cents
(2011: 307,4 cents). Headline earnings per share were 428,9 cents (2011: 310,3
cents).
After paying tax of R15,5 million (2011: R13,7 million), the group generated
R52,8 million (2011: R39,1 million) in cash from its operating activities
during the year. The group invested R1,8 million to acquire Bloemfontein
Courant by the Central Media Group (Pty) Limited (previously Seyalemoya
Communications (Pty) Limited), repurchased 367 597 AME shares for R18,5 million
and spent R7,7 million (2011: R8,6 million) on capital expenditure. The group
ended the year with cash resources of R57,1 million (2011: R46,6 million).
Operations
Through innovative solutions our radio operations managed to minimise the
effect of the general economic downturn and enjoyed a productive year with
growth in revenue across all major platforms.
The diversification and expansion programmes of our radio platforms into other
local media brands have been successful and revenues from web-site development
and related activities have benefitted from the synergies achieved.
During the year WDB Investment Holdings (Pty) Limited acquired a controlling
interest in a BEE company which holds 10% of Algoa FM and ICASA approved Algoa
FM`s licence amendment which extends the broadcast footprint of Algoa FM to now
include Knysna, George and Mossel Bay. This broadcast footprint went live on 1
December 2011.
Central Media Group (Pty) Limited, which owns OFM, enjoyed a year of growth
and, while trading conditions where challenging, good cost management and
innovative product development helped the company to achieve higher than
expected profitability. Significant growth in non-traditional revenue ("NTR")
and a very good pipeline for the Digital Platforms division necessitated
investment in human capital. OFM continued to see strong growth, especially in
direct advertising across a new array of digital, radio and experiential
offerings. Mahareng Publishing has captured a significant portion of the
Bloemfontein Local Newspaper market.
Both Algoa FM and OFM listenership remained stable during the year under review
and the excellent performance was underpinned by effective cost control.
Group sales house, United Stations, delivered an improved set of results for
the year under review. A year ago United Stations started handling the national
sales of KAYA FM which contributed to the growth in advertising revenue. KAYA
FM and Capricorn FM have been the drivers of the new business development as
they provide attractive audiences to categories of advertisers that United
Stations was previously unable to reach. The increase in advertising platforms
has further allowed the company to leverage existing resources and capacity.
United Stations outperformed the national radio market, making significant
revenue gains despite a difficult and uncertain climate and a cautious
advertising industry. The increase in advertising revenue has allowed United
Stations to increase resource and capacity in critical areas, positioning it
well to accelerate growth in the new year.
Radio Heads has narrowed its focus to provide solutions in the area of radio
production, branded content, creative and campaign management and is targeting
marketers who seek higher levels of engagement with their target audiences.
This business has performed below expectation.
Subsequent events
There have been no matters between the group`s year-end and the date of this
report that require to be brought to the attention of the shareholders.
Dividends
The board believes that the group is well-positioned to acquire further radio
interests and consequently no dividend has been proposed (2011: Nil per share).
Prospects
The new financial year has started on a reasonably positive note and the board
is optimistic that the revenues for the 2013 year will compare favourably with
those of the prior year.
ACG Molusi M Mynhardt
Independent Non-executive Chairman Financial Director
7 June 2012
Johannesburg
These abridged results have been prepared by the financial director in
accordance with International Financial Reporting Standards ("IFRS"), AC 500
series, the Companies Act, No. 71 of 2008, as amended, 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 2011.
These results have been reviewed by PKF (Jhb) Inc. and their report is
available for inspection at the company`s registered office.
Registered office
Unit Block A, Oxford Office Park
No. 5, 8th Street, Houghton Estate, Johannesburg
PO Box 3014, Houghton, 2041
Transfer secretaries
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg
PO Box 61051, Marshalltown, 2107
Sponsor
Arcay Moela Sponsors (Pty) Limited
3 Anerley Road, Parktown, Johannesburg
PO Box 62397, Marshalltown, 2107
Directors
ACG Molusi (Chairman)*
AJ Davies
M Mynhardt
MJ Prinsloo*
N Sooka*
W Tshuma*
KL Dube*
*Independent Non-executive
WWW.AME.CO.ZA
Date: 07/06/2012 16:00:02 Supplied by www.sharenet.co.za
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