Wrap Text
Audited Condensed Results for the 15 months ended 30 June 2012
Moneyweb Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1998/025067/06)
(JSE code: MNY ISIN code: ZAE000025409)
("Moneyweb" or "the company" or "the group")
AUDITED CONDENSED RESULTS FOR THE FIFTEEN MONTHS ENDED
30 JUNE 2012
Condensed Group Statement of Comprehensive Income
Notes Audited Audited
15 months 12 months
30-Jun-12 31-Mar-11
R'000 R'000
Revenue 44 851 35 367
Loss before investment income,
fair value adjustments, depreciation,
amortisation, impairments and exchange
gains/(losses) (4 413) (2 159)
Depreciation and amortisation (1 886) (1 212)
Investment income 1 871 840
Finance costs (78) (139)
Fair value adjustment of other
investment and other financial asset 191 1
Impairment of financial assets (117) (116)
Impairment of joint venture investment (355) -
Foreign exchange gains /(losses) 31 (112)
Loss on write-off of intangible asset - (843)
Net loss before taxation (4 756) (3 740)
Taxation 181 (287)
Profit from joint ventures 496 271
Net loss for the period (4 079) (3 756)
Other comprehensive income
Exchange differences on translating
foreign operations 235 (32)
Total comprehensive loss for the period (3 844) (3 788)
Reconciliation of headline loss
Net loss for the period (4 079) (3 756)
Loss on write-off of intangible asset - 843
Impairment of joint venture investment 355 -
Headline loss (3,724) (2 913)
Basic and diluted loss per share (cents) (3.83) (3.94)
Basic and diluted headline loss per share (cents) (3.49) (3.06)
Number of shares in issue (000's)
- issued closing (net of treasury) 106 575 106 575
- weighted average 106 575 95 352
Condensed Group Statement of Financial Position
Audited Audited
30-Jun-12 31-Mar-11
Assets R'000 R'000
Non-current assets
Tangible fixed assets 1 263 1 988
Intangible assets 2 001 2 808
Investment in joint ventures 533 1 334
Other investment 20 15
Deferred taxation 554 136
4 371 6 281
Current assets
Trade and other receivables 4 096 8 838
Other financial asset 16 533 15 015
Cash and cash equivalents 11 711 9 209
Income tax paid in advance 1 006 823
33 346 33 885
Total assets 37 717 40 166
Equity and liabilities
Capital and reserves
Share capital and premium 32 732 32 732
Foreign currency translation reserve (676) (911)
Accumulated loss (4 520) (441)
Ordinary shareholders’ interest 27 536 31 380
Current liabilities
Trade and other payables 4 956 3 748
Deferred revenue 5 225 5 038
10 181 8 786
Total equity and liabilities 37 717 40 166
Net asset value per share (cents) 25.8 29.4
Net tangible asset value per share (cents) 24.0 26.8
Condensed Group Statement of Changes in Equity
Share Share Foreign Accumulated Total
capital premium currency profit
translation
reserve
R'000 R'000 R'000 R'000 R'000
Balance at 1 April 2010 76 11 712 (879) 4 073 14 982
Total comprehensive loss for
the period ended 31 March 2011 - - (32) (3 756) (3 788)
Ordinary dividend paid - - - (758) (758)
Ordinary shares issued 31 20 913 - - 20 944
Balance at 1 April 2011 107 32 625 (911) (441) 31 380
Total comprehensive loss for
the period ended 30 June 2012 - - 235 (4 079) (3 844)
Balance at 30 June 2012 107 32 625 (676) (4 520) 27 536
Condensed Group Statement of Cash Flow
Audited Audited
15 months 12 months
30-Jun-12 31-Mar-11
R'000 R'000
Cash flows from operating activities
Cash utilised by operations 1 (3 936) (1 241)
Movements in working capital 5 949 1 211
Cash generated /(utilised) by operating
activities 2 013 (30)
Investment income 1 871 842
Finance costs (78) (139)
Taxation paid (418) (2 053)
Dividend paid - (758)
Net cash inflows / (outflows) from operating
activities 3 388 (2 138)
Cash flows from investing activities
Acquisition of tangible fixed assets (355) (554)
Investment in other financial asset and
other investment (1 332) (15 015)
Decrease in investment in joint ventures 801 37
Net cash outflows from investing activities (886) (15 532)
Cash flows from financing activities
Ordinary shares issued - 20,944
Net cash inflows from financing activities - 20 944
Net movement in cash and cash
equivalents for the period 2 502 3 274
Cash and cash equivalents at beginning of period 9 209 5 935
Cash and cash equivalents at end of period 11 711 9 209
Notes to the Condensed Financial Results for
the fifteen months ended 30 June 2012
1. Cash generated by operations
Loss before investment income,
fair value adjustments, depreciation,
amortisation, impairments and exchange
gains / (losses) (4 413) (2 159)
Adjustments:
Profit from joint ventures 496 271
Impairment of financial assets (117) (116)
Impairment of joint venture investment (355) -
Foreign exchange gains /(losses) 31 (112)
Increase in deferred revenue 187 907
Decrease in foreign currency translation
reserve 235 (32)
(3 936) (1 241)
Chief executive officer’s overview and prospects
Moneyweb’s significant investment programme is reflected in losses during the last
two financial reporting periods. Together they exceed R9m at an operating level,
primarily as a result of building and rolling out the looklocal project, but also
influenced by a substantial investment in Apps. The costs were expensed as they
occurred. Both projects also absorbed considerable management time. Although
neither is yet operating optimally, the potential is considerable.
At a headline level, the loss of R3,7m (3,5c a share) for the 15 month reporting
period under review was a better result than had been expected. It must also be
seen in the context of a strong balance sheet and considerable opportunities
available to internet-focused businesses right now.
Moneyweb had no debt at year end and held cash or near-cash of R28m. This provides
comfort in the current turbulent times, giving the company the ability to ride
storms and take bets without threatening its underlying business. But it also puts
a responsibility onto management to continuously explore ways to efficiently apply
its resources.
At an operating level, during the 15 month period the core business of Internet
Publishing did well. On every possible matrix, Moneyweb.co.za has had an
exceptional run. Its audience jumped by a third to over 200 000 unique users who
between them downloaded two and a half million pages a month. These explosive rates
of growth have not happened since the website’s early years.
Mineweb.com, however, experienced a difficult period reflecting a quieter resources
market after a manic previous year. Monthly unique visitors fell by 25 000 to 135
000. On the brighter side, although the community was smaller, they downloaded more
pages than before and stayed on the site for longer.
The company continues to invest significantly in its provision of audio, primarily
through podcasts (an integral part of the App strategy) and its long-standing
relationship with the national broadcaster, the SABC. A setback during the period
under review was a shortening and a shift in the RSG Geldsake programme’s broadcast
from an hour in the heart of primetime (5pm to 6pm) to a more specialist slot
(6:30pm to 7pm). This triggered negotiations to find ways to deepen the
relationship with the SABC, a process which is ongoing.
With the considerable upfront investment in looklocal and Apps behind it, Moneyweb
Holdings is budgeting for better financial results during the year to end June
2013. Apart from new revenue streams, the company‘s core offerings are benefitting
from a continued switch in advertising spend from analogue (print) to digital
(online) platforms. Companies are clearly adapting to the change in the media
consumption habits of their customers. Since the 2010 financial year, digital’s
contribution has grown from just over half to more than two thirds of Moneyweb
Holdings’ revenues. The momentum is expected to continue.
The looklocal partnership with Caxton has progressed well with the now 43 hyper-
local sites attracting around 500 000 unique visitors a month. A recent management
change at the Caxton-owned newspaper The Citizen has also introduced fresh
opportunities.
Dividend policy
No dividend has been declared.
Post balance sheet events
There are no material events subsequent to the end of the year that have not been
reflected in the audited financial results or that require further disclosure.
Basis of preparation
Statement of compliance
The audited condensed financial statements for the period ended 30 June 2012 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 JSE
Listings Requirements.
The principal accounting policies used in the preparation of the results for the
period ended 30 June 2012 are consistent with those applied for the year ended 31
March 2011 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 audited condensed financial statements for the period ended 30 June 2012 have
been prepared on the historical cost basis with the exception of certain financial
instruments that are stated at fair value.
Going concern
The audited condensed financial statements for the period ended 30 June 2012 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.
Audit opinion
The group’s auditors, BDO South Africa Inc. have audited the condensed financial
results for the 15 month period ended 30 June 2012 contained in this announcement
and have issued an unmodified and unqualified opinion.
The audit opinion is available for inspection at the company’s offices.
Changes to the board and committees
On 01 July 2012 Mr T Ncube, a non-executive director, was appointed chairman of the
Social and Ethics Committee and Mr W van der Merwe, a non-executive director and Mr
L Sipoyo, a non-executive director were appointed as members to the Social and
Ethics Committee.
As from 01 July 2012, Mr P Meyer was appointed financial director, Mr N Sooka was
appointed company secretary and Mr S Masie, a non-executive director was appointed
as a member to the board.
On Behalf of the Board
AB Hogg
Chief Executive Officer
17 September 2012
Corporate Information
Non-executive directors: PM Jenkins (Chairman); LW Sipoyo; T Ncube*; TD Moolman;
PG Greyling; WP van der Merwe*; SC Masie*
*Independent director
Executive directors: AB Hogg (Chief Executive); P Meyer (Financial Director)
Registered address: 20 The Piazza, Second Floor, Melrose Arch, 2196
Postal address: PO Box 8, Melrose Arch, 2076
Company secretary: N Sooka
Telephone: (011) 344 8600
Facsimile: (011) 344 8601
Transfer secretaries: Computershare Investor Services (Pty) Limited
Auditors: BDO South Africa Incorporated
Designated Adviser: Arcay Moela Sponsors (Pty) Limited
Date: 17/09/2012 10:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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