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Financial Results for year end 30 June 2012
NEW AFRICA INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/002467/06)
(Share codes: NAI and NAN)
(ISIN: ZAE000033338 and ZAE000033346)
("NAIL" or the "Group" or the "Company")
Audited condensed consolidated financial information of the Group
for the year ended 30 June 2012
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
year ended year ended
Note 30 June 2012 30 June 2011
R'000 R'000
Administration expenses (3 665) (2 824)
Additional disposal consideration for
KFM Radio Proprietary Limited
("KFM Agterskot") 3 297 10 994
Other income 26 1 026
Finance income 9 513 355
Finance costs (185)
Share of profit of associate 9 606 5 975
Profit before taxation 18 592 15 526
Income tax expense 1 (3 019) (317)
Profit and total comprehensive income
for the period 15 573 15 209
Attributable to:
Owners of the Company 15 573 15 209
Non-controlling interest
Profit and total comprehensive income
for the period 15 573 15 209
Basic earnings per share (cents) 12,3 12,0
Diluted earnings per share (cents) 12,3 12,0
Number of shares taken into account in calculating
earnings per share ('000) 126 623 126 623
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
Note 30 June 2012 30 June 2011
R'000 R'000
ASSETS
Non-current assets
Investment in associate 16 494 13 118
Current assets 22 529 26 685
Income tax receivable 706 10 395
Other receivables 110
Other receivable KFM Agterskot 4 7 586
Cash and cash equivalents 21 713 8 704
TOTAL ASSETS 39 023 39 803
Equity attributable to owners of the Company 36 970 37 440
Ordinary share capital and share premium 4 712 4 712
Reserves 32 258 32 728
Non-controlling interest 123 123
TOTAL EQUITY 37 093 37 563
Current liabilities 1 930 2 240
Trade and other payables 995 1 409
Loan from related party 935 831
TOTAL EQUITY AND LIABILITIES 39 023 39 803
Net asset value per share attributable to owners
of the Company (cents) 29,2 29,6
Number of shares in issue used in calculating
net asset value per share ('000) 126 623 126 623
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the Company
Ordinary
share
capital Non-
and share controlling Total
premium Reserves Total interest equity
R'000 R'000 R'000 R'000 R'000
Balance at 30 June 2010 4 712 39 805 44 517 123 44 640
Total comprehensive income
for the period 15 209 15 209 15 209
Dividends paid (22 286) (22 286) (22 286)
Balance at 30 June 2011 4 712 32 728 37 440 123 37 563
Total comprehensive income
for the period 15 573 15 573 15 573
Dividends paid (16 043) (16 043) (16 043)
Balance at 30 June 2012 4 712 32 258 36 970 123 37 093
CONSOLIDATED STATEMENT OF CASH FLOWS
Audited Audited
year ended year ended
30 June 2012 30 June 2011
R'000 R'000
Cash utilised in operations (344) (2 561)
Taxation refunded/(paid) 14 404 (317)
Net cash generated/(utilised) in operating activities 14 060 (2 878)
Cash flows from investing activities
Dividends received from associate 6 230 5 902
Net interest received 32 355
Agterskot refund received 8 626 18 782
Net cash generated from investing activities 14 888 25 039
Cash flows from financing activities
Dividend paid to shareholders (16 043) (22 286)
Loan received from related party 104 831
Net cash utilised in financing activities (15 939) (21 455)
Net increase in cash and cash equivalents 13 009 706
Cash and cash equivalents
at beginning of the period 8 704 7 998
Cash and cash equivalents
at end of the period 21 713 8 704
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL INFORMATION
OF THE GROUP
Audited Audited
year ended year ended
30 June 2012 30 June 2011
R'000 R'000
1. INCOME TAX EXPENSE
South African normal tax current period (1 349) -
South African normal tax prior period (1 593)
Secondary Taxation on Companies (77) (317)
(3 019) (317)
2. HEADLINE EARNINGS
Profit attributable to owners of the Company 15 573 15 209
Additional consideration for
KFM Radio Proprietary Limited
("KFM Agterskot") (3 297) (10 994)
Headline earnings 12 276 4 215
Basic and diluted headline earnings per share (cents) 9,7 3,3
3. RELATED PARTIES
The Company's major shareholders are:
- Primedia Proprietary Limited ("Primedia") which owns 76,1% of the ordinary shares and 95,8% of the
"N" ordinary shares; and
- Capricorn Capital Partners Investments Proprietary Limited ("Capricorn"), which owns 21,6% of the
ordinary shares and 3,9% of the "N" ordinary shares.
Transactions with related parties are as follows:
R'000 R'000
Primedia accounting and secretarial fees 684 684
Loan from Primedia 935 831
Non-executive directors' remuneration 172 176
4. OTHER RECEIVABLE KFM AGTERSKOT
The KFM Agterskot receivable, due from Primedia, is in terms of the disposal agreement for KFM Radio
Proprietary Limited, which was sold by NAIL in 2004 and is due as a result of KFM's success in challenging
SARS' decision to disallow its R50 million trademark deduction in terms of section 11(gA) of the Income Tax
Act. During February 2011, KFM agreed to a write-off period of 18 years for the deduction, in settlement of the
dispute with SARS. During the current period the receivable was fully settled.
COMMENTARY
BASIS OF PRESENTATION
This condensed consolidated financial information for the year ended 30 June 2012 is based on the audited
financial statements of the Group and has been prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards ("IFRS") and the disclosure requirements as
outlined in IAS 34 Interim Financial Reporting, and in compliance with the Listings Requirements of the
JSE Limited ("JSE") and the South African Companies Act (2008), on a basis consistent with that of the
prior period.
These annual financial statements have been prepared under the supervision of CJ Patricios, CA(SA).
ACCOUNTING POLICIES
The accounting policies applied are consistent with those of the annual financial statements for the year
ended 30 June 2011, as described therein.
REVIEW OF RESULTS
The performance for the period reflects the results of the Group's single operating segment, its 24,9%
interest in Kaya FM Proprietary Limited and administrative expenses incurred, primarily in relation to
the Company's listing on the JSE.
RETURN OF CASH TO SHAREHOLDERS
Advance Agterskot Payment
In terms of the offer made in 2009 by Primedia and Capricorn, NAIL shareholders had the option of
accepting the Once-off Offer Consideration of 68 cents per NAIL share or the Agterskot Offer Consideration
which comprised the Initial Cash portion of 26 cents per NAIL share plus the Agterskot Amount (which
includes the receipt by NAIL of additional KFM disposal proceeds and claims from South African Revenue
Services ("SARS") pursuant to the determination of the Tax Overpayment Claim). Following the settlement
of a tax dispute relating to KFM's trademark deduction, NAIL received a second additional purchase
consideration from Primedia which amounted to R8,626 million (2011: R18,782 million). Consequently,
former NAIL shareholders who accepted the Agterskot Offer Consideration and sold their shares in terms
of the 2009 Offer were entitled to a second Advance Agterskot payment of 12,67 cents (2011: 11,44 cents)
per NAIL share, which was paid to the shareholders on 31 October 2011. The tax dispute relating to KFM's
trademark deduction has been fully settled and no further purchase consideration is due from Primedia.
As defined in the 2009 Offer circular, the Agterskot includes, in addition to the KFM Trademark Claim, the
balance of NAIL's claim against SARS for income tax overpayments plus interest and penalties levied thereon
("Tax Overpayment Claim"). NAIL has received from SARS an initial portion of the Tax Overpayment Claim
which amounted to R14,481 million during June 2012. Included in this receipt is R9,296 million which is
refected as finance income in the consolidated statement of comprehensive income. Accordingly, former
NAIL shareholders who accepted the Agterskot Offer Consideration and sold their shares in terms of the
2009 Offer were entitled to a third Agterskot payment of 9,12 cents per NAIL share, which was paid to the
shareholders on 20 August 2012.
Dividend
A dividend of 12,67 cents per share was declared to shareholders registered as such on 28 October 2011.
The total amount of the dividend (excluding Secondary Tax on Companies ("STC") thereon) was
R16,043 million.
CHANGE IN DIRECTORS
Mr R Kevan, a non-executive director, resigned from the Board with effect from 27 February 2012.
GOING CONCERN
The going concern basis has been adopted in preparing the financial information. The directors have no
reason to believe that the Group will not be a going concern in the year ahead, based on forecasts and
available cash resources.
UNCLAIMED DIVIDENDS
During the period, the directors passed a resolution, in terms of the NAIL Memorandum of Incorporation,
to prescribe unclaimed dividends of R25 672 relating to the 2009 financial year (2011: R166 164).
SUBSEQUENT EVENTS
NAIL declared a dividend of 9,12 cents per share to its shareholders registered as such on 17 August 2012,
and such dividend was paid on 20 August 2012. NAIL has utilised its full STC credits of 2,95 cents
per share and, accordingly, paid to those local shareholders not exempt from Withholding Tax a net dividend
of 8,20 cents per share (after consideration of the applicable STC credits and Withholding Tax on dividends).
AUDITED OPINION
The above results have been audited by PricewaterhouseCoopers Inc., a copy of their unqualified audit
opinion is available for inspection at the Company's registered office, 5 Gwen Lane, Sandown, 2196.
For and on behalf of the Board
SR BRUYNS CJ PATRICIOS
SANDTON
18 September 2012
NEW AFRICA INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/002467/06)
(Share codes: NAI and NAN)
(ISIN: ZAE000033338 and ZAE000033346)
("NAIL" or the "Group" or the "Company")
Directors
SR Bruyns (Chairman)
G Chadwick
CJ Patricios
T Volkwyn
Company Secretary
E Sather
Date: 19/09/2012 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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