Wrap Text
Reviewed results for the year ended 31 March 2013
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 2013
COMMENTARY
Review of the year
The year under review was challenging on many fronts but saw our companies overcome these
difficult trading conditions and maintain the growth achieved in the previous financial year with a
5% increase in revenue to R216,7 million (March 2012: R206,1 million). Comprehensive income
increased by 2% to R41,6 million (March 2012: R40,7 million).
The comprehensive income attributable to equity holders of the parent amounted to R37,9 million
(March 2012: R36,4 million) with earnings per share of 463,8 cents (March 2012: 428,8 cents).
Headline earnings per share were 463,9 cents (March 2012: 428,9 cents).
After paying tax of R18,5 million (March 2012: R15,5 million), the group generated R44,7 million
(March 2012: R41,3 million) in cash from its operating activities during the year. The group invested
R7 million in acquiring a site in Bloemfontein earmarked to be the new home of the Central Media
Group and spent R2,8 million (March 2012: R7,7 million) on capital expenditure. The group ended
the period with cash resources of R78,8 million (March 2012: R57,1 million).
Operations
The diversification and expansion programmes of our radio platforms into other local media
brands continue to provide positive synergies and have started to contribute to the bottom line
of the group.
Listenership on Algoa FM remained stable during the year under review. New media revenue
grew significantly on the station. Sport Elizabeth showed an increase, turning from a loss to
a marginal profit. During continued tough trading conditions, effective cost-cutting measures
assisted in increasing profitability over the previous year. Continued marketing and listenership-
building promotions are entrenching the brand in the Southern Cape. ICASA invited applications
for a new commercial radio licence in the Umtata and Butterworth. The proposed coverage area
falls outside of the Algoa FM footprint.
The period under review reflected the ongoing difficult trading conditions for the Central South
Africa region. Central Media Group saw a recovery in the second half of the year that meant
OFM closed the year above mid-year expectations in terms of profitability. An expanded local
sales force also grew revenue from the region. OFM audiences saw a dip in the latter half
of the year, and although losses were in non-core markets, measures have been taken to
reverse this trend.
Invitations were issued for two frequencies in Bloemfontein, one in Kimberley and one in
Upington. While these will invariably bring some degree of competition, these new entrants
are unlikely to be licensed into OFM's ambit, in terms of format.
Digital advertising revenue continues to grow in importance for the group. Digital Platforms,
the group's web development division, secured significant new business and also assisted with
the group cost-saving drive by implementing in-house IT and CRM systems. Mahareng gained
critical mass with the momentum obtained from a fast-growing Bloemfontein Courant,
and obtained sustainable profitability. RedStar Talent repositioned into the primarily event-
management sector in this period, and the results were almost immediate.
RadioHeads underwent a strategic shift in April 2012, with a strong focus on delivering sponsored
content to radio stations and advertisers. This business has performed below expectation, with
the revised strategy implemented taking longer to produce results. Management has been able
to show positive uptake towards the end of year one, and greater promise in year two.
Specialist media sales house United Stations achieved strong revenue growth and exceeded
budgeted profit for the year, mainly as a result of benefits coming through from substantial
investments made in new business. These factors, combined with an aggressive brand-specific
sales strategy, protected the business from an industry-wide pattern of static advertising budgets.
With strong, positive cash flow and its highly sought-after portfolio, United Stations is
well-placed to take advantage of recovering markets and good growth is foreseen especially
in the non-traditional revenue channels.
Declaration of final dividend no 3
The board has declared a final dividend (dividend no 3) of 200 cents per ordinary share (gross)
for the year ended 31 March 2013. The dividend is subject to the Dividends Withholding Tax
("DWT") that was introduced with effect from 1 April 2012. In accordance with the provisions
of the JSE Listings Requirements, the following additional information is disclosed:
- the dividend has been declared out of current profits available
for distribution;
- the local Dividend Tax rate is 15%;
- the gross dividend amount is 200,00 cents per ordinary share for
shareholders exempt from DWT;
- the net dividend amount is 170,00 cents per ordinary
share for shareholders liable for DWT;
- the company has 8 288 309 ordinary shares in issue; and
- the company's income tax reference number is 9100/169/71/4.
The following dates are applicable to the dividend:
The last day to trade in order to be eligible for the dividend will be Friday, 19 July 2013.
Shares will trade ex-dividend from Monday, 22 July 2013.
The record date will be Friday, 26 July 2013 and payment will be made on Monday, 29 July 2013.
Share certificates may not be dematerialised/rematerialised between Monday, 22 July 2013 and
Friday, 26 July 2013, both days inclusive.
Dividends
An interim dividend (dividend no 2) of 100 cents per ordinary share (gross) was declared for
the period ended 30 September 2012. The final dividend is 200 cents per ordinary share (gross)
(2012: Nil per share).
Prospects
The new financial year has started on a reasonably positive note and the board is optimistic that
the revenue for the 2014 year will compare favourably with that of the prior year.
ACG Molusi
Independent Non-executive Chairman
14 June 2013
Johannesburg
These provisional results have been prepared by the financial director in accordance with
International Financial Reporting Standards ("IFRS"), the Companies Act no. 71 of 2008,
as amended, the Listings Requirements of the Johannesburg Stock Exchange and the
SAICA Financial Reporting Guides as issued by the Accounting Profession Committee on
a basis consistent with the policies and methods of computation as used in the annual financial
statements for the year ended 31 March 2013.
These results have been reviewed by PKF (Jhb) Inc. and their report is available for inspection
at the company's registered office.
Michelle Mynhardt
Financial director
CONSOLIDATED PROVISIONAL STATEMENTS OF COMPREHENSIVE INCOME
Reviewed Audited
year ended year ended
31 March 31 March
% 2013 2012
change R'000 R'000
Revenue 5 216 688 206 075
Cost of sales 4 (56 065) (54 068)
Gross profit 160 623 152 007
Operating expenses (107 249) (102 020)
Operating profit 7 53 374 49 987
Investment income 1 930 1 241
Finance income 3 070 2 942
Finance cost (73) (73)
Losses attributable to associates (27) (201)
Net profit before taxation 8 58 274 53 896
Taxation (16 670) (13 173)
SA normal taxation (17 910) (15 766)
Deferred taxation 1 240 2 593
Total comprehensive income
for the year 2 41 604 40 723
Total comprehensive income
attributable to:
Non-controlling interest holders 3 710 4 324
Equity holders of the parent 4 37 894 36 399
Earnings per share (cents) 8 463,8 428,9
Headline earnings per share (cents) 8 463,9 428,9
Dividends per share (cents) 300
Weighted average number of shares
in issue ('000) 8 171 8 488
Diluted average number of shares
in issue ('000) 8 171 8 488
Headline earnings reconciliation:
Profit attributable to equity holders 37 894 36 399
Loss on disposal of fixed assets 9 3
Tax on loss on disposal of asset (3) (1)
Headline earnings 37 900 36 401
CONSOLIDATED PROVISIONAL STATEMENTS OF FINANCIAL POSITION
Reviewed Audited
year ended year ended
31 March 31 March
2013 2012
R'000 R'000
Assets
Non-current assets 95 314 89 028
Property, plant and equipment 34 881 29 130
Investments 12 178 12 883
Goodwill 39 780 39 780
Deferred taxation 8 475 7 235
Current assets 146 552 116 320
Trade receivables 64 230 56 563
Other receivables 2 454 2 121
Dividends receivable 950 500
Tax paid in advance 134 26
Cash and cash equivalents 78 784 57 110
Total assets 241 866 205 348
Equity and liabilities
Total equity 161 007 134 091
Non-current liabilities 41 315
Operating lease accrual 200
Interest-bearing borrowings 41 115
Current liabilities 80 818 70 942
Trade payables 37 215 33 531
Other payables 41 828 34 738
Dividend payable 915 777
Operating lease accrual and
interest-bearing borrowings 136 375
Taxation 724 1 521
Total equity and liabilities 241 866 205 348
CONSOLIDATED PROVISIONAL STATEMENTS OF CHANGES IN EQUITY
Reviewed Audited
year ended year ended
31 March 31 March
2013 2012
R'000 R'000
Issued capital
Balance at beginning of year 8 171 8 539
Shares repurchased (368)
Balance at end of year 8 171 8 171
Share premium
Balance at beginning of year 13 742 31 909
Shares repurchased (18 167)
Balance at end of year 13 742 13 742
Retained profit
Balance at beginning of year 105 030 70 237
Change in shareholding (1 606)
Total comprehensive income for year 37 894 36 399
Dividend (8 261)
Balance at end of year 134 663 105 030
Non-distributable reserve
Balance at beginning of year 2 073
Fair value adjustment on available
for sale financial assets (2 073)
Balance at end of year
Non-controlling interests
Balance at beginning of year 7 148 1 218
Share of dividend (6 427)
Change in shareholding 1 606
Share of total comprehensive income
for year 3 710 4 324
Balance at end of year 4 431 7 148
Total capital and reserves 161 007 134 091
CONSOLIDATED PROVISIONAL STATEMENTS OF CASH FLOWS
Reviewed Audited
year ended year ended
31 March 31 March
2013 2012
R'000 R'000
Cash generated by operating activities 57 707 52 807
Net interest received 2 997 2 869
Taxation paid (18 815) (15 483)
Decrease in working capital 2 690 1 080
Cash flows from operating activities 44 579 41 273
Cash flows from investing activities (8 356) (30 744)
Cash flows from financing activities (14 549)
Net increase in cash and cash equivalents 21 674 10 529
Cash and cash equivalents at beginning of year 57 110 46 581
Cash and cash equivalents at end of year 78 784 57 110
PROVISIONAL SEGMENTAL REPORTING
Reviewed Audited
year ended year ended
31 March 31 March
2013 2012
R'000 R'000
Revenue
Radio Broadcasting 187 551 178 682
Sales houses 29 137 27 393
Total 216 688 206 075
Profitability
Radio Broadcasting 45 987 39 348
Sales houses 15 749 10 941
Company (8 362) (302)
Total operating profit 53 374 49 987
Unallocated/eliminated corporate net
expense and inter-company consolidation (27) (201)
Investment income 1 930 1 241
Interest received 3 070 2 942
Interest paid (73) (73)
Taxation (16 670) (13 173)
Total comprehensive income for year 41 604 40 723
Assets
Radio Broadcasting 62 665 55 445
Sales houses 54 041 49 543
Company 46 376 43 250
Total 163 082 148 238
Liabilities
Radio Broadcasting 32 494 29 670
Sales houses 42 193 35 871
Company 6 172 5 716
Total 80 859 71 257
Capital expenditure
Radio Broadcasting 9 491 3 023
Sales houses 327 608
Company 15 4 091
Total 9 833 7 722
Depreciation
Radio Broadcasting 3 018 2 927
Sales houses 990 975
Company 66 66
Total 4 074 3 968
REGISTERED OFFICE
Block A, Oxford Office Park, No. 5, 8th Street, Houghton Estate, Johannesburg, 2198
PO Box 3014, Houghton, 2041
TRANSFER SECRETARIES
Computershare Investor Services (Pty) Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Telephone: +27 11 370 5000 Telefax: +27 11 668 7721
SPONSOR
Arcay Moela Sponsors (Pty) Limited
Registration number: 2006/033725/07
Arcay House, 3 Anerley Road, Parktown, Johannesburg, 2193
PO Box 62397, Marshalltown, 2107
DIRECTORS
ACG Molusi (Chairman)*
KL Dube*, MJ Prinsloo*, N Sooka*
W Tshuma*, AJ Isbister, M Mynhardt
*Independent Non-executive
WWW.AME.CO.ZA
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