Wrap Text
Reviewed Results for the year ended 31 March 2014
AFRICAN MEDIA ENTERTAINMENT LIMITED
Incorporated in the Republic of South Africa
Registration number 1926/008797/06
JSE code: AME ISIN: ZAE000055802
("AME","the company" or "the group")
REVIEWED
RESULTS
for the year ended 31 March 2014
COMMENTARY
Review of the year
The year under review presented many challenges but our businesses maintained the growth
achieved in the previous financial years with a 12% increase in revenue to R242,5 million
(2013: R216,7 million). Comprehensive income increased by 17% to R48,6 million
(2013: R41,6 million).
The comprehensive income attributable to equity holders of the parent amounted to R42,9 million
(2013: R37,9 million) with earnings per share of 524,9 cents (2013: 463,8 cents). Headline earnings
per share were 524,3 cents (2013: 463,9 cents).
After paying tax of R19,3 million (2013: R18,8 million), the group generated R62,5 million
(2013: R44,6 million) in cash from its operating activities during the year. The group invested
R1,2 million in preparation for development of the site in Bloemfontein earmarked to be the new
home of the Central Media Group and spent R3,2 million (2013: R2,8 million) on capital expenditure.
The group ended the period with cash resources of R106,3 million (2013: R78,8 million).
Operations
Our subsidiaries continue to contribute positively to our bottom line through innovative sales
initiatives and tight cost control.
Algoa FM's profitability increased in the second half of the financial year on the back of
aggressive national marketing spend in the banking sector. Both National and Direct advertising
revenues delivered results above expectation. Listenership increased marginally year on year.
A strategic decision to dispose of the shareholding in Sport Elizabeth was taken after year-end.
A new commercial licence has been awarded in the Eastern Cape, with a broadcast footprint
covering Umthatha and Butterworth. This new licence will operate outside of Algoa FM's current
coverage area.
Central Media Group was able to deliver results above expectation. All four business units delivered
solid results, with significant new business for Digital Platforms and Redstar. OFM's revenues
showed strong growth, and audience figures were stable despite a reshuffled on-air line-up.
Mahareng also showed growth, and has established Bloemfontein Courant as the city's premier
local newspaper. Capital projects were also approved and initiated which will see Central Media
develop custom-designed offices in a new business extension in Bloemfontein, giving the company
a permanent address for the first time since privatisation.
A new secondary market licence in Bloemfontein has been awarded. While this will invariably
bring some degree of competition, this new entrant is not licensed into OFM's ambit, in terms of
format. The radio station will continue to engage with its core audiences and provide them with
outstanding programming and great music to ensure loyalty towards the radio station.
RadioHeads' narrow focus on providing branded content, creative services and campaign
management was rewarded by strong interest from blue chip advertisers, looking for greater levels
of engagement with their prospects. The team executed a number of high profile campaigns during
the year and is focused on leveraging these successes to renew commissions, attract new clients
and ensure sustainability going forward.
Specialist media sales house United Stations delivered another strong performance and solid
progress has been achieved in its strategy to increase the potential of its portfolio through
innovating new non-traditional advertising opportunities. A New Business drive has resulted in the
successful acquisition of two new station clients, in the form of Gagasi FM and Heart FM. These
stations create more opportunities for growth as they provide access to the lucrative Western Cape
and KZN markets as well as increasing United Stations' ability to deliver the highly sought-after
black middle-class market.
Dividends
An interim dividend (dividend no 4) of 100 cents per ordinary share (gross) was declared for the
period ended 30 September 2013 (2013:100 cents gross) and paid on 17 December 2013. The final dividend
(dividend no 5) for the year ended 31 March 2014 is 200 cents per ordinary share (gross) (2013: 200 cents gross).
Declaration of final dividend no 5
The board has declared a final dividend (dividend no 5) of 200 cents per ordinary share (gross)
for the year ended 31 March 2014. 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 8 277 366 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, 18 July 2014
Shares will trade ex-dividend from Monday, 21 July 2014
The record date will be Friday, 25 July 2014 and payment will be made on Monday, 28 July 2014.
Share certificates may not be dematerialised/rematerialised between Monday, 21 July 2014 and
Friday, 25 July 2014, both days inclusive.
Prospects
The board is cautiously optimistic that the revenue for the 2015 year will compare favourably with
that of the prior year.
ACG Molusi
Independent Non-executive Chairman
12 June 2014
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, and IAS34: Interim Financial Reporting the Listings Requirements of the
Johannesburg Stock Exchange and the SAICA Financial Reporting Guidelines 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 2014.
These results have been reviewed by Grant Thornton (Jhb) Inc. and their unqualified report is
available for inspection at the company's registered office.
Michelle Mynhardt
Financial director
AFRICAN MEDIA ENTERTAINMENT LIMITED
Incorporated in the Republic of South Africa
Registration number 1926/008797/06
JSE code: AME ISIN: ZAE000055802
("AME","the company" or "the group")
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
Registration number 2004/003647/07
Ground Floor, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Telephone: +27 11 370 5000
Telefax: +27 11 688 5238
SPONSOR
Arcay Moela Sponsors (Pty) Limited
Registration number 2006/033725/07
Ground Floor, One Health Building, Woodmead North Office Park
54 Maxwell Drive, Woodmead, 2191
PO Box 62397, Marshalltown, 2107
DIRECTORS
ACG Molusi (Independent Non-executive Chairman), KL Dube*, W Tshuma*, MJ Prinsloo*
N Sooka*, M Mynhardt•, AJ Isbister (Executive Director),
*Independent Non-executive Director
•Executive Financial Director
WWW.AME.CO.ZA
CONSOLIDATED PROVISIONAL STATEMENTS OF COMPREHENSIVE INCOME
Reviewed Audited
Full year year ended year ended
31 March 31 March
% 2014 2013
change R'000 R'000
Revenue 12 242 524 216 688
Cost of sales 11 (62 275) (56 065)
Gross profit 180 249 160 623
Operating expenses (119 684) (107 249)
Operating profit 13 60 565 53 374
Investment income 1 750 1 930
Finance income 4 508 3 070
Finance cost (53) (73)
Profits/(losses) attributable to associates 343 (27)
Net profit before taxation 15 67 113 58 274
Taxation (18 490) (16 670)
SA normal taxation (21 775) (17 910)
Deferred taxation 3 285 1 240
Total comprehensive income
for the period 17 48 623 41 604
Total comprehensive income
attributable to:
Non-controlling interest holders 5 766 3 710
Equity holders of the parent 13 42 857 37 894
Earnings per share (cents) 13 524,9 463,8
Headline earnings per share (cents) 13 524,3 463,9
Dividends per share (cents) 300 300
Weighted average number of shares
in issue ('000) 8 165 8 171
Headline earnings reconciliation:
Profit attributable to equity holders 42 857 37 894
(Profit)/loss on disposal of fixed assets (61) 9
Tax on loss on disposal of asset 17 (3)
Headline earnings 42 813 37 900
CONSOLIDATED PROVISIONAL STATEMENTS OF FINANCIAL POSITION
Reviewed Audited
year ended year ended
31 March 31 March
2014 2013
R'000 R'000
Assets
Non-current assets 99 570 95 314
Property, plant and equipment 35 758 34 881
Goodwill 39 780 39 780
Investments 12 272 12 178
Deferred taxation 11 760 8 475
Current assets 163 840 146 552
Trade receivables 49 394 64 230
Other receivables 8 125 2 454
Dividends receivable – 950
Tax paid in advance 42 134
Cash and cash equivalents 106 279 78 784
Total assets 263 410 241 866
Equity and liabilities
Total equity 175 842 161 007
Non-current liabilities – 41
Interest-bearing borrowings – 41
Current liabilities 87 568 80 818
Trade payables 24 962 37 215
Other payables 58 326 41 828
Dividend payable 1 020 915
Operating lease accrual and
interest-bearing borrowings 105 136
Taxation 3 155 724
Total equity and liabilities 263 410 241 866
CONSOLIDATED PROVISIONAL STATEMENTS OF CHANGES IN EQUITY
Reviewed Audited
year ended year ended
31 March 31 March
2014 2013
R'000 R'000
Issued capital
Balance at beginning of year 8 171 8 171
Shares repurchased and cancelled (11) –
Balance at end of year 8 160 8 171
Share premium
Balance at beginning of year 13 742 13 742
Shares repurchased and cancelled (821) –
Balance at end of the year 12 921 13 742
Retained profit
Balance at beginning of year 134 663 105 030
Total comprehensive income for the year 42 857 37 894
Dividend (24 771) (8 261)
Balance at end of year 152 749 134 663
Non-controlling interests
Balance at beginning of year 4 431 7 148
Share of total comprehensive income for the year 5 766 3 710
Share of dividend (8 185) (6 427)
Balance at end of year 2 012 4 431
Total capital and reserves 175 842 161 007
CONSOLIDATED PROVISIONAL STATEMENTS OF CASH FLOWS
Reviewed Audited
year ended year ended
31 March 31 March
2014 2013
R'000 R'000
Cash generated by operating activities 64 048 57 707
Net interest received 4 455 2 997
Taxation paid (19 252) (18 815)
Decrease in working capital 13 295 2 690
Cash flows from operating activities 62 546 44 579
Cash flows from investing activities (2 200) (8 356)
Cash flows from financing activities* (32 851) (14 549)
Net increase in cash and cash equivalents 27 495 21 674
Cash and cash equivalents at beginning of year 78 784 57 110
Cash and cash equivalents at end of year 106 279 78 784
* dividends paid
SEGMENTAL REPORTING
Reviewed Audited
year ended year ended
31 March 31 March
2014 2013
R'000 R'000
Revenue
Radio Broadcasting 209 182 187 551
Sales houses 33 342 29 137
Total 242 524 216 688
Profitability
Radio Broadcasting 53 593 43 760
Sales houses 11 327 15 749
Company (4 012) (6 162)
Total operating profit 60 908 53 347
Investment income 1 750 1 930
Interest received 4 508 3 070
Interest paid (53) (73)
Taxation (18 490) (16 670)
Total comprehensive income for the period 48 623 41 604
Assets
Radio Broadcasting 63 397 62 665
Sales houses 49 615 54 041
Company 44 119 46 376
Total 157 131 163 082
Liabilities
Radio Broadcasting 34 542 32 494
Sales houses 45 575 42 193
Company 7 451 6 172
Total 87 568 80 859
Capital expenditure
Radio Broadcasting 3 530 9 491
Sales houses 902 327
Company 11 15
Total 4 443 9 833
Depreciation
Radio Broadcasting 2 421 3 018
Sales houses 1 017 990
Company 62 66
Total 3 500 4 074
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