To view the PDF file, sign up for a MySharenet subscription.

AFRICAN MEDIA ENTERTAINMENT LIMITED - Reviewed Results for the year ended 31 March 2014

Release Date: 12/06/2014 16:31
Code(s): AME     PDF:  
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   
              
Date: 12/06/2014 04:31:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story