Wrap Text
Unaudited Results for Six months ended 30 September 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")
UNAUDITED RESULTS
for the six months ended 30 September 2014
COMMENTARY
Review of the six months ended 30 September 2014
Trading conditions for the period under review presented many challenges but our businesses
managed to grow revenue by 10% to R117,1 million (2013: R106,5 million) as well as
comprehensive income by 10% to R22,5 million (2013: R20,5 million).
The comprehensive income attributable to equity holders of the parent amounted to
R19,4 million (2013: R17,8 million) with earnings per share of 237,8 cents (2013: 217,5 cents).
Headline earnings per share were 236,3 cents (2013: 217,5 cents).
After paying tax of R13 million (2013: R9,4 million), the group generated R10,2 million
(2013: 23,2 million) in cash from its operating activities during the period. The group invested
R6,2 million in developing of the site in Bloemfontein earmarked to be the new home of the
Central Media Group and spent R2,8 million (2013: R2 million) on capital expenditure and paid
R83 000 (2013: R0,8 million) to repurchase 1 000 (2013: 10943)of its own shares. During the period the
group paid out dividends to the value of R19,9 million, R3,7 million to non-controlling interest
holders and R16,2 million to equity holders of the parent. The group ended the period with
cash resources of R88,5 million (2013: R81,2 million).
Operations
Low business confidence and growth gave rise to the presently demanding trading conditions.
Tight cost control and innovation remains a key focus to maximise profits.
Algoa FM has managed to show marginal real growth in its local revenue, notwithstanding the
slow down in advertising demand. The station sold its 50% investment in the print publication,
Sport Elizabeth. The station's listenership remained stable year-on-
year. New "non- traditional" revenue initiatives are being pursued to bolster future revenues.
Central Media Group delivered half-year results that were above projection, but the
performance was mostly delivered through cost-containment as advertising revenue was
under pressure for the period under review. Non-advertising revenue continued to grow due to
new development projects taken on by Digital Platforms. Mahareng's Bloemfontein Courant
continued its growth path, delivering solid results for the first part of the year. Redstar is
tracking behind expectation, mostly due to a repositioning and management reshuffle. OFM's
performance has been stable, although revenue was below budget as the tightening economy
resulted in a drop-off in advertising expenditure.
New appointments by Heart FM and Gagasi FM allowed United Stations to grow gross
sales revenue by 13% year-on-year. A tough sales climate that has persisted for the full half
year, along with the need to reposition the two new station clients in the market, necessitated
additional investment in staff as well as significant research and trade marketing. These
investments have placed them in a good position to compete in the challenging marketplace
that is expected to persist over the remainder of the financial year.
The repositioning of Radioheads midway through the first quarter, has yielded positive results
for the second quarter of this financial year. Radioheads has refocused on its core business,
with special attention paid to generating maximum revenue yield from campaigns. The
renewed focus has resulted in repeat business from several clients, allowing the company to
project positive results for the second half of this financial year.
Dividends
A final dividend (dividend no 5) of 200 cents per ordinary share (gross) was declared for the
period ended 31 March 2014 (2013:200 cents gross) and paid on 28 July 2014. The interim
dividend (dividend no 6) for the period ended 30 September 2014 is 100 cents per ordinary
share (gross) (2013: 100 cents per share).
Declaration of interim dividend no 6
The board has declared an interim dividend (dividend no 6) of 100 cents per ordinary share
(gross) for the period ended 30 September 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 100,00 cents per ordinary share for shareholders exempt from
DWT;
- the net dividend amount is 85,00 cents per ordinary share for
shareholders liable for DWT;
- the company has 8 276 366 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, 2 January 2015
Shares will trade ex-dividend from Monday, 5 January 2015
The record date will be Friday, 9 January 2015 and payment will be made on
Monday, 12 January 2015
Share certificates may not be dematerialised/rematerialised between Monday, 5 January 2015
and Friday, 9 January 2015, both days inclusive.
Prospects
The board expects the trading conditions for the remaining six months of the year to remain
challenging.
ACG MOLUSI
Independent Non-executive Chairman
27 November 2014
Johannesburg
These condensed 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 Guidelines as issued by the Accounting Practices 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 are unaudited.
Michelle Mynhardt
Financial director
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months to six months to year ended
September September 31 March
% 2014 2013 2014
change R'000 R'000 R'000
Revenue 10% 117 121 106 500 242 524
Cost of sales 15% (31 385) (27 341) (62 275)
Gross profit 85 736 79 159 180 249
Operating expenses (59 086) (53 579) (119 684)
Operating profit 4% 26 650 25 580 60 565
Investment income 1 750 1 000 1 750
Finance income 2 821 2 019 4 508
Finance cost (2) (9) (53)
Profits attributable to
associates 118 101 343
Net profit before taxation 9% 31 337 28 691 67 113
Taxation (8 816) (8 171) (18 490)
SA normal taxation (9 797) (8 805) (21 775)
Deferred taxation 981 634 3 285
Total comprehensive
income for the period 10% 22 521 20 520 48 623
Total comprehensive
income attributable to:
Non-controlling interest
holders 3 118 2 755 5 766
Equity holders of the
parent 9% 19 403 17 765 42 857
Earnings per share (cents) 9.3% 237,8 217,5 524,9
Headline earnings per
share (cents) 8.7% 236,3 217,5 524,3
Dividends per share (cents) 100 100 300
Weighted average
number of shares in
issue ( 000's) 8 160 8 169 8 165
Headline earnings
reconciliation
Profit attributable to equity
holders 19 403 17 765 42 857
Profit on disposal of fixed
assets (162) – (61)
Tax on profit on disposal
of asset 45 – 17
Headline earnings 19 286 17 765 42 813
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
Unaudited Unaudited Audited
September September 31 March
2014 2013 2014
R'000 R'000 R'000
Assets
Non-current assets 108 409 95 893 99 570
Property, plant and equipment 43 011 34 995 35 758
Goodwill 39 426 39 780 39 780
Investments 13 248 12 009 12 272
Deferred taxation 12 724 9 109 11 760
Current assets 168 251 143 707 163 840
Trade receivables 71 253 60 602 49 394
Other receivables 7 759 1 695 8 125
Tax paid in advance 694 243 42
Cash and cash equivalents 88 545 81 167 106 279
Total assets 276 660 239 600 263 410
Equity and liabilities
Total equity 178 195 161 363 175 842
Non-current liabilities – 41 –
Interest-bearing borrowings – 41 –
Current liabilities 98 465 78 196 87 568
Trade payables 42 735 41 888 24 962
Other payables 54 004 34 853 58 326
Dividend payable 1 170 1 173 1 020
Operating lease accrual and
interest-bearing borrowings – 38 105
Taxation 556 244 3 155
Total equity and liabilities 276 660 239 600 263 410
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY
Unaudited Unaudited Audited
six months to six months to year ended
September September 31 March
2014 2013 2014
R'000 R'000 R'000
Issued capital
Balance at beginning of period 8 160 8 171 8 171
Shares repurchased (1) (11) (11)
Balance at end of period 8 159 8 160 8 160
Share premium
Balance at beginning of period 12 921 13 742 13 742
Shares repurchased (82) (821) (821)
Balance at end of the period 12 839 12 921 12 921
Retained profit
Balance at beginning of period 152 749 134 663 134 663
Change in shareholding 9 – –
Total comprehensive income
for the period 19 403 17 765 42 857
Dividend (16 403) (16 577) (24 771)
Balance at end of period 155 758 135 851 152 749
Non-controlling interests
Balance at beginning of period 2 012 4 431 4 431
Change in shareholding (18) – –
Share of total comprehensive income
for the period 3 118 2 755 5 766
Share of dividend (3 673) (2 755) (8 185)
Balance at end of period 1 439 4 431 2 012
Total capital and reserves 178 195 161 363 175 842
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited Unaudited Audited
six months to six months to year ended
September September 31 March
2014 2013 2014
R'000 R'000 R'000
Cash generated by operating activities 28 508 27 505 64 048
Net interest received 2 819 2 010 4 455
Taxation paid (13 048) (9 393) (19 252)
(Increase)/decrease in working capital (8 040) 3 047 13 295
Cash flows from operating activities 10 239 23 169 62 546
Cash flows from investing activities (8 048) (1 713) (2 200)
Cash flows from financing activities* (19 925) (19 073) (32 851)
Net (decrease)/increase in cash and cash
equivalents (17 734) 2 383 27 495
Cash and cash equivalents
at beginning of period 106 279 78 784 78 784
Cash and cash equivalents
at end of period 88 545 81 167 106 279
* Dividends paid
SEGMENTAL REPORTING
Unaudited Unaudited Audited
six months to six months to year ended
September September 31 March
2014 2013 2014
R'000 R'000 R'000
Revenue
Radio Broadcasting 84 779 91 584 209 182
Sales houses 32 342 14 916 33 342
Total 117 121 106 500 242 524
Profitability
Radio Broadcasting 26 831 22 462 53 593
Sales houses 4 851 4 248 11 327
Company (5 032) (1 130) (4 012)
Total operating profit 26 650 25 580 60 908
Unallocated/eliminated corporate net
expense and intercompany consolidation 118 101 –
Investment income 1 750 1 000 1 750
Interest received 2 821 2 019 4 508
Interest paid (2) (9) (53)
Taxation (8 816) (8 171) (18 490)
Total comprehensive income
for the period 22 521 20 520 48 623
Assets
Radio Broadcasting 55 544 64 518 63 397
Sales houses 70 340 57 193 49 615
Company 62 231 36 722 44 119
Total 188 115 158 433 157 131
Liabilities
Radio Broadcasting 26 086 35 280 34 542
Sales houses 62 974 35 133 45 575
Company 9 405 7 824 7 451
Total 98 465 78 237 87 568
Capital expenditure
Radio Broadcasting 951 1 731 3 530
Sales houses 7 633 316 902
Company 378 – 11
Total 8 962 2 047 4 443
Depreciation
Radio Broadcasting 1 346 1 448 2 421
Sales houses 375 507 1 017
Company 44 31 62
Total 1 765 1 986 3 500
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
Arbor Capital (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
Date: 27/11/2014 03:53:00 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.