Wrap Text
Reviewed Results for the year ended 31 March 2015
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 2015
CHAIRMAN'S REVIEW
Review of the year
This financial year was difficult but our businesses maintained the growth achieved in the
previous financial years with a 5% increase in revenue to R254,6 million (2014: R242,5 million).
Comprehensive income increased by 16% to R56,6 million (2014: R48,6 million).
The comprehensive income attributable to equity holders of the parent amounted to R49,6 million
(2014: R42,9 million) with earnings per share of 608,2 cents (2014: 524,9 cents). Headline earnings
per share was 612,5 cents (2014: 524,3 cents).
After paying tax of R23,9 million (2014: R19,3 million), the group generated R55,3 million
(2014: R62,5 million) in cash from its operating activities during the year. The group invested
R19,6 million (2014: R1,2 million) on the development of the site in Bloemfontein earmarked
to be the new home of the Central Media Group and spent R9,4 million (2014: R3,2 million)
on capital expenditure. The group ended the period with cash resources of R105,5 million
(2014: R106,3 million).
Operations
Our subsidiaries continue to contribute positively to our bottom line through innovative sales
initiatives and tight cost control.
Algoa FM perfomed well with year-on-year revenue and listenership growth. Cost containment
remains a focus area and contributes to profitability. Algoa FM scooped four MTN Radio Awards
at the annual banquet. Daron Mann won Best Breakfast Show presenter, and the Algoa FM Heritage
Day Virtual Flag won in the categories best promotion/stunt, best programme innovation and
best multi-channel stunt.
Central Media Group delivered a solid set of results, mostly due to growth in non-advertising
revenue. Significant web development contracts were secured and completed in this period
by Digital Platforms. Mahareng Publishing continued to gain market share in local publishing,
with Bloemfontein Courant increasing profitability by 21%. Redstar suffered revenue setbacks
with the unexpected cancellation of two major events, but launched new products which
helped create new revenue lines. OFM once again delivered stable results and benefited from
good cost-control. Advertising revenue is still constrained by the relatively weak national economy.
Overall, the group focused on reducing costs and looking for high margin alternative revenue
streams, utilising the various synergies between the media brands to good effect.
In a tough economic climate characterised by clients cutting back on budgets throughout the year,
RadioHeads has generated an after-tax profit. This turnaround has resulted from a refocus on its
core business with a strong drive toward the retention of key clients. Special attention has been
paid to generating maximum revenue yield from campaigns.
United Stations added two new station contracts to their portfolio, allowing them to increase
their footprint into all major markets across the country and increase their weekly audience to
seven million listeners. This came into effect during the second quarter of the year and along with
a strong performance from KAYA FM, contributed to an increase in revenue. The challenging sales
climate that persisted throughout the year, along with the need to reposition the two new stations
in the market, necessitated additional investment in staff as well as significant research and trade
marketing. These investments have placed United Stations in a good position to compete in the
demanding marketplace that is expected to persist over the coming year.
Dividends
An interim dividend (dividend no 6) of 100 cents per ordinary share (gross) was declared for
the period ended 30 September 2014. (2013: 100 cents gross) and paid on 12 January 2015.
The final dividend (dividend no 7) for the year ended 31 March 2015 is 250 cents per ordinary
share (gross) (2014: 200 cents per share).
Declaration of final dividend no 7
The board has declared a final dividend (dividend no 7) of 250,00 cents per ordinary share (gross)
for the year ended 31 March 2015. The dividend is subject to the dividend 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 250,00 cents per ordinary share for
shareholders exempt from DWT;
- the net dividend amount is 212,50 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, 3 July 2015.
Shares will trade ex-dividend from Monday, 6 July 2015.
The record date will be Friday, 10 July 2015 and payment will be made on Monday, 13 July 2015.
Share certificates may not be dematerialised/rematerialised between Monday, 6 July 2015 and
Friday, 10 July 2015, both days inclusive.
Prospects
The board is cautiously optimistic that the revenue for the 2016 year will compare favourably with
that of this year.
ACG Molusi
Independent Non-executive Chairman
4 June 2015
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, IAS 34: Interim Financial Reporting, 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 have been reviewed by Grant Thornton and their unqualified report is available for
inspection at the company's registered office.
Michelle Mynhardt (CA/SA)
Financial director
CONSOLIDATED PROVISIONAL STATEMENTS OF COMPREHENSIVE INCOME
Reviewed Audited
year ended year ended
31 March 31 March
% 2015 2014
change R'000 R'000
Revenue 5 254 631 242 524
Cost of sales (2) (61 047) (62 275)
Gross profit 193 584 180 249
Operating expenses (123 428) (119 684)
Operating profit 16 70 156 60 565
Investment income 1 750 1 750
Finance income 5 879 4 508
Finance cost (6) (53)
Profits attributable to associates 507 343
Net profit before taxation 17 78 286 67 113
Taxation (21 715) (18 490)
SA normal taxation (22 359) (21 775)
Deferred taxation 644 3 285
Total comprehensive income
for the year 16 56 571 48 623
Total comprehensive income
attributable to:
Non-controlling interest holders 20 6 942 5 766
Equity holders of the parent 16 49 629 42 857
Earnings per share (cents) 16 608,2 524,9
Headline earnings per share (cents) 17 612,5 524,3
Dividends per share (cents) 350 300
Weighted average number of shares
in issue ('000) 8 160 8 165
Headline earnings reconciliation:
Profit attributable to equity holders 49 629 42 857
Loss/(profit) on disposal of
investment/fixed assets 354 (61)
Tax on disposal of assets – 17
Headline earnings 49 983 42 813
CONSOLIDATED PROVISIONAL STATEMENTS OF FINANCIAL POSITION
Reviewed Audited
31 March 31 March
2015 2014
R'000 R'000
Assets
Non-current assets 125 441 99 570
Property, plant and equipment 60 152 35 758
Goodwill 39 426 39 780
Investments 13 476 12 272
Deferred taxation 12 387 11 760
Current assets 185 713 163 840
Trade receivables 71 634 49 394
Other receivables 8 242 8 125
Tax paid in advance 324 42
Cash and cash equivalents 105 513 106 279
Total assets 311 154 263 410
Equity and liabilities
Total equity 201 504 175 842
Current liabilities 109 650 87 568
Trade payables 37 945 24 962
Other payables 68 587 58 326
Dividend payable 1 245 1 020
Operating lease accrual – 105
Taxation 1 873 3 155
Total equity and liabilities 311 154 263 410
CONSOLIDATED PROVISIONAL STATEMENTS OF CHANGES IN EQUITY
Reviewed Audited
year ended year ended
31 March 31 March
2015 2014
R'000 R'000
Issued capital
Balance at beginning of year 8 160 8 171
Shares repurchased and cancelled (1) (11)
Balance at end of year 8 159 8 160
Share premium
Balance at beginning of year 12 921 13 742
Shares repurchased and cancelled (82) (821)
Balance at end of the year 12 839 12 921
Retained profit
Balance at beginning of year 152 749 134 663
Change in shareholding 1 903 –
Total comprehensive income for the year 49 629 42 857
Dividend (24 521) (24 771)
Balance at end of year 179 760 152 749
Non-controlling interests
Balance at beginning of year 2 012 4 431
Change in shareholding (1 912) –
Share of total comprehensive income for the year 6 942 5 766
Share of dividend (6 296) (8 185)
Balance at end of year 746 2 012
Total capital and reserves 201 504 175 842
CONSOLIDATED PROVISIONAL STATEMENTS OF CASH FLOWS
Reviewed Audited
year ended year ended
31 March 31 March
2015 2014
R'000 R'000
Cash generated by operating activities 74 008 64 048
Net interest received 5 873 4 455
Taxation paid (23 923) (19 252)
(Increase)/decrease in working capital (636) 13 295
Cash flows from operating activities 55 322 62 546
Cash flows from investing activities (25 497) (2 200)
Cash flows from financing activities* (30 591) (32 851)
Net (decrease)/increase in cash and cash equivalents (766) 27 495
Cash and cash equivalents at beginning of year 106 279 78 784
Cash and cash equivalents at end of year 105 513 106 279
* Dividends paid
SEGMENTAL REPORTING
Reviewed Audited
year ended year ended
31 March 31 March
2015 2014
R'000 R'000
Revenue
Radio Broadcasting 210 278 209 182
Radio Services 44 142 33 342
Corporate 211 –
Total 254 631 242 524
Profitability
Radio Broadcasting 56 311 53 250
Radio Services 15 691 11 327
Corporate (1 846) (4 012)
Total operating profit 70 156 60 565
Unallocated/eliminated corporate net expense
and intercompany consolidation 507 343
Investment income 1 750 1 750
Interest received 5 879 4 508
Interest paid (6) (53)
Taxation (21 715) (18 490)
Total comprehensive income for the year 56 571 48 623
Assets
Radio Broadcasting 66 009 63 397
Radio Services 68 141 49 615
Corporate 71 491 44 119
Total 205 641 157 131
Liabilities
Radio Broadcasting 49 521 34 542
Radio Services 51 718 45 575
Corporate 8 411 7 451
Total 109 650 87 568
Capital expenditure
Radio Broadcasting 5 353 3 530
Radio Services 1 050 902
Corporate 22 572 11
Total 28 975 4 443
Depreciation
Radio Broadcasting 2 599 2 421
Radio Services 788 1 017
Corporate 208 62
Total 3 595 3 500
The names of the segments were changed to be more descriptive. The allocations and
numbers have stayed the same.
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 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 Tlhabane*, W Tshuma*, MJ Prinsloo*
N Sooka*, M Mynhardt (Executive Financial Director), AJ Isbister (Executive Director),
* Independent Non-executive Director
WWW.AME.CO.ZA
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