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Reviewed Results for the year ended 31 March 2016
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 2016
CONSOLIDATED PROVISIONAL STATEMENTS OF COMPREHENSIVE INCOME
Reviewed Audited
year ended year ended
31 March 31 March
% 2016 2015
change R'000 R'000
Revenue (6) 238 303 254 631
Cost of sales (6) (57 104) (61 047)
Gross profit 181 199 193 584
Operating expenses (116 766) (123 428)
Operating profit (8) 64 433 70 156
Investment income 3 000 1 750
Finance income 6 342 5 879
Finance cost (4) (6)
Profits attributable to associates 627 507
Net profit before taxation (5) 74 398 78 286
Taxation (20 775) (21 715)
SA normal taxation (20 206) (22 359)
Deferred taxation (569) 644
Total comprehensive income for the year (5) 53 623 56 571
Total comprehensive income attributable to:
Non-controlling interest holders (20) 5 573 6 942
Equity holders of the parent (3) 48 050 49 629
Earnings per share (cents) (3) 591,2 608,2
Headline earnings per share (cents) (4) 587,6 612,5
Dividends per share (cents) 350 350
Weighted average number of shares in issue (000's) 8 127 8 160
Headline earnings reconciliation
Profit attributable to equity holders 48 050 49 629
(Profit)/loss on disposal of fixed assets/investment (408) 354
Tax on disposal of assets 114 –
Headline earnings 47 756 49 983
CONSOLIDATED PROVISIONAL STATEMENTS OF FINANCIAL POSITION
Reviewed Audited
31 March 31 March
2016 2015
R'000 R'000
Assets
Non-current assets 139 043 125 441
Property, plant and equipment 73 996 60 152
Goodwill 39 426 39 426
Investments 13 803 13 476
Deferred taxation 11 818 12 387
Current assets 160 747 185 713
Trade receivables 41 303 71 634
Other receivables 4 654 8 242
Tax paid in advance 738 324
Cash and cash equivalents 114 052 105 513
Total assets 299 790 311 154
Equity and liabilities
Total equity 218 615 201 504
Current liabilities 81 175 109 650
Trade payables 13 681 37 945
Other payables 65 037 68 587
Dividend payable 1 472 1 245
Taxation 985 1 873
Total equity and liabilities 299 790 311 154
CONSOLIDATED PROVISIONAL STATEMENTS OF CHANGES IN EQUITY
Reviewed Audited
year ended year ended
31 March 31 March
2016 2015
R'000 R'000
Issued capital
Balance at beginning of year 8 159 8 160
Shares repurchased and cancelled (39) (1)
Balance at end of year 8 120 8 159
Share premium
Balance at beginning of year 12 839 12 921
Shares repurchased and cancelled (3 742) (82)
Balance at end of the year 9 097 12 839
Retained profit
Balance at beginning of year 179 760 152 749
Change in shareholding – 1 903
Total comprehensive income for the year 48 050 49 629
Dividend (28 468) (24 521)
Balance at end of year 199 342 179 760
Non-controlling interests
Balance at beginning of year 746 2 012
Change in shareholding – (1 912)
Share of total comprehensive income for the year 5 573 6 942
Share of dividend (4 263) (6 296)
Balance at end of year 2 056 746
Total capital and reserves 218 615 201 504
CONSOLIDATED PROVISIONAL STATEMENTS OF CASH FLOWS
Reviewed Audited
year ended year ended
31 March 31 March
2016 2015
R'000 R'000
Cash generated by operating activities 72 533 74 008
Net interest received 6 338 5 873
Taxation paid (21 508) (23 923)
Decrease/(increase) in working capital 3 098 (636)
Cash flows from operating activities 60 461 55 322
Cash flows from investing activities (15 637) (25 497)
Cash flows from financing activities* (36 285) (30 591)
Net increase/(decrease) in cash and cash equivalents 8 539 (766)
Cash and cash equivalents at beginning of year 105 513 106 279
Cash and cash equivalents at end of year 114 052 105 513
*Dividends paid and shares repurchased
SEGMENT REPORTING
Reviewed Audited
year ended year ended
31 March 31 March
2016 2015
R'000 R'000
Revenue
Radio broadcasting 194 171 210 278
Radio services 43 766 44 142
Corporate 366 211
Total 238 303 254 631
Profitability
Radio broadcasting 58 915 56 311
Radio services 8 237 15 691
Corporate (2 719) (1 846)
Total operating profit 64 433 70 156
Unallocated/eliminated corporate net
expense and intercompany consolidation 627 507
Investment income 3 000 1 750
Interest received 6 342 5 879
Interest paid (4) (6)
Taxation (20 775) (21 715)
Total comprehensive income for the year 53 623 56 571
Assets
Radio broadcasting 65 938 66 009
Radio services 37 303 68 141
Corporate 82 497 71 491
Total 185 738 205 641
Liabilities
Radio broadcasting 53 109 49 521
Radio services 21 955 51 718
Corporate 6 111 8 411
Total 81 175 109 650
Capital expenditure
Radio broadcasting 13 640 5 353
Radio services 277 1 050
Corporate 5 701 22 572
Total 19 618 28 975
Depreciation
Radio broadcasting 4 424 2 599
Radio services 765 788
Corporate 312 208
Total 5 501 3 595
CHAIRMAN'S REVIEW
Review of the year
Trading conditions for the year under review remained tough. Revenue
decreased by 6% to R238,3 million (2015: R254,6 million) and comprehensive
income decreased by 5% to R53,6 million (2015: R56,6 million).
The comprehensive income attributable to equity holders of the parent amounted
to R48 million (2015: R49,6 million) with earnings per share of 591,2 cents (2015:
608,2 cents). Headline earnings per share was 587,6 cents (2015: 612,5 cents).
After paying tax of R21,5 million (2015: R23,9 million), the group generated
R60,5 million (2015: R55,3 million) in cash from its operating activities. The group
invested an additional R5,5 million (2015:R19,6 million) on the development
of the new home of the Central Media Group in Bloemfontein and spent
R14,1 million (2015: R9,4 million) on capital expenditure. R3,8 million (2015:
R83 000) went towards the repurchase of 39 200 (2015: 1 000) shares.
During the year the group paid out dividends of R28,2 million (2015: R24,3 million)
to the equity holders of the company and ended the year with cash
resources of R114,1 million (2015: R105,5 million).
Operations
Low business confidence remains a key challenge across all sectors resulting
in demanding trading conditions. Innovation and tight cost control remain an
imperative.
Algoa FM delivered another solid performance with year-on-year revenue
marginally up and listenership figures slightly down from last year. Significant
cost saving measures were implemented by management which contributed
to increased profitability. Algoa FM introduced a new events strategy which has
the potential to further grow revenue via sponsorship sales of The Big Walk and
Algoa Live events.
Central Media Group moved into its custom designed building halfway through
the year. This resulted in some disruption, but the consolidation of
staff into one building and morale boost from the impressive new accommodation
bodes well for the future. Redstar has grown its Promotions
portfolio into a national footprint, whilst organising the inaugural Miway Sevens.
Mahareng delivered good results given the prevailing market conditions,
and Bloemfontein Courant extended its influence and continued to improve
profitability. Digital Platforms increased its client portfolio, extending now into
Agriculture, Media and Government clients. OFM's audience declined slightly, but
in line with demographic changes in the provinces footprint. Overall, the group
emerged well from a tumultuous year.
RadioHeads has not been spared the difficult times being experienced by the
media industry. The economic slowdown forced clients to move campaigns
to the new financial year. Revenue has been severely affected, but RadioHeads
remains geared to take advantage of the expected increase in media spend after
the local government elections.
Sales revenue at United Stations was down on the previous year, due to the loss
of three radio station clients. These stations have since been replaced by five
new client stations, covering Gauteng, KwaZulu-Natal, Mpumalanga, North West
and the Western Cape. The team is focused on expanding the range of services
it offers and remains well positioned to serve its radio stations in the market,
despite the challenging conditions.
Dividends
An interim dividend (dividend number 8) of 100 cents per ordinary share (gross)
(2014: 100 cents gross) was paid on 18 January 2016. The final dividend (dividend
number 9) for the year ended 31 March 2016 is 250 cents per ordinary share
(gross) (2015: 250 cents per share).
Declaration of final dividend number 9
The board declared a final dividend (dividend number 9) of 250,00 cents per
ordinary share (gross) for the year ended 31 March 2016. 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 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 8 237 165 ordinary shares in issue.
- 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,
24 June 2016
Shares will trade ex-dividend from Monday, 27 June 2016
The record date will be Friday 1 July 2016 and payment will be made on Monday,
4 July 2016
Share certificates may not be dematerialised/rematerialised between Monday,
27 June 2016 and Friday, 1 July 2016, both days inclusive.
Prospects
The board expects the trading conditions for the 2017 year to remain challenging.
ACG Molusi
Independent Non-executive Chairman
30 May 2016
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 2015.
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
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
Suite #439,
Private Bag X29.
Gallo Manor, 2052.
DIRECTORS
ACG Molusi (Independent Non-executive Chairman), KL Tlhabane*,
MJ Prinsloo*, N Sooka*, M Mynhardt (Executive Financial Director),
AJ Isbister (Executive Director) *Independent non-executive director
www.ame.co.za
Date: 30/05/2016 02:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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