| Wed 23 May 2007, 16:22 | | MNY - Moneyweb - Reviewed results for the year end |
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MNY
MNY
MNY - Moneyweb - Reviewed results for the year ended 31 March 2007
MONEYWEB HOLDINGS LIMITED
("Moneyweb" or "the Company")
(Registration No: 1998/025067/06)
ISIN code: ZAE000025409
Share code: MNY
REVIEWED RESULTS FOR THE YEAR ENDED 31 MARCH 2007
HEPS up 35%
Dividend doubled to 1c a share
Strong operational growth
Now poised to reap benefits
Consolidated Income Statements
Reviewed Audited
Year Year
ended ended
31-Mar-07 31-Mar-06
R`000 R`000
REVENUE 19,114 19,268
Advertising 17,706 17,177
Newsletters 1,408 2,091
Operating profit before investment income,
income from associates, fair value
adjustment, depreciation, amortisation
and impairment 1,957 1,634
Depreciation (434) (495)
Investment income 32 40
Fair Value adjustment of investment 2 6
Goodwill impairment - (347)
-Associates - (347)
Net profit before taxation 1,557 838
Taxation (524) (404)
Net profit for the year 1,033 434
Reconciliation of headline earnings:
Net profit for the year 1,033 434
Goodwill impairment - 347
Headline earnings for the year 1,033 780
Earnings per share(cents) 1,55 0.65
Fully diluted earnings per share (cents) 1,55 0.64
Headline earnings per share (cents) 1,55 1.15
Fully diluted headline earnings per share (cents) 1,55 1.15
Number of shares (000`s)
- issued closing
(net of treasury shares) 66 472 66 950
- weighted average 66 733 67 923
- fully diluted weighted average 66 798 68 000
Consolidated Balance Sheets
Reviewed Audited
31-Mar-07 31-Mar-06
R`000 R`000
ASSETS
Non-current assets
Tangible assets 846 1,168
Intangible assets 677 -
Other investment 23 21
Deferred taxation 251 676
1,797 1,865
Current assets
Trade and other receivables 5,505 3,894
Cash and cash equivalents 2,920 4,077
8,425 7,971
Total assets 10,222 9,836
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 5,383 5,383
Accumulated profit 1,766 1,325
Ordinary shareholders interest 7,149 6,708
Current liabilities
Trade and other payables 2,417 2,363
Provisions 105 216
Deferred revenue 335 431
Taxation 216 118
3,073 3,128
Total equity and liabilities 10,222 9,836
Net asset value per share (cps) 10,7 10,1
Net tangible asset value per share (cps) 9,7 10,1
Statement of changes in shareholders` equity
Share Capital Share Premium Accumulated Total
Profit
Balance at 1 April 2005 69 6,188 891 7,148
Net profit for the
year ended 31 March 2006 0 0 434 434
Treasury shares
Purchased (2) (872) 0 (874)
Balance at 1 April 2006 67 5,316 1,325 6,708
Net profit for the year
ended 31 March 2007 0 0 1,033 1,033
Ordinary dividend 0 0 (378) (378)
Treasury shares
Purchased 0 0 (214) (214)
Balance at 31 March 2007 67 5,316 1,766 7,149
Consolidated cash flow statements
Reviewed Audited
Year Year
ended ended
31-Mar-07 31-Mar-06
R`000 R`000
Cash flows from operating activities
Cash generated by operations 1,858 1,556
Movements in working capital (1,668) (2,010)
Cash generated by operating activities 190 (454)
Investment income 32 40
Taxation paid - (23)
Dividend paid (378) 0
Net cash flows from operating activities (156) (437)
Cash flows from investing activities
Acquisition of tangible assets (791) (150)
Proceeds on disposal of associate
Company - Classic FM 0 3,000
Proceeds on disposal of tangible assets 5 0
Net cash flows from investing
activities (786) 2,850
Cash flows from financing activities
Acquisition of treasury shares (215) (874)
Net cash flows from financing
Activities (215) (874)
Net movement in cash and cash
equivalents for the year (1,157) 1,539
Cash and cash equivalents at
beginning of period 4,077 2,538
Cash and cash equivalents at
end of year 2,920 4,077
Commentary
Moneyweb has achieved pleasing results during what was planned to be a year
of significant long-term investment and consolidation of distribution
platforms.
Excellent cost control work together with better than expected revenue
contributions from Moneyweb UK and the advertising partnership with Google,
more than offset the negative short-term profit impact of the strategic
initiatives.
Moneyweb closed the 2007 financial year with a 35% improvement in headline
earnings per share and lifted its EBITDA margin into double digits, from
8,5% to 10,3%.
This is a welcome contrast to the outlook anticipated a year ago. In the
2006 annual report shareholders were warned that because of the impact of
strategic initiatives, Moneyweb would be targeting a break-even position
for 2007 and a likely decline in profits.
The company approaches the current financial year, the 10th anniversary of
Moneyweb`s founding, with well placed confidence. The positive outlook is
reflected in the board`s decision to declare a dividend of 1c a share,
double that of the previous year.
Operating Results:
In the year under review, advertising revenues were directly affected by
the termination of First National Bank`s headline sponsorship of the
company`s radio programmes, which accounted for around 20% of total
revenue. The expected decline in income from financial newsletters also had
an impact.
From 1 September, Moneyweb`s advertising function was outsourced to
specialist sales house United Stations. This brought additional focus to
the sales effort. The partnership is off to a promising start. Most
significant development came after the yearend with the introduction of a
headline radio sponsorship by Old Mutual. The contract is for an initial
six month period starting 1 June, 2007.
In the past year, US Dollar-based advertising generated through the
relationship with Internet giant Google substantially exceeded
expectations. Together with healthy revenues from Moneyweb UK, this was
the main factor behind the unexpected result of overall advertising revenue
exceeding that of 2006.
The company`s major offshore asset, Mineweb.com, experienced a turbulent
first half, with editorial and management changes bedeviling progress. One
of the most pleasing parts of the year, however, is the manner in which the
new team, headed by Lawrie Williams, achieved the smooth relocation of
Mineweb from Johannesburg to London, rapidly bedding down the operation.
Highlight of the past year was the successful transition in the company`s
Internet content publishing engine to a system developed by new technical
partner Cambrient. The move was well timed with the powerful technology
platform comfortably handling the surge in traffic on the websites.
Throughout the period, year-on-year growth in users at core website
Moneyweb.co.za was sustained at over 40%. This was a result of content by
an editorial team which excelled through market-leading coverage of the
"big" stories - among them the aftermath of the Brett Kebble murder and the
Fidentia scandal - and a significantly enhanced data offering.
Stakeholders are urged to read the CEO`s Letter to Shareholders published
in the annual report for more detail.
Prospects:
Moneyweb approaches the final year of its first decade with confidence.
With the Bandwidth Age finally arriving in South Africa, innumerable
opportunities are presenting themselves. Also, the company`s strong brand
and large loyal community positions it to benefit from the revolution
occurring in the media environment.
The company has established a solid foundation. It expects to begin reaping
rewards during the current financial year to March 2008.
Dividends
Notice is hereby given that a cash dividend of 1,0 cents per share ("the
dividend") has been declared and is payable to shareholders recorded in the
books of Moneyweb at the close of business on Friday, 6 July 2007.
Shareholders
are advised that the last day to trade "cum" the dividend will be Friday,
29 June 2007. The shares will trade "ex" dividend as from Monday, 2 July
2007.
Payment will be made on Monday, 9 July 2007. Share certificates may not be
dematerialised or rematerialised during the period Monday, 2 July 2007 to
Friday, 6 July 2007, both days inclusive.
Basis of preparation
The reviewed financial statements comprise a consolidated balance sheet at
31 March 2007, a consolidated income statement, consolidated statement of
changes in equity and summarised consolidated cash flow statement for the
year ended 31 March 2007.
The reviewed financial statements have been prepared in accordance with the
recognition and measurement criteria of International Financial Reporting
Standards (IFRS) and the presentation and disclosure requirements of IAS 34
Interim Financial Reporting.
The reviewed financial statements have been prepared on the historical cost
basis with the exception of certain financial instruments that are stated
at fair value.
Auditor`s report
These results have been reviewed by BDO Spencer Steward (Jhb) Inc and their
unqualified review report is available at the Group`s registered office.
Andrew Smith Alec Hogg
Chairman Chief Executive Officer
Rosebank, Johannesburg
23 May 2007
Designated advisor
Deloitte and Touche Sponsor Services (Pty) Ltd
Date: 23/05/2007 16:22:01 Produced by the JSE SENS Department.
