| Mon 10 Dec 2007, 13:36 | | NAI / NAN - NAIL - Condensed Consolidated Audited Financial Results Of The Group |
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NAI NAN
NAI
NAI / NAN - NAIL - Condensed Consolidated Audited Financial Results Of The Group
For The Year Ended 31 December 2006
NEW AFRICA INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/002467/06)
(Share codes: NAI and NAN)
(ISIN: ZAE000033338 and ZAE000033346)
(`NAIL` or `the Group`)
CONDENSED CONSOLIDATED AUDITED FINANCIAL RESULTS OF THE GROUP FOR THE
YEAR ENDED 31 DECEMBER 2006
CONSOLIDATED INCOME STATEMENT
Audited Audited
year ended year ended
31 December 31 December
2006 2005
Notes R`000 R`000
Revenues - 114 606
Cost of sales - (49 877)
Gross profit - 64 729
Administration expenses (2 986) (75 167)
Selling expenses - (15 484)
Other income - 9 891
Other gains/(losses) - net 1 (2 629) (13 691)
Operating loss (5 615) (29 722)
Finance income 6 403 7 008
Finance costs - -
Share of profit of associates 1 720 1 862
Profit/(loss) before income tax 2 508 (20 852)
Income tax expense 2 (10 529) (19)
Loss for the year (8 021) (20 871)
Attributable to:
Equity holders of the company (8 016) (16 900)
Minority interest (5) (3 971)
(8 021) (20 871)
Loss per share (cents) - Basic (6,3) (13,3)
Loss per share (cents) - Diluted (6,3) (13,3)
Number of shares taken into account 126 760 126 760
in calculating EPS (000)
NOTES
1. OTHER GAINS/(LOSSES) - net
New Africa Media (2 700) -
African Bank debtors book 71 (12 300)
Alisa Holdings - 2 326
Kaya SPVs - (32)
Union Alliance Holdings - 80
Impairment of film inventory - (3 765)
(2 629) (13 691)
2. INCOME TAX EXPENSE
South African normal tax 1 022 19
Secondary taxation on companies 9 507 -
10 529 19
HEADLINE LOSS
Loss attributable to ordinary shareholders (8 016) (16 900)
Reduction in purchase price of New Africa 2 700 -
Media
Profit on sale of subsidiaries and - (2 326)
associates
Impairment of film inventory - 3 765
Profit on sale of property, plant and - (25)
equipment
Minority portion and tax effect - (3 765)
(5 316) (19 251)
Headline loss per share (cents) (4,2) (15,2)
Segmental analysis
Segmental revenue
Car rental - 114 606
Segmental result
Car rental - (464)
African Bank debtors book 71 (12 300)
Film and TV - (3 765)
Head office (5 686) (13 193)
Total Group (5 615) (29 722)
CONSOLIDATED BALANCE SHEET
Audited Audited
31 December 31 December
2006 2005
R`000 R`000
Assets
Non-current assets
Investments in associates 12 280 13 052
Current assets
Trade and other receivables 30 84
Income tax receivable 25 194 24 634
Cash and cash equivalents 65 157 160 839
TOTAL ASSETS 102 661 198 609
Total equity and liabilities
Share capital and share premium 4 814 4 814
Retained income 84 039 168 111
Equity attributable to equity holders of 88 853 172 925
the parent
Minority interest (9 368) (9 363)
Total equity 79 485 163 562
Current liabilities
Trade and other payables 10 369 10 555
Income tax liability 935 -
Borrowings 9 172 9 174
Provisions for other liabilities and 2 700 15 318
charges
TOTAL EQUITY AND LIABILITIES 102 661 198 609
Net asset value per share (cents) 70 136
Number of shares in issue at end of year 126 760 126 760
Statement of changes in equity
for the year ended 31 December 2006
Share
capital and Retained Minority
premium income interest Total
R`000 R`000 R`000 R`000
Opening balance at 1 4 814 185 011 (5 505) 184 320
January 2005
Loss for the year - (16 900) (3 971) (20 871)
Sale of subsidiaries - - 113 113
Balance at 31 December 4 814 168 111 (9 363) 163 562
2005
Loss for the year - (8 016) (5) (8 021)
Dividends - (76 056) - (76 056)
Balance at 31 December 4 814 84 039 (9 368) 79 485
2006
CONSOLIDATED CASH FLOW STATEMENT
Audited Audited
31 December 31 December
2006 2005
R`000 R`000
Cash utilised in operating activities (22 116) (20 752)
Cash utilised by operations (18 365) (25 441)
Interest received 6 403 7 008
Taxation paid (10 154) (2 319)
Cash effects of investing activities 2 492 49 014
Repayment of loans by associate 2 492 1 247
Proceeds on disposal of property, plant - 2 068
and equipment
Proceeds on sale of subsidiaries and - 45 699
investments
Cash effects of financing activities (76 056) -
Dividend paid (76 056) -
Net (decrease)/increase in cash and cash (95 680) 28 262
equivalents
Cash and cash equivalents at beginning 160 837 132 575
of the year
Cash and cash equivalents at end of the 65 157 160 837
year
COMMENTARY
DIRECTORS` STATEMENT
Your directors take pleasure in presenting the audited results of the Group for
the year ended 31 December 2006.
BASIS OF PRESENTATION
The annual financial statements for the 12 months ended 31 December 2006 have
been prepared in accordance with International Financial Reporting Standards
(IFRS), IAS 34 and the Companies Act of South Africa. The accounting policies
applied are consistent with that of the previous year.
DIRECTORSHIP CHANGES
Mr F Titi resigned from the board on 30 June 2006. The Company takes this
opportunity to thank him for his services to the Company.
ASSET SETTLEMENT AND DISPOSAL PROCESS
NAIL exited its position in the African Bank debtors book. NAIL contributed a
sum of R12,3 million in a transaction with CMS Group (Pty) Limited to exit its
position. R12,3 million was provided for in the 2005 financial year.
PRIMEDIA LIMITED ("PRIMEDIA") OFFER
NAIL announced on 17 December 2004 that it had received a firm intention to make
an offer from Primedia to acquire all the issued ordinary and `N` ordinary
shares ("NAIL share") in NAIL as one indivisible transaction. Shareholders are
referred to the announcement for the full terms of the offer.
The salient terms of the offer are:
* The offer price of R0,356 per NAIL share in cash. NAIL will have no assets
except 24,9% of Kaya FM (Pty) Limited, the various loans to P4 Radio Cape Town
(Pty) Limited and P4 Radio Durban (Pty) Limited ("P4 Loans") and various claims
and preference shares in Motsamai Media (Pty) Limited and Makana SPV (Pty)
Limited ("the SPV interests") which hold 24,9% of Kaya FM.
* The offer price is reduced by R0,146 per NAIL share if the SPV interests have
been sold or recovered and R0,059 per NAIL share if the P4 Loans have been sold
or repaid.
* Interest in the event NAIL has not disposed the SPV interests and the P4 Loans
will amount to 0,228 cents per month from 1 April 2005.
Conditions precedent
* NAIL`s disposal of Hertz
* Regulatory approvals, to the extent required, including but not limited to the
JSE Securities Exchange South Africa, the Securities Regulation Panel and the
Competition Authority.
Hertz was sold during the 2005 financial year. The Competition Appeal Court on
19 November 2007, upheld an application by African Media Entertainment Limited
("AME") to the Competition Appeal Court to set aside a decision by the
Competition Tribunal to unconditionally approve the merger between Primedia,
Capricorn Capital Partners and NAIL. The Competition Appeal Court has referred
the merger back to the Competition Tribunal for consideration and determination.
However, the implication of the offer is that NAIL will have no assets other
than Kaya FM before the offer can become operative.
The settlement of the SPV interests and P4 Loans has the effect of reducing the
Primedia offer to R0,151 per NAIL share in cash.
AME OFFER
AME made an offer on or about 13 July 2005 to acquire NAIL`s 24,9% shareholding
in Kaya FM (Pty) Limited ("Kaya") for R21 million. The sale by NAIL of Kaya
would require shareholder approval. NAIL received written confirmation from
shareholders controlling more than 50% of NAIL voting interests that they would
not support a sale of Kaya out of NAIL. This fact was communicated to AME. On 12
January 2006 AME increased their offer for Kaya to R25 million. The NAIL
controlling shareholders have reviewed the revised offer and have indicated that
their original position has not changed. This fact has been communicated to AME.
CONTINGENT ASSET
At the date of the sale of KFM to Primedia, KFM was in the process of
challenging the South African Revenue Services ("SARS") disallowance of a trade
mark write-off and penalties and interest of R20,7 million.
In the event that KFM is successful against SARS, the purchase price that
Primedia paid to acquire KFM will be increased by 97% of the sums recovered and
the present value of future trade mark deductions. NAIL bears all costs in this
regard.
REVIEW OF RESULTS
The results are not comparable with the previous year as Hertz was sold in the
previous financial year. The results are the attributable results of Kaya FM and
Head Office activities for the year.
AUDITED RESULTS BY INDEPENDENT AUDITORS
The results have been audited by the joint independent auditors,
PricewaterhouseCoopers Inc and SizweNtsaluba vsp. Their unqualified audit
opinion on the consolidated financial statements is available for inspection at
the company`s registered office.
The audited annual financial statements will be posted within 10 days.
EVENTS OCCURRING POST YEAR END
A special dividend of 35 cents per share was declared payable on 18 June 2007.
The dividend payable amounted to R44,4 million and secondary taxation on
companies amounted to R5,5 million.
By order of the board
G SNELGAR R KEVAN
10 December 2007
Directors: G Chadwick, R Kevan, K Setzin, G Snelgar
Date: 10/12/2007 13:36:51 Produced by the JSE SENS Department.
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