| Mon 10 Dec 2007, 13:38 | | NAI / NAN - New Africa Investments - Unaudited Interim Results For The Six |
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NAI NAN
NAI
NAI / NAN - New Africa Investments - Unaudited Interim Results For The Six
Months Ended 30 June 2007
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" or the "company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited
six months six months
30 June 30 June
2007 2006
Note R`000 R`000
Revenues - -
Administration expenses (4 397) (1 573)
Operating loss (4 397) (1 573)
Finance income 1 927 4 019
Share of profit of associate 1 133 1 086
(Loss)/profit before taxation (1 337) 3 532
Income tax expense 1 (5 724) (10 227)
Loss for the period (7 061) (6 695)
Attributable to:
Equity holders of the company (7 061) (6 695)
Minority interest - -
(7 061) (6 695)
Loss per share (cents) (5,6) (5,3)
Diluted loss per share (cents) (5,6) (5,3)
Number of shares taken into account in 126 760 126 760
calculating earnings per share (000)
Note
1. INCOME TAX EXPENSE
South African normal tax 178 720
Secondary taxation on companies 5 546 9 507
5 724 10 227
HEADLINE LOSS
Unaudited Unaudited
six months six months
30 June 30 June
2007 2006
R`000 R`000
Loss attributable to ordinary (7 061) (6 695)
shareholders
(7 061) (6 695)
Headline loss per share (cents) (5,6) (5,3)
Segmental analysis
Segmental result
Head Office (4 397) (1 573)
Total Group (4 397) (1 573)
CONSOLIDATED BALANCE SHEET
Unaudited Audited
30 June 31 December
2007 2006
R`000 R`000
Assets
Non-current assets
Investments in associate 12 200 12 280
Current assets
Trade and other receivables 30 30
Income tax receivable 25 484 25 194
Cash and cash equivalents 19 455 65 157
TOTAL ASSETS 57 169 102 661
Total equity and liabilities
Share capital and premium 4 814 4 814
Reserves 32 612 84 039
Minority interest (9 368) (9 368)
Total equity 28 058 79 485
Current liabilities
Trade and other payables 10 580 10 369
Income tax liability 6 659 935
Borrowings 9 172 9 172
Provisions for other liabilities and 2 700 2 700
charges
TOTAL EQUITY AND LIABILITIES 57 169 102 661
Net asset value per share (cents) 30 70
Number of shares in issue at end of 126 760 126 760
period
STATEMENT OF CHANGES IN EQUITY
for the period ended 30 June 2007
Share capital Minority
and premium Reserves interest Total
R`000 R`000 R`000 R`000
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
Loss for the period (7 061) - (7 061)
Dividends (44 366) (44 366)
Balance at 30 June 4 814 32 612 (9 368) 28 058
2007
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited
six months six months
30 June 30 June
2007 2006
R`000 R`000
Cash utilised in operating activities (2 549) (10 243)
Cash utilised by operations (4 186) (4 595)
Interest received 1 927 4 019
Taxation paid (290) (9 667)
Cash effects of investing activities 1 213 -
Repayment of loan by associate 1 213 -
Cash effects of financing activities
Dividend paid (44 366) (76 056)
Net decrease in cash and cash equivalents (45 702) (86 299)
Cash and cash equivalents at beginning of 65 157 160 837
the period
Cash and cash equivalents at end of the 19 455 74 538
period
COMMENTARY
DIRECTORS` STATEMENT
Your directors take pleasure in presenting the unaudited interim results of the
Group for the six months ended 30 June 2007.
BASIS OF PRESENTATION
The Group`s interim financial statements for the six months ended 30 June 2007
have been prepared in terms of International Financial Reporting Standards
("IFRS") in compliance with IAS34: Interim Financial Reporting.
The accounting policies used in preparing the interim financial statements were
consistent with those applied in the 2006 Annual Financial Statements and are in
accordance with IFRS.
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 interest and penalties raised 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.
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 ("Kaya"), 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 Limited, 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 or
liabilities other than Kaya before the offer can be operative.
The sale of the SPV interests and P4 Loans has the effect of reducing the
Primedia offer to R0,151 per NAIL share in cash plus the appropriate interest.
AME OFFER
AME made an offer on or about 13 July 2005 to acquire NAIL`s 24,9% shareholding
in 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 ("NAIL controlling shareholders") 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.
REVIEW OF RESULTS
The performance this period reflects the results of 24,9% of Kaya and Head
Office activities. The administrative expenses include R1,5 million incurred in
the KFM trade mark case (see Contingent asset above).
DIRECTORATE
Mr F Titi tendered his resignation with effect from 30 June 2007. The company
takes this opportunity to thank him for his services to the Company.
G SNELGAR R KEVAN
10 December 2007
Directors: G Chadwick, R Kevan, K Setzin, G Snelgar
Date: 10/12/2007 13:38:51 Produced by the JSE SENS Department.
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