| Mon 18 Feb 2008, 16:58 | | KGM - Kagiso Media - Unaudited Interim Results And Dividend Declaration For |
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KGM
KGM
KGM - Kagiso Media - Unaudited Interim Results And Dividend Declaration For
The Six Months Ended 31 December 2007
Kagiso Media Limited
(Registration number: 1957/000036/06)
("Kagiso Media", "the group" or "the company")
Share code: KGM
ISIN: ZAE000014007
- Revenue up 11.4%
- Headline earnings per share up 13.0%
- Cash flows from operating activities up 17.9%
- Dividend of 35 cents per share
Consolidated income statement
Twelve months
ended
Six months ended 30 June
2007
Change (Audited)
(R`000) %
31 December 31 December
2007 2006
(Unaudited) (Unaudited)
Revenue 411 770 369 651 11.4 738 307
Other income 10 503 12 101 28 934
Raw material and (60 488) (69 344) (154 222)
consumables
Commission and levies (55 419) (61 560) (105 409)
Employee costs (57 809) (41 365) (107 959)
Depreciation (4 937) (3 489) (8 163)
Amortisation (10 810) (9 507) (20 953)
Other expenses (83 404) (56 233) (134 464)
Operating profit 149 406 140 254 6.5 236 071
Finance income 7 360 4 266 10 333
Finance expenses (11 388) (9 963) (20 150)
Share of results of 8 441 6 465 9 992
associates
Profit before income 153 819 141 022 9.1 236 246
tax
Income tax expense (57 236) (55 506) (93 587)
Profit for the period 96 583 85 516 12.9 142 659
Attributable to:
- Equity holders of the 88 171 77 715 13.5 129 810
company
- Minority interest 8 412 7 801 12 849
96 583 85 516 142 659
Reconciliation of
headline earnings
Profit for the period 88 171 77 715 129 810
attributable to equity
holders
Loss on scrapping of 6 - 143
property, plant and
equipment
Headline earnings 88 177 77 715 13.5 129 953
Earnings per share
Earnings per share 66.1 58.5 13.0 97.6
(cents)
Diluted earnings per 65.9 58.4 12.8 97.3
share (cents)
Headline earnings per 66.1 58.5 13.0 97.6
share (cents)
Number of shares in 133 421 132 952 133 136
issue (`000s)
Weighted average number 133 373 132 746 132 954
of shares in issue
(`000s)
Weighted average number 133 704 133 185 133 366
of shares in issue for
diluted earnings per
share (`000s)
Consolidated balance sheet
31 December 31 December 30 June
2007 2006 2007
(R`000) (Unaudited) (Unaudited) (Audited)
Assets
Non-current assets 603 812 496 375 568 921
Property, plant and equipment 28 034 19 542 29 284
Goodwill 165 866 93 346 124 999
Intangible assets 341 110 336 244 351 570
Investment in associates 53 549 47 243 48 893
Loans and receivables 15 253 - 14 175
Current assets 359 611 271 711 304 915
Inventories 20 850 10 658 17 094
Trade and other receivables 202 828 189 917 168 182
Loans and receivables 1 945 - 2 065
Cash and cash equivalents 133 988 71 136 117 574
Total assets 963 423 768 086 873 836
Equity
Capital and reserves
Ordinary shares 1 334 1 330 1 331
Share premium 13 026 11 055 11 850
Revaluation and other reserves 88 204 86 887 88 040
Retained earnings 283 023 207 222 218 868
Total shareholders` equity 385 587 306 494 320 089
Minority interest 46 486 46 026 45 074
Total equity 432 073 352 520 365 163
Liabilities
Non-current liabilities 330 457 277 252 312 237
Borrowings 257 127 199 208 234 259
Deferred income tax 73 330 78 044 77 978
Current liabilities 200 893 138 314 196 436
Trade and other payables 161 681 125 793 164 985
Borrowings 15 861 555 16 189
Current income tax liabilities 23 351 11 966 15 262
Total liabilities 531 350 415 566 508 673
Total equity and liabilities 963 423 768 086 873 836
Consolidated cash flow statement
Twelve
months
Six months ended ended
30 June
2007
(Audited)
31 December 31 December
2007 2006
(R`000) (Unaudited) (Unaudited)
Cash flows from operating
activities
Cash generated from operations 123 517 104 739 257 310
Finance expenses paid (422) (5 627) (5 784)
Income tax paid (51 642) (54 095) (97 054)
Dividends paid to ordinary (24 016) (43 874) (85 137)
shareholders
Dividends paid to minorities (7 000) (7 000) (13 000)
Dividends paid to preference (10 726) (4 431) (11 033)
shareholders
Net cash generated from/(used 29 711 (10 288) 45 302
in) operating activities
Cash flows from investing
activities
Acquisition of subsidiaries, - (124 102) (127 023)
net of cash acquired
Acquisition of joint ventures, (6 408) - (47 459)
net of cash acquired
Purchases of property, plant (3 693) (3 083) (10 790)
and equipment ("PPE")
Proceeds from sale of PPE - - 167
Purchases of intangible assets (350) (2 073) (2 475)
Loans from/(to) associates 1 629 (282) 1 442
Finance income received 7 360 4 266 10 333
Dividends received from - 2 659 6 731
associates
Net cash used in investing (1 462) (122 615) (169 074)
activities
Cash flows from financing
activities
Proceeds from issue of ordinary 1 179 1 255 2 052
shares
Proceeds from the issue of - 199 208 244 498
preference shares
(Advances made)/proceeds from (370) - 14 653
borrowings
Repayment of preference shares (11 566) (100 000) (109 994)
Movement in loans and (1 078) 18 240 4 801
receivables
Net cash (used in)/generated (11 835) 118 703 156 010
from financing activities
Net increase/(decrease) in cash 16 414 (14 200) 32 238
and cash equivalents
Cash and cash equivalents at 117 574 85 336 85 336
the beginning of the period
Cash and cash equivalents at 133 988 71 136 117 574
the end of the period
Condensed consolidated statement of changes in equity
Twelve
months
Six months ended ended
30 June
2007
(Audited)
31 December 31 December
2007 2006
(R`000) (Unaudited) (Unaudited)
Equity at the beginning of the 365 163 365 735 365 735
period
Ordinary shares issued in terms 1 179 1 256 2 052
of the Share Option Scheme
Profit for the period 96 583 85 516 142 659
Employee costs: Share Option 164 (248) 1 718
Scheme
Disposal of interest by - (48 864) (48 864)
minorities
Dividend paid (31 016) (50 875) (98 137)
Shareholders` interest at the 432 073 352 520 365 163
end of the period
Notes
1. Comments on results
GeneralKagiso Media is pleased to announce an increase in headline earnings of
13.5% for the six months to 31 December 2007, above that recorded in the
preceding comparative period. The company posted headline earnings per share of
66.1 cents compared to 58.5 cents for the same period last year.
RevenueRevenue for the period under review increased by 11.4% to R411.8m.
Revenue from broadcasting increased by 10.9%, LexisNexis Butterworths
("LexisNexis") by 29.5% and Clear Channel Merafe ("CCM") contributed R27.9m.
Excluding the biennial events, Kagiso Exhibitions and Events ("KEE") revenue
increased by R5.0m.
Operating profit marginOperating profit margins improved at all business units,
excluding KEE. Broadcasting increased by 0.3 percentage points to 54.5%,
LexisNexis by 2.9% to 34.6% and CCM delivered an operating profit margin of
7.2%. KEE made a loss.
Finance incomeFinance income received for the period increased by R3.1m.
Finance expensesFinance expenses pertain mainly to the dividend payable on
preference shares. During the period funding remained stable, but increases in
interest rates manifested in an increase in funding costs.
AssociatesThe share of results of associates of R8.4m is made up of holdings in
OFM (24.9%), a 33.3% economic interest in Heart 104.9 and iGagasi 99.5 and 25.1%
in Kaya FM. This composition has not changed from the previous reporting
periods.
TaxationThe effective tax rate remained high at 37.2%, although lower than what
was recorded in the previous period (39.4%). This result was influenced by a
decrease in Secondary Tax on Companies ("STC"). STC was lower due to a reduction
in the dividend payment to ordinary shareholders and a decrease of 2.5% in the
STC rate.
Minorities` share of profitsMinorities owned 20% of Jacaranda 94.2 and 35% of
Kagiso Outdoor. Minorities` share of the profits in Jacaranda 94.2 increased in
line with the earnings improvement at the station.
AcquisitionsIn December 2007, KEE concluded negotiations for the acquisition of
a 50% joint venture stake in Mobil Alliance Media and Technology (Proprietary)
Limited ("Mobil Alliance"). This business includes inter alia the provision of
outdoor and indoor large screen digital displays to the events industry and
sports venues, utilising innovative technology and media. This offering provides
sponsors with a marketing platform to enhance brand presence.
KEE made an initial payment of R6.4m with the final payment deferred to 2012.
This will be based on market conditions and company performance.
An exercise has been undertaken in accordance with the provisions of IFRS 3,
"Business combinations", to value the intangible assets inherent to this entity.
This will be recorded as soon as the information becomes available.
2. Review of operations
During the period under review and in the comparative period, revenue, operating
profit and profit contribution per business segment were as follows:
Segmental analysis for the six months ended 31 December
Operating
Revenue profit/(loss) Profit/(loss)
(R`000) 2007 2006 2007 2006 2007 2006
Group costs 1 331 1 857 (12 371) (8 889) (27 201) (28 596)
Broadcasting 243 286 219 445 132 649 118 958 94 522 84 147
Information 101 732 78 551 35 209 26 416 24 850 18 981
services and
solutions
Outdoor 27 890 - 2 015 - 1 257 -
Exhibitions and 37 531 69 798 (8 096) 3 769 (5 257) 3 183
events
Total 411 770 369 651 149 406 140 254 88 171 77 715
Group costsConsulting revenues decreased, employee expenses increased and audit
and professional fees were higher at head office. These are some of the reasons
for the increase in operating losses reported at head office.
All of the preference dividends and interest incurred in the procurement of
investments are accounted for under group costs. The group`s share of STC in all
the subsidiaries, joint ventures and associates are allocated to this segment.
BroadcastingOverallRevenue for the broadcasting segment increased by 10.9% and
operating profit increased by 11.5% to R132.6m in the period under review. This
performance is mainly attributed to the effective inventory management
strategies especially over the peak period.
East Coast RadioEast Coast Radio`s revenue increased by 9.2% over the
comparative six months, with most of the growth attributable to the performance
of the local sales team who continued to strengthen their position in the
region. Costs were contained and the station`s operating profit margin was
maintained at above 59%. The station`s management retention strategy ensured the
stabilisation of its audiences around the 1.7 million listener mark.
Jacaranda 94.2Revenue for the six months increased by 11.9%. This improvement is
attributable to the revised sales strategy, where the lessons learnt from other
stations were used to improve sales opportunities. The operating profit margin
of 46.1% was stable when compared to the previous period.
New licences were issued in Jacaranda 94.2`s footprint. These are potentially a
direct challenge to RMfm`s revenue stream. Jacaranda 94.2 does have a strategy
in place to deal with this that will ensure consistent listener and revenue
performance and the guaranteeing of their positioning in these areas.
However, the primary focus area for the station remains Gauteng. To better serve
this community, the station has changed its morning show host and brought Darren
Scott and John Walland on board to drive the show.
AssociatesOFM and iGagasi 99.5 have performed well, exceeding expectations.
OFM is particularly aggressive with its non-traditional revenue strategy and
expects its digital platform, WOMF and its talent booking facility, Red Star,
along with its JV with Caxton on the publishing front to contribute to the
bottom line by end 2008. Their sponsorship of central SA`s rugby and cricket
teams continues to extract significant goodwill. As such, OFM`s television
exposure from this sponsorship allows the station to access new listeners and
new advertisers. In the last quarter, OFM hosted, partnered with and presented
several corporate social investment projects, specifically aimed at women and
children. Revenue improved by 27.0% and operating profit margins reached 32.1%.
iGagasi 99.5`s revenue increased by 62.5%. The station continues to grow
listeners and while there are no longer huge gaps between measurement periods,
the rate of growth mirrors that of the early years of East Coast Radio. The next
growth phase should come from iGagasi`s footprint expansion which will extend
its reach to KwaZulu-Natal`s north and south coasts.
Heart 104.9`s performance, although an improvement of 8.0%, was disappointing.
However, after a tough 2007 where listenership declined considerably, the
station appears to have turned the corner and posted two listenership increases
in the last two diaries of the year. Heart 104.9 has increased its core market
share year-on-year from 30% to 37%. The station`s own target for year-end was to
achieve a 36% market share. The operating profit margin remains in the low 20
percentiles.
RadMarkRadMark`s revenue increase of 13.3% was driven inter alia by the
performance in the Jacaranda FM direct team, the growth at iGagasi and the
improved sales performance by the Kaya FM teams. The operating margin was 44.8%,
compared to 49.1% in the previous period. This decrease in margin was a direct
result of RadMark`s strategy to invest in the recruitment of more skilled
personnel. The entity remains the benchmark in the radio sales arena and as such
has to pay keen attention to this "mission critical" resource area.
Information services and solutionsLexisNexis Butterworths increased revenue by
29.5% (17.2% in 2006) and contributed 28.2% to the group`s profit. A procurement
from the Department of Justice was a significant booster for this excellent
performance. Printed products remain the highest contributor currently at 55.9%
(2006 - 58.1%) of revenue. Business from the rest of the continent contributed
6.3% (2006 - 4.1%) to revenue. The operating profit margin increased from 33.6%
in the comparative six months to 34.6% in the period to 31 December 2007.
Exhibitions and eventsOnly two main shows were staged in the six months under
review, i.e. Saitex in Johannesburg and the East Coast Radio House and Garden
show in Durban. Saitex incorporated two new shows namely Furniture for Africa
and Manufacturing and Technology International ("MTI"). Both these shows
recorded losses. KEE staged various smaller events including the government`s
"16 days of activism against women and child abuse" campaign in Bloemfontein.
They also provided the stand-building for the FIFA draw in November 2007.
Unfortunately, the benefits derived from these were not enough to offset the
loss incurred in the Saitex exhibition.
The Auto Africa show that was staged on a biennial basis will be discontinued in
its current format. NAAMSA (National Automotive Association for Motor
Manufacturers in South Africa) and KEE reached agreement on a joint venture in
terms of a black economic empowerment initiative to stage the Johannesburg
International Motor Show in October 2008.
3. Financial position
Working capitalThe group had available cash of R134.0m at 31 December 2007; this
was R16.4m up from the R117.6m at 30 June 2007. The increase in cash is mainly
attributable to the improved trading results. Funds will be used at the end of
March for payments to preference shareholders in terms of the agreement as well
as the payment of an interim dividend to ordinary shareholders of R46.8m. The
increase in trade and other receivables is a result of the increased revenue at
the stations over this seasonal peak period as well as the trading results from
LexisNexis Butterworths.
The cash flow from operating activities for the six months period increased by
R18.8m to R123.5m; a direct result of the increase in revenue and operating
profits.
Long term borrowingsR34.5m of the long term borrowings is attributable to the
outstanding payment for the shareholding in Mobil Alliance as discussed in
acquisitions above. This amount was discounted at 10.2% in order to record the
anticipated present value of this liability.
At 31 December 2007 the preference share gearing was 57.7% (2006 -65.0%)
expressed as a percentage of ordinary shareholders` interest.
TrademarksThe future format and positioning of the Auto Africa and Saitex shows
- exhibitions owned by KEE - are being re-defined. At 31 December 2007 the value
of the intangible assets namely trademarks and goodwill were R3.6m and R670 000
respectively. No adjustments were made for an impairment of any of these assets.
Management will reconsider these shows and a final decision will be made before
year-end.
4. Regulatory matters
Needletime - Negotiations regarding this levy are continuing between the
National Association of Broadcasters and two of the proposed collection agencies
(the South African Recording Rights Association and the South African Music
Performance Rights Association). The main issues are the levy formula and the
effective date, including whether payment should be retrospective. It looks
increasingly likely that the dispute will be referred to the Copyright Tribunal.
- Universal Service and Access Levy and the MDDA - It has now been confirmed
that media owners, including Kagiso Media, who are already contributing funding
to the Media Development and Diversity Agency (MDDA) will not have to contribute
to the Universal Service and Access Fund (USAF) while their current agreements
with the MDDA are in force. The USAF levy, a requirement of the Electronic
Communications Act which is due to be effective from July 2008, is 0.2% of a
licensee`s annual revenue.
5. Seasonality
The first six months of the financial year normally represent the peak trading
period for radio broadcasting, the group`s major business segment. The profit
from this segment over the two six month trading periods in the 2008 financial
year should therefore reflect a similar seasonality to that experienced over the
past two to three years.
6. Interim dividend declaration
It is the group`s policy to return 50% of headline earnings to shareholders.
Notice is hereby given that a dividend of 35 cents(2006 - 31 cents) per share
has been declared in respect of the six months ended 31 December 2007 and is
payable to holders of ordinary shares recorded in the register of the company on
Friday, 14 March 2008.
The following salient dates apply to this dividend:
Last date to trade cum-dividend Friday, 7 March 2008Shares
commence trading ex-dividend Monday, 10 March 2008Record date
Friday, 14 March 2008Payment of the dividend Monday,
17 March 2008
Share certificates may not be dematerialised or rematerialised between Monday,
10 March 2008 and Friday, 14 March 2008, both days inclusive.
In terms of the Companies Act, the directors confirm that, after the payment of
the above dividend, the company will be able to meet its commitments and settle
its liabilities as these fall due in the ordinary course of business and that
its consolidated assets, fairly valued, exceed its consolidated liabilities.
7. Prospects
Kagiso Media has a strong portfolio of assets that will, notwithstanding the
current economic circumstances, contribute to a positive performance for the
full year.
8. Basis of preparation
The group has prepared condensed consolidated interim financial statements for
the six months ended 31 December 2007 in accordance with IAS 34 "Interim
Financial Reporting" and in compliance with the listing requirements of the JSE
Limited. The interim condensed financial report should be read in conjunction
with the annual financial statements for the year ended 30 June 2007.
Accounting policiesThe accounting policies adopted are consistent with those of
the annual financial statements for the year ended 30 June 2007, as described in
the annual financial statements for the year ended 30 June 2007.
The following new standards, amendments to standards and interpretations are
mandatory for financial year ending 30 June 2008.
- IFRS 7 "Financial instruments: Disclosures" and the complementary amendment to
IAS 1 "Presentation of financial instruments - Capital Disclosures" introduces
new disclosures relating to financial instruments and does not have any impact
on the classification and valuation of the group`s financial instruments or the
disclosures relating to taxation and trade and other payables;
- IFRIC 8 "Scope of IFRS 2" requires consideration of transactions involving the
issuance of equity instruments, where the identifiable consideration received is
less than the fair value of the equity instruments issued in order to establish
whether or not they fall within the scope of IFRS 2; and
- IFRIC 10 "Interim financial reporting and impairment" prohibits the impairment
losses recognised in an interim period on goodwill and investments in equity
instruments and in financial assets carried at cost to be reversed at a
subsequent balance sheet date. This standard does not have any impact on the
group`s financial statements.
The following interpretations to existing standards have been published but are
not relevant for the group`s operations:
- IFRIC 12, "Service concession arrangements" (effective from 1 January 2008);
- IFRIC 13, "Customer loyalty programmes" (effective from 1 July 2008; and
- IFRIC 14, "IAS 19 - The limit on a defined benefit asset, minimum funding
requirements and their interaction" (effective from1 January 2008).
The following new standards, amendments to standards and interpretations that
are not yet effective and have not been early adopted:
- IAS 23 (amendment) "Borrowing costs" (effective from 1 January 2009). It
requires an entity to capitalise borrowing costs directly attributable to the
acquisition, construction or production of a qualifying asset (one that takes a
substantial period of time to get ready for use or sale) as part of the cost of
that asset. The option of immediately expensing those borrowing costs will be
removed. The group will apply IAS 23 (Amended) from 1 January 2009 but is
currently not applicable to the group as there are no qualifying assets; and
- IFRS 8, "Operating segments" (effective from 1 January 2009). IFRS 8 replaces
IAS 14 and aligns segment reporting with the requirements of the US standard
SFAS 131, "Disclosures about segments of an enterprise and related information".
The new standard requires a "management approach", under which segment
information is presented on the same basis as that used for internal reporting
purposes. The group will apply IFRS 8 from 1 January 2009. The expected impact
is still being assessed in detail by management. The income statement segment
reporting is currently materially consistent with the internal reporting
provided to the chief operating decision-maker. Changes in the balance sheet
reporting could result in the reallocation of certain assets such as goodwill to
the relevant identified operating segments. Management does not anticipate that
this will result in any material impairment to the goodwill or any asset of the
company.
9. Capital expenditure
(R`000) Tangible assets Intangible assets
Six months ended 31 December 2007
Opening net carrying amount 29 284 351 570
Additions 3 693 350
Scrapping (6) -
Depreciation, amortisation and other (4 937) (10 810)
movements
Closing net carrying amount 28 034 341 110
Six months ended 31 December 2006
Opening net carrying amount 19 948 343 678
Additions 3 083 2 073
Depreciation, amortisation and other (3 489) (9 507)
movements
Closing net carrying amount 19 542 336 244
10. Share capital
Number of Ordinary Share Total
shares shares premium
(`000s) (R`000) (R`000) (R`000)
Opening balance 1 July 133 136 1 331 11 850 13 181
2007
Proceeds from shares 284 3 1 180 1 183
issued - Employee Share
Option Scheme
Share issue expenses - - (4) (4)
Closing balance 31 133 420 1 334 13 026 14 360
December 2007
Opening balance 1 July 132 540 1 325 9 804 11 129
2006
Proceeds from shares 412 5 1 255 1 260
issued - Employee Share
Option Scheme
Share issue expenses - - (4) (4)
Closing balance 31 132 952 1 330 11 055 12 385
December 2006
11. Non-current liabilities - borrowings
Twelve
Six months ended months ended
(R`000) 31 December 2007 31 December 2006 30 June 2007
Preference shares
- Opening balance 234 046 99 542 99 542
- Shares issued, net - 199 666 244 498
of share issue expense
- Redeemed (11 566) (100 000) (109 994)
- Closing balance 222 480 199 208 234 046
Other borrowings
- Installment sale 168 - 213
agreements
- Liability 34 479 - -
attributable to the
shareholding in Mobil
Alliance
257 127 199 208 234 259
12. Income taxes
Income tax expense is recognised based on management`s best estimate of the
weighted average annual income tax rate expected for the full financial year.
The estimated average annual tax rate used for 2008 is 37.3% (the estimated tax
rate for the first half of 2007 was 37.2%).
13. Contingent liabilities
Guarantees (R`000) 31 December 2007 31 December 2006 30 June 2007
Amount outstanding 750 2 845 1 944
under bank
facilities
Kagiso Media Limited guarantees the overdraft banking facilities of Systems
Publishers (Proprietary) Limited. The group holds, as collateral for this
guarantee, a pledge of all the shares in Systems Publishers (Proprietary)
Limited and cessions of a key-man life insurance policy and short term insurance
policy. It is unlikely that Kagiso Media would be required to effect payment
under this arrangement. The company did therefore not provide for any liability
in the financial statements.
Kagiso Media Limited, Kagiso Broadcasting (Proprietary) Limited and Kagiso
Exhibitions and Events (Proprietary) Limited guarantees the commitments of
Kagiso Media Investments (Proprietary) Limited ("KMI"), a wholly-owned and
fellow subsidiary, in respect of the preference shares issued by KMI. This is in
place via a put option and guarantee agreement; should KMI default on any of the
terms and conditions of the preference shares, and is not able to rectify this
position within a reasonable specific time, the preference shareholders could
exercise this put option against any of the guarantors for the full amount of
the preference shares issued at the time. KMI will be able to fulfill all of the
conditions attributable to the preference shares. See note 11, borrowings.
14. Related party transactions
Loans
(repaid)/
advanced
Opening during Interest Closing
(R`000) balance period charged balance
Loans to/(from) related parties
Seyalemoya Communications (Proprietary) Limited ("OFM")
- 31 December 2007 - - - -
- 31 December 2006 (2 504) 2 541 (37) -
- 30 June 2007 (2 504) 2 541 (37) -
Thebe Convergent Technologies (Proprietary) Limited ("Thebe")
- 31 December 2007 (4 861) (1 129) - (5 990)
- 31 December 2006 (1 129) (2 259) - (3 388)
- 30 June 2007 (1 129) (3 732) - (4 861)
Makana Radio Communications (Proprietary) Limited ("Makana")
- 31 December 2007 1 348 (500) - 848
- 31 December 2006 1 600 - - 1 600
- 30 June 2007 1 600 (252) - 1 348
Loans from OFM are unsecured, carry interest at 8% and are payable on
demand. The loan was repaid during the 2006 financial year. The loans from
Thebe and to Makana are unsecured, interest free and are payable on
demand.
Loans to directors (Unrestricted Share Purchase Scheme)
- 31 December 2007 3 869 4 708 358 8 935
- 31 December 2006 3 492 4 297 192 7 981
- 30 June 2007 3 492 (216) 593 3 869
Loans to directors are granted in terms of the "Unrestricted Share
Purchase Scheme". These loans are repayable within six years from date of
grant and carry interest at prime less two percentage points. These loans
are deemed current and risk-free albeit a possible fluctuation in the
share price.
Preference share investment in minority shareholder
MSG Afrika Media (Proprietary) Limited
- 31 December 2007 16 240 (1 898) 1 211 15 553
- 31 December 2006 - - - -
- 30 June 2007 - 15 750 490 16 240
The loan as reported at the end of June 2007 was converted into preference
shares, on the same preference share terms and conditions as those
available to the Kagiso Media group. This includes dividends payable every
six months, at 70% of prime and payments into a sinking fund, equal to 5%
of the issued value. The holding company of this entity issued a guarantee
for the entity`s delivery in accordance with the agreement.
Loans from minority shareholder
MSG Afrika Media (Proprietary) Limited
- 31 December 2007 (15 750) - - (15 750)
- 31 December 2006 - - - -
- 30 June 2007 - (15 750) - (15 750)
The loan is unsecured interest free and is payable on demand.
On behalf of the board
W R Jardine M MorobeChairman
Chief executive
18 February 2008
Registered Office: 1st Floor Kagiso House, 16 Fricker Road, Illovo, 2196, PO Box
724, Northlands, 2116
Directors: W R Jardine (Chairman), M J N Njeke (Deputy chairman),
M Morobe* (Chief executive), O C Essack*, S Pienaar*, H I Appelbaum,
R M Motanyane#, W C Ross#,
* Executive # Independent
Transfer Secretaries: Link Market Services South Africa (Proprietary) Limited,
5th Floor, 11 Diagonal Street, Johannesburg, 2001, PO Box 4844, Johannesburg,
2000
Company Secretary: S Pienaar
Sponsor: Investec Bank Limited
Auditors: PricewaterhouseCoopers Inc.
www.kagisomedia.co.za
Date: 18/02/2008 16:58:05 Produced by the JSE SENS Department.
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