| Thu 27 Mar 2008, 15:01 | | NAI / NAN - New Africa Investments - Provisional Reviewed Condensed |
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NAI NAN
NAI
NAI / NAN - New Africa Investments - Provisional Reviewed Condensed
Consolidated Financial Results Of The Group For The Year Ended 31
December 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`)
PROVISIONAL REVIEWED CONDENSED CONSOLIDATED FINANCIAL RESULTS
OF THE GROUP FOR THE YEAR ENDED 31 DECEMBER 2007
CONSOLIDATED INCOME STATEMENT
Reviewed Audited
year ended year ended
31 December 31 December
2007 2006
Notes R`000 R`000
Revenue - -
Administration expenses (6 893) (2 986)
Other gains/(losses) - net 1 7 000 (2 629)
Operating profit/(loss) 107 (5 615)
Finance income 2 756 6 403
Share of profit of associates 3 168 1 720
Profit before income tax 6 031 2 508
Income tax expense 2 (5 821) (10 529)
Profit/(loss) for the year 210 (8 021)
Attributable to:
Equity holders of the company (112) (8 016)
Minority interest 322 (5)
210 (8 021)
Loss per share (cents) - Basic (0,1) (6,3)
Loss per share (cents) - Diluted (0,1) (6,3)
Dividend per share (cents) 35 60
Number of shares taken into 126 760 126 760
account in calculating EPS (000)
NOTES
1. OTHER GAINS/(LOSSES) - NET
Reversal of closure costs provisions 7 000 -
New Africa Media reduction in sale price - (2 700)
African Bank debtors book write-up - 71
7 000 (2 629)
2. INCOME TAX EXPENSE
South African normal tax 275 1 022
Secondary taxation on companies 5 546 9 507
5 821 10 529
HEADLINE LOSS
Loss attributable to ordinary (112) (8 016)
shareholders
IAS 27: Reduction in purchase price of - 2 700
New Africa Media
(112) (5 316)
Headline loss per share (cents) (0,1) (4,2)
Number of shares taken into account in 126 760 126 760
calculating headline loss per share
(000)
Segmental analysis
Segmental result
Head office 107 (5 686)
African Bank debtors book - 71
Total group 107 (5 615)
Segment assets and liabilities
for the year end 31 December 2007
Film and Head Reviewed
Radio TV office group
R`000 R`000 R`000 R`000
Assets - 199 38 249 38 448
Associates 12 989 - - 12 989
Total assets 12 989 199 38 249 51 437
Liabilities - 9 518 6 590 16 108
Segment assets and liabilities
for the year end 31 December 2006
Film and Head Audited
Radio TV office group
R`000 R`000 R`000 R`000
Assets - 202 90 179 90 381
Associates 12 280 - - 12 280
Total assets 12 280 202 90 179 102 661
Liabilities - 9 518 13 658 23 176
CONSOLIDATED BALANCE SHEET
Reviewed Audited
31 December 31 December
2007 2006
R`000 R`000
Assets
Non-current assets
Investments in associates 12 989 12 280
Current assets 38 448 90 381
Trade and other receivables - 30
Income tax receivable 25 773 25 194
Cash and cash equivalents 12 675 65 157
TOTAL ASSETS 51 437 102 661
Total equity and liabilities
Share capital and share premium 4 814 4 814
Retained income 39 561 84 039
Equity attributable to equity holders 44 375 88 853
of the parent
Minority interest (9 046) (9 368)
Total equity 35 329 79 485
Current liabilities 16 108 23 176
Trade and other payables 4 192 10 369
Income tax liability 44 935
Borrowings 9 172 9 172
Provisions for other liabilities and 2 700 2 700
charges
TOTAL EQUITY AND LIABILITIES 51 437 102 661
Net asset value per share (cents) 35 70
Number of shares in issue at end of 126 760 126 760
year (000)
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2007
Share
capital and Retained Minority
premium income interest Total
R`000 R`000 R`000 R`000
Opening balance at 4 814 168 111 (9 363) 163 562
1 January 2006
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)/profit for the - (112) 322 210
year
Dividends - (44 366) - (44 366)
Balance at 31 December 4 814 39 561 (9 046) 35 329
2007
CONSOLIDATED CASH FLOW STATEMENT
Reviewed Audited
31 December 31 December
2007 2006
R`000 R`000
Cash utilised in operating activities (13 331) (28 519)
Cash utilised by operations (6 040) (18 365)
Taxation paid (7 291) (10 154)
Cash effects of investing activities 5 215 8 895
Loan repayments received from associate 1 213 2 492
Dividend received from associate 1 246 -
Interest received 2 756 6 403
Cash effects of financing activities (44 366) (76 056)
Dividend paid to company`s shareholders (44 366) (76 056)
Net (decrease)/increase in cash and (52 482) (95 680)
cash equivalents
Cash and cash equivalents at beginning 65 157 160 837
of the year
Cash and cash equivalents at end of the 12 675 65 157
year
COMMENTARY
DIRECTORS` STATEMENT
Your directors take pleasure in presenting the provisional reviewed condensed
results of the Group for the year ended 31 December 2007.
BASIS OF PRESENTATION
The condensed consolidated financial information for the year ended 31
December 2007 has been prepared in accordance with International Financial
Reporting Standards, International Accounting Standard 34, the Listing
Requirements of the JSE and the South African Companies Act 61 of 1973 as
amended.
DIRECTORSHIP CHANGES
Mr F Titi resigned from the board on 30 June 2007. The Company takes this
opportunity to thank him for his services to the Company. Mr SR Bruyns was
appointed to the board on 12 December 2007.
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 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 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 the attributable results of Kaya FM and Head Office activities
for the year.
DIVIDEND DECLARED
A special dividend of 35 cents per share (2006: 60 cents) was declared payable
on 18 June 2007. The dividend payable amounted to R44,4 million (2006: R76,1
million) and secondary taxation on companies amounted to R5,5 million (2006:
R9,5 million).
POST BALANCE SHEET EVENTS
There have been no significant events that have occurred subsequent to the
year-end.
REVIEW OF RESULTS BY INDEPENDENT AUDITORS
The results have been reviewed by the joint independent auditors,
PricewaterhouseCoopers Inc and SizweNtsaluba vsp. Their unmodified review
opinion on the provisional consolidated financial statements is available for
inspection at the company`s registered office.
By order of the board
G SNELGAR R KEVAN
27 March 2008
Directors: S Bruyns, G Chadwick, R Kevan, K Setzin, G Snelgar
Date: 27/03/2008 15:01:55 Produced by the JSE SENS Department.
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