| Tue 30 Jun 2009, 16:35 | | MNY - Moneyweb Holdings Limited - Reviewed Condensed Financial Results for the |
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MNY
MNY
MNY - Moneyweb Holdings Limited - Reviewed Condensed Financial Results for the
Year Ended 31 March 2009
Moneyweb Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1998/025067/06)
(JSE code: MNY & ISIN code: ZAE000025409)
("Moneyweb" or "the company" or "the group")
REVIEWED CONDENSED FINANCIAL RESULTS FOR THE YEAR ENDED 31 March 2009
Highlights
- Profits recover in second half; dividend maintained at 1c per share
- London legal settlement leads to small headline loss for year
- Earnings per share down slightly to 1,67c for the full year
- Strong balance sheet; over R8m in net cash holdings
- Core online audience exceeds 200 000, up 48% year on year
- Moneyweb.com address acquired, to become African investment site
- Financial aggregator Moneywebmarket.co.za to be launched in July
Condensed Group Income Statement
Reviewed Audited
Year Year
Ended Ended
31-Mar-09 31-Mar-
08
R`000 R`000
REVENUE 20,979 24,005
Advertising 19,897 23,006
Newsletters 1,082 998
(LOSS)/PROFIT BEFORE INVESTMENT INCOME, FAIR
VALUE
ADJUSTMENT, DEPRECIATION, AMORTISATION
AND IMPAIRMENTS (199) 2,356
Depreciation and Amortisation (856) (627)
Investment Income 598 111
Finance charges
(27) 0
Fair value adjustment of investment (11) (6)
Profit on disposal of intangible asset 1,860 0
NET PROFIT BEFORE TAXATION 1,365 1,834
Taxation (741) (366)
644 (89)
Profit/(loss) from joint ventures
NET PROFIT FOR THE YEAR 1,268 1,379
Reconciliation of headline earnings
Net profit for the year 1,268 1,379
Profit on disposal of intangible asset (1,414) 0
Profit on disposal of tangible assets 0 7
Headline (loss)/earnings (146) 1,386
Earnings per share (cents) 1.67 1.99
Fully diluted earnings per share (cents) 1.67 1.98
Headline (loss)/earnings per share (cents) (0.19) 2.00
Fully diluted headline (loss)/earnings per (0.19) 2.00
share (cents)
Number of shares (000`s)
- Issued - actual at year end (net of 75,808 76,189
treasury)
- weighted average 76,037 69,453
- fully diluted weighted average 76,037 69,594
Condensed Group Balance Sheet
Reviewed Audited
31-Mar-09 31-Mar-
08
ASSETS R`000 R`000
Non-current assets
Tangible assets 778 1,036
Intangible assets 2,776 2,169
Other investment 7 18
Investment in joint ventures 863 0
Deferred taxation 457 225
4,881 3,448
Current assets
Trade and other receivables 8,098 6,640
Cash and cash equivalents 8,030 7,372
16,128 14,012
Total assets 21,009 17,460
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 11,805 11,933
Reserves 2,842 2,699
Ordinary shareholders interest 14,647 14,631
Current liabilities
Trade and other payables 2,598 2,300
Deferred revenue 3,190 304
Income tax payable 574 225
6,362 2,829
Total equity and liabilities 21,009 17,460
Number of shares in issue (`000) 75,808 76,189
Net asset value per share (cps) 19.3 19.2
Net tangible asset value per share (cps) 15.7 16.3
Condensed Group Statement of Changes in
Shareholders` Equity
Share Share Reserves Total
Capital Premium
R`000 R`000 R`000 R`000
Balance as 1 April 2007 67 5,102 1,980 7,149
Net profit for the year ended 31 1,379 1,379
March 2008
Ordinary dividend paid (660) (660)
New issue 9 6,319 6,328
Sale of treasury shares 662 662
Treasury shares purchased (227) (227)
Balance at 1 April 2008 76 11,856 2,699 14,631
Net profit for the year ended 31 March 2009 1,268 1,268
Foreign currency translation reserve (363) (363)
Ordinary dividend paid (762) (762)
Treasury shares purchased 0 (127) (127)
Balance at 31 March 2009 76 11,729 2,842 14,260
Condensed Group Cash Flow Statement
Reviewed Audited
Year Year
Ended Ended
31-Mar-08 31-Mar-
08
R`000 R`000
Cash flows from operating activities
Cash generated by operations 2,969 2,229
Movements in working capital (1,161) (1,358)
Cash generated by operating 1,808 871
activities
Investment income 587 104
Finance cost (27) 0
Taxation paid (633) (332)
Dividend paid (762) (660)
Net cash flows from operating 975 (17)
activities
Cash flows from investing activities
Acquisition of intangible assets (1,013) (1,704)
Acquisition of tangible assets (217) (632)
Investment in joint venture (824) 0
Proceeds on disposal of intangible 1,860 0
assets
Proceeds on disposal of tangible 4 20
assets
Net cash flows from investing (190) (2,316)
activities
Cash flows from financing
activities
Shares issued 0 6,319
Sale of treasury shares 0 693
Acquisition of treasury (127) (227)
shares/shares cancelled
Net cash flows from financing (127) 6,785
activities
Net movement in cash and cash 658 4,452
equivalents for the year
Cash and cash equivalents at 7,372 2,920
beginning
Cash and cash equivalents at end of 8,030 7,372
year
FINANCIAL RESULTS
As reported at the interim stage, financial results for the year ended March
2009 were adversely affected by the settlement of a legal suit brought in London
against the company`s subsidiary Mineweb.com. The court action followed
Mineweb`s publication of articles defaming a Russian businessman. The settlement
was confidential but defined as "substantial" in UK law. This together with
legal costs resulted in a headline loss of R146 000 (-0.19c per share) for the
12 months to end March 2009.
A net profit of R1,3m (1,67c per share) was achieved for the year, with the
legal costs offset by the profit generated through the sale of the
Moneyweb.co.uk web address for GBP120 000 before tax. Also supporting the bottom
line was the first positive contribution from the company`s joint ventures and a
significant increase in interest earned.
Advertising revenues recovered strongly during the second half of the financial
year, helped by a long-term headline sponsorship of the company`s three
nationally broadcast business radio programmes. This reduced the fall in full
year revenue to 12,6%. Income was supported by continued growth flowing from the
strategic relationship with Google, with Adsense receipts up over a third in US
Dollars.
The company`s operating cash flow increased from R2,23m to R2,97m; and after
investment in working capital, net operating cash flow improved from R871k to
R1,8m. The balance sheet remains strong with yearend cash holdings of R8m (2008:
R7,3m) and zero debt.
Operational progress
The global financial crisis sharply increased reader interest in the company`s
content. A record 511 265 unique visitors accessed the company`s websites at the
height of the crisis in October 2008. The core audience (ie direct visitors to
the home pages of the company`s websites) peaked at 207 688 that month.
Although traffic to the sites eased as the worst of the panic passed, the
company`s audiences grew steadily in the new calendar year. Google Analytics
recorded a core audience of 204 760 unique visitors to the eight Moneyweb sites
in March 2009, a year-on-year growth of 52%. The email newsletter base rose 34%
year-on-year to over 75 000.
Management was engaged in two major projects for the majority of the financial
year, both of which are approaching finality and will be launched in July 2009.
The financial aggregator, Moneywebmarket.co.za, will offer rapid, online
comparisons for consumers on car and home insurance from 10 financial
institutions. The second project is a thoroughgoing redesign of the back and
front ends to incorporate global best practice in online publishing.
Moneyweb.co.za will be the first site to switch over.
In May 2008, the company`s flagship radio programme switched to SA`s news and
information leading national radio station SAFM. During the year the company
also secured a partnership with Lotus FM to produce a daily business programme.
Together with its RSG show, Moneyweb business programming now reaches 772 000
radio listeners daily - over 80% of SA`s total business radio audience.
Outlook
The recovery in operating profit during the second half of the financial year
has continued and with long-term advertising contracts secured, is expected to
be sustainable in the medium-term.
The strategic objective of generating transaction revenue is expected to start
bearing fruit in the new financial year through the soon-to-be-launched
financial aggregator and the recently launched white-labelled horseracing Tote.
The company is also growing offshore revenues. Mineweb Canada, a joint venture
with Vancouver-based Infomine.com, is being deepened through various
initiatives. The partnership made an immediate contribution to profits in the
financial year under review.
Subsequent to the year-end, the company took advantage of the crash in the sub-
prime market to acquire the prized Moneyweb.com URL along with its previously
owned Moneyweb.co.uk address. The GBP60 000 price paid for both URLs is half of
what Moneyweb received a year ago for the UK address alone.
Moneyweb.com will be launched in the third quarter of 2009 out of the US as a
global website providing content on African investments. No decision has yet
been made on how to best utilise the UK address.
Dividend - policy and declaration
The company`s dividend policy is to pay out half the annual earnings per share
as a dividend to shareholders. In the light of the strong balance sheet and the
expected sustainable nature of the current profit trend, the board is deviating
from the policy and has declared an unchanged dividend of 1c per share, as
follows:
Notice is hereby given that a cash dividend of 1,0 cent per share has been
declared and is payable to shareholders recorded in the books of Moneyweb at the
close of business on Friday, 31 July 2009. Shareholders are advised that the
last day to trade "cum" the dividend will be Friday, 24 July 2009. The shares
will trade "ex" dividend as from Monday, 27 July 2009.
Payment will be made on Monday, 3 August 2009. Share certificates may not be
dematerialised or rematerialised during the period Monday, 27 July 2009 to
Friday, 31 July 2009, both days inclusive.
BASIS OF PREPARATION OF THE REVIEWED RESULTS
Statement of compliance
The reviewed condensed financial statements comprise a consolidated balance
sheet at 31 March 2009, a consolidated income statement, consolidated statement
of changes in equity and consolidated cash flow statement for the year ended 31
March 2009. The reviewed condensed 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 JSE Listings
Requirements and the South African Companies Act.
The accounting policies are consistent with those applied in the preparation of
the previous year`s annual financial statements with the exception that profit
after tax from joint ventures has been reclassified from revenues.
Basis of measurement
The condensed financial statements have been prepared on the historical cost
basis except for certain financial instruments measured at fair value.
REVIEWED RESULTS
The auditors, BDO Spencer Steward (Jhb) Inc. have reviewed these results and
their unmodified review opinion is available for inspection at the company`s
registered office.
STATEMENT ON GOING CONCERN
The condensed financial statements have been prepared on the going-concern basis
since the directors have every reason to believe that the company has adequate
resources in place to continue in operation for the foreseeable future.
POST BALANCE SHEET EVENTS
The directors are not aware of any material matter or circumstance arising since
the end of the financial year.
On behalf of the Board
Alec Hogg
Chief Executive Officer
30 June 2009
CORPORATE INFORMATION
Non executive directors: A Smith (Chairman); E A Jay; T Ncube; L Sipoyo
Executive directors: A B Hogg (CEO); L M Hogg
Registration number: 1998/025067/06
Registered address: First Floor, West Wing President Place, Corner Jan Smuts
Avenue and Bolton Road, Rosebank, 2196
Postal address: PO Box 102, Parklands,2121
Company secretary: D G Wessels
Telephone: (011) 327 1277
Facsimile: (011) 327 1279
Transfer secretaries: Computershare Investor Services (Pty) Limited
Auditors: BDO Spencer Steward (Jhb) Inc.
Designated Adviser: Vunani Corporate Finance
These results and an overview of Moneyweb Holdings Limited are available at
www.moneyweb.co.za
Date: 30/06/2009 16:35:02 Produced by the JSE SENS Department.
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