| Fri 28 May 2010, 15:57 | | AME - African Media Entertainment Limited - Reviewed results for the year |
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AME
AME
AME - African Media Entertainment Limited - Reviewed results for the year
ended 31 March 2010
African Media Entertainment Limited
(Incorporated in the Republic of South Africa)
(Registration number 1926/008797/06)
Share code: AME ISIN: ZAE000055802
Website: www.ame.co.za
("AME" or "the group")
REVIEWED RESULTS
for the year ended 31 March 2010
CONSOLIDATED ABRIDGED STATEMENTS OF COMPREHENSIVE INCOME
Reviewed Unaudited Audited
year ended year ended 17 months to
31 March 31 March 31 March
% 2010 2009 2009
change R`000 R`000 R`000
Revenue 5 158 373 150 894 216 386
Cost of sales (46 641) (46 418) (66 550)
Gross profit 111 732 104 476 149 836
Operating expenses (75 628) (72 220) (100 542)
Operating profit 12 36 104 32 256 49 294
Finance income 5 098 7 174 9 678
Finance cost (203) (438) (517)
Losses attributable to (2 207) (619) (1 900)
associates
Net profit before taxation 1 38 792 38 373 56 555
Taxation (14 683) (10 768) (15 901)
SA normal taxation (11 477) (10 975) (16 355)
Deferred taxation (1 222) 2 487 2 734
Secondary taxation on (1 984) (2 280) (2 280)
companies
Total comprehensive income (13) 24 109 27 605 40 654
for the period
Total comprehensive income
attributable to:
Non-controlling interest 2 668 3 978 6 257
holders
Equity holders of the (9) 21 441 23 627 34 397
parent
Earnings per share (cents) (9) 251,1 276,7 402,8
Headline earnings per share (4) 266,6 277,1 403,2
(cents)
Diluted earnings per share (8) 249,4 272,4 396,6
(cents)
Diluted headline earnings (3) 264,8 272,8 397,0
per share (cents)
Dividends per share (cents) 200 200 200
Number of shares in issue 8 539 8 539 8 539
(000`s)
Diluted average number of 8 597 8 674 8 674
shares in issue (000`s)
Headline earnings
reconciliation
Profit attributable to 21 441 23 627 34 397
equity holders
Loss on disposal of fixed 29 36 36
assets
Impairment of loans to 1 295 - -
associate
Headline earnings 22 765 23 663 34 433
CONSOLIDATED ABRIDGED STATEMENTS OF FINANCIAL POSITION
Reviewed Audited
31 March 31 March
2010 2009
R`000 R`000
Assets
Non-current assets 61 362 53 793
Property, plant and equipment 20 258 15 457
Investment in associates 635 1 645
Goodwill 35 431 30 431
Deferred taxation 5 038 6 260
Current assets 79 383 84 813
Trade receivables 31 520 29 991
Other receivables 1 715 1 204
Cash and cash equivalents 46 148 53 618
Total assets 140 745 138 606
Equity and liabilities
Total equity 87 960 86 546
Non-current liabilities 939 1 173
Operating lease accrual 647 923
Interest-bearing borrowings 292 250
Current liabilities 51 846 50 887
Trade payables 16 719 15 529
Other payables 14 954 13 987
Dividend payable 17 257 17 257
Operating lease accrual and interest-bearing 451 476
borrowings
Taxation 2 465 3 638
Total equity and liabilities 140 745 138 606
CONSOLIDATED ABRIDGED STATEMENTS OF CHANGES IN EQUITY
Reviewed Unaudited Audited
year ended year ended 17 months to
31 March 31 March 31 March
2010 2009 2009
R`000 R`000 R`000
Issued capital
Balance at beginning and end of 8 539 8 539 8 539
period
Share premium
Balance at beginning and end of 31 909 31 909 31 909
period
Retained profit
Balance at beginning of period 39 803 33 432 22 662
Total comprehensive income for the 21 441 23 627 34 397
period
Dividend (17 256) (17 256) (17 256)
Balance at end of period 43 988 39 803 39 803
Non-distributable reserve
Balance at beginning of period 1 608 1 052 861
Share based payment expense 261 556 747
Balance at end of period 1 869 1 608 1 608
Non-controlling interests
Balance at beginning of period 4 687 7 013 4 734
Share of dividend (5 700) (5 902) (5 902)
Change in shareholding - (402) (402)
Share of total comprehensive income 2 668 3 978 6 257
for the period
Balance at end of period 1 655 4 687 4 687
Total capital and reserves 87 960 86 546 86 546
CONSOLIDATED ABRIDGED STATEMENTS OF CASH FLOWS
Reviewed Unaudited Audited
year ended year ended 17 months to
31 March 31 March 31 March
2010 2009 2009
R`000 R`000 R`000
Cash generated by operating 37 935 35 627 52 125
activities
Net interest received 4 895 4 266 9 161
Taxation paid (14 633) (13 255) (17 850)
(Increase)/decrease in working (852) 12 352 3 147
capital
Cash flows from operating 27 345 38 990 46 583
activities
Dividends paid (17 257) - (17 257)
Cash flows from investing (12 826) (11 940) (13 972)
activities
Cash flows from financing (4 732) (5 902) (5 902)
activities
Net (decrease)/increase in cash and (7 470) 21 148 9 452
cash equivalents
Cash and cash equivalents at 53 618 32 470 44 166
beginning of period
Cash and cash equivalents at end of 46 148 53 618 53 618
period
COMMENTARY
Basis of preparation
These reports have been prepared in accordance with the group`s accounting
policies that comply with International Financial Reporting Standards, IAS
34, the Companies Act No. 61 of 1973 and the Listings Requirements of the
Johannesburg Stock Exchange, on a basis consistent with the policies and
methods of computation as used in the Annual Financial Statements for the 17
month period ended 31 March 2009.
Review by Auditors
The results for the year to 31 March 2010 have been reviewed by our auditors,
PKF (Jhb) Inc. and their unqualified review report is available for
inspection at the company`s registered office. Comparative 12 month figures
for the year ended 31 March 2009 are presented for information purposes
only. These figures have not been audited and no opinion is expressed on
these by the auditors.
Financial results
Due to the change in year end, the reviewed results for the year to 31 March
2010 and for the seventeen month period to 31 March 2009 are not comparable.
Revenue for the period was R158,4 million with a comprehensive income of
R24,1 million.
After paying tax of R14,6 million, the group generated R27,3 million in cash
from its operating activities during the year. The group invested R4,7
million in the acquisition of property in Johannesburg, R2,5 million on
equipment and R5 million was spent to purchase the 5% shareholding in Algoa
FM that the group did not already own. After paying a dividend of R17,3
million, the group ended the year with cash resources of R46,1 million.
The comprehensive income attributable to equity holders of the parent
amounted to R21,4 million (2009: R34,4 million) with earnings per share of
251,1 cents (2009: 402,8 cents). Headline earnings per share were 266,6
cents (2009: 403,2 cents).
Segmental information has not been supplied as the group generates revenue
exclusively out of radio broadcasting and related operations in South
Africa.
Supplementary information for the year to 31 March 2009
The statements of comprehensive income for the year ended 31 March 2009 have
been presented for information purposes only. These statements of
comprehensive income each contain one peak season and make comparison more
meaningful.
Revenue increased by 5% year on year mainly due to the increase in direct
sales.
Net finance income declined by R1,8 million to R4,9 million, mainly due to
the lower interest rates.
The loss from associates including M-Power FM is in line with expectations
and is mainly attributable to M-Power FM still being in the developmental
stage.
The comprehensive income attributable to the equity holders of the parent
amounted to R21,4 million (2009: R23,6 million) with earnings per share of
251,1 cents (2009: 276,7 cents). Headline earnings per share were 266,6
cents (2009: 277,1 cents).
Algoa FM
Trading conditions remained tough during the period. On a comparative annual
basis, there was a marginal increase in Algoa FM`s national and local
advertising. Even with a strategic focus on cost control, year on year
profits were 6% less than last year.
Algoa FM`s latest Radio Audience Measurement Survey (RAMS) listenership
figures reflect a year on year growth of 6,2% from 759 000 to 806 000. The
All Media Product Survey (AMPS) places Algoa FM at 2,8% of the total radio
audience.
The Algoa FM brand received excellent local, national and even international
exposure from the media sponsorship of the IPL games in the region and the
Warriors Cricket team winning both the MTN and Standard Bank one day series.
Algoa FM received R0,5 million for local charities by winning the national
Vodacom Fame competition whereby listeners voted nationally for the best
station produced video. Algoa FM`s entry received more votes than the
combined votes of all the other stations.
OFM
The prevailing economic conditions during the year under review had a
significant impact on the business as revenue from National Advertisers
reduced significantly. This was in part offset by cost-cutting measures as
well as growth from alternative revenue streams, profit from events and
growth in the direct advertising market.
Changes to the broadcast lineup also started showing results, with Rian van
Heerden`s show enjoying a 27% increase in audience. Further changes were
made with a new morning show (The Breakfast Club) being introduced in April
2010. Audience levels have increased by 13% in the latest RAMS.
The station was able to keep bad debts under control during the tough trading
conditions, and cash flow remained positive and strong. The business is now
well positioned to take advantage of the recovering markets, and good growth
is foreseen especially in the non-traditional revenue channels.
United Stations
Specialist media sales house United Stations exceeded budgeted profit for the
year to 31 March 2010 mainly as a result of benefits coming through from
significant investments made in new business during the previous fiscal and
cost reductions from restructuring its local sales activities. These factors
combined with an aggressive brand specific sales strategy protected the
business from the general decline in advertising spending which started to
contract mid-year 2009. United Stations achieved several major goals that
have positioned the company well to tackle what promises to continue to be
difficult trading conditions for the remainder of 2010.
RadioHeads
RadioHeads is a team of radio specialists offering radio skills specifically
in the provision of Branded Content, Station Imaging, Creative and Campaign
management and Direct Response Radio solutions.
Despite the successful launch of a number of proprietary advertising
properties, the reduction of advertising spend by several large clients and
an investment in staff has led to a small loss for the 2010 year.
This is only a temporary setback as RadioHeads is well positioned at present
with a new syndicated show, promising to herald an exciting new chapter in
radio. We look forward to a strong rebound in advertising spend in the run
up to the World Cup 2010 and the recovery of the economy.
Dividends
A dividend of R2 per share (2009: R2) was declared in respect of the year
under review and was paid to equity holders of the parent registered on 9
April 2010. Cash resources are retained to fund organic growth opportunities
that may arise from new primary radio licences.
Subsequent events
There have been no events subsequent to the financial year end that have not
been recognised in these financial results.
Prospects
The Board is of the view that the World Cup will provide some additional
opportunities and is cautiously optimistic about the results for the year
ahead.
By order of the Board
ACG Molusi Chairman MJ Prinsloo Director
28 May 2010
Johannesburg
Registered office
Unit Block A, Oxford Office ParkNo. 5 8th Street, Houghton Estate,
JohannesburgPO Box 3014, Houghton, 2041
Transfer secretaries
Computershare Investor Services (Proprietary) Limited70 Marshall Street,
MarshalltownPO Box 61051, Marshalltown, 2107
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
3 Anerley Road, Parktown, JohannesburgPO Box 62397, Marshalltown, 2107
Directors
ACG Molusi (Chairman)*
Z Lacob*(deceased 22 April 2010)
MJ Prinsloo*
N Sooka*
W Tshuma*
*Independent Non-executive
Date: 28/05/2010 15:57:36 Produced by the JSE SENS Department.
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