| Tue 27 Mar 2001, 0:00 | | Union Alliance Media Interim Results Announcement |
|
Union Alliance Media
Highlights
Turnover 14%
Net profit from operations 32%
Net profit attributable 14%
Headline earnings 26%
Tangible NAV 75.4c
Interim results for the twelve months ended 31 December 2000
Group income statement
12 months 12 months
to to
31 Dec. 31 Dec.
2000 1999
Unaudited Audited %
R'000 R'000 Change
Revenue 125,299 109,625 14
Net profit from operations 32,235 24,481 32
Interest (paid)/received (2,967) 1,489
Share of associated
companies' retained profit 1,140 2,452
Net profit before tax 30,408 28,422 7
Taxation (7,784) (8,431)
Net profit before
extraordinary items 22,624 19,991
Extraordinary items 47 -
Net profit for the year 22,671 19,991 13
Outside shareholders interest
in subsidiaries (5,634) (5,027) 12
Net profit attributable
to shareholders 17,037 14,964 14
Total weighted number of shares
in issue at 31 December 2000 164,603 183,160
Earnings per share
(fully diluted) (cents) 10.4 8.2 27
Headline earnings per share
(fully diluted) (cents) 10.3 8.2 26
group balance sheet
12 months 12 months
to to
31 Dec. 31 Dec.
2000 1999
Unaudited Audited %
R'000 R'000 Change
ASSETS
Non-current assets 155,535 144,811
Fixed assets 12,104 10,584
Investments and
loans receivable 143,431 134,227
Current Assets 48,778 33,458
Inventories 8,014 2,948
Accounts receivable 40,764 30,510
Total Assets 204,313 178,269
EQUITY AND LIABILITIES
Capital and reserves 141,326 120,489
Share capital and
share premium 108,028 105,525
Distributable reserves 33,298 14,964
Non-current liabilities 14,215 15,776
Outside shareholders' interest 10,717 7,577
Long-term liabilities 1,558 6,451
Deferred taxation 1,941 1,748
Current liabilities 48,772 42,004
Accounts payable 23,842 41,110
Bank overdraft 24,930 894
Total equity and liabilities 204,313 178,269
Tangible net asset value
(fully diluted) (cents) 75.4 65.8 15
Comments on results
Introduction
The directors are proud to present the results of Union Alliance Media Limited
("UAM"), for the twelve month period to 31 December 2000.
UAM is a technology media company, listed on the JSE Securities Exchange in the
media sector. The company focuses on technologies, which facilitate new, cost
effective delivery platforms. It currently operates across 4 divisions namely:
TV; Radio & Telecommunications; IT and Electronic Media; Advertising &
Marketing and Publishing.
Income Statement
In light of the tough economic conditions, the directors are pleased with the
results. The salient points are increases in turnover by 14%, net profit from
operations by 32%, attributable income by 14% and headline earnings per share
("Headline EPS") by 26%. The comparative figures have been restated to take
account of the disposal of Continuum Solutions (Pty) Ltd and SLK Word and
Pictures (Pty) Ltd, the adjustment of the purchase price of Technology
Communication Holdings (Pty) Ltd and the recognition of certain contracts in
Twilight Advertising and Entertainment Channel (Pty) Ltd.
Organic growth has once again been the major contributor to the increase in
earnings reported. Divisional turnover and attributable income were
respectively: TV, Radio & Telecommunications (20%, 26%); IT and Electronic
Media (32%, 35%); Advertising & Marketing (28%, 23%) and Publishing (20%, 16%).
UAM has a 22.5% equity stake in NextCom. In light of the award of the third
cell phone license, the investment in NextCom has been written-off, despite the
expectation that NextCom will be successful in the judicial review scheduled
for 2 May 2001.
Balance Sheet
Tangible net asset value increased by 15% from 65,8 cents to 75,4 cents. The
accounts receivable and bank overdraft are higher than usual as large amounts
invoiced prior to 31 December 2000 were only paid in the new year.
Divisional Highlights
TV, Radio & Telecommunications - Yfm remains the largest regional radio station
in South Africa with a listenership of 1.322 million. The Yfm format will be
duplicated throughout Africa. Yarona FM was launched in Botswana during August
1999 and has already achieved a listenership of 100,000 and 10% of local
adspend. UAM increased its shareholding in Yarona to 75% during the period.
Africa Pay Television is now operational in eight cities throughout Africa.
IT and Electronic Media - The rollout of Twilight to 600 ABSA branches has
commenced. Twilight will also be introduced in Barclays Bank branches
throughout Africa. Other international initiatives are also in the pipeline.
Air Media has signed a contract with leading direct marketer, Glomail, to
provide video-on-demand for Glomail's retail stores.
Advertising & Marketing - Off The Wall secured the contract for interior floor
baggage belt advertising in all 9 airports managed by the Airports Company of
SA. Clients for this service include Engen, Maserati, Sanlam and Medisage. The
Concept Group continued to perform well and its client base includes Shell,
Borges Olive Oil, Moet & Chandon, Jack Daniels, Intec College, amongst others.
A Joint Venture with the Gauteng Taxi Council has been concluded to facilitate
and manage all media assets on their behalf.
Publishing - Radio and TV Talk, the SABC programme guide published by Creative
Publishing, is South Africa's most widely read magazine with an increase in
readership from 2.7 million to over 3.8 million.
Dividends
In line with company policy, funds are retained to finance growth and future
acquisitions and accordingly no dividend has been declared.
Year- End
The year-end of the Company has, with the approval of the JSE Securities
Exchange, been changed from 31 December to 30 June to better suit the business
cycle of the group.
Future Prospects
The directors are confident that the Group will continue to perform well during
the next 6 months. All companies are positioned to deliver continued solid
organic growth. Other prospects including Southern African radio opportunities,
the third cellular license and strategic acquisitions and partnerships could
further enhance returns.
By order of the board
AM Glass
Chief Executive Officer
C de Beer
Financial director
Johannesburg
27 March 2001
Transfer Secretaries - Mercantile Registrars Limited, 10th Floor, 11 Diagonal
Street, Johannesburg, 2001, PO Box 1053, Johannesburg, 2000
Registered Office - 83 St Patrick Road, Houghton, PO Box 1851, Houghton, 2041
internet address - www.uam.co.za
