| Tue 31 Jul 2001, 0:00 | | Ame - Interim Results |
|
African Media Entertainment
(Incorporated in the Republic of South Africa)
(Registration number 1926/008797/06)
("AME" or "the group")
Interim results for the six months ended 30 April 2001
abridged group income statement
for the period ended 30 April 2001
Unaudited Audited
Six months ended Year ended
30 Apr 30 Apr % 31 Oct
2001 2000 increase/ 2000
R'000 R'000 (decrease) R'000
Revenue 122 603 184 520 299 935
Continuing operations 119 617 183 903 (35) 292 019
Discontinued operations 2 986 617 7 916
Operating profit/(loss)
before exceptional items 1 970 (6 612) 561
Continuing operations 3 724 (4 690) 179 14 118
Discontinued operations (1 754) (1 922) (13 557)
Exceptional items 1 377 9 144 (24 371)
Operating profit/(loss) 3 347 2 532 32 (23 810)
Net interest paid (3 492) (2 860) (22) (5 195)
Loss before taxation (145) (328) 56 (29 005)
Taxation 1 207 1 397 (1 471)
Profit/(loss) after
taxation 1 062 1 069 0 (30 476)
Associate company losses - (2 164) (2 163)
Outside shareholders'
interest (1 676) (269) (1 216)
Loss attributable to
ordinary shareholders (614) (1 364) 55 (33 855)
Earnings per share (cents) (0,1) (0,2) 55 (4,2)
Headline earnings per
share for continuing
operations (cents) 0,1 (0,9) 113 0,7
Number of shares in
issue (000's) 779 524 773 587 800 020
Headline earnings
reconciliation
- continuing operations
Loss attributable to
shareholders (614) (1 364) (33 855)
Exceptional items (1 377) (9 144) 24 371
(Profit)/loss on
disposal of businesses (965) - 14 191
Revaluation of
investment in TMCS (2 158) - -
Write down of
share incentive trust - 7 125 480
Profit on sale of
investment in
Ticketweb Inc - (18 251) -
Restraint of trade
payment - 400 -
Restructuring and
reorganisational
costs 1 746 1 582 2 700
Discontinued operations 1 754 1 922 13 557
Profit on disposal
of fixed assets - - (166)
Amortisation of goodwill 1 133 1 492 1 972
Headline earnings for
continuing operations 896 (7 094) 113 5 879
abridged group cash flow statement
for the period ended 30 April 2001
Unaudited Audited
Six months ended Year ended
30 Apr 30 Apr 31 Oct
2001 2000 2000
R'000 R'000 R'000
Cash generated by/
(applied to) operations 3 717 (4 407) 8 725
Net interest paid (3 492) (2 860) (5 195)
Taxation paid (183) (1 333) (5 500)
(Increase)/decrease in
working capital (15 953) 5 523 16 474
Cash (utilised by)/
available from operations (15 911) (3 077) 14 504
Dividends paid - (426) (309)
Cash effects of
operating activities (15 911) (3 503) 14 195
Investing and financing
activities 2 332 (17 344) (30 380)
Net movement in cash
and cash equivalents (13 579) (20 847) (16 185)
Cash and cash equivalents
at beginning of period 4 961 20 377 20 377
Cash and cash equivalents
from acquisitions
and disposals (951) 743 769
Cash and cash equivalents
at end of period (9 569) 273 4 961
abridged group balance sheet
at 30 April 2001
Unaudited Audited
30 Apr 30 Apr 31 Oct
2001 2000 2000
R'000 R'000 R'000
Assets
Non-current assets 71 200 98 544 67 028
Equipment and
production facilities 14 180 26 654 19 540
Investments and loans 9 794 6 308 7 091
Joint venture - 1 679 -
Trademarks and goodwill 40 818 58 179 37 472
Deferred taxation 6 408 5 724 2 925
Current assets 63 779 92 249 69 893
Inventories 9 008 14 084 11 399
Trade and other receivables 49 490 47 586 50 410
Investments - TMCS 5 281 30 306 3 123
Cash and cash equivalents - 273 4 961
Total assets 134 979 190 793 136 921
Equity and liabilities
Capital and reserves 26 260 61 340 28 300
Issued capital and reserves
Minority interests 5 387 3 261 3 710
Non-current liabilities 22 633 20 843 24 411
Interest-bearing 15 089 19 293 16 315
Non-interest-bearing - vendors 7 544 1 550 8 096
Current liabilities 80 699 105 349 80 500
Trade and other payables 37 516 43 328 57 528
Current portion of
vendor liabilities 7 840 46 283 12 840
Current portion of
interest-bearing
borrowings 19 952 8 228 6 583
Taxation payable 5 822 7 510 3 549
Bank overdraft 9 569 - -
Total equity and liabilities 134 979 190 793 136 921
statement of changes in equity
for the period ended 30 April 2001
Unaudited Audited
Six months ended Year ended
30 Apr 30 Apr 31 Oct
2001 2000 2000
R'000 R'000 R'000
Issued capital 7 795 7 736 8 000
Balance at beginning of period 8 000 7 516 7 516
(Reversed)/issued during
the period (205) 220 484
Share premium 30 700 32 208 31 921
Balance at beginning
of period 31 921 20 204 20 204
(Reversed)/issued during
the period (1 150) 12 289 11 991
Share issue expenses
written off (71) (285) (274)
Translation reserve - 499 -
Balance at beginning of period - 50 50
(Reversed)/arising during period - 449 (50)
Accumulated (loss)/profit (12 235) 20 897 (11 621)
Balance at beginning
of period (11 621) 22 261 22 261
Accumulated loss for the period (614) (1 364) (33 882)
Total shareholders' interest 26 260 61 340 28 300
Comments
Financial Commentary
The period under review has been a difficult one in that the weak trend in
trading conditions within the economy has persisted from the previous year.
Within the group Golden Gloves, Moonlighting, Foghound and the two radio
stations, OFM and Algoa, have performed extremely well, while Big Concerts
and the Dome have been affected by the lack of consumer spending.
The group is undergoing an extensive turnaround strategy, which is partially
complete. Loss makers and non-core assets have been disposed of, including
Camera Culture, Ticketweb and Video Sport.
When comparing the results to that of the same period last year, the
reduction in group turnover to R122,6 million (2000: R184,6 million) is
mainly due to the disposal of loss makers and the curtailment of operations,
in line with the group's restructuring programme. Despite the drop in
turnover, earnings from continuing operations (before interest and
extraordinary items) have increased to R3,7 million (2000: loss of R4,7
million).
Financing costs have increased to R3,5 million (2000: R2,9 million), which
is as a result of the financing of loss makers and purchase considerations
for businesses previously acquired.
Headline earnings for continuing operations increased to R0,9 million,
increasing headline earnings per share to 0,1 cents (2000: loss of 0,9 cents
per share).
Prospects
The prospects for the remaining six months of the financial year and beyond
include the continuing reduction of the cost of gearing through the
repayment of debt by way of positive cash flows generated from operations as
well as proceeds from non-core asset disposals. This includes the disposal
of the Ticketmaster (TMCS) investment, a NASDAQ listed company, which is
currently in progress.
Cash flows and working capital levels are being closely monitored and the
profitability of the group is expected to continue improving as a result of
the restructuring process.
General
In terms of a circular dated 1 March 2001, the board was reconstituted and
is presently evaluating the various options available to the group.
The accounting policies applied in this report are consistent with those
applied by the group in the previous financial year.
By order of the board
A Stein Johannesburg
Company Secretary 31 July 2001
Registered office
The Dome, Corner Olievenhout Avenue & Northumberland Road, North Riding
(PO Box 540, North Riding 2162)
Transfer secretaries
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg
(POBox 1053, Johannesburg 2000)
Directors
K Ngqula (Chairman)*, N Buick (Chief executive officer), A Stein
(Financial), S Ellerine*, B MacRobert*, J Makobe*, K Matseke*
*Non-executive
