| Fri 28 Sep 2001, 0:00 | | Union Alliance Media - Financial Report |
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Union Alliance Media
ISIN Code : ZAE000024535
Share Code : UAM
Union Alliance Media
Financial Report
HIGHLIGHTS
TURNOVER Up 54.0%
headline earnings per share Up 64.9%
annualised headline earnings p/S Up 25.1%
Profit announcement FOR THE EIGHTEEN MONTHS ENDING 30 JUNE 2001
GROUP INCOME STATEMENT
18 months to 12 months to
30 June 2001 31 Dec. 1999
Pro forma %
R'000 R'000 Change
CONTINUED OPERATIONS
Revenue 145,249 108,224 34
Net profit from
operations 28,730 26,905 7
Interest paid (3,936) (709) 455
Share of associated
company's
retained profit 24 452 (95)
Net profit before taxation 24,818 26,648 (7)
Taxation (5,431) (8,640) (37)
Net profit for the year 19,387 18,008 8
Outside shareholders'
interest in subsidiaries (3,015) (6,562) (54)
Net profit attributable
to shareholders 16,372 11,446 43
DISCONTINUED OPERATIONS
Revenue 7,791 8,540
Net loss from operations (8,718) (1 228)
Interest paid (216) (13)
Net profit before taxation (8,934) (1,241)
Taxation - -
Net loss for the year (8,934) (1,241)
Outside shareholders'
interest 1,697 236
Net profit attributable
to shareholders (7,237) (1,005)
TOTAL FOR THE COMPANY
Revenue 153,040 99,684 54
Net profit from operations 20,012 25,677 (22)
Interest paid (4,152) (722) 475
Share of associated company's
retained profit 24 452 (95)
Net profit before taxation 15,884 25,407 (37)
Taxation (5,431) (8,640) (37)
Net profit for the year 10,453 16,767 (38)
Outside shareholders'
interest in subsidiaries (1,318) (6,326) (79)
Net profit attributable
to shareholders 9,135 10,441 (12,5)
Total number of shares
in issue at 30 June 2001 163,250 183,160
Earnings per share
(fully diluted) (cents) 5,6 5,7 (1,8)
Earnings per share
(fully diluted) (cents) -
continued operations 10,0 5,7 75,4
Earnings per share
(fully diluted) (cents) -
discontinued operations (4,4) -
Headline earnings per
share (fully diluted) (cents) 10,7 6,5 64,6
Headline earnings per share
(fully diluted) (cents) -
continued operations 15,1 6,5 132,3
Headline earnings per
share (fully diluted)
(cents) - discontinued
operations (4,4) -
Annualised headline earnings
per share (fully diluted)
(cents) 8,1 6,5 25,1
GROUP BALANCE SHEET
18 months to 12 months to
30 June 2001 31 Dec. 1999
R'000 R'000
ASSETS
Non-current assets 144,960 146,082
Fixed assets 13,158 11,892
Investments and loans
receivable 131,802 134,190
Current Assets 35,502 43,751
Inventories 1,398 11,397
Accounts and loans
receivable 34,104 32,354
Total Assets 180,462 189,833
EQUITY AND LIABILITIES
Equity
Share capital and share
premium 76,808 107,955
Distributable reserves 24,818 15,683
Total equity 101,626 123,638
Minority interests 3,652 8,069
Shareholders' loans 32,992 -
Total shareholders' interest 138,270 131,707
Non-current liabilities 4,477 10,736
Long-term liabilities 2,536 9,039
Deferred taxation 1,941 1,697
Current liabilities 37,715 47,390
Accounts payable 18,602 46,331
Bank overdraft 19,113 1,059
Total equity and liabilities 180,462 189,833
Tangible net asset value 82,9 71,9
abridged GROUP CASH FLOW STATEMENT
18 months to 12 months to
30 June 2001 31 Dec. 1999
R'000 R'000
Cash generated by
operating activities 8,747 9,669
Cash absorbed by investing
activities (23,623) (84,101)
Cash absorbed by financing
activities (3,178) 73,373
Net movement in cash and
cash equivalents (18,054) (1,059)
Cash and cash equivalents
at beginning of period (1,059) -
Cash and cash equivalents
at end of period (19,113) (1,059)
Statement of Changes in
Equity as at 30 June 2001
Share Share Distributable
Group Capital Premium reserves Total
Balance at
31 December 1999 183 107,772 15,683 123,638
Net profit for
the period - - 9,135 9,135
Shares acquired (19) (31,128) - (31,147)
Balance at
30 June 2001 164 76,644 24,818 101,626
Company
Balance at
31 December 1999 185 110,826 2,199 113,210
Net profit for
the period - - 3,769 3,769
Balance at
30 June 2001 185 110,826 5,968 116,979
Comments on Results
Introduction
The directors have pleasure in presenting the financial results for the 18
months ending 30 June 2001.
UAM is a media technology company active in the media arena focusing on
technologies, which will facilitate new, cost effective content and delivery
platforms.
Income Statement
The results are presented for an 18-month period resulting from a change of
year-end, from December to June, to better suit the business cycle of the
group. The comparatives for the twelve months ending 31 December 1999 have
been restated due to a fundamental error that arose from certain
irregularities within the franchise division of Twilight trading as Q4
Media.
Despite poor economic conditions and difficult trading conditions, turnover
increased by 54%, and headline earnings per share (Headline EPS) by 64,9%.
Annualised headline earnings per share increased by 25,1%. Earnings
increased marginally due to losses from discontinued operations, the
disposal of Unwembi Communications (Pty) Ltd and SLK (Pty) Ltd and the write
off of certain investments including Techcom Communications (Pty) Ltd,
Tavern TV and Upton International (Pty) Ltd.
In order to provide shareholders with more meaningful information, the
results from these subsidiaries have been excluded from the pro forma
figures for the year ending 31 December 1999.
During the year the directors decided to discontinue certain unprofitable
divisions. The resuls from these divisions has been disclosed separately.
Balance Sheet
Tangible net asset value increased from 71,9 cents to 82,9 cents. Long-term
liabilities decreased by 58,2% to R4,4m due to the repayment of certain
finance leases.
Highlights
Nextcom reached an out of court settlement with Cell C with regards to the
third cellphone license. Nextcom is currently finalising its accounts and
further information will be provided to shareholders in due course.
On 15 October 2001, Concept will launch Edu-Link, a national school fund
raising initiative that provides schools with a residual income by having
the parents support the retail partners.
The Concept Group performed well during the period. Its clients include
Shell SA, South-African Breweries, Auto-Serve, Beacon Sweets, Pfizer, Danone
and the newly developed joint initiative by Hewlett Packard and Compaq.
During the period the Concept Group developed an idea to raise funds for the
Nelson Mandela Children's Fund. The project comprises a collection of five
sketches drawn by Nelson Mandela. A limited number of copies will be sold.
Yarona FM, our radio station in Botswana, continues to grow both
listenership and advertising revenue and is in the process of applying for a
national broadcast license.
Tswelopele Productions, the producers of Top Billing, have been awarded a
second contract by the SABC to produce Pasella. Since taking over
production, the viewership has increased from 550k to 1,1m viewers.
Twilight trading as Q4 Media have begun producing their own programme
content for use on its networks. The first project is, "Qool foods", a four
minute fun cooking programme. The SABC has already commissioned 13 of these
programmes for broadcast on its channels.
Siyavaya is a monthly magazine aimed at taxi commuters and is distributed
free at various taxi ranks. Five editions have been published and
advertising support is very encouraging.
UAM is awaiting Reserve Bank approval for the roll out of Queue TV and
billboards into the Peoples Republic of China.
Dividends
In line with company policy, funds are retained to finance growth and future
acquisitions and accordingly no dividend has been declared.
Future Prospects
The directors are confident that all the underlying companies in the group
are well positioned to grow organically and produce solid results for the
forthcoming year.
By order of the board
A M Glass C de Beer Johannesburg
Chief Executive Officer Financial Director 28 September 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
Union Alliance Media
ISIN Code : ZAE000024535
Share Code : UAM
With reference to Union Alliance Media announcement, released on SENS this
morning the following information was not included.
Reconciliation of headline
earnings
Attributable
earnings 9,135
- Loss on sale of discontinued
operations 4,355
- Net loss on disposal of
businesses 3,638
- Amortisation of
goodwill 528
- Profit on sale of
fixed assets (207)
Headline earnings
17,449
