| Wed 30 Jan 2002, 0:00 | | African Media Entertainment - Preliminary Audited |
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31 October 2001 and Cautionary Announcement
African Media Entertainment Limited
(Incorporated in the Republic of South Africa)
(Registration number 1926/008797/06)
("AME" or "the group")
ISIN Number: ZAE000014106
Preliminary audited results for the year ended 31 October 2001
and Cautionary Announcement
abridged group balance sheet
for the year ended 31 October 2001
Restated
2001 2000
R'000 R'000
ASSETS
Non-current assets 71 651 67 852
Equipment and production facilities 11 598 19 540
Investment and loans 9 799 7 091
Trademarks and goodwill 40 564 37 472
Deferred taxation 9 690 3 749
Current assets 43 101 69 893
Inventories 10 853 11 399
Trade and other receivables 32 248 50 410
Current investments - 3 123
Cash and cash equivalents - 4 961
Total assets 114 752 137 745
EQUITY AND LIABILITIES
Capital and reserves 24 375 25 515
Issued capital and reserves
Minority interests 7 575 3 671
Non-current liabilities 16 642 24 411
Interest bearing 13 642 16 315
Non-interest bearing-vendors 3 000 8 096
Current liabilities 66 160 84 148
Trade and other payables 30 173 61 176
Current portion of vendor
liabilities 11 786 12 840
Current portion of interest
bearing borrowings 20 463 6 583
Taxation payable 3 398 3 549
Bank overdraft 340 -
Total equity and liabilities 114 752 137 745
abridged group income statements
for the year ended 31 October 2001
Restated
Percentage 2001 2000
Change R'000 R'000
REVENUE 209 999 299 935
Continuing operations -31% 200 230 292 019
Discontinued operations 9 769 7 916
Operating profit/(loss)
before exceptional items 4 955 (3 087)
Continuing operations +14% 11 909 10 470
Discontinuing operations (6 954) (13 557)
Exceptional items 601 (24 371)
Operating profit/(loss) +120% 5 556 (27 458)
Net interest paid -40% (7 273) (5 195)
Loss before taxation (1 717) (32 653)
Taxation 5 241 (647)
Profit/(loss) after taxation +110% 3 524 (33 300)
Associate company losses - (2 163)
Outside shareholders' interest (3 306) (1 177)
Profit/(loss) attributable
to ordinary shareholders +101% 218 (36 640)
Dividend paid-prior year
under provision - (77)
Transfer from non-distributable
reserve - 50
Accumulated profit/(loss)
for the year 218 (36 667)
Earnings per share (cents) +101% 0,03 (4,58)
Headline earnings per share
for continuing +193% 1,13 0,39
operations (cents)
Fully diluted number
of shares in issue (000's) 779 524 800 020
Headline earnings reconciliation
Profit/(loss) attributed to
ordinary shareholders 218 (36 640)
Exceptional items (601) 24 371
Surplus/deficit on disposal
of businesses (3 487) 14 191
and investments
Write down of share incentive trust - 7 480
Restructuring costs and
reorganization 2 886 2 700
Discontinued operations 6 954 13 557
Profit on disposal of fixed
assets - (166)
Amortisation of goodwill 2 254 1 972
Headline earnings +185% 8 825 3 094
abridged group cash flow statement
for the year ended 31 October 2001
Restated
2001 2000
R'000 R'000
Cash generated by operations 8 896 5 077
Net interest paid (7 273) (5 195)
Taxation paid (1 598) (5 500)
(Increase)/decrease in working capital (11 116) 20 122
Cash (utilised by)/available from operations (11 091) 14 504
Dividend paid - (309)
Cash effects of operating activities (11 091) 14 195
Investing and financing activities 7 098 (30 380)
Net movement in cash and cash equivalents (3 993) (16 185)
Cash and cash equivalents at beginning of
year 4 961 20 377
Cash and cash equivalents from
acquisitions and disposals (1 308) 769
Cash and cash equivalents at end of year (340) 4 961
abridged statement of changes in equity
for the year ended 31 October 2001
Restated
2001 2000
R'000 R'000
Issued Capital 7 795 8 000
Balance at beginning of year 8 000 7 516
(Reversed)/issued during the year (205) 484
Share premium 30 768 31 921
Balance at beginning of year 31 921 20 204
(Reversed)/issued during the year (1 150) 11 991
Share issue expenses written off (3) (274)
Accumulated loss (14 188) (14 406)
Balance at beginning of year (14 406) 22 261
Accumulated profit/(loss) for the year 218 (36 667)
Total shareholders' interest 24 375 25 515
COMMENTS
Review of operating results
The period under review was characterised by weak trading conditions as in
the previous reporting period.
From a group perspective Golden Gloves, Moonlighting, Foghound, Exclusive
Hire and the radio stations Ofm and Radio Algoa performed satisfactorily,
while Big Concerts, ProTouch and the Dome had a disappointing year due to
reduced consumer and corporate spending and the weakening currency.
The group has completed the current phase of its restructuring programme,
which included the discontinuation of unprofitable activities, disposing of
loss makers and embarking on a cost reduction programme.
Review of financial results
When comparing the results to those of the same period last year, the
reduction in group turnover to R210 million (2000: R300 million) is mainly
due to the disposal of loss makers and the discontinuation and curtailment
of certain unprofitable 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 R11,9 million
(2000: R10,5 million).
Finance costs have increased to R7,3 million (2000: R5,2 million), as a
result of the increased gearing to finance the settlement of purchase
considerations of businesses previously acquired.
Headline earnings for continuing operations increased to R8,8 million (2000:
R3,1 million), resulting in an increase in headline earnings per share to
1,13 cents (2000: 0,39 cents).
Discontinued operations' losses of R6,9 million relate to businesses
disposed of and closed, including Camera Culture, Video Sport, Ticketweb
S.A., Fullhouse and ISDS.
The prior year's figures have been restated as a result of expenses incurred
that were not provided for in the 2000 year end financial results, the
details are as follows:
R'000
Loss before tax and outside shareholders' interest 3 648
Less: taxation (824)
Less: outside shareholders' interest (39)
Net loss attributable to ordinary shareholders 2 785
Accounting policies
The accounting policies applied in this report are consistent with those
applied by the group in the financial statements for the year ended 31
October 2000 and are in compliance with Statements of Generally Accepted
Accounting Practice.
Prospects
The prospects for the short term include the continuing reduction of debt by
way of positive cash flows generated from operations as well as proceeds
from the disposal of non-core assets.
Cash flows and working capital levels are being closely monitored and the
profitability of the restructured group is expected to continue improving.
The board is evaluating the various options available to the group,
including addressing the debt situation and disposals of further non-core
businesses.
Cautionary announcement
In light of the above, shareholders are advised that AME is involved in
negotiations which, if successfully concluded, may have an effect on the
price of AME shares.
Accordingly shareholders are advised to exercise caution when dealing in
their shares until such time as a further announcement is made.
By order of the board
Sidney Ellerine Anthony Stein
Non-Executive Acting Chief Executive Officer
Johannesburg
30 January 2002
Registered office:
The Dome
Cnr Olievenhout Avenue and Northumberland Road, North Riding
(PO Box 540, North Riding, 2162)
Transfer Secretaries:
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg
(PO Box 1053, Johannesburg, 2000)
Directors:
K Ngqula (Chairman) *
A K Stein (Acting Chief Executive Officer)
S Ellerine*
M J Makobe*
L K Matseke*
* Non-executive
Sponsor
Brait Sponsors (Proprietary) Limited
