| Fri 3 May 2002, 0:00 | | Moneyweb - Audited Results For The Year Ended 31 M |
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Moneyweb Holdings Limited
Consolidated Income Statement
31-Mar-02 31-Mar-01 % Change
R 000's R 000's
Revenue 13,806 10,817 28%
EBITDA 3,021 3,454 -13%
Depreciation 1,928 1,052 83%
Operating Income 1,093 2,402 -54%
Interest received 597 832 -28%
Income from associates
(net of taxation) 175 -
Loss on disposal of
investment -118 -
Profit before tax 1,747 3,234 -46%
Taxation 547 795 -31%
Earnings before goodwill
amortisation 1,200 2,439 -51%
Reconciliation of profit
after tax to headline
earnings :
Loss on disposal of
Investment 118 -
Headline earnings 1,318 2,439 -46%
Headline EPS (cps) 1.6 3.1 -48%
Cash earnings per share (cps) 3.6 4.4
Dividend per share (cps) 1.0 -
*Goodwill amortisation 13,559 13,193 3%
*Loss after goodwill
amortisation -12,359 -10,754 -15%
*EPS after goodwill
amortisation (cps) -14.54 -13.44
*This is a non-operating item. It relates to goodwill arising on
acquisitions, primarily at the listing of the company. The goodwill is
written off over 5 years.
Note: All per share calculations have been based on 85 000 000 shares in
issue in respect of 31 March 2002 and 80 000 000 in respect of 31 March
2001.
Moneyweb Holdings Limited
Consolidated Balance Sheet
Audited as at Audited as at
31 March 2002 31 March 2001
R 000's R 000's
ASSETS
Non-current assets
Fixed assets 1,815 2,914
Investments 175 1,563
Current assets
Trade and other receivables 2,646 2,208
Cash 6,761 9,127
Receiver of revenue - -
9,407 11,335
Total assets 11,397 15,812
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 12,817 7,817
Goodwill -48,904 -53,331
-36,087 -45,514
Accumulated profit 44,431 56,789
Foreign currency translation reserve 64 -
Ordinary shareholders interest 8,408 11,275
Non-current liabilities
Deferred taxation 323 496
323 496
Current liabilities
Trade and other payables 1,657 2,096
Deferred revenue 316 446
Short term borrowing - 720
Receiver of revenue 693 779
2,666 4,041
Total equity and liabilities 11,397 15,812
- -
Net asset value per share (cps) 9.9 14.1
Moneyweb Holdings Limited
Statement of changes
in shareholders' equity
Year to Year to
31 March 2002 31 March 2001
R 000's R 000's
Balance at beginning of the period 64,607 75,360
Net loss for the year -12,359 -10,754
Issue of ordinary shares 5 -
Share premium arising 4,995 -
Goodwill -48,904 -53,331
Foreign currency translation
reserve 64 -
8,408 11,275
- -
Moneyweb Holdings Limited
Consolidated Cash Flow Statement
Audited as at Audited as at
31 March 2002 31 March 2001
R 000's R 000's
Cash flows from operating activities
Cash generated by operations 3,085 3,437
Movements in working capital -877 -186
Cash generated by operating
activities 2,208 3,251
Investment income 597 832
Deferred revenue -130 -390
Taxation paid -747 -104
Net cash flows from operating
activities 1,928 3,589
Cash flows from investing activities
To expand operations
Acquisition of fixed assets -829 -1,854
Acquisition of subsidiary &
equity investment -3,568 -1,132
Disposal of investment 882 -
Proceeds on disposal of fixed assets - 19
Net cash flows from investing
activities -3,515 -2,967
Cash flows from financing activities
Long term liability - -625
Amount paid in respect of
deferred payment for subsidiary -779 -
Net cashflows from financing
activities -779 -625
Net movement in cash and cash
equivalents for the period -2,366 -3
Cash and cash equivalents
at beginning 9,127 9,133
Cash acquired during the year - -3
Cash and cash equivalents
at end of period 6,761 9,127
- -
Moneyweb Holdings Limited
Notes to the Cash Flow Statement
31 March 2002 31 March 2001
R 000's R 000's
1 Cash generated by operations
Profit before taxation 1,572 3,234
Adjustments
Investment income -597 -832
Depreciation and amortisation 1,928 1,053
Loss on disposal of investment 118 -
Movement in foreign currency
translation reserve 64 -
Profit on disposal of
fixed assets - -18
3,085 3,437
2 Increase in working capital
Increase in trade and other
receivables -438 -1,004
Decrease in trade and other
payables -439 818
-877 -186
3 Taxation paid
Amounts owing at the
beginning of the year 720 104
Amounts receivable on
acquisition of subsidiary
in prior year - -45
Amounts charged per the
income statement 547 795
Movement in deferred tax 173 -30
Amounts owing at the end
of the year -693 -720
Amounts paid 747 104
4 Increase in investments in
subsidiaries and associate
Moneyweb Holdings Limited
purchased 19.62% of the
shares in Classic FM effective
April 2001 and concluded the
purchase of
Moneyweb Internet Publishing (UK)
effective 1 September 2001.
Net assets acquired - 12
Goodwill 8,568 557
Purchase consideration 8,568 569
Less: Paid by issue of shares -5,000 -
3,568 569
MONEYWEB HOLDINGS LIMITED
SUMMARY OF AUDITED GROUP RESULTS FOR THE YEAR ENDED MARCH 31, 2002
* STRONG OPERATIONAL PERFORMANCE
* MAIDEN DIVIDEND DECLARED
* REVENUE GROWS 28 %
* CASH EARNINGS FALL 12%
* POSITIONED FOR GROWTH
Financial results:
Shareholders were warned in a Trading Update published in February that last
year's projections of continued profit growth would not be achieved in the
financial year under review. This was primarily a result of a sharp decline
in advertising revenues following the lack of business confidence globally
in the wake of the September 11 atrocity in New York.
The sharp decline in advertising revenues during December and January offset
an otherwise excellent performance, slowing overall revenue growth to 28%,
from R10.8m to R13.8m. EBITDA fell to R3.0m from R3.5m, a decline of 13%.
As previously noted, the company's aggressive approach towards writing back
development costs over two years saw this number peak in the year under
review. A near doubling in the non-cash write-back of previous years'
development costs resulted in headline earnings per share before goodwill
dropping from 3.1c to 1.6c, a fall of 48%. The non-cash depreciation charge
virtually doubled to R1.9m. The tax rate climbed to 32%.
The promise of a profit from the company's 19.6% associated company Classic
FM was duly achieved with a R175 000 contribution reflected in the income
statement. The investment of R7.5 million in Classic FM has been classified
as goodwill in terms of the accounting requirements.
The directors focus on cash earnings as a reflection of true performance.
Cash earnings dropped 12% in the year under review, to R3.07m (3.6c per
share) from R3.5m (4.4c). The company's cash position is sound with the
balance sheet reflecting R6.7m in unimpaired reserves. The reduction in the
cash holdings during the past year was primarily attributable to investments
in Classic FM (R2.4m) and the purchase of Moneyweb UK (R1.2m). Mindful of
the desire by shareholders to participate in the profitability of the
company, the directors have declared a maiden dividend of 1c a share,
covered 3.6 times by cash earnings.
Operational performance:
The disappointment of a decline in profits was offset by a superb
operational performance where the company made significant progress in
cementing its solid foundation.
The company's core on-line investment information business doubled once
again in the year under review. Audited unique users rose from the monthly
average of 60 000 in the first quarter of 2001 to a monthly average of 136
000 during the first three months of 2002 (126%). Over the same period,
monthly page impressions rose from 800 000 to almost 1.5 million (88%).
Excellent progress was made in establishing a global base with the company's
internationally focused Miningweb offering. Around 75% of its audience
hails from outside South Africa. Miningweb established a physical presence
in Perth during the year under review to complement bases in Johannesburg,
New York and London.
The company's broadcasting activities performed well with the Classic
Business radio programme dominating its niche and growing revenues in a
difficult market. The programme was once again honoured by the judges of the
Sanlam Financial Journalism Awards as the best financial programme on radio
and TV. Associate company Classic FM also broke into profit for the first
time during the year under review.
The contribution from newsletters was as budgeted, but plans to expand this
side of the business continue to be affected by the non-delivery of the
Customer Relationship Management system, installation of which is now almost
18 months overdue. A decision on whether to abandon this project will be
taken soon.
Prospects:
Although much improved from December and January, the advertising market
remains tight. In addition, the company has launched two new projects - the
Moneyweb Digest newspaper and a radio news service - which are expected to
trade at no better than break-even during the financial year to end March
2003.
Notwithstanding these challenges, the company's core business is strong,
with further advantages anticipated from the expansion of dominance in its
niches. As a result, the directors expect real growth in earnings and
dividends in the year ahead.
The financial statements are prepared on the historical cost basis and in
accordance with South African Statements of Generally Accepted Accounting
Practice. The accounting policies are, in all material respects, consistent
with the annual financial statements for the year ended 31 March 2001.
Dividend:
A maiden dividend of 1 cent per share has been declared. The last day to
trade cum dividend will be Friday, 17 May 2002 with the record date for the
distribution being Friday, 24 May 2002. The shares will trade ex dividend
from Monday, 20 May 2002. The dividend will be paid on Monday, 27 May 2002.
No shares may be dematerialised or re-materialised from Monday, 13 May 2002
until Friday, 24 May 2002, both days inclusive.
AB Hogg T J Wood
Chief Executive Director
3 May 2002
