| Tue 17 Sep 2002, 17:55 | | Kagiso Media - Audited Results For The Year Ended |
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KAGISO MEDIA - AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2002
AND FURTHER CAUTIONARY ANNOUNCEMENT
KAGISO MEDIA LIMITED
(Registration number 1957/000036/06)
("Kagiso Media" or "the company")
Share code: KGM
ISIN: ZAE000014007
ANNOUNCEMENT OF AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2002
AND FURTHER CAUTIONARY ANNOUNCEMENT
HIGHLIGHTSz Headline EPS up by 20,6%
Condensed consolidated balance sheet as at
30 June 2002 30 June 2001
(Audited) (Audited)
(R`000) (R`000)
Assets
Non current assets 61 087 65 602
- Property, plant and equipment 14 133 7 630
- Intangible assets 5 139 7 672
- Investment in associates 19 923 21 921
- Loan receivable 2 607 4 629
- Deferred tax 19 285 23 750
Current assets 150 421 130 161
- Inventory 7 719 4 703
- Accounts receivable 62 271 50 976
- Deferred expenses 7 368 5 548
- Taxation 0 75
- Cash and cash equivalents 73 063 68 859
Total Assets 211 508 195 763
Equity and liabilities
Shareholders` equity 132 147 127 754
Minority interest 3 126 3 834
Total shareholders` funds 135 273 131 588
Current liabilities 76 235 64 175
- Accounts payable 31 480 25 427
- Provisions - 1 612
- Taxation 8 818 9 783
- Current portion of non-current
borrowings - 5 895
- Deferred revenue 33 289 19 382
- Amounts due to vendors - 1 313
- Amounts due to shareholders 125 58
- Bank overdraft 2 523 705
Total Equity and Liabilities 211 508 195 763
Tangible net asset value
per share (cents) 99 100
Condensed consolidated income statement for the year ended
30 June 2002 30 June 2001
(Audited) (Audited)
(R`000) (R`000) Change
%
Revenue 222 405 215 070 3,4
Profit before interest, taxation,
depreciation and amortisation 70 664 40 480 74,6
Depreciation and amortisation (5 432) (5 647)
Interest received 4 085 7 694
Profit before tax 69 317 42 527 63,0
Taxation (23 711) (18 384)
Net profit after taxation 45 606 24 143 88,9
Share of results of associates 14 442 13 570 6,4
Minority interest (3 067) (1 692)
Net profit 56 981 36 021 58,2
Reconciliation of headline earnings
Net profit 56 981 36 021
Profit on sale of subsidiary (5 154) -
Impairment of goodwill 1 984 -
Amortisation of goodwill 969 1 456
(Profit)/loss on closure of
discontinuing operation (2 099) 4 762
Costs incurred in negotiating
the disposal of the group`s assets 1 162 1 963
Other - 352
Headline earnings 53 843 44 554 20,9
Earnings per share
Headline earnings
per share (cents) 42,1 34,9 20,6
Earnings per share (cents) 44,5 28,2 57,8
Fully diluted earnings
per share (cents) 44,0 27,9 57,7
Number of shares in issue (`000s) 128 556 127 692
Weighted average number
of shares in issue (`000s) 127 948 127 692 0,2
Condensed consolidated statement of changes in equity for the year ended
30 June 2002 30 June 2001
(Audited) (Audited)
(R`000) (R`000)
Equity at the beginning of the year 127 754 179 643
Changes in share capital (26 877) (87 910)
- New shares issued 1 215 -
- Vendor shares cancelled - (2 867)
- Share premium reduction (28 092) (85 043)
Changes in retained earnings 56 981 36 021
Dividend paid (25 711) -
Equity at the end of the year 132 147 127 754
Condensed consolidated cash flow statement for the year ended
30 June 2002 30 June 2001
(Audited) (Audited)
(R`000) (R`000)
Cash retained from operations
Cash generated by operating activities 67 666 42 049
Decrease in working capital 2 551 10 090
Cash generated by operations 70 217 52 139
Interest received 4 085 8 929
Taxation paid (20 135) (16 158)
Dividend received from associates 6 630 949
Dividends paid (29 446) -
Net cash inflow from operating
activities 31 351 45 859
Cash generated by investment activities (4 084) (341)
Investment to maintain operations 10 103 12 153
Investment to expand operations (14 091) (12 494)
Cash disposed of in subsidiary (96) -
Cash effect of financing activities (23 063) (82 808)
Increase in bank overdrafts 2 661 499
Decrease in loan receivable 2 021 1 129
(Decrease)/increase in borrowings (895) 141
Capital injection by minority
shareholder - 416
Proceeds from issue of new shares 1 215 -
Share premium reduction (28 065) (84 993)
Increase/(decrease) in cash and
cash equivalents 4 204 (37 291)
Cash and cash equivalents at
beginning of year 68 859 106 150
Cash and cash equivalents
at end of year 73 063 68 859
Segmental analysis for the year ended 30 June 2002
Revenue Profit Headline
Before earnings
tax s
(R`000) (%) (R`000) (%) (R`000) (%)
Head-office - - (1 663) (2) (5 939) (11)
Broadcasting 83 169 37 43 574 62 40 337 74
Specialist
Publishing 77 735 35 20 467 30 13 898 26
Exhibitions 51 419 23 87 - 2 041 4
Strategic
Marketing 10 082 5 4 753 7 3 506 7
Discontinuing
Operation - - 2 099 3 - -
Total 222 405 100 69 317 100 53 843 100
1.Comments on results
Kagiso Media is delighted to announce an increase of more than 20% in
headline earnings per share for the year to 30 June 2002 to R53,8m.
Over this same period the company returned a similar amount to
shareholders: R28,1m (22 cents per share) as a capital reduction in
November 2001, and an interim dividend of R25,7m (20 cents per share) in
April 2002.
The return on average equity improved to 41,5% from 29% in the
comparative period.
Cash flow was again very strong, as reflected by a cash conversion ratio
of 99% (2001 -105%). At 30 June 2002 the group had no debt and cash
reserves of more than R70m.
2.Review of Operations
Broadcasting
In the year under review East Coast Radio and Jacaranda 94.2 continued
their strong growth in audience numbers. East Coast Radio grew its
weekly audience by 24% to 1,475 million listeners and Jacaranda its by
23% to 1,731 million listeners, over a period where total radio
listenership in South Africa showed only a slight increase. Jacaranda is
again the largest regional radio station in the country, if measured by
total audience. It is also very encouraging to note that already 79% of
this audience at East Coast Radio and 63% at Jacaranda are black, and
that 50% and 40% of the audience, respectively, are from the lucrative
LSM 7-10 market categories.
In the year to 30 June 2002 East Coast Radio increased turnover by 14%
and EBITDA by 30% over 2001. Jacaranda found conditions much more
competitive in Gauteng and only increased its EBITDA by 9% over the
comparative period. Overall, radio revenue in the country grew by only
2% over this period.
Turnover at RadMark increased by 21% and EBITDA by 36% over that of
2001.
Specialist publishing
Butterworth Publishers increased turnover by 21% and EBITDA by 27% over
the comparative period. The company has seen a 25% improvement in its
ability to retain the subscribers to its annuity products and services,
through investment in product development, user research and customer
service and delivery.
The investment in Systems Publishers was disposed of with effect from 26
June 2002. For the year under review Systems contributed a loss to
headline earnings of R1,3m (2001 - R2,1m loss), whereas a non-headline
profit of R5,1m was realised on the sale of this subsidiary. Kagiso
Media continues to guarantee Systems` indebtedness to its bankers, up to
an amount of R5,7m.
Exhibitions
Kagiso Exhibitions recorded an after tax profit of R2,0m on turnover of
R51m (2001 - R5,8m profit on turnover of R71,8m). The company again
stages its two bi-ennial exhibitions in the upcoming year and expects a
very strong performance for the next six months as a result.
Strategic marketing
During the period under review Kagiso Media rendered project management
services to the "SA Unlimited" tender and delivered sundry services to
another client in the public tender arena. "SA Unlimited" is a
prestigious three-year strategic initiative to improve the local and
international perceptions of our country. The company was also awarded
the contract to render project management services to this tender for
the next two years.
3.Prospects
Despite the fact that advertising spend is not expected to grow
substantially over the next year, and the realisation that market
volatility will persist, the group looks forward to another year where
its assets and the markets in which they operate will once again
outperform their peers.
The upcoming financial year also sees the staging of the group`s two bi-
ennial exhibitions, which should contribute handsomely to earnings over
the next six months.
4.Accounting policies
The summarised audited results for the year to 30 June 2002 have been
prepared using accounting policies which are in accordance with the
historical cost basis, in conformity with Generally Accepted Accounting
Practice in South Africa and consistent with those policies adopted in
the prior year.
5.Auditor`s report
PricewaterhouseCoopers Inc. has audited the group annual financial
statements. Their unqualified audit report is available for inspection
at the company`s registered office.
6.Annual financial statements
The annual financial statements for the year to 30 June 2002, including
a notice to the annual general meeting, will be posted to shareholders
by no later than 25 October 2002.
7.Renewal of cautionary
Further to the cautionary announcement published on 16 August 2002,
shareholders are advised that discussions regarding Kagiso Media are
still in progress, which may have an effect on the share price of the
company`s shares. Accordingly, shareholders are advised to exercise
caution when dealing in the company`s shares until a further
announcement is made.
8.Dividend
The board resolved not to declare a final dividend in respect of the
year to 30 June 2002.
On behalf of the Board
E Molobi W R Jardine
Chairman Chief Executive
17 September 2002
Registered Office Transfer Secretaries
2nd Floor Kagiso House Computershare Investor Services
Limited
1/3 Mellis Road, Rivonia 41 Fox Street, Johannesburg, 2001
2128 (PO Box 61051, Marshalltown, 2107)
Date: 17/09/2002 05:32:56 PM Produced by the JSE SENS Department
