| Wed 19 Feb 2003, 17:41 | | Sasani - SUMMARISED RESULTS FOR THE SIX MONTHS END |
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Sasani Limited
(Incorporated in the Republic of South Africa)
(Registration number 1955/000259/06)
Share code SSA ISIN ZAE 000017851
("Sasani" or "the company")
SUMMARISED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
GROUP INCOME STATEMENT
ACTUAL ACTUAL ACTUAL
UNAUDITED NAUDITED AUDITED
6 months 6 months 12 months
ended ended ended
31/12/2002 1/12/2001 30/6/2002
R`000 R`000 R`000
Revenue 102 539 112 086 237 058
Contribution 68 205 69 855 133 674
Overheads (44 260) (48 319) (90 435)
Operating profit before
depreciation (EBITDA) 23 945 21 536 43 239
Depreciation (13 184) (14 319) (27 463)
Amortisation of trademarks (3 222) (4 429) (7 832)
Operating profit of associate 145 180 936
Operating profit before exceptional items 7 684 2 968 8 880
Exceptional items (3 828) 273 (4 809)
Exceptional attributable to associate - - (1 695)
Operating profit 3 856 3 241 2 376
Net interest 755 (1 039) (1 720)
Profit before taxation 4 611 2 202 656
Taxation - this period (1 048) 254 (91)
Taxation - previous period - - -
Taxation attributable to associate - - (430)
Profit after taxation 3 563 2 456 135
Outside shareholders` interest - (613) (613)
Earnings attributable to ordinary
shareholders 3 563 1 843 (478)
Headline earnings reconciliation:
Earnings attributable to ordinary
shareholders 3 563 1 843 (478)
Add: Amortisation of trademarks 3 222 4 429 7 832
Exceptional items - net of
taxation and minorities - (1 863) 1 786
- Profit on sale of fixed assets - (897) 1 265
- Profit on sale of businesses - (966) 521
Headline earnings 6 785 4 409 9 139
Number of shares (000`s)
Issued and weighted average 65 219 65 776 65 776
Earnings per ordinary share (cents)
Headline earnings 10,4 6,7 13,9
Earnings attributable to ordinary
shareholders 5,5 2,8 (0,7)
Contribution(%) 66,5 62,3 56,4
EBITDA(%) 23,4 19,2 18,2
Operating income before exceptional items(%) 7,5 2,6 3,7
GROUP BALANCE SHEET
ASSETS
Non-current assets 126 557 151 547 132 418
Property, plant and equipment 79 569 87 820 81 798
Trademarks and copyrights 47 498 60 834 50 713
Other assets (510) 2 893 (93)
Current assets 75 762 59 028 72 050
Inventories 6 424 6 299 5 430
Trade and other receivables 38 011 49 657 36 000
Cash and cash equivalents 31 327 3 071 30 620
Total assets 202 319 210 575 204 468
EQUITY AND LIABILITIES
Capital and reserves
Issued capital and reserves 153 552 155 359 153 039
Minority interests - 679 -
Deferred taxation 3 975 5 883 5 002
Non-current liabilities 9 960 16 682 12 833
Interest bearing borrowings 9 960 16 682 12 833
Current liabilities 34 832 31 972 33 594
Trade and other payables 28 245 25 943 25 099
Taxation payable 101 671 661
Interest bearing borrowings 6 487 5 358 7 834
Total equity and liabilities 202 319 210 575 204 468
Net asset value per share (cents)
Including intangible assets 235,4 236,2 232,7
Excluding intangible assets 162,6 143,7 155,6
GROUP CASH FLOW STATEMENT
Cash generated by operations 19 937 19 296 43 063
Net interest received/(paid) 755 (1 039) (1 720)
Increase in working capital 140 (16 889) (2 104)
Taxation paid (2 546) (4 063) (4 178)
Dividends paid - - -
Cash available from operations 18 286 (2 696) 35 062
Net receipts/(payments) for businesses - 3 572 5 101
Net fixed assets acquired (10 636) (6 866) (17 864)
Other investing activities 329 (168) 1 569
Financing activities (7 271) (13 608) (15 272)
Net movement in cash and cash equivalents 708 (19 766) 8 596
Cash and cash equivalents at beginning
of the period 30 620 25 530 25 530
Cash and cash equivalents of businesses
acquired/(sold) - (2 693) (3 506)
Cash and cash equivalents at end of
the period 31 327 3 071 30 620
GROUP STATEMENT OF CHANGES IN EQUITY
Share capital and premium
Balance at beginning of period 111 818 111 818 111 818
Movement due to share buy back (3 050) -
Balance at the end of the Period 108 768 111 818 111 818
Non-distributable reserves
Balance at beginning and end of period 225 225 225
Retained earnings:
Balance at beginning of period 40 996 41 474 41 474
Net (loss)/profit for period 3 563 1 843 (478)
Balance at end of period 44 559 43 317 40 996
Total ordinary shareholders interest 153 552 155 360 153 039
BASIS OF PREPARATION
These consolidated Group results for the six months ended 31 December 2002
has been prepared in accordance with and comply with Statements of Generally
Acceptable Accounting Practice prevailing in South Africa.
COMMENTARY
Nature of the business
Sasani is now focused on its role as the main provider of infrastructural
facilities into the broader film production sector. Through its significant
influence on every feature film, commercial and television series shot on film
in South Africa, Sasani underpins the film industry in this country. In
addition, it services significant parts of the video production sector and
broadcasts into Africa on behalf of African Broadcast Network and TV Africa.
Results
Results for the six months to end December 2002 are significantly better than
for the corresponding period in the prior year with attributable earnings per
share of 5,5 (2,8 cents) and headline earnings of 10,4 (6,7 cents). In addition,
cash on hand of R31m exceeds total interest bearing borrowings by R15 million.
This compares with a net debt position of R19 million at the end of December
2001.
While the turnover figures reflect a decrease of 8,5% on the corresponding
period last year, the actual increase for ongoing operations was 17,9%.
Similarly, on continuing operations the attributable earnings per share
comparison was 5,5 cents as opposed to (0,7 cents) and the headline earnings
comparison was 10,4 cents as opposed to 2,7 cents.
As authorised at the AGM of 8 November 2002, 5 008 255 shares, or 7% of the
total shares in issue, were repurchased by Sasani during the period at an
average price of 51 cents.
Initiatives
Broadly speaking, the industry is in good shape and the significant
improvements are attributable to the strong growth of the film industry and the
focused positioning of Sasani into this area. Production of foreign commercials,
particularly in the Cape, and the odd foreign feature film is driving the strong
growth in the industry. In the first half, this has been evident through the
significant growth in footage in the Film Labs in both Johannesburg and Cape
Town.
At the same time, however, negative sentiment arising out of a court case
with a previous employee has delayed efforts to resurrect Sasani`s share of the
rentals market in the Cape.
Going forward, Sasani will be focusing on entrenching its position in the film
industry in South Africa. This will be achieved through a rigorous client focus
and the provision of consistent and outstanding service into all aspects of the
production of any commercial, series or feature in this country.
Capital expenditure is set to increase, as it did in the period under review,
and limited strategic investments are anticipated.
As has been the case over the last six months, Sasani will allocate
significant energy toward driving increased levels of foreign film production to
South Africa. This will include new post-production facilities in the Cape
specifically for the growing commercials production in the region, ongoing
support of government initiatives to establish a co-production treaty with key
European film union countries and committed support for the introduction of
feature soundstages into the country. An investment has also been made into a
development fund for South African production.
Based on the positive sentiment toward the film production industry in South
Africa we anticipate continued improvement in trading conditions going forward.
Date: 19/02/2003 05:01:01 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
