| Fri 11 Jul 2003, 12:24 | | Interim results for the six months ended 30 April |
|
African Media Entertainment -
African Media Entertainment
(Incorporated in the Republic of South Africa)
(Registration number 1926/008797/06)
("AME" or "the group")
Share code: AME
ISIN number: ZAE000014106
Interim results for the six months ended 30 April 2003
Abridged group income statement
for the period ended 30 April 2003
Unaudited Audited
Six months ended Year ended
30 Apr 30 Apr 31 Oct
2003 2002 2002
R"000 R"000 R"000
Revenue 48 820 74 426 130 120
Continuing operations 44 777 71 381 87 142
Discontinued operations 4 043 3 045 42 978
Operating profit/(loss) before exceptional items
602 (12 905) (19 891)
Continuing operations 2 145 (11 745) (707)
Discontinued operations (1 543) (1 160) (19 184)
Exceptional items (2 760) (373) 27 118
Operating (loss)/profit (2 158) (13 278) 7 227
Net interest paid (1 681) (2 469) (5 218)
(Loss)/profit before taxation (3 839) (15 747) 2 009
Taxation (2 390) (1 796) (11 896)
Loss after taxation (6 229) (17 543) (9 887)
Outside shareholders" interest (685) 1 074 424
Loss attributable to ordinary shareholders (6 914)
(16 469) (9 463)
Loss per share (cents) (0,82) (2,11) (1,17)
Headline loss per share for continuing operations (cents) (0,07)
(1,77) (1,71)
Total headline loss per share (cents) (0,25) (2,26) (4,02)
Weighted average number of sharesin issue (000"s) 842
687 779 524 809 354
Headline loss reconciliation
- continuing operations
Loss attributable to ordinaryshareholders (6 914)
(16 469) (9 463)
Exceptional items 2 760 373 (27 118)
Deficit/(surplus) on disposal of business 2
673 4 123 (23 406)
Impairment of loan to share incentive trust
- - 1 562
Impairment of investments and loans 87 - 1 270
Reversal of vendor liabilities - (3 750) (6 544)
Discontinued operations 1 543 1 160 18 721
Amortisation of goodwill 2 054 1 127 4 056
Headline loss for continuing operations (557) (13 809) (13 804)
Abridged group balance sheet
at 30 April 2003
Unaudited Audited
30 Apr 30 Apr 31 Oct
2003 2002 2002
R"000 R"000 R"000
Assets
Non-current assets 43 159 68 224 44 450
Equipment and production facilities 5 934 10 621 6 458
Investments and loans 1 600 5 820 1 600
Share Incentive Trust 317 1 879 317
Trademarks and goodwill 34 963 39 437 35 734
Deferred taxation 345 10 467 341
Current assets 24 426 27 642 55 179
Inventories 47 3 227 80
Trade and other receivables 19 798 24 415 17 697
Investments and loans 4 581 - 37 402
Total assets 73 786 95 866 99 629
Equity and liabilities
Capital and reserves
Issued capital and reserves 7 496 7 905 14 410
Minority interests 9 013 5 596 14 050
Non-current liabilities 5 239 14 154 8 026
Interest-bearing 5 239 11 154 8 026
Non-interest-bearing - vendors - 3 000 -
Current liabilities 45 837 68 211 63 143
Trade and other payables 28 824 32 313 29 794
Current portion of vendor liabilities 1 599 5 532 2 989
Current portion of interest-bearing borrowings
4 990 14 941 15 607
Taxation payable 6 938 4 683 6 499
Bank overdraft 3 486 10 742 8 254
Total equity and liabilities 73 786 95 866 99 629
Abridged group cash flow statement
for the period ended 30 April 2003
Unaudited Audited
Six months ended Year ended
30 Apr 30 Apr 31 Oct
2003 2002 2002
R"000 R"000 R"000
Cash generated from/(utilised by) operations 3
733 (9 000) (13 843)
Net interest paid (1 681) (2 469) (5 218)
Taxation paid (1 954) (1 288) (2 779)
Outside shareholders paid (6 375) - (906)
(Increase)/decrease in working capital (3 846) 17 600 27 882
Cash available from operations (10 123) 4 843 5 136
Investing and financing activities 15 597 (15 245) (7 829)
Net movement in cash and cash equivalents 5 474 (10 402) (2 693)
Cash and cash equivalents at beginning of period
(8 254) (340) (340)
Cash and cash equivalents from acquisitions and disposals
(706) - (5 221)
Cash and cash equivalents at end of period
(3 486) (10 742) (8 254)
Statement of changes in equity
for the period ended 30 April 2003
Unaudited Audited
Six months ended Year ended
30 Apr 30 Apr 31 Oct
2003 2002 2002
R"000 R"000 R"000
Issued capital 8 427 7 795 8 427
Balance at beginning of period 8 427 7 795 7 795
Issued during the period - - 632
Share premium 32 101 30 767 32 101
Balance at beginning of period 32 101 30 767 30 768
Issued during the period - - 1 333
Accumulated loss (33 032) (30 657) (26 118)
Balance at beginning of period (26 118) (14 188) (16 655)
Accumulated loss for the period (6 914) (16 469) (9 463)
Total shareholders" interest 7 496 7 905 14 410
Comments
Financial commentary
The year started on a very positive note for the group.
Gross advertising revenue for the group"s two radio stations Algoa FM and OFM,
increased by 27% year-on-year.
The performance of these stations is particularly gratifying when viewed against
the industry average growth of around 13% year-on-year.
The merger of the two radio stations" local and national sales teams in United
Stations has gone smoothly and has had a positive impact on results.
The group is now firmly entrenched in its radio strategy and will continue to
seek opportunities for growth.
The restructuring process is progressing well. Foghound Studios was disposed of
in May 2003. The group now consists of OFM, Algoa FM, United Stations and The
Dome@Northgate. This provides a solid base from which to operate.
The Dome@Northgate is approaching breakeven and there have been positive
developments in respect of naming rights.
Revenue for the period is R48,8 million (2002: R74,4 million). This represents a
34% reduction due to disposals of non-core and loss making businesses effected
during the previous year. The radio stations contributed approximately 75% of
the current year"s turnover. We are pleased to announce that the turnaround is
proceeding well and that the group has reported an operating profit for
continuing operations of R2,1 million (2002: R11,7 million loss). Finance costs
decreased to R1,7 million (2002: R2,5 million) as interest-bearing debt reduced
to R10,2 million. The main debt component left in the group is with our bankers.
The repayment of this loan facility has been restructured.
The amortisation of goodwill and trademarks of R2,1 million resulted in a loss
before taxation of R3,8 million (2002: R15,7 million loss).
The group has incurred a headline loss for continuing operations of R0,5 million
(2002: R13,8 million loss), and a loss per share of 0,82 cents (2002: 2,11 cents
loss). The group"s results were negatively affected by a loss on foreign
exchange of R2,7 million arising on receipt of the Golden Gloves sale proceeds.
Accounting policies
The results have been prepared in accordance with South African Statements of
Generally Accepted Accounting Practice. The accounting policies applied in this
report are consistent with those applied by the group in the previous financial
year.
Prospects
This financial year ahead looks encouraging as the group focuses on
opportunities provided by the broadcast industry.
Shareholders are reminded that the group is currently trading under a
cautionary.
General
The group is still experiencing pressure from a going concern point of view,
which results mainly from cash flow constraints resulting from legacy debt.
By order of the board
S Katz
Chief operating officer
Johannesburg
11 July 2003
Registered office
5th Floor, Park Terras, 33 Princess of Wales Terrace, Parktown, Johannesburg
(PO Box 3014, Hougton 2041)
Transfer secretaries
Computershare Investor Services Limited, 11 Diagonal Street, Johannesburg
(POBox 1053, Johannesburg 2000)
Directors
K Ngqula (Chairman)*, S Katz (Chief operating officer), C de Klerk (Financial),
Z Lacob*, J Makobe*, T Sadik*
*Non-executive
Website: www.ame.co.za
Date: 11/07/2003 12:16:36 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
