| Fri 10 Jun 2005, 8:24 | | African Media Entertainment - Unaudited interim re |
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African Media Entertainment - Unaudited interim results for the six months ended
30 April 2005
African Media Entertainment
(Incorporated in the Republic of South Africa)
(Registration number 1926/008797/06)
(`AME` or `the Group`)
Share code: AME ISIN: ZAE000055802 Website: www.ame.co.za
Unaudited interim results for the six months ended 30 April 2005
Abridged group income statement for the period ended 30 April 2005
Six months ended Year ended
Unaudited Reviewed Audited
30 Apr 30 Apr 31 Oct
2005 2004 2004
R`000 R`000 R`000
Revenue 46 549 47 552 93 527
Continued operations 46 549 46 252 92 227
Discontinued operations - 1 300 1 300
Cost of sales and operating expenses 35 624 38 643 75 476
Continued operations 35 624 36 943 73 776
Discontinued operations - 1 700 1 700
Operating profit before exceptional items 10 925 8 909 18 051
Continued operations 10 925 9 309 18 451
Discontinued operations - (400) (400)
Surplus on disposal of operations - 1 945 1 363
Operating profit 10 925 10 854 19 414
Interest received 193 262 479
Interest paid (545) (968) (1 967)
Net profit before taxation 10 573 10 148 17 926
Taxation (3 306) (5 004) (5 883)
S A Normal (3 278) (3 004) (3 883)
STC (28) (2 000) (2 000)
Net profit after taxation 7 267 5 144 12 043
Minority interest (1 091) (1 056) (2 212)
Profit attributable to shareholders 6 176 4 088 9 831
Earnings per share (cents) 72,3 47,8 115,1
Headline earnings per share
for continuing operations (cents ) 72,3 29,7 103,8
Total headline earnings per share (cents) 72,3 25,0 99,2
Weighted average number of shares
in issue 8 539 033 8 557 595 8 539 033
Headline earnings reconciliation
for continuing operations
Profit attributable to shareholders 6 176 4 088 9 831
Surplus on disposal of operations - (1 945) (1 363)
Discontinued operations after taxation - 400 400
Headline earnings for continuing operations 6 176 2 543 8 868
Abridged group BALANCE SHEET at 30 April 2005
Unaudited Reviewed Audited
30 Apr 30 Apr 31 Oct
2005 2004 2004
R`000 R`000 R`000
Assets
Non-current assets 37 665 37 572 38 010
Property, plant and equipment 3 028 2 810 3 276
Intangible assets 30 271 30 240 30 271
Deferred taxation 4 366 4 522 4 463
Current assets 17 131 17 280 19 114
Loans receivable 2 548 1 600 1 073
Trade and other receivables 11 873 13 114 14 435
Cash and cash equivalents 2 710 2 566 3 606
Total assets 54 796 54 852 57 124
Equity and liabilities
Capital and reserves 35 349 21 328 28 306
Issued capital and reserves 31 625 19 800 25 449
Minority interests 3 724 1 528 2 857
Current liabilities 19 447 33 524 28 818
Trade and other payables 12 608 11 782 13 093
Interest-bearing borrowings - 7 465 6 887
Taxation payable 3 111 6 982 4 036
Bank overdraft 3 728 7 295 4 802
Total equity and liabilities 54 796 54 852 57 124
Six months ended Year ended
Unaudited Reviewed Audited
30 Apr 30 Apr 31 Oct
2005 2004 2004
R`000 R`000 R`000
Cash generated from operations 11 623 9 541 19 313
Net interest paid (352) (706) (1,488)
Taxation paid (4 134) (5 443) (9 208)
Decrease/(increase) in working capital 2 078 (3 602) (5 331)
Cash available from operations 9 215 (210) 3 286
Cash flows from investing activities (449) (1,423) 1,503
Cash flows from financing activities (8 588) 7 181 4 292
Net increase in cash and cash equivalents 178 5 548 9 081
Cash and cash equivalents
at beginning of period (1 196) (2 761) (2 761)
Non-current liability transfered
to bank overdraft - (7 516) (7 516)
Cash and cash equivalents
at end of period (1,018) (4,729) (1,196)
STATEMENT OF CHANGES IN EQUITY for the period ended 30 April 2005
Six months ended Year ended
Unaudited Reviewed Audited
30 Apr 30 Apr 31 Oct
2005 2004 2004
R`000 R`000 R`000
Issued capital
Balance at beginning of period 8 539 8 647 8 647
Consolidation of share trust - (89) (89)
Restated balance at beginning of the period 8 539 8 558 8 558
Repurchased during the period - - (19)
Balance at end of the period 8 539 8 558 8 539
Share premium
Balance at beginning of period 31 909 32 431 32 431
Consolidation of share trust - (447) (447)
Restated balance at beginning of the period 31 909 31 984 31 984
Repurchased during the period - - (75)
Balance at end of the period 31 909 31 984 31 909
Accumulated loss
Balance at beginning of period (14 999) (24 830) (24 830)
Profit for the period 6 176 4 088 9 831
Balance at end of the period (8 823) (20 742) (14 999)
Total capital and reserves 31 625 19 800 25 449
COMMENTS
IFRS reporting
This report has been prepared in accordance with the Group`s accounting
policies, which fully comply with International Financial Reporting Standards
(`IFRS`). The accounting policies were changed with effect from November 1 2004
to comply with IFRS. The transition to IFRS is accounted for in accordance with
IFRS 1 (First-time Adoption of International Financial Reporting Standards),
with November 1 2003 as the date of transition. Comparative numbers have,
accordingly, been restated. The single material item in the Group`s balance
sheet that required attention in complying with the new statements is its
goodwill. The Group re-assessed the goodwill that arose from the acquisition of
its radio station subsidiaries at November 1 2003 and determined that they
represented fair value at that date. Accordingly, the goodwill figure has been
retained at that carrying amount and is assessed for impairment in terms of
IAS36, Impairment of Assets. No amortisation is therefore charged against the
Group`s income and the prior reporting periods have been adjusted to take
account of this change in accounting policy.
This interim report has been prepared in accordance with IAS34, Interim
Financial Reporting.
Financial results
Sales revenue has been static for the first six months of the year, with ALgoaFM
ahead of budget and OFM running behind its budget for the year to date. However,
costs have been well controlled and both radio stations expect to achieve their
budgeted results by the end of the year. The cost-cutting exercises performed at
United Stations, the Group`s sales agency, during 2004 is now producing the
required results and the company is well ahead of its budgeted profit for the
year to date.
The profit attributable to shareholders in the first six months amounted to R6
176 000 (2004: R4 088 000) and produced earnings of 72,3c (2004:47,8c) and
headline earnings from continuing operations of the same amount (2004:29,7c). In
line with the board`s policy of building resources for future investment, it has
been decided not to recommend an interim dividend.
The group generated R9 200 000 from its operations during the first six months
of the year most of which was utilised to pay off the last of its legacy debt.
Liabilities have been reduced from R28 818 000 at October 2004 to R19 447 000 at
April 30 2005.
Prospects
As sales revenue is not expected to increase significantly in the remainder of
the year, the second six month`s results are expected to perform at the same
levels as the first six months.
By order of the board
ACG Molusi 10 June 2005
Chairman Johannesburg
Registered office: 5th Floor, Park Terras, 33 Princess of Wales Terrace,
Parktown, Johannesburg PO Box 3014 Houghton 2041 Transfer Secretaries:
Computershare Investor Services 2004 (Pty) Ltd 70 Marshall Street, Marshalltown
PO Box 61051 Marshalltown 2107
Directors ACG Molusi (Chairman)*, Z Lacob*, MJ Prinsloo*, L Thango*,
W Tshuma*, *Non-executive
Date: 10/06/2005 07:00:08 AM
Produced by the JSE SENS Department
