| Mon 19 Dec 2005, 7:01 | | African Media Entertainment - Provisional report f |
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African Media Entertainment - Provisional report for the year ended 31 October
2005
African Media Entertainment Limited
("AME" or "the Group")*(Incorporated in the Republic of South Africa)
Registration number 1926/008797/06
Share code: AME * ISIN number: ZAE000055802
Provisional report for the year ended 31 OCTOBER 2005
Abridged group income statement
Reviewed Restated
% 2005 2004
change R"000 R"000
Revenue 7 85 916 80 499
Cost of sales and operating expenses (63 098) (62 814)
Loss on discontinued operations - (400)
Operating profit before surplus on disposal
of operations 22 818 17 285
Surplus on disposal of operations - 1 363
Operating profit 22 22 818 18 648
Interest received 237 479
Interest paid (814) (1 967)
Net profit before taxation 30 22 241 17 160
Taxation (6 109) (5 653)
SA Normal (6 081) (3 653)
STC (28) (2 000)
Net profit after taxation 40 16 132 11 507
Minority interest (2 191) (2 085)
Profit attributable to shareholders 48 13 941 9 422
Earnings per share (cents) 163,3 110,3
Headline earnings per share for continuing
operations (cents) 65 163,3 99,1
Total headline earnings per share (cents) 163,3 94,4
Weighted average number of shares in
issue (000"s) 8 539 8 539
Headline earnings reconciliation for continuing
operations
Profit attributable to shareholders 13 941 9 422
Surplus on disposal of operations - (1 363)
Discontinued operations after taxation - 400
Headline earnings for continuing operations 13 941 8 459
Statement of changes in equity
for the year ended 31 October 2005
Reviewed Restated
2005 2004
R"000 R"000
Issued capital
Balance at beginning of year 8 628 8 647
Repurchased during the year - (19)
Total issued capital 8 628 8 628
Consolidation of share trust (89) (89)
Balance at end of year 8 539 8 539
Share premium
Balance at beginning of year 32 356 32 431
Repurchased during the year - (75)
Total share premium 32 356 32 356
Consolidation of share trust (447) (447)
Balance at end of year 31 909 31 909
Accumulated loss
Balance at beginning of year (15 725) (24 830)
Restatement of leases in terms of IAS17 - (317)
Restated balance (15 725) (25 147)
Profit for the year 13 941 9 422
Balance at end of year (1 784) (15 725)
Total capital and reserves 38 664 24 723
Abridged group balance sheet
as at 31 October 2005
Abridged group balance sheet
as at 31 October 2005
Reviewed Restated
2005 2004
R"000 R"000
Assets
Non-current assets 38 137 38 383
Property, plant and equipment 3 379 3 276
Goodwill 30 428 30 271
Deferred taxation 4 330 4 836
Current assets 22 893 19 114
Loans receivable 2 391 1 073
Trade and other receivables 17 086 14 435
Taxation paid in advance 549 -
Cash and cash equivalents 2 867 3 606
Total assets 61 030 57 497
Equity and liabilities
Total equity 43 343 27 435
Issued capital and reserves 38 664 24 723
Minority interests 4 679 2 712
Non-current liabilities 1 951 1 524
Non-interest bearing liabilities 335 315
Lease accrual 1 616 1 209
Current liabilities 15 736 28 538
Trade and other payables 15 097 13 043
Interest-bearing borrowings - 6 657
Taxation payable 445 4 036
Bank overdraft 194 4 802
Total equity and liabilities 61 030 57 497
Abridged group cash flow statement
for the year ended 31 October 2005
Reviewed Restated
2005 2004
R"000 R"000
Cash generated from operations 24 218 18 547
Net interest paid (577) (1 488)
Taxation paid (9 744) (9 208)
Increase in working capital (470) (5 331)
Cash available from operations 13 427 2 520
Cash flows from investing activities (2 901) 1 503
Cash flows from financing activities (6 657) 5 058
Net increase in cash and cash equivalents 3 869 9 081
Cash and cash equivalents at beginning of year (1 196) (2 761)
Non-current liability transferred to bank overdraft - (7 516)
Cash and cash equivalents at end of year 2 673 (1 196)
COMMENTS
The significantly improved level of profitability of the first six months
continued for the full year. Gross revenue for the year increased by 7% (2004:
18%), whilst margins were maintained and overheads were kept at the same level
as 2004. These factors resulted in headline earnings per share increasing by 65%
from 99,1 cents to 163,3 cents.
Both radio stations - OFM and AlgoaFM - continued to increase their listenership
and advertising revenue and United Stations, the Group"s advertising selling
agency produced excellent results for the year.
Cash flow available from operations amounted to R13,4 million, most of which was
used to finally extinguish the Group"s legacy debt. The Group ended the year in
a cash positive position of R2,7 million.
The continued improvement of the balance sheet, efficiencies, control of costs
and the Group"s ability to generate cash in a competitive business environment,
positions AME well for the coming year. Although no dividend is recommended for
this year, during the forthcoming year, AME anticipates that it will be in a
position to declare a dividend, barring AME availing itself of investment
opportunities that may arise from the anticipated relaxation of the radio
licence ownership restrictions.
Accounting policies
As reported at half year, these reports have been prepared in accordance with
the Group"s accounting policies, which comply with International Financial
Reporting Standards ("IFRS"). The accounting policies were changed with effect
from 1 November 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 1 November 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 1 November 2003 and determined that it 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 period has been adjusted by reversing goodwill amortisation of
R3,8 million. There are no other material changes from the previous reported
figures.
Change in accounting interpretation
During the year, the Group changed its interpretation of IAS17 "Accounting for
Operating Leases." In order to comply with IAS17, lease payments under an
operating lease are recognised as an expense on a straight-line basis over the
lease term. Previously lease payments were expensed as and when incurred. The
effect of this change is a decrease in the 2004 profit as previously reported of
R408 000 (after tax of R230 000) and headline earnings per share decreased by
4,8 cents. Furthermore, the new application of IAS17 resulted in changes
affecting the following prior year balance sheet items; deferred taxation
increased by R373 000 lease accrual increased by R1 243 000 and minority
interests decreased by R145 000. The comparative figures have been restated
accordingly.
Audit review
The results have been reviewed by the Group"s auditors, Charles Orbach &
Company, and their unqualified review report is available for inspection at the
company"s registered office.
By order of the Board
ACG Molusi 15 December 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) Limited,
70 Marshall Street, Marshalltown 2107. (PO Box 61051, Marshalltown 2107).
Directors: ACG Molusi (Chairman)*, Z Lacob*, MJ Prinsloo*, L Thango*,
W Tshuma* *Non-executive
Share code: AME * ISIN number: ZAE000055802
www.ame.co.za
Date: 19/12/2005 07:01:08 AM Produced by the JSE SENS Department
