| Mon 20 Feb 2006, 13:20 | | Kagiso - Interim results and dividend for the six |
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KGM
KGM
Kagiso - Interim results and dividend for the six months ended 31 December 2005
Kagiso Media Limited
(Registration number 1957/000036/06)
("Kagiso Media" or "the company")
Share code: KGM & ISIN: ZAE000014007
Interim results and dividend declaration for the six months ended 31 December
2005
Highlights
- Broadcasting revenue up 13.2%
- Specialist publishing revenue up 18.3%
- Operating profit up 11.4%
- Dividend of 40 cents per share
Condensed consolidated interim balance sheet
31 December 31 December 30 June
2005 2004 2005
(Restated) (Restated)
(R"000) (Unaudited) (Unaudited) (Unaudited)
Assets
Non-current assets 464 397 192 201 472 814
- Property, plant and equipment 16 373 15 059 15 870
- Intangible assets 405 507 156 000 417 698
- Investment in associates 42 517 21 142 39 246
Current assets 203 690 268 005 212 526
- Inventory 8 793 8 859 10 161
- Deferred expenses 15 405 13 577 7 202
- Trade and other receivables 138 053 137 933 105 338
- Sinking fund 17 090 - 8 403
- Cash and cash equivalents 24 349 107 636 81 422
Total assets 668 087 460 206 685 340
Equity
Capital and reserves attributable 291 230 219 926 291 835
to company equity holders
Minority interest 102 153 15 200 100 840
Total equity 393 383 235 126 392 675
Liabilities
Non-current liability 172 834 91 929 175 840
- Preference shares 82 500 82 500 82 500
- Deferred income tax 90 334 9 429 93 340
Current liabilities 101 870 133 151 116 825
- Deferred revenue 22 143 17 226 20 943
- Trade and other payables 71 058 86 807 73 254
- Current income tax 8 669 29 118 22 628
Total liabilities 274 704 225 080 292 665
Condensed consolidated interim income statement
Six Twelve
months ended months
ended
31 December 31 December Change 30 June
2005 2004 2005
(Restated) (Restated)
(R"000) (Unaudited) (Unaudited) % (Unaudited)
Revenue 273 925 266 264 2.9 527 031
Operating profit 125 866 112 954 11.4 203 591
Depreciation and (17 891) (9 964) (31 788)
amortisation
Operating profit after 107 975 102 990 171 803
depreciation and
amortisation
Net finance income 2 945 2 771 6 936
Preference dividend (3 057) (1 331) (4 399)
Share of results of 3 799 4 408 5 964
associates before tax
Profit before tax 111 662 108 838 180 304
Tax (43 396) (40 910) (73 607)
Profit for the year 68 266 67 928 0.5 106 697
Minority shareholders (13 311) (11 163) (13 891)
Net profit for the period 54 955 56 765 (3.2) 92 806
Earnings per share
Normalised earnings per share 46.3 39.3 72.7
(cents) 41.5 43.3 70.7
Earnings per share 41.7 43.4 70.8
- basic (cents)
- diluted (cents)
Number of shares in issue 132 462 131 243 131 321
(`000s)
Weighted average number of 131 891 130 754 131 021
shares in issue (`000s)
Reconciliation of normalised earnings
Net profit for the period 54 955 56 765 (3.2) 92 806
Amortisation of intangible -
assets as per IFRS 3, net of tax 2 756 - 5 052
and minorities" share
Benefits from biennial - (3 841) - (3 841)
exhibitions
Normalised earnings 57 711 52 924 9.0 94 017
Condensed consolidated statement of changes in capital and reserves attributable
to company equity holders
Six Twelve
Months ended months
ended
31 December 31 December 30 June 2005
2005 2004
(Restated) (Restated)
(R"000) (Unaudited) (Unaudited) (Unaudited)
Shareholders" interest at the 291 835 146 118 146 118
beginning of the period as
previously reported
IFRS restatements - 69 688 69 688
291 835 215 806 215 806
Issue of new shares, net of share 2 496 2 073 2 278
issue expenses
Revaluation of intangible assets - - 90 595
acquired in subsidiary
Share entitlement expenses 227 404 627
Net profit for the period 54 955 56 765 92 806
Dividend paid (58 283) (55 122) (110 277)
Shareholders" interest at the end 291 230 219 926 291 835
of the period
Condensed consolidated interim cash flow statement
Six Twelve
months ended months ended
31 December 31 December 30 June 2005
2005 2004
(Restated) (Restated)
(R"000) (Unaudited) (Unaudited) (Unaudited)
Cash flows from operating
activities
Cash generated by operating 126 093 112 953 203 395
activities
Increase in working capital (40 544) (46 795) (9 370)
Net cash inflow from operating 85 549 66 158 194 025
activities
Net finance income 2 945 2 771 5 591
Tax paid (59 834) (21 291) (63 919)
Dividend paid to group (58 283) (55 122) (110 277)
shareholders
Dividend paid to preference (3 054) - (3 054)
shareholders
Dividend paid to minority (12 000) - (20 000)
shareholders
Net cash (outflow)/inflow from (44 677) (7 484) 2 366
operating activities
Cash flows from investing (6 204) (57 763) (85 632)
activities
Net additions to property, plant (6 204) (4 301) (5 224)
and equipment
Additions to intangible assets - (82) (2 673)
Investment in subsidiary, net of - (53 380) (44 709)
cash acquired
Investment in associate, net of - - (17 735)
cash acquired
Loan to associate - - (15 291)
Cash flows from financing (6 192) 84 571 76 375
activities
Proceeds from issue of new
shares, net of share issue
expenses
- ordinary shares 2 495 2 073 2 278
- preference shares - 82 498 82 500
- movement on preference share (8 687) - (8 403)
sinking fund
Net (decrease) / increase in cash (57 073) 19 324 (6 891)
and cash equivalents
Cash and cash equivalents at 81 422 88 312 88 313
beginning of the period
Cash and cash equivalents at end 24 349 107 636 81 422
of the period
1. Comments on results
General
Kagiso Media is pleased to announce an increase in operating profit of 11.4% for
the six months to 31 December 2005, over that recorded in the comparative
period. The company posted earnings per share of 41.5 cents compared to 43.3
cents in the same period last year. If these results are adjusted for infrequent
events at Kagiso Exhibitions, as well as accounting for the purchase of the
additional stake in Jacaranda according to IFRS guidelines recorded in the month
of June 2005, normalised earnings increased by 9%.
The performance of each operation in respect of revenue and the operating profit
margin are discussed in more detail in 3 below.
Revenue
Revenue for the period under review increased by 2.9% in absolute terms over
that of the comparative period, but by 13.1% on a directly comparable basis if
the revenue of R24.0m attributable to the infrequent events at Kagiso
Exhibitions are considered. This performance is as a result of the revenue
growth at East Coast Radio (9.4%), Jacaranda (8.2%) and LexisNexis Butterworths
(18.3%).
Operating profit
Operating profit margin
The overall operating profit margin improved from 42.4% in the comparative
period, to 46.0% in the six months under review, mainly as a result of the
consolidation of the high-margin earnings from Jacaranda since 1 August 2004,
and the improvement in margins in the broadcasting division and specialised
publishing divisions.
Net finance income
Despite the lower than before cash balances at the end of the period, the
finance income received for the period increased by 6%. The interest received
from funds deposited in the sinking fund assisted with this positive result.
This fund was established in accordance with the agreement entered into with the
preference shareholders, i.e. that 10% of the outstanding amount be deposited
into a fund every six months and kept separate from normal business cash-flow
utilisation. Eventually this fund will be utilised to redeem these shares.
Preference dividend
The preference dividend pertains to the preference shares issued in October and
December 2004. This funding was utilised to purchase the minority interest in
the two P4 radio stations. The full impact of this arrangement is evident in the
129.6% increase.
Associates
The results recorded from the associates, include 24.9% from OFM, 33.3% economic
interest in Heart 104.9 (ex P4 Cape Town), 33.3% economic interest in
iGagasi99.5 (ex P4 KZN) and 25.1% of the economic interest in Kaya FM. This
composition is different from the previous period where income from associates
comprised 42.5% and 24.9% from Jacaranda and OFM respectively.
Taxation
The effective tax rate increased from 37.6% in the comparative period to 38.9%
in the six months to 31 December 2005, mainly due to the fact that the Secondary
Tax on Companies ("STC") charge in the current period is relatively high
compared to the earnings of the company. As the company continues to maintain a
high dividend policy, the effective tax rate will remain above 35%.
Minorities" share of profits
Minorities own a collective 40% of Jacaranda. The increase in profits
attributable to the minority shareholders" resulted from the additional month"s
revenue consolidated in 2005 as well as the increased performance at this
station for the period under review.
Review of operations
During the period under review, and in the comparative period (restated),
revenue, operating profit and earnings were contributed by the group"s business
segments as follows:
Segmental analysis for the six months ended 31 December
Revenue Operating profit Earnings
2005 2004 2005 2004 2005 2004
(R"000) (Restated) (Restated)
Head-office 1 329 758 (4 183) (3 658) (15 123) (10 679)
Broadcasting 187 532 165 667 104 727 90 790 57 426 53 029
Specialist 64 387 54 404 24 345 18 502 14 436 10 642
publishing
Exhibitions 20 677 45 435 977 7 320 (1 784) 3 773
Total 273 925 266 264 125 866 112 954 54 955 56 765
Head-office
The group"s share of STC in all the subsidiaries, joint ventures and associates,
as well as any deferred tax movement in respect of STC credits, are allocated to
the head-office segment.
Broadcasting
General
Revenue for the broadcasting segment increased by 13.2%; and earnings increased
by 8.3% to R57.4m in the period under review. The performance is mainly
attributed to the continued aggressive discounting by television and current
advertising growth being driven by the retail sector that tends to favour print
rather than radio. Listenership results for the quarter September to December
2005 were released at the end of January 2006. Jacaranda, Heart 104.9 (ex P4
Cape Town) and OFM increased market share while East Coast Radio and iGagasi99.5
(ex P4 KZN) were stable.
East Coast Radio
East Coast Radio revenue increased by 9% over the comparative six months, with
most of the growth attributable to the performance of the local sales team who
continued positioning themselves stronger throughout the region. Costs were
contained and the station"s attractive operating profit margin was maintained at
above 55%. East Coast Radio was launched on Worldspace radio on 25 November
2005. During the month of December they once again successfully ran the Toy
Story campaign through which toys were delivered to more than 50 hospitals.
Jacaranda 94.2
According to the Adex results for the calendar year to date, Jacaranda became
the top revenue earning station in South Africa for the first time. Revenue for
the six months increased by 8% and operating profit margin was in line with
expectations.
The programming changes effected at Jacaranda at the start of the year have
borne results. In the recently released Rams results, Jacaranda has increased
its core LSM 6-10, 25-49 listeners in Gauteng year-on-year by 12%.
A new satellite-broadcasting studio was launched at Monte Casino, Fourways where
live broadcasting is done over the weekends and holidays. The RMfm station also
started with live broadcasts from Polokwane, improving the quality of the
transmission, in return increasing the listenership and revenue streams.
OFM
OFM"s revenue improved by 5% over the previous financial year. The decrease in
the growth performance compared to the comparative period of 13% was the result
of a change in the pricing policy. All indicators confirm that the strategy now
being successfully completed will allow a stronger, more sustainable basis for
effective and efficient pricing into the future. The benefits flowing from the
new transmitter in Sasolburg are anticipated to improve the revenue stream in
the next six months.
RadMark
A new managing director, with extensive experience in the advertising industry,
was appointed in November 2005 resulting in a renewed effort and focus on
performance. RadMark"s revenue increased by 5% off a high base compared to the
last year"s six months results. The latest Adex reports indicate RadMark"s
advertising revenue share to be stable at 27%.
Specialist publishing
LexisNexis Butterworths increased revenue 18% (23% in 2004) and is now
contributing 26% (19% in 2004) to the group"s earnings. Strong performance by
all its product ranges, especially print subscriptions and on-line products
attributed to this outstanding performance. On-line products now amount to 23%
of revenue. The business from the rest of the continent should contribute about
5% to total revenue. The operating profit margin increased from 34% in the
comparative six months to 38% in the period to 31 December 2005.
Exhibitions
South Africa"s official participation at the AICHI 2005 World Expo in Japan was
planned and designed by the new Cape Town office which was opened a year ago.
This expo was successfully completed in September and South Africa received the
silver medal for medium sized exhibitions at this trade show. Two other main
shows were staged in the last six months, i.e. the Saitex show at Gallagher
Estates and the House and Garden show in Durban. The Auto Africa and Aerospace
shows, being biennial exhibitions, will only be held in the 2007 financial year,
thus the main reason for the decrease in the revenue of 54% compared to the
previous period.
This division will stage various initiatives during the next six months,
including the Rand Show in Johannesburg, the Design for Living show in Cape Town
and various other successful tenders recently awarded. This includes a mandate
with the IEC national operations centre to set up the infrastructure for the
upcoming local government elections. MTN and the Rand Show have also concluded a
sponsorship agreement in respect of the six music concerts that will be
presented at the show.
3. Financial position
Working capital
The group had available cash of R24.3m at 31 December 2005, down from the R81.4m
at 30 June 2005. The decrease in cash is mainly attributable to the dividend
payment made in October of R58.3m, increase in the sinking fund deposit of R8.7m
and STC payments of R8.6m. The provisional tax payments made during 2005 were
based on recently assessed income, which reflects a more accurate tax liability
for the period. Despite this cash outflow, the company will maintain a dividend
cover of 1 times, consistent with 2004, in the dividend declared for the six
months ended 31 December 2005.
Preference shares
A subsidiary of the company raised R82.5m in funding through the issue of
redeemable, cumulative, variable rate preference shares to a commercial bank.
The preference shares have a coupon of 70% of the prime overdraft rate and the
preference dividend is payable on 31 March and 30 September of every year. The
preference shares are redeemable over five years from the date of issue, with
the first redemption of 60% of the subscription price taking place after three
years. In order to allow for this redemption, the group will accumulate the
required amount of cash in a dedicated savings account ("the sinking fund").
Thereafter, the balance of the preference shares will be redeemed in equal
biannual instalments over two years.
At 31 December 2005 the gearing stood at 21% (2004: 35%) expressed as a
percentage of shareholders" interest.
4. Regulatory matters
The Independent Communications Authority of South Africa ("Icasa") has submitted
its proposed amendments to the laws governing the ownership and control of
commercial radio broadcasting licences to the Department of Communications.
Once the parliamentary process is concluded, the new legislation should allow
media owners to increase the number of radio stations they control from two to
five, i.e. 35% of available licences.
The group is awaiting the decision of Icasa regarding an objection raised with
regards to an application made to Icasa to amend the shareholding in Kaya FM.
The amended shareholding in Kaya FM will be the result from various agreements,
including refinancing arrangements, and if approved by the regulator, should
result in Kagiso Media holding an effective economic interest of 16.6% in this
station.
5. Seasonality
The first six months of the financial year normally represents the peak trading
period for radio broadcasting, the group"s major business segment. The earnings
from this segment over the two six month trading periods in the 2006 financial
year should therefore reflect a similar seasonality to what has been experienced
over the past two to three years.
6. Interim dividend declaration
Notice is hereby given that a dividend of 40 cents (2004 - 42 cents) per share
has been declared in respect of the six months ended 31 December 2005 and is
payable to holders of ordinary shares recorded in the register of the company on
Friday, 17 March 2006.
The following salient dates apply to this dividend:
Last date to trade cum-dividend Friday, 10 March 2006
Shares commence trading ex-dividend Monday, 13 March 2006
Record date Friday, 17 March 2006
Payment of the dividend Monday, 20 March 2006
Share certificates may not be dematerialised or rematerialised between Monday,
13 March 2006 and Friday, 17 March 2006, both days inclusive.
In terms of the Companies Act, the directors confirm that, after the payment of
the above dividend, the company will be able to meet its commitments and settle
its liabilities as these fall due in the ordinary course of business and that
its consolidated assets, fairly valued, exceed its consolidated liabilities.
7. Prospects
With a stable local economic outlook, strong consumer confidence and spending
and the positioning of the group"s assets as leaders in their respective
markets, the outlook for the remainder of the financial year remains positive.
In addition, the directors are confident that, in the absence of acquisition
opportunities and subject to the repayment of the group"s debt, a relatively
high percentage of the group"s profits can continue to be distributed to
shareholders.
8. Transition to international financial reporting standards
Restatement of financial information as at and for the year ended 30 June 2005
and as at and the six months ended 31 December 2004 under International
Financial Reporting Standards ("IFRS").
a) Introduction
For the year ended 30 June 2005 the Kagiso Media group ("Kagiso" or "the group")
prepared its financial statements under South African Statements of Generally
Accepted Accounting Practice ("SA GAAP") as effective at that date. In
accordance with the JSE Limited ("JSE") listings requirements, the group will be
required to prepare its annual consolidated financial statements in accordance
with IFRS for the year ending 30 June 2006.
This requirement applies to financial reporting for all JSE-listed companies for
financial reporting periods beginning on or after 1 January 2005 and,
consequently, Kagiso"s first published IFRS results are its interim results for
the six months ended 31 December 2005. The group"s first published IFRS annual
financial statements under IFRS will be for the year ending 30 June 2006. As the
group publishes comparative information in its financial statements, the date
for transition to IFRS is 1 July 2004, which represents the start of the
earliest period of comparative information to be presented.
In order to explain how Kagiso"s reported results of operations and financial
position are impacted by IFRS, the group has restated information previously
published under SA GAAP to the equivalent basis under IFRS. This restatement
follows the guidelines set out in IFRS 1, "First-time adoption of International
Financial Reporting Standards" ("IFRS 1"). It is important to note that this
financial information has been prepared in accordance with IFRS statements that
are expected to be effective at 30 June 2006. These are subject to ongoing
review and possible amendment by interpretive guidance from the International
Accounting Standards Board ("IASB") and may therefore be subject to change. It
should further be noted that the ultimate presentation, and income statement and
balance sheet captions, in the annual financial statements of the year ending 30
June 2006 could also change.
b) Basis of preparation
The group has prepared consolidated preliminary balance sheets at 31 December
2004 and 30 June 2005, a consolidated preliminary income statement for the six
months ended 31 December 2004 and a consolidated preliminary income statement
for the year ended 30 June 2005, in accordance with IFRS ("the preliminary
financial information") to establish the financial position and results of
operations of the group necessary to provide the comparative information
expected to be included in the group"s first set of IFRS financial statements
for the year ending 30 June 2006 and its interim report for the period ended 31
December 2005.
c) IFRS adjustments and reclassifications
The group made the following adjustments to its SA GAAP financial statements in
order to restate the information in terms of IFRS:
i) IFRS 2: Share-based payments
The group grants share options to its employees under two equity compensation
plans. In terms of SA GAAP, these equity compensation plans did not result in
any expense being recorded by the group, other than cost incurred in
administering the schemes and a dilution in earnings per share when the shares
were delivered to the employee.
In accordance with IFRS 2, the group has recognised a compensation expense in
the income statements, representing the fair value of share options granted to
the group"s employees. A corresponding credit to equity has been raised for the
equity-settled plan, whereas a corresponding credit to liabilities has been
raised for the cash-settled plan. The fair value of the options at the date of
grant under the equity-settled plan is charged to income over the relevant
vesting periods, adjusted to reflect actual and expected levels of vesting. For
cash-settled plans, the group re-measures the fair value of the liability at
each reporting date and at the date of settlement, with any changes in fair
value recognised in income for the period.
ii) IAS 38: Recognition of intangible assets
Before the adoption of AC 131 "Business Combinations" and AC 128 "Intangible
Assets" on 1 April 2000, the group accounted for all intangible assets purchased
and acquired in business combinations against shareholders" equity. In terms of
the requirements of IFRS 1, IAS 38 should be applied retrospectively. Therefore
the group is required to recognise all intangible assets that have previously
been recognised in the group"s financial statements and that meet the
recognition and measurements criteria of IAS 38. On transition to IFRS the group
has therefore re-instated all intangible assets previously accounted for against
shareholders" equity under SA GAAP that meet the recognition and measurement
requirements of IAS 38.
iii) IAS 38: Useful lives of intangible assets
The company has reviewed the useful lives of certain trademarks and copyrights
and restated the duration during which future economic benefits will flow from
the use of the assets.
iv) IAS 16: Useful lives and residual values
IAS 16 "Property, plant and equipment" ("IAS 16") differs in certain respects
from the previous SA GAAP equivalent, AC 123 "Property, plant and equipment"
("AC 123"), applied by the group until 30 June 2005. IAS 16 states that an
entity is required to measure the residual value of an item of property, plant
and equipment as the amount the entity estimates it would receive currently for
the asset if the asset were already of the age and in the condition expected at
the end of its useful life. The group has previously under SA GAAP accounted for
residual values based on the requirement of AC 123 that regards residual value
as the net amount that the entity expected to obtain for the asset at the end of
its useful life. The group has therefore reviewed its residual values for
individual items of property, plant and equipment and adjusted the carrying
value of some items at the date of transition accordingly in terms of the
requirements of IAS 16.
IAS 16 further requires that the useful lives of the individual components of
property, plant and equipment items be reviewed at least annually, whereas the
requirement under the previous SA GAAP equivalent, AC 123, has been to review
the useful lives of items of property, plant and equipment on a non-mandatory
periodic basis. The group has reassessed the useful lives of all individual
components of property, plant and equipment and adjusted the carrying value of
some items at the date of transition accordingly. The adjustments to the
residual values and useful lives of certain items of property, plant and
equipment and the corresponding change in their carrying values at 1 July 2004
has also impacted depreciation charges subsequent to 1 July 2004.
IFRS 1 and IAS 16: Fair value as deemed cost
In terms of the requirements of IFRS 1 the group is required to apply IAS 16
retrospectively. As explained in the transitional arrangements section, the
group has elected to apply the exemption under IFRS 1 whereby the fair value of
certain assets at 1 July 2004 is used as its deemed cost on the transition date.
The group adjusted the carrying values of the individual items of property,
plant and equipment for those items to which the exemption was applied.
v) IAS 39 and IAS 32: Trade receivables valued at fair value
These statements require that trade receivables are recognised at fair value and
subsequently measured at amortised cost using the effective interest method,
less provision for impairment. A provision for impairment of trade receivables
is established when there is objective evidence that the group will not be able
to collect all amounts due according to the original terms of the receivables.
vi) IAS 17: Operating leases
The South African Institute of Chartered Accountants issued Circular 7/2005
during August 2005. The purpose of the circular was to clarify the requirements
of IAS 17 "Leases" ("IAS 17") in respect of operating leases, which include
fixed rental increases. IAS 17 and its SA GAAP equivalent standard AC 105
"Leases" ("AC 105") require that lease payments under an operating lease should
be recognised as an expense on a straight-line basis over the lease term unless
another systematic basis is more representative of the time pattern of the
user"s benefit. In South Africa most lessees, including Kagiso, have in the
application of AC 105 recognised rental expenses with fixed rental increases on
the basis of the cash flow in the lease agreements, interpreting that such an
approach represented "another systematic basis" that was "more representative of
the time pattern of the user"s benefits". Circular 7/2005, however, clarified
that the way many South African entities, including Kagiso, applied the "other
systematic basis" in terms of AC 105 is not consistent with the requirements of
IAS 17 and AC 105 as applied internationally. IAS 17 only permits a treatment
other than straight-line recognition when another basis is more representative
of the time pattern of the user"s benefit, which is unaffected by the timing of
payments.
The group applied the principles of IAS 17, as clarified by Circular 7/2005, to
all its lease agreements with fixed rental increases on adoption of IFRS. The
requirements of IAS 17 were applied retrospectively and an adjustment to
retained earnings at the transition date was accounted for. The net profit for
the year ended 31 March 2005 and the six months ended 30 September 2004 was
adjusted accordingly.
Appendices (d) to (g) present the IFRS adjustments and reclassifications that
were made to the group"s income statements for the year ended 30 June 2005 and
the six months ended 31 December 2004 and the balance sheets at 30 June 2005 and
31 December 2004, as described above.
d) IFRS adjustments to the income statements for the year ended 30 June 2005
SA GAAP Adj Adj Adj Adj Adj Adj IFRS
(R"000) year i ii iii iv v vi year
ended 30 ended 30
June June
2005 2005
Revenue 527 031 - - - - - - 527 031
Operating 203 711 (416) - - - - 296 203 591
profit
Depreciation (18 624) - (16 107) 2 994 (51) - - (31 788)
and
amortisation
Operating 185 087 (416) (16 107) 2 994 (51) - 296 171 803
profit after
depreciation
and
amortisation
Net finance 6 936 - - - - - - 6 936
income
Preference (4 399) - - - - - - (4 399)
dividend
Share of 6 058 - - - - - (94) 5 964
results of
associates
before tax
Profit before 193 682 (416) (16 107) (51) - 202 180 304
tax 2 994
Tax (76 501) - 2 558 400 24 - (88) (73 607)
Profit for the 117 181 (416) (13 549) 3 394 (27) - 114 106 697
year
Minority (13 891) - - - - - (13 891)
shareholders -
Net profit for 103 290 (416) (13 549) (27) - 114 92 806
the period
3 394
e) IFRS adjustments to the balance sheet for the year ended 30 June 2005
SAA Adj Adj Adj Adj Adj Adj IFRS
R"(R"000) GAAP i ii iii iv v vi year
Year ended 30
ended June
30 June 2005
2005
Assets
Non-current assets 391 886 - 26 362 54 374 369 - (177) 472 814
- Property, plant 15 501 - - - 369 - - 15 870
and equipment
- Intangible 336 962 - 26 362 54 374 - - - 417 698
assets
- Investment in 39 423 - - - - - (177) 39 246
associates
Current assets 210 824 - - - - 1 406 296 212 526
- Inventory 10 161 - - - - - - 10 161
- Deferred 7 202 - - - - - - 7 202
expenses
- Trade and other 103 636 - - - - 1 406 296 105 338
receivables
- Sinking fund 8 403 8 403
- Cash and cash 81 422 - - - - - - 81 422
equivalents
Total assets 602 710 - 26 362 54 374 369 1 406 119 685 340
Equity and
liabilities
Capital and 232 005 - 16 109 42 084 303 1 304 30 291 835
reserves
attributable to
company equity
holders
Minority interest 96 841 - 3 999 - - - - 100 840
Total equity 328 846 - 20 108 42 084 303 1 304 30 392 675
Liabilities
Non-current 157 041 - 6 254 12 290 66 102 87 175 840
liability
- Preference 82 500 - - - - - - 82 500
shares
- Deferred tax 74 541 - 6 254 12 290 66 102 87 93 340
Current 116 823 - - - - - 2 116 825
liabilities
- Deferred revenue 20 943 - - - - - - 20 943
- Trade and other 73 252 - - - - - 2 73 254
payables
- Current income 22 628 - - - - - - 22 628
tax
Total liabilities 273 864 - 6 254 12 290 66 102 89 292 665
f) IFRS adjustments to the income statements for the six months ended 31
December 2004
SA GAAP Adj Adj Adj Adj Adj Adj IFRS six
(R"000) six i ii iii iv v vi months
months ended 31
ended 31 December
December 2004
2004
Revenue 266 264 - - - - - - 266 264
Operating 112 851 (193) - - - - 296 112 954
profit
Depreciation (3 379) - (8 054) 1 497 (28) - (9 964)
and
amortisation
Operating 109 472 (193) (8 054) 1 497 (28) - 296 102 990
profit after
depreciation
and
amortisation
Net finance 2 771 - - - - - - 2 771
income
Preference (1 331) - - - - - - (1 331)
dividend
Share of 4 408 - - - - - 4 408
results of
associates
before tax
Profit before 115 320 (193) (8 054) 1 497 (28) - 296 108 838
tax
Tax (42 312) - 1 279 200 12 - (89) (40 910)
Profit for the 73 008 (193) (6 775) 1 697 (16) - 207 67 928
year
Minority (11 163) - - - - - - (11 163)
interest
Net profit for 61 845 (193) (6 775) 1 697 (16) - 207 56 765
the period
g) IFRS adjustments to the balance sheet for the six months ended 31 December
2004
SA GAAP Adj Adj Adj Adj Adj Adj IFRS six
(R"000) six i ii iii iv v vi months
months ended 31
ended 31 December
December 2004
2004
Assets
Non-current 104 602 - 34 416 52 876 391 - (84) 192 201
assets
- Property, 14 668 - - - 391 - - 15 059
plant and
equipment
- Intangible 68 708 - 34 416 52 876 - - - 156 000
assets
- Investment in 21 226 - - - - - (84) 21 142
associates
Current assets 266 303 - - - - 1 406 296 268 005
- Inventory 8 859 - - - - - - 8 859
- Deferred 13 577 - - - - - - 13 577
expenses
- Trade and 136 231 - - - - 1 406 296 137 933
other
receivables
- Sinking fund - - - - - - - -
- Cash and cash 107 636 - - - - - - 107 636
equivalents
Total assets 370 905 - 34 416 52 876 391 1 406 212 460 206
Equity
Capital and 154 915 - 22 884 40 386 314 1 304 123 219 926
reserves
attributable to
company equity
holders
Minority 11 201 - 3 999 - - - - 15 200
interest
Total equity 166 116 - 26 883 40 386 314 1 304 123 235 126
Liabilities
Non-current 71 628 - 7 533 12 490 77 102 89 91 929
liability
- Preference 82 500 82 500
shares
- Deferred tax (10 862) - 7 533 12 490 77 102 89 9 429
Current 133 151 - - - - - - 133 151
liabilities
- Deferred 17 226 - - - - - - 17 226
revenue
- Trade and 86 807 - - - - - - 86 807
other payables
- Current 29 118 - - - - - 29 118
income tax
Total 204 789 - 7 533 12 490 77 102 89 225 080
liabilities
On behalf of the board
E Molobi W R Jardine
Chairman Chief executive
20 February 2006
Registered office Transfer secretaries
1st Floor, Kagiso House Ultra Registrars (Pty) Limited
16 Fricker Road 5th Floor, 11 Diagonal street
Illovo, 2196 Johannesburg, 2001
(PO Box 4844, Johannesburg, 2000)
Directors: E Molobi (Chairman), M J N Njeke, W R Jardine* (Chief
Executive), O C Essack*, S Pienaar*, H I Appelbaum, R L Hiemstra#, Y I
Mahomed, S N Pragjee, A H Singh
* Executive # Independent
Also available at: www.kagisomedia.co.za
Date: 20/02/2006 01:21:13 PM Produced by the JSE SENS Department
