2nd May 2006 09:52
Independent News & Media PLC02 May 2006 2 May 2006 APN News & Media Limited Annual General Meeting Chairman's Address to Shareholders The Chairman of APN News & Media Ltd ('APN'), in which Independent News & MediaPLC ('INM') has a 40.50% shareholding, made the following address at theCompany's Annual General Meeting held on 2 May 2006. After a series of record results in recent years for APN News & Media, it is mypleasure to report that we have been able to deliver another strong result in2005, increasing Net Profit After Tax by 16% to $149.7 million. Revenues grew by7% to $1.36 billion and basic earnings per share were up a very healthy 15% to31.1 cents per share. Dividends per share have grown for the thirteenthconsecutive year, increasing to 24.2 cents per share. APN News & Media is a diverse multimedia Company with exposure to a range ofdifferent media sectors across a spread of economic conditions in a variety ofhigh growth geographical locations. Our businesses have continued to grow through a strategy of organic investmentof existing operations and strategically important acquisitions. During the pastyear three such acquisitions were made: Look Outdoor and Adspace in our Outdoordivision and the leading New Zealand jobs website Netcheck, strengthening ouronline position. We have continued to launch new publications and radio stations into growingmarkets, building on strong existing operations and infrastructures. We havealso been successful in a number of new contract wins in our Outdoor operation,which has benefited from the restructuring initiative undertaken in 2004. We continue to have a broad shareholder base with a significant number ofholders located outside Australia, including in New Zealand where many of ourbusinesses operate. We continue to encourage the Australian and New ZealandGovernments to work towards changes that would allow New Zealand shareholdersmore equitable utilisation of the Company's New Zealand imputation credits. As expected, in October 16.8 million convertible notes were converted intoshares following the receipt of conversion notices from noteholders. To date,18.8 million convertible notes have been converted into ordinary shares, leavingconvertible notes on issue with a face value of $175.7 million. As a result ofthe expected growth in dividends, it seems likely that more noteholders willconvert in 2006. The Company has been active in capital management during the year. In June,shareholders approved a buy-back of up to 47 million shares over a 12 monthperiod in anticipation of the conversion of convertible notes. Your Company hasbought back 33.5 million shares for an aggregate price of $164.5 million at anaverage price of $4.92 per share. To date, the buy-back has been earnings pershare accretive and is expected to remain so in 2006. The Company's debt levels are essentially unchanged as a result of the buy-backactivity undertaken during the year and the conversion of convertible notes,totalling $75 million. Gearing levels are very comfortable after allowing forthe buy-back, providing sufficient headroom for continued investment in newproduct initiatives and any foreseeable acquisitions. Your directors have declared a final dividend of 15.4 cents per share,increasing the total payment for the year to 24.2 cents per share, franked at30%, an increase of 10% over the 2005 payment. The final dividend was paid on 24April 2006. In March the Government outlined its plans for reforms to the media industry.APN supports the Minister's proposals for media reform as the present situationis constraining development of the media sector and we believe that thecross-media and foreign ownership restrictions should be liberalised as soon aspossible. In recent years, at the time of releasing the annual results and the AGM, theBoard has outlined its double-digit earnings ambition for the following year. Itis pleasing to report that the strength of APN's markets and assets has enabledthat ambition to be achieved for each of the past four years. The Board of APN believes that our portfolio of market leading brands in highgrowth markets will continue to produce good returns and that 2006 will be noexception. Whilst it is too early to predict a fifth consecutive year of double-digitearnings growth and given a continuation of current conditions, the Boardbelieves that further significant earnings growth for the year of at least fivepercent looks likely. Results for the first four months of 2006 are in line with expectations. In ourforecasts we recognised the strong trading performance achieved in the firsthalf of last year and we are trading ahead of that at present. Our full yearobjective should be achieved with growth expected to accelerate against theprior year from now on. On behalf of the Board, I would like to convey my appreciation to the ChiefExecutive, Brendan Hopkins, and all of APN's employees, which number more than5,000 across five countries, for what has been another outstanding year. Wecontinue to strengthen our team with people with the necessary skills,enthusiasm and ideas to underpin the success of this exciting multimediaCompany. Finally on behalf of your Board, I would like to thank all shareholders for yourcontinuing support. -- ENDS -- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Independent News & Media