| Tue 20 Feb 2001, 0:00 | | Caxton Interim Report |
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Caxton Publishers and Printers Limited
and subsidiary companies
(Incorporated in the Republic of South Africa)
(Registration number 1947/025989/06)
("Caxton" or "the company")
Earnings up 28,5%
Earnings per share up 10%
INTERIM RESULTS
Interim report for the six months ended 31 December 2000
Income statement for the year to 31 December 2000
Unaudited Unaudited Audited
6 months to 6 months to for the year
31 December 31 December 30 June
2000 1999 2000
(Restated)
R'000 R'000 R'000
Turnover 1 227 386 1 152 688 2 258 814
Profit from operations 172 828 143 750 263 170
Depreciation (38 490) (33 407) (69 651)
134 338 110 343 193 519
Finance income (Net) 25 988 12 394 20 773
Associated companies 1 914 192 782
Income Before
Exceptional Items 162 240 122 929 215 074
Exceptional items - - 1 734
Income before taxation 162 240 122 929 216 808
Taxation (46 238) (30 468) (51 667)
Income after taxation 116 002 92 461 165 141
Attributable to outside shareholders (661) (2 884) (3 396)
Earnings to Attributable
to Shareholders 115 341 89 577 161 745
Earnings per share (cents) 19,8 18,0 31,8
Weighted average number
of share in issue 581 661 545 498 583 967 507 759 330
Borrowings - Long term 474 10 018 488
- Short term - 20 933 -
Cash resources 374 834 69 131 447 064
Capital expenditure 53 805 101 091 260 905
Capital commitments 20 000 43 789 20 000
Cash earnings per share
Income before taxation
and exceptional items 162 240 122 929 216 808
Add: Depreciation 38 490 33 407 69 651
Less: Net profit on sale
of fixed assets 14 2 273 2 273
Taxation 2 625 8 397 12 246
Associated
companies profits 1 914 192 782
Cash earnings 196 177 145 474 269 424
Cash earnings per share (cents) 34 29 52
Statement of change in equity
Balance at beginning of period 1 496 955 1 120 520 1 120 520
Retained income 115 341 89 577 161 745
Capitalisation award and
share issue expenses - 6 805 6 805
Goodwill written-off - (91 668) (96 236)
Acquisitions - 90 042 (90 042)
Rights offer 10 895 - 214 079
Balance at end of period 1 623 191 1 215 276 1 496 955
Balance Sheets
at 31 December 2000
Unaudited Unaudited Audited
6 months to 6 months to for the year
31 December 31 December 30 June
2000 1999 2000
R'000 R'000 R'000
Assets
Fixed assets 694 741 669 624 681 698
Investment and loans 165 264 66 348 69 587
Deferred taxation - 23 353 5 791
Current assets 1 257 658 1 166 204 1 172 762
Total assets 2 117 663 1 925 526 1 929 838
Equity and liabilities
Shareholders' equity 1 623 191 1 215 276 1 496 955
Outside shareholders' interest 2 380 4 915 1 773
Long-term liabilities 474 10 018 488
1 626 045 1 230 209 1 499 216
Deferred taxation 37 683 - -
Current liabilities 453 935 695 320 430 622
Total equity and liabilities 2 117 663 1 925 529 1 929 838
Earnings
The comparative figures for the six months ended 31 December 1999 have been
restated as a consequence of the changes in Generally Accepted Accounting
Practice affecting deferred taxation.
Turnover on a comparable basis rose by 6,5% from R1,152 688 million to R1,227
386 million, which reflects the difficult trading conditions which prevailed
throughout the period under review.
Profit from operations before depreciation amounted to R172,828 million - an
improvement of 20,2% and translates into a margin of 14% compared to 12%
achieved during the six months ended 31 December 1999 and which reflects the
extent to which the company is trading more efficiently.
Depreciation totalled R38,490 million, up from R33,407 million. Net finance
income increased to R25,988 million from R12,394 million mainly due to the
additional cash which arose from the proceeds of the rights issue which took
place at the end of the previous financial year.
After taking into consideration the outside shareholders share in the profits
of the company, earnings attributable to shareholders amounted to R115,341, a
substantial improvement of 28,8% when compared against the comparative earnings
in the six months to December 1999 of R89,577 million.
Taxation absorbed R46,238 million, which is equivalent to a rate of 28,5%, the
major portion namely R43,613 million being in respect of deferred taxation.
Earnings per share increased by 10% from 18 cents to 19,8 cents as additional
shares were issued due to the rights issue previously referred to and the
capitalisation issue in October 2000 which took place in lieu of a dividend.
This improvement in earnings is considered by the directors to be good and must
be read in conjunction with the cash earnings of the company which amounted to
34 cents per share, nearly double the earnings per share of 19,8 cents and 17%
higher than the cash earnings of 29 cents per share achieved during the
comparative reporting period.
Comments
The period under review witnessed a resumption in advertising spend which
benefited the newspaper division and particularly community newspapers. The
relaunch of a number of magazine titles has proved successful and this coupled
with additional advertising revenues has had the effect of improving the
results of the magazine division. The Academic Publishing, Book Printing and
Stationery divisions all reported profits in excess of their budgets and the
Commercial Printing and Packaging divisions showed real growth ahead of
inflation.
It is apparent from the figures now being reported that the company is
beginning to show the benefits of the merger with Perskor.
Prospects
The economy remains an unknown quantity and in these circumstances it is
difficult to make any predictions on future earnings except to state that
budgets have been prepared to take into account a further growth in earnings.
It is important to add that, as at the date of this report the CTP and Caxton
Groups cash and near-cash resources approximated some R800 million.
On behalf of the board
G M Utian
T D Moolman
Johannesburg
19 February 2001
