| Tue 4 Sep 2001, 0:00 | | Caxton Publishers And Printers Limited - Revised P |
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Caxton Publishers and Printers Limited
and subsidiary companies
(Incorporated in the Republic of South Africa)
JSE Share code : CXT
ISIN Number : ZAE000017182
PRELIMINARY AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2001
CONSOLIDATED INCOME STATEMENT
for the year ended 30 June 2001
Audited Audited
Year to Year to
30/6/2001 30/6/2000
R'000 R'000
Revenue 2 487 725 2 318 539
Turnover 2 380 233 2 258 814
Other operating income 45 472 32 887
2 425 705 2 291 701
Changes in inventories of finished
goods and work in progress (22 405) (16 564)
Raw materials and consumables used 982 106 1 003 246
Staff costs 449 614 406 006
Other operating expenses 686 539 635 843
Total operating expenses 2 095 854 2 028 531
Profit from operating activities 329 851 263 170
Depreciation and amortisation expense (80 747) (69 651)
Net finance income 59 445 20 773
Associated companies (1 573) 782
Profit before exceptional items 306 976 215 074
(Exceptional items) - 1 734
Profit before taxation 306 976 216 808
Taxation (89 360) (51 667)
Profit from ordinary activities 217 616 165 141
Attributable to minority interest (2 263) (3 396)
Net profit for the year attributable
to shareholders 215 353 161 745
Earnings per share (cents) 37 32
Adjusted headline earnings (cents) 36 31
Cash earnings per share (cents) 63 53
Dividend per share 15 -
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 June 2001
Audited Audited
at at
30/6/2001 30/6/2000
Cash flow from operating activities 291 370 266 120
Cash generated by operations 325 860 279 033
(Increase)/decrease in working capital (79 950) 2 428
Cash generated by operating activities 245 910 281 461
Less: Taxation paid (11 569) (21 974)
Interest received - net 57 029 20 374
Net cash inflow from operating activities 291 370 279 861
Dividends paid - (13 741)
Cash flows from investment activities (187 091) (242 099)
Fixed assets - additions to maintain
operations (99 475) (260 905)
- proceeds from disposals 17 449 48 823
(82 026) (212 082)
Investments (105 065) (30 017)
Cash flows from financing activities 22 625 206 698
Decrease in long-term liabilities (94) (4 141)
Increase in amounts owing to Holding Company 11 907 -
Decrease short-term borrowings - (1 387)
Shares issued in cash 10 812 212 226
Net cash increase in cash equivalents 126 904 230 719
Cash and equivalents at beginning of year 447 064 216 345
Cash and equivalents at end of year 573 968 447 064
CONSOLIDATED BALANCE SHEET
at 30 June 2001
Audited Audited
at at
30/6/2001 30/6/2000
R'000 R'000
Assets
Non-current assets
Fixed assets 727 965 681 698
Investment in associated companies 27 158 24 151
Investment - listed 89 636 -
- unlisted 8 747 8 536
Long-term debtors 33 962 36 900
(Deferred taxation) - 5 791
Current assets 1 348 758 1 172 762
Total assets 2 236 226 1 929 838
Equity and liabilities
Equity
Shareholders equity 1 749 334 1 496 955
Minority interest 3 188 1 773
Non-current liabilities
Long-term loans 538 488
Deferred taxation 61 958
Current liabilities 421 208 430 622
TOTAL EQUITY AND LIABILITIES 2 236 226 1 929 838
Weighted number of shares in issue 581 661 545 507 759 330
Net asset value per share (cents) 301 263
Market value of listed investments 123 437 -
Directors' value of unlisted investments
and associated companies 42 386 32 687
Capital expenditure for year 120 492 260 906
Capital expenditure committed 25 000 20 000
Cash resources - (net) 573 968 447 064
Adjusted headline earnings:
Earnings attributable to ordinary
shareholders 215 353 161 745
Deduct adjustments: (5 680) (4 007)
Profit on sale of investments (1 607) (2 802)
(Rationalisation costs) - (17 737)
(Fixed assets write-down) - 18 805
Goodwill written-off 727 -
Profit on sale of fixed assets (4 800) (2 273)
Adjusted headline earnings 209 673 157 738
CASH EARNINGS
for the year ended 30 June 2001
Audited at Audited at
30/6/2001 30/6/2000
R'000 R'000
Net profit before tax and exceptional items 306 976 215 074
Depreciation and amortisation expense 80 747 69 651
(20 390) (15 301)
Net profit on sale of fixed assets (4 800) (2 273)
Taxation (17 163) (12 246)
Associated Companies loss/(profits) 1 573 (782)
Cash earnings 367 333 269 424
Cash earnings per share (cents) 63 53
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2001
Audited Audited
30/6/2001 30/6/2000
Balance at beginning of year (1 496 955) (1 120 520)
Retained income (215 353) (161 745)
Non-distributable reserve - revaluation
of property, loan at a discount and
transfer to deferred tax (26 214) -
Share issue expenses and dividend adjustment - (6 805)
Acquisition of minorities - (90 042)
Goodwill written-off - 96 236
Rights issue (10 812) (214 079)
Balance at end of the year (1 749 334) (1 496 955)
Comments
Caxton has produced good results for the year ended 30 June 2001. It is
pleasing to report that all divisions contributed to the improvement in
profitability.
This has been made possible by maximising the efficiency of the operations
of the various business units, especially those taken over from Perskor at
the time of the merger in July 1998.
The overall business is now structured as optimally as possible and is
geared, particularly in terms of plant capacity, which is not being fully
utilised, to take advantage of any improvement in consumer spending should
this take place. Additional efficiencies are not anticipated. The bulk of
the capital expenditure projects and upgrades are completed and it will be
unnecessary to embark on any major capital expenditure in the foreseeable
future.
Earnings
Turnover increased by 5,4% from R2 259 million to R2 380 million, which
relatively low rate of increase, reflects just how difficult trading
conditions in consumer goods have been for the year under review. Profit
from operating activities before depreciation amounted to R329,851 million -
an impressive improvement of 25,3% and which equates into a margin of
13,86%. The maximisation of efficiencies referred to earlier is reflected in
this margin which has improved from 11,65%.
Depreciation and amortisation expense totalled R80,747 million and net
finance income increased substantially from R20,773 million to R59,445
million, due to the cash injection which arose from the proceeds of the
rights offer in June 2000 of approximately R200 million and cash generated
during the year.
Income before taxation amounted to R306,976 million compared to R216,808
million - a substantial increase of 41,6%.
Taxation absorbed R89,360 million which is equivalent to a rate of 29,1%,
the major portion of which, namely R72,197 million, being in respect of
deferred taxation - the previous year's tax rate was 23,8%.
Net profit for the year attributable to shareholders, after eliminating
outside shareholders share in the profits of the company, amounted to
R215,353 million, an increase of 33%.
Earnings per share of 37 cents is an improvement of 15,6% on the 32 cents
per share earned in the previous year. Cash earnings for the year was 63
cents per share which compares extremely favourably with 53 cents per share.
Prospects
There appear to be a number of dark clouds gathering over world economies,
and the South African economy, which has problems of its own, will not
escape the contagion that the fall in world economic growth will bring.
There have been a number of reports of late indicating that advertising
spend is yet again under pressure. The company's future is very much
predicated upon growth in spending and it is in these uncertain
circumstances that it is impossible to predict what future earnings will be.
The company has, however, over the years displayed the ability to produce
reasonable results and, more importantly, a good cash flow, and the
directors are of the opinion that the ensuing year will not be an exception.
Declaration of dividends
The board has declared a dividend of 15 cents per ordinary share (2000: nil)
to all shareholders of Caxton Publishers and Printers Limited. To comply
with the procedures of STRATE, the following dates are applicable:
Date dividend declared 4 September 2001
Last day to trade "cum" the dividend 20 September 2001
Date to commence trading "ex"
the dividend 21 September 2001
Record date 28 September 2001
Date of payment 1 October 2001
Certificated shareholders may not dematerialise their shares between Friday,
14 September 2001 and Friday, 21 September 2001, both days inclusive.
By order of the Board
DR. F. van Zyl Slabbert (Chairman)
G. M. Utian (Managing Director)
T. D. Moolman (Chief Executive Officer)
4 September 2001
