| Tue 19 Feb 2002, 0:00 | | Ctp Holdings Limited - Interim Report |
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CTP HOLDINGS LIMITED
and subsidiary companies
(Incorporated in the Republic of South Africa)
(Registration number 1945/026616/06)
JSE Share code : CTP
ISIN Code : ZAE000001871
("the company" or "the group")
INTERIM REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2001
INCOME STATEMENT
at 31 December 2001
Unaudited Unaudited Audited
6 months to 6 months to for the
year
31 December 31 December 30 June
2001 2000 2001
R000 R000 R000
Turnover 1 403 009 1 235 000 2 380 233
Profit from operations 189 628 172 763 329 282
Depreciation (42 743) (38 490) (88 490)
146 885 134 273 240 792
Finance income - net 43 518 38 745 81 429
Associated companies 1 331 1 914 (1 895)
Income before taxation 191 734 174 932 320 326
Taxation (60 394) (50 046) (96 224)
Income after taxation 131 340 124 886 224 102
Attributable to outside shareholders (29 108) (26 878) (49 809)
102 232 98 008 174 293
Exceptional items adjusted for
taxation and minority shareholders 21 649 - -
Earnings attributable to shareholders 123 881 98 008 174 293
Earnings per share (cents) 333 264 469
Diluted earnings per share (cents) 319 251 449
Diluted headline earnings
per share (cents) 265 251 475
Cash earnings per share (cents) 475 525 983
Weighted average number of shares
in issue including share options 38 745 749 38 994 769 38 780 149
Cash resources 864 458 538 317 726 512
Capital expenditure 59 651 54 894 120 492
Capital commitments 63 000 20 000 25 000
CASH EARNINGS PER SHARE
Income before taxation and
exceptional items 191 734 174 932 320 326
Add: Depreciation 42 743 38 490 88 490
Add: Net loss/(profit) on sale of
fixed assets 527 14 (4 800)
Less: Taxation (52 259) (6 433) (24 849)
Associated companies' profits 1 331 (1 914) 1 895
Cash earnings 184 076 205 089 381 062
Cash earnings per share (cents) 475 525 983
STATEMENT OF CHANGES IN EQUITY
at 31 December 2001
Unaudited Unaudited Audited
6 months to 6 months to for the
year
31 December 31December 30 June
2001 2000 2001
R000 R000 R000
Balance at beginning of period 1 512 261 1 336 690 1 336 690
Dividend paid (74 320) - -
Retained income 123 881 98 008 174 293
Non-distributable reserve - loan at
a discount and transfer to deferred tax - - 3 352
Capitalisation award and share
issue expenses - - (32)
Share options (508) (297) (2 042)
Balance at end of period 1 561 314 1 434 401 1 512 261
RECONCILIATION OF HEADLINE EARNINGS
at 31 December 2001
Unaudited Unaudited Audited
6 months to 6 months to for the
year
31 December 31 December 30 June
2001 2000 2001
R000 R000 R000
Earnings per share 123 881 - 174 293
Adjusted for:
Goodwill written-off 3 124 - 8 470
Capital items net of outside
shareholders (24 246) - (6 407)
Headline earnings 102 759 - 176 356
BALANCE SHEET
at 31 December 2001
Unaudited Unaudited Audited
6 months to 6 months to for the
year
31 December 31 December 30 June
2001 2000 2001
R000 R000 R000
Assets
Property, plant and equipment 720 349 694 741 709 522
Investments and loans 55 268 165 264 159 501
775 617 860 005 869 023
Current assets 1 802 411 1 442 312 1 522 950
Total assets 2 578 028 2 302 317 2 391 973
Equity and liabilities
Shareholders' equity 1 561 314 1 434 401 1 512 261
Preference share capital 100 100 100
Outside shareholders' interest 395 466 371 332 389 411
1 956 880 1 805 833 1 901 772
Deferred taxation 80 880 35 242 63 965
Current liabilities 540 268 461 242 426 236
Total equity and liabilities 2 578 028 2 302 317 2 391 973
CASH FLOW STATEMENT
at 31 December 2001
Unaudited Unaudited Audited
6 months to 6 months to for the
year
31 December 31 December 30 June
2001 2000 2001
R000 R000 R000
Cash flow from
operating activities 42 515 80 084 322 649
Cash generated by operations 181 921 172 399 324 793
Increase in working capital (87 902) (111 047) (52 584)
Cash generated by operating activities 94 019 61 366 272 209
Less: Taxation (832) (20 027) (29 071)
Interest received net 43 518 38 745 79 511
Net cash inflow from
operating activities 136 705 80 084 322 649
Dividends paid (94 190) - -
Cash flows from investing activities 95 938 (148 060) (202 430)
Property, plant and equipment
- additions to maintain operations (59 561) (54 894) (99 475)
- proceeds from disposals 5 407 2 511 17 449
(54 154) (52 383) (82 026)
Investments and loans 150 092 (95 677) (120 404)
Cash flows from financing activities (507) (2 074) (2 074)
Shares acquired in cash (507) (2 074) (2 074)
Net cash increase in cash equivalents 137 946 (70 050) 118 145
Cash and equivalents at
beginning of period 726 512 608 367 608 367
Cash and equivalents at end of period 864 458 538 317 726 512
Basis of preparation
The financial statements of the group have been prepared in accordance with
the South African Statements of Generally Accepted Accounting Practice,
which policies are consistent with those of the prior year.
Comment
Despite a difficult trading environment it is pleasing to report that the
group has once again produced satisfactory results. Having regard to the
exercise which is currently underway to assess the residual value at the end
of the useful life of the presses, plant and equipment owned by Caxton
Publishers and Printers Limited ("Caxton") and to ascertain the remaining
life of such equipment, shareholders are advised that this exercise will
only be completed at the end of the current financial year due to the number
of items owned by Caxton in its various divisions and the complexities
involved in the exercise. Accordingly there has been no change in the manner
in which depreciation is calculated for the period under review.
Earnings
Turnover increased by 13,6% from R1,235 million to R1,403 million. Profit
from operating activities amounted to R189,628 million an improvement of
10%. After providing for depreciation of R42,743 million, net finance income
of R43,518 million and the company's share of profits of associated
companies of R1,331 million, income before taxation amounted to R191,734
million. The rate of taxation has increased from 28,6% to 31,4% as a result
of the dividend paid during the period and which attracted the payment of
STC. Net income for the period, after eliminating profits attributable to
outside shareholders of R29,108 million amounted to R102,232 million.
Diluted headline earnings per share amounted to 265 cents, before taking
into account exceptional items, which mainly comprise the surplus on the
realisation of investments, which were no longer considered "core" to
Caxton's future operations. Diluted headline earnings improved by 6% on the
earnings of 251 cents achieved during the comparative six months to 31
December 2000. Earnings per share totalled 333 cents.
Packaging
A strategic decision to invest further into niche packaging markets has been
taken by Caxton and with this objective in mind, additional premises and
plant has been acquired. This will necessitate the restructure of certain
existing facilities and a number of redevelopments have been undertaken
which should be complete by the financial year-end. In the past, packaging
have accounted for less than 10% of the group's turnover but it is
anticipated that with those new developments, packaging could in future
amount to approximately 15% of turnover. The focus of Caxton's investment in
this area is specifically into Label Printing, Flexographic Packaging and
Folded Carton Production. Whilst packaging operations throughout South
Africa and even internationally have been going through exceedingly
difficult times with margins under extreme pressure at lower than 5%, it is
anticipated that over time this investment will yield reasonable margins.
Prospects
The six months that is being reported on has seen a number of fundamental
shifts having taken place such as the terrorist attack on the World Trade
Centre and the concomitant effect that this has had on the economies of all
countries. South Africa, as a developing country, has also had to contend
with the substantial devaluation of its currency. Media-owners the world
over, are all commenting on the decreases taking place in advertising
revenues and in addition South African publishers and printers will have to
deal with increases in paper and ink prices increasing by anywhere between
20% and 40% due to the devaluation of the Rand. Whilst trading conditions
over the Christmas period were good, mainly due to pre-emptive buying, it is
likely that inflation will increase to well in excess of 10%. It is in these
circumstances impossible to project what the level of profitability is
likely to be in the ensuing six months.
By order of the Board
Dr. F van Zyl Slabbert (Chairman)
G M Utian (Managing Director)
T D Moolman (Chief Executive Officer)
19 February 2002
