| Wed 11 Sep 2002, 17:31 | | Caxton Publishers And Printers Limited - Financial |
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Caxton Publishers and Printers Limited - Financial Report
Caxton Publishers and Printers Limited
and subsidiary companies
(Incorporated in the Republic of South Africa)
(Registration number 1947/025989/06)
("Caxton" or "the company")
Share code CXT: ISIN: ZAE000017182
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2002
CONSOLIDATED INCOME STATEMENTS FOR THE YEAR ENDED 30 JUNE 2002
Reviewed Audited
30 June 2002 30 June 2001
R`000 R`000
Revenue 2 443 743 2 193 225
Turnover 2 322 137 2 096 349
Other operating income 55 661 45 472
2 377 798 2 141 821
Changes in inventories of finished goods
and work in progress (970) (22 405)
Raw materials and consumables used 794 862 698 222
Staff costs 484 034 449 614
Other operating expenses 745 096 686 539
Total operating expense 2 023 022 1 811 970
Profit from operating activities 354 776 329 851
Depreciation and amortisation expense (91 425) (80 747)
Net finance income 81 317 58 945
Associated companies 8 216 (1 895)
Profit before exceptional items 352 884 306 154
Exceptional items 15 814 -
Profit before taxation 368 698 306 154
Taxation (123 565) (88 538)
Profit from ordinary activities 245 133 217 616
Attributable to minority interest (3 166) (2 263)
Net profit for year attributable to ordinary
shareholders 241 967 215 353
Earnings per share (cents) 42 37
Headline earnings (cents) 38 36
Adjusted headline earnings (cents) 41 36
Dividend per share - proposed (cents) 16 15
CONSOLIDATED CASH FLOW STATEMENTS for the year ended 30 June 2002
Reviewed Audited
30 June 2002 30 June 2001
R`000 R`000
Cash flows from operating activities 255 051 322 501
Cash generated by operations 345 613 325 360
Increase in working capital (53 943) (48 563)
Cash generated by operating activities 291 670 276 797
Less: Taxation paid (27 706) (11 325)
Interest received net 81 317 57 029
Net cash inflow from operating activities 345 281 322 501
Dividends paid (90 230) -
Cash flows from investment activities 23 607 (188 023)
Fixed assets - additions to maintain operations (169 869) (99 475)
- proceeds from disposals 28 655 17 449
(141 214) (82 026)
Net cash flow from disposal (acquisition)
of investments 164 821 (105 997)
Cash flows from financing activities 4 711 (7 574)
Decrease in long-term liabilities (11 272) (94)
Increase/(Decrease) in amounts
owing to Holding Company 15 983 (18 292)
Shares issued in cash - 10 812
Net cash increase in cash equivalents 283 369 126 904
Cash and equivalents at beginning of year 573 968 447 064
Cash and equivalents at end of year 857 337 573 968
CONSOLIDATED BALANCE SHEETS AT 30 JUNE 2002
Reviewed Audited
30 June 2002 30 June 2001
R`000 R`000
Assets
Non-current assets
Property, plant and equipment 814 343 709 521
Investment in associated companies 27 118 27 157
Investmens - listed - 89 636
- unlisted 45 8 748
Long-term debtors 15 419 33 962
Current assets 1 655 864 1 360 870
Total assets 2 512 789 2 229 894
Equity and liabilities
Equity
Shareholders` equity 1 908 737 1 730 891
Minority interest 3 350 3 188
Non-current liabilities
Long-term liabilities - 538
Deferred taxation 104 297 61 959
Current liabilities 496 405 433 318
Total equity and liabilities 2 512 789 2 229 894
Number of shares in issue 581 661 545 581 661 545
Net asset value per share (cents) 328 298
Market value of listed investments - 123 473
Directors` value of unlisted investments
and associated companies 27 163 42 388
Capital expenditure for year 194 000 120 492
Capital expenditure committed 20 000 25 000
Cash resources 857 337 573 968
Earnings per share (cents) 42 37
Headline earnings:
Earnings attributable to ordinary shareholders 241 967 215 353
adjustments (20 105) (5 680)
Surplus on realisation of investments (54 256) (1 607)
Goodwill written-off 8 671 727
Investments and loan accounts written-down 9 769 -
Surplus on sale less impairment in value
of fixed assets (808) (4 800)
Tax thereon 16 519 -
Headline earnings 221 862 209 673
Headline earnings per share (cents) 38 36
Adjusted headline earnings:
Headline earnings 221 862 209 673
Add: Equity compensation benefit 20 000 -
Less: Tax thereon (6 000) -
Adjusted headline earnings 235 862 209 673
Adjusted headline earnings per share (cents) 41 36
STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2002
Reviewed Audited
30 June 2002 30 June 2001
R`000 R`000
Balance at beginning of year 1 730 891 1 496 955
Attributable earnings to shareholders
for the year 241 967 215 353
Dividends paid (87 227) -
Revaluation of land and buildings 21 065 -
Foreign currency translation reserve adjustment 435 -
Capitalisation share award adjusted to actual - (28)
Share issue expenses - (402)
Plant and machinery
- deferred tax adjustment prior year - 4 447
Loan at a discount 1 606 3 352
Rights issue - 11 214
Balance at end of year 1 908 737 1 730 891
Comments
Notwithstanding the difficulties reported on in the interim results and the
uncertainties which existed at that time, it is most pleasing to report that
Caxton has once again produced good results at a time when the majority of media
companies world-wide are experiencing turbulent markets and diminishing
profitability.
The exercise to determine whether or not a change was necessary in the number
of years over which plant and equipment is depreciated has been completed which
has resulted in no change being required. Therefore the results under review are
calculated in a similar manner to those of the previous year, with the exception
that in order to comply with Statements of Generally Accepted Accounting
Practice, Owner Occupied Buildings are now being depreciated over their useful
life. In view of the amount involved not being material, prior years` results
have not been restated. Caxton`s exposure to the possible non-payment of debts
due by CNA, now in liquidation, has been fully provided for.
Earnings
Turnover which excludes inter-company turnover increased from R2,096 million
to R2,322 million - an increase of 11%. Profit from operating activities rose by
8% to R354.8 million. As a result of good profits and strict control over
working capital, cash and cash equivalents were at R857.3 million at the year-
end despite R194 million having been expended on additional investments in the
packaging component of the business and the purchase of plant and equipment.
This high level of liquidity resulted in net finance income increasing from
R58.9 million during the 2001 financial year to R81.3 million. Associate
companies performed much better this year resulting in a loss of R1.9 million
being turned into a profit of R8 million. Exceptional items amounted to a
positive R15.8 million. After absorbing taxation of R123.6 million and after
allowing for profits attributable to minority interests of R3 million, net
profit attributable to shareholders amounted to R241 million. Adjusted headline
earnings, which represent the sustainable earnings of the company, were 41 cents
per share compared to 36 cents per share earned during the previous financial
year - an improvement of 14%. Headline earnings per share amounted to 38 cents
and earnings per share totalled 42 cents.
Divisional performance
Excellent results were achieved by the Newspaper Division. The Packaging
division incurred a number of redevelopment costs and profits were substantially
lower than the previous year. Web printing, stationery and book printing were
stable and Academic Publishing had an extremely good year. Magazines did not
produce good results and were adversely affected by an increase of over 20% in
the price of paper due to the devaluation of the Rand.
Directors
Mr Noel Coburn resigned from the board at the end of February 2002. As
shareholders are well aware he was a founding shareholder of the company and
contributed significantly to the growth of the group over a period of some 20
years. His wise counsel will be missed and the opportunity is taken to thank him
for the enormous contribution that he made and to wish him well in his future
endeavours.
Mr Phillip Vallet was appointed to the board in July 2002. Mr Vallet, who
heads up Fluxmans, the company`s attorneys, has been associated with Caxton for
many years. In welcoming him to the board, we look forward to the important
contribution which he will make in a non-executive capacity.
Prospects
The increase in retail spending evidenced during the first six months of 2002
has played an important part in the achievement of the results being reported. A
number of major retail groups have recently announced excellent improvements in
trading and, whilst this high level of improvement will probably be difficult to
maintain, most major retailers appear to be upbeat in their forecasts.
A negative feature is the change in the education curriculum, which will
adversely affect the profits of academic publishing as it prepares for the
introduction in 2004 of the new curriculum with 2003, being the last year of the
old curriculum and with reduced activity being anticipated in that year, as only
one grade will be introduced compared with two grades in previous years.
The company is well-known for the conservative stance which it has adopted
over many years when it comes to forecasting future performance. This year is no
exception as the future of world economies remains difficult to predict despite
the improvement in South Africa`s growth rate. Caxton has, however, established
itself as a consistent performer and the year that has just commenced should in
all probability yield improved results.
Review by the independent auditors
The group`s auditors, Ernst & Young, have reviewed the group`s results. Their
unqualified report is available for inspection at the company`s registered
office.
Basis of preparation
The accounting policies used in the preparation of the financial statements
for the year under review are in accordance with South African Statements of
Generally Accepted Accounting Practice and are consistent with those applied in
the prior year, other than the depreciation of owner occupied buildings, to
comply with AC 135 on investment properties which is being applied for the first
time.
Offer to Caxton minorities
Shareholders are advised that CTP Holdings Ltd ("CTP") the holder of 79.4% of
the issued share capital of Caxton will propose a scheme of arrangement in terms
of Section 311 of the Companies Act 1973 (Act 61 of 1973) as amended, which on
implementation will result in Caxton becoming a wholly-owned subsidiary of CTP
and the listing of Caxton on the JSE Securities Exchange South Africa being
terminated.
The details of the scheme are being announced simultaneously with this
announcement and shareholders` attention is directed thereto.
Declaration of dividend
The board has declared a dividend of 16 cents (2001: 15 cents) per ordinary
share to all shareholders. To comply with the procedures of strate the following
dates are applicable:
Date dividend declared 11 September 2002
Last date to trade "cum" dividend 27 September 2002
Date to commence trading "ex" dividend 30 September 2002
Record date 4 October 2002
Date of payment 7 October 2002
Share certificates may not be dematerialised or rematerialised between 30
September 2002 and 4 October 2002, both days inclusive.
By order of the Board
Dr. F. van Zyl Slabbert G. M. Utian T. D. Moolman
(Chairman) (Managing Director) (Chief Executive Officer)
11 September 2002
Date: 11/09/2002 05:07:00 PM Produced by the JSE SENS Department
