| Wed 11 Sep 2002, 17:52 | | Ctp Holdings Limited - Reviewed Results For The Ye |
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CTP Holdings Limited - Reviewed Results For The Year Ended 30 June 2002
CTP HOLDINGS LIMITED
AND SUBSIDIARY COMPANIES
Incorporated in the Republic of South Africa
("the company" or "the group")
Share code: CTP ISIN: ZAE000001871
Share code: CTPP ISIN: ZAE000001889
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 2 455 072 2 215 510
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 484 034 449 613
Other operating expenses 746 095 687 109
Total operating expense 2 024 021 1 812 539
Profit from operating activities 353 777 329 282
Depreciation and amortisation expense (91 425) (88 490)
Net finance income 90 885 81 429
Associated companies 8 216 (1 895)
Profit before exceptional items 361 453 320 326
Exceptional items 691 -
Profit before taxation 362 144 320 326
Taxation (127 529) (96 224)
Profit from ordinary activities 234 615 224 102
Attributable to minority interest (53 010) (49 809)
Preference dividend (85) -
Net profit for year attributable
to ordinary shareholders 181 520 174 293
Earnings per ordinary share (cents) 489 469
Diluted earnings per share (cents) 470 449
Headline earnings per share (cents) 487 475
Diluted headline earnings per share (cents) 467 454
Adjusted headline earnings per share (cents) 517 475
Adjusted diluted headline earnings
per share (cents) 496 454
Dividend per share - Proposed (cents) 200 200
Preference dividends per share
- Proposed (cents) 170 170
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 251 481 322 748
Cash generated by operations 344 615 324 793
Increase in working capital (56 794) (52 485)
Cash generated by operating activities 287 821 272 308
Less: Taxation paid (30 854) (29 071)
Interest received net 90 885 79 511
Net cash inflow from operating activities 347 852 322 748
Dividends paid (96 371) -
Cash flows from investment activities (14 714) (202 430)
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 126 500 (120 404)
Cash flows from financing activities (12 175) (2 173)
Decrease in long-term liabilities (11 272) (94)
Net increase/(decrease) in amount owing
to/by subsidiaries 175 (5)
Shares acquired in cash (1 078) (2 074)
Net cash increase in cash equivalents 224 592 118 145
Cash and equivalents at beginning of year 726 512 608 367
Cash and equivalents at end of year 951 104 726 512
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 814 343 709 522
Investment in associated companies 27 118 27 156
Investments - Listed - 89 635
- Unlisted 45 8 748
Long-term debtors 15 419 33 962
Current assets 1 751 998 1 522 950
Total assets 2 608 923 2 391 973
EQUITY AND LIABILITIES
Equity
Ordinary shareholders` equity 1 636 787 1 512 261
Preference shareholders 100 100
Minority interest 396 550 389 411
Non-current liabilities
Long-term liabilities - 538
Deferred taxation 106 304 63 965
Current liabilities 469 182 425 698
Total equity and liabilities 2 608 923 2 391 973
Number of shares in issue 37 115 249 37 115 249
Number of shares in issue including options 38 659 764 38 780 149
Net asset value per share (cents) 4 410 4 075
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 951 104 726 512
Earnings per share (cents) 489 469
Diluted earnings per share (cents) 470 449
Headline earnings:
Earnings attributable to
ordinary shareholders 181 520 174 293
Adjustments (839) 2 063
Profit on realisation of investments (54 256) (1 607)
Goodwill written-off 21 375 8 470
Investments and loan accounts written-down 12 189 -
Surplus on sale less impairment in value
of fixed assets (808) (4 800)
Tax thereon 16 519 -
Outside shareholders` interest 4 142 -
Headline earnings 180 681 176 356
Headline earnings per share (cents) 487 475
Diluted headline earnings per share (cents) 467 454
Adjusted headline earnings
Headline earnings 180 681 176 356
Add: Equity compensation benefit 20 000 -
Less: Tax thereon (6 000) -
14 000 -
Outside shareholders` interest (2 884) -
Net adjustment 11 116 -
Adjusted headline earnings 191 797 176 356
Adjusted headline earning per share (cents) 517 475
Adjusted diluted headline earnings
per share (cents) 496 454
STATEMENT 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 1 512 261 1 336 690
Attributable earnings to ordinary
shareholders for the year 181 520 174 292
Ordinary dividend paid (74 260) -
Revaluation of land and buildings 16 726 -
Foreign currency translation reserve adjustment 344 -
Capitalisation award 2000 - (32)
Non-distributable reserve - loans at a discount 1 275 3 353
Share options (1 079) (2 042)
Balance at end of year 1 636 787 1 512 261
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 Publishers and Printers Limited ("Caxton") in which the company holds
79,4% of the equity, 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 their plant and equipment is depreciated has been completed
which has resulted in no change being required. Therefore their results for the
year 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
Caxton`s turnover, which excludes inter-company turnover, increased from
R2,096 million to R2,322 million - an increase of 11%. Profit from operating
activities rose to R353.8 million. As a result of good profits and strict
control over working capital by Caxton, net cash resources were at R951 million
at the year end despite R194 million having been expended by Caxton on
additional investments in the packaging component of their business and the
purchase of plant and equipment. Net finance income increased from R81.4 million
during the 2001 financial year to R90.9 million. Associate companies performed
much better this year resulting in a loss of R1.9 million being turned into a
profit of R8.2 million. Exceptional items amounted to a positive R691,076. After
absorbing taxation of R127.5 million and after allowing for profits attributable
to minority interests of R53 million and a preference dividend of R85 000, net
profit attributable to shareholders amounted to R181.5 million. Adjusted Diluted
Headline Earnings, which represent the sustainable earnings of the company, were
496 cents per share compared to 454 cents per share earned during the previous
financial year - an improvement of 8.3%. Diluted Headline Earnings per share
amounted to 467 cents and Diluted Earnings per share totalled 470 cents.
Divisional Performance of Caxton
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 the company
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 arising out of Academic Publishing within Caxton 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.
PROPOSED SCHEME OF ARRANGEMENT TO CONSTITUTE CAXTON AS A WHOLLY-OWNED SUBSIDIARY
The company is to propose a scheme of arrangement in terms of Section 311 of the
Companies Act 1973 (Act 61 of 1973) as amended, between Caxton and its
shareholders other than the company, which on implementation will result in
Caxton becoming a wholly-owned subsidiary of the Company 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 DIVIDENDS
Ordinary dividend
The board has declared an ordinary dividend of 200 cents (2001: 200 cents) per
ordinary share to all ordinary 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.
Share code: CTP ISIN: ZAE000001871
Preference dividends
The board has declared a preference dividend of 170 cents (2001: 170 cents) per
share to all preference shareholders of CTP Holdings Limited. 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.
Share code: CTPP ISIN: ZAE000001889
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 05:06:00 PM Produced by the JSE SENS Department
