| Fri 9 Sep 2022, 10:32 | | CAXTON AND CTP PUBLISHERS AND PRINTERS LIMITED - Reviewed provisional group results for the year ended 30 June 2022 |
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Reviewed provisional group results for the year ended 30 June 2022
CAXTON&CTP publishers & printers LIMITED
Incorporated in the Republic of South Africa
Registration number: 1947/026616/06
Share code: CAT
ISIN: ZAE000043345
Preference share code: CATP
ISIN: ZAE000043352
REVIEWED PROVISIONAL GROUP RESULTS
FOR THE YEAR ENDED 30 JUNE 2022
- R590.3 million profit from operating activities after depreciation and amortisation up 90.2%
- 157.0 cents HEPS up 108.2%
- 50.0 cents dividend declared
- R18.87 net asset value per share up 9.9%
Reviewed Audited
for the year for the year
ended ended
30 June 30 June
% 2022 2021
change R'000 R'000
Revenue 14.5 5 979 339 5 220 415
Profit from operating activities before depreciation and amortisation 46.8 828 007 563 860
Profit from operating activities after depreciation and amortisation 90.2 590 298 310 436
Profit for the year (3.9) 543 801 565 925
Headline earnings 104.3 572 719 280 380
Cash, cash equivalents and listed preference shares (15.4) 1 724 306 2 038 263
Earnings per share (cents) 2.1 151.2 148.1
Headline earnings per share (cents) 108.2 157.0 75.4
Adjusted earnings per share (cents) 129.1 151.2 66.0
Net asset value per share (cents) 9.9 1 887 1 717
Ordinary dividend declared/paid per share (cents) 50.0 50.0
COMMENTARY
The Caxton group has posted exceptionally strong results for the year ended 30 June 2022, reflecting the
resilience of the group through the two years of the pandemic, and the adaptability of the group to profound
changes in our markets. The group has continued the strong growth trajectory reported upon at the half year
and delivered a stellar full year set of results driven by continued recovery in revenues, market share gains and
a well-controlled cost base. This performance is particularly pleasing in the face of post-pandemic challenges -
most notably supply chain constraints, continuing price escalations in raw materials, inflationary pressures on
operating costs, unprecedented load-shedding and lastly the floods in KwaZulu-Natal that affected our large
commercial printing operation.
The group has delivered an excellent operating performance as follows:
- Profit before depreciation and amortisation increased by R264.1 million (46.8%) to R828.0 million
compared to R563.9 million in the prior year.
- Profit after depreciation and amortisation increased by R279.9 million (90.2%) to R590.3 million
compared to R310.4 million in the prior year.
Revenue grew strongly by R758.9 million (14.5%) from R5 220.4 million to R5 979.3 million, reflecting volume
increases across all operations, especially in the second half of the financial year. The group's local newspaper
business experienced a robust return of retailer advertising spend, mainly in the form of advertising brochures,
and this demand had a corresponding positive impact on throughputs in our commercial printing plants.
The commercial printing operations also managed to increase market share due to the availability of increased
levels of raw materials. All packaging units experienced strong revenue growth where organic volume growth,
new products/markets and market share gains were the main contributors. This was particularly evident in the
alcohol and quick service restaurant market sectors.
Raw material pricing was and remains volatile with significant cost increases across all grades of paper and
board, with more increases in the pipeline. The unprecedented tightening of supply lines and raw material
shortages placed upward pressure on costs that affected all our operations and does not appear to be abating
any time soon. Over the reporting period, margins were maintained but have required transparency and
flexibility with our customer base, with pricing reviews on a more regular basis.
Inflationary pressures were felt across all operations and this intensified in the second half of the financial
year and resulted in operating costs growing by R134.9 million (14.6%) largely in support of the increased
operating activity but also driven by large increases in insurance and energy costs. In addition, the devastating
floods in KwaZulu-Natal affected our large commercial printing site and resulted in the group incurring direct
costs of R30.9 million, to the end of the reporting period, associated with restoring production. This cost will
form part of the insurance claim currently being formulated. Staff costs were well controlled and grew by
R59.6 million (5.1%) to R1 223.1 million.
The group's profit before taxation was R686.2 million and the taxation charge was R142.4 million, resulting in
profit after taxation of R543.8 million - representing earnings per share of 151.2 cents (prior year 148.1 cents
which included the profit on sale of associates - Octotel (Pty) Ltd and RSA Web (Pty) Ltd of R305.2 million).
Excluding this sale, prior year earnings per share would have been 66.0 cents, and compared to this lower
adjusted base, current year earnings per share represent a year-on-year growth of 129.1 %. Headline earnings
per share of 157.0 cents (prior year 75.4 cents) represents substantial growth of 108.2%. The headline
earnings per share is at a 10-year record high, and is reflective of the correct strategic decisions being made in
the group, of replacing declining earnings in the publishing operations with our growing packaging presence.
There is no doubt that the rising inflationary environment, that is evident locally and globally, will play an
important role in the forthcoming year and it remains to be seen how this will ultimately impact on the resilience
of consumer demand. Subsequent to year-end, demand has held up but it is too early to say that this will be
the case for the remainder of the new financial year. This may put certain markets under margin pressure and
thus the focus of management is on managing these cost pressures with customers.
As a 34% shareholder in MPact Limited, the group continues to persevere in its efforts to obtain clarity
regarding competition related issues as between MPact and Golden Era, MPact's major customer and
competitor and co-accused in a cartel case still pending before the Competition Tribunal.
Dividends
The board has declared a dividend of 50.00 cents (2021: 50.0 cents) per ordinary share (gross) and a
preference dividend of 410.00 cents (2021: 410.00 cents) per preference share (gross) for the year ended
30 June 2022.
The dividends are subject to the Dividend Withholding Tax. In accordance with the provisions of the
JSE Listings Requirements, the following additional information is disclosed:
- the Dividend has been declared out of current profits available for distribution
- the Dividend Withholding Tax rate is 20%
- the gross dividend amount is 50.00 cents per ordinary share and 410.00 cents per preference share
for shareholders exempt from Dividend Withholding Tax
- the nett dividend amount is 40.00 cents per ordinary share and 328.00 cents per preference share for
shareholders liable for Dividend Withholding Tax
- the company has 362 534 648 ordinary shares in issue
- the company has 50 000 preference shares in issue
- the company's income tax reference number is: 9175/167/71/8
The following dates are applicable to the dividends.
The last date to trade in order to be eligible for the dividend will be Tuesday, 6 December 2022.
Shares will trade ex-dividend from Wednesday, 7 December 2022.
The record date will be Friday, 9 December 2022 and payment will be made on Monday, 12 December 2022.
Share Certificates may not be dematerialised or materialised between Wednesday, 7 and Friday
9 December 2022, both days inclusive.
Statement
This short-form announcement is the responsibility of the directors and is only a summary of the
information in the full announcement and does not contain full or complete details. The full announcement
will be released on 9 September 2022 and can be found on the company's website at
https://www.caxton.co.za/about/announcements and also on the following link:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/CAT/CATAR2022.pdf.
The full announcement is available at the Company's registered office and the offices of the sponsor during
office hours.
Any investment decision should be based on the full announcement published on the Company's website.
By order of the board
9 September 2022
Executive Directors: Independent Non-Executive Directors:
TD Moolman, TJW Holden, LR Witbooi PM Jenkins, ACG Molusi, NA Nemukula,
J Phalane, T Slabbert
Transfer Secretaries: Registered Office:
Computershare Investor Services Proprietary Limited 28 Wright Street, Industria West, Johannesburg
Sponsor: AcaciaCap Advisors Proprietary Limited Company website: http://www.caxton.co.za
Date: 09-09-2022 10:32:00
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