| Thu 20 Feb 2003, 10:14 | | Caxton And CTP Publishers And Printers Limited - I |
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Caxton And CTP Publishers And Printers Limited
(Formerly CTP Holdings Limited)
And subsidiary companies
(Incorporated in the Republic of South Africa)
(Registration number 1947/026616/06)
Share code CAT: ISIN: ZAE000043345
("the company")
Interim Results
Turnover up 19,7%
Diluted headline EPS up 33%
Cash resources R911 million
Net profit from operations up 33%
INCOME STATEMENTS
at 31 December 2002
Unaudited Unaudited Audited
6 months to 6 months to For the year to
December 31 December 31 June 30
2002 2001 2002
R000 R000 R000
Turnover 1 454 204 1 214 963 2 322 137
Profit from operations 243 587 189 628 353 776
Depreciation (48 250) (42 743) (91 425)
Net profit from operations 195 337 146 885 262 351
Finance income - net 62 374 43 518 90 885
Associated companies 3 168 1 331 8 216
Income before exceptional items 260 879 191 734 361 452
Exceptional items (8 016) 42 845 691
Income before taxation 252 863 234 579 362 143
Taxation (88 280) (74 722) (127 529)
Income after taxation 164 583 159 857 234 614
Attributable to outside shareholders (36 719) (35 976) (53 010)
Prefernce dividend - - (85)
Earnings attributable to shareholders 127 864 123 881 181 519
Earnings per share (cents) 34,5 33,4 48,9
Diluted earnings per share (cents) 33,2 32,0 47,0
Headline earnings per share (cents) 36,5 27,7 48,7
Diluted headline earnings per
share (cents) 35,2 26,5 46,7
Adjusted headline earnings per
share (cents) 36,5 27,7 51,7
Adjusted diluted headline earnings
per share (cents) 35,2 26,5 49,6
Number of shares in issue 384 885 933 387 457 490 386 597 640
Shares in issue at
31 December 2002 463 440 076 371 152 490 371 152 490
Less: Caxton Publishers And Printers
Limited minority share issue (92 287 586)
Less: Shares cancelled (1 679 307) - -
Share options outstanding 15 412 750 16 305 000 15 445 150
Net asset value per share (cents) 450 420 440
Cash resources 910 782 864 458 951 104
Capital expenditure 56 472 59 651 194 000
Capital commitments 80 000 63 000 20 000
CASH FLOW STATEMENTS
at 31 December 2002
Unaudited Unaudited Audited
6 months to 6 months to For the year to
December 31 December 31 June 30
2002 2001 2002
R000 R000 R000
Cash flow from operating activities 32 776 42 516 254 359
Cash generated by operations 279 473 181 922 348 439
Increase in working capital (149 569) (87 902) (53 571)
Cash generated by operating
activities 129 904 94 020 294 868
Less: Taxation (65 853) (832) (35 144)
Interest received - net 62 374 43 518 90 885
Dividends received - - 5
Net cash inflow from operating
activities 126 425 136 706 350 614
Dividends paid (93 649) (94 190) (96 255)
Cash flows from investing activities (86 225) 95 938 (17 592)
Property plant and equipment
- additions to maintain operations (56 472) (59 561) (169 869)
- proceeds from disposals 1 659 5 407 28 655
(54 813) (54 154) (141 214)
Investments and loans (31 412) 150 092 123 622
Cash flows from financing activities 13 127 (508) (12 175)
Shares acquired in cash (367) (508) (1 078)
Decrease in long-term liabilities - - (11 272)
Increase in amount
owing to group companies 13 494 - 175
Net cash increase in cash equivalents (40 322) 137 946 224 592
Cash and equivalents at beginning
of year 951 104 726 512 726 512
Cash and equivalents at
31 December 2002 910 782 864 458 951 104
BALANCE SHEETS
at 31 December 2002
Unaudited Unaudited Audited
6 months to 6 months to For the year to
December 31 December 31 June 30
2002 2001 2002
R000 R000 R000
Assets
Property, plant and equipment 821 097 720 349 814 343
Investments and loans 47 885 55 268 42 582
868 982 775 617 856 925
Current assets 1 929 181 1 788 203 1 741 043
- Inventories 291 209 222 294 319 665
- Accounts receivable 727 190 701 451 470 274
- Bank balance and cash 910 782 864 458 951 104
Total assets 2 798 163 2 563 820 2 597 968
Equity and liabilities
Shareholders` equity 2 077 711 1 561 314 1 636 702
Preference share capital 100 100 100
Outside shareholers` interest 5 242 395 466 396 549
2 083 053 1 956 880 2 033 351
Deferred taxation 88 745 80 880 94 304
Current liabilities 626 365 526 060 470 313
- Accounts payable 519 866 483 113 404 555
- Amounts owed to group companies 14 337 - 843
- Taxation 92 162 42 947 64 915
Total equity and liabilities 2 798 163 2 563 820 2 597 968
STATEMENTS OF CHANGES IN EQUITY
at 31 December 2002
Unaudited Unaudited Audited
6 months to 6 months to For the year to
December 31 December 31 June 30
2002 2001 2002
R000 R000 R000
Balance at beginning of period 1 636 702 1 512 147 1 512 147
Dividend paid (74 315) (74 315) (74 230)
Retained income 127 864 123 881 181 519
Revaluation of land and building - - 30 093
- deferred taxation - - (9 028)
- minority interest therein - - (4 340)
Foreign currency translation
reserve adjustment - - 344
Non-distributable reserve - loan at a
discount and transfer to deferred tax - 109 1 275
Shares issued for the acquisition of
the minorities of Caxton Publishers
And Printers Limited 387 827 - -
Share options (367) (508) (1 078)
Balance at end of period 2 077 711 1 561 314 1 636 702
RECONCILIATION OF HEADLINE EARNINGS
at 31 December 2002
Unaudited Unaudited Audited
6 months to 6 months to For the year to
December 31 December 31 June 30
2002 2001 2002
R000 R000 R000
Earnings per share 127 864 123 881 181 519
Adjusted for:
(Surplus)/Loss on sale less
impairment in value of fixed assets (248) 527 (808)
Surplus on realisation of investments - (54 256) (54 256)
Investments and loan accounts
written-down - 8 287 12 189
Goodwill written-off 8 016 3 124 21 375
Taxation - 14 327 16 519
Outside shareholders - 6 869 4 142
Headline earnings 135 632 102 759 180 680
Adjusted headlind earnings per share
Headline earnings 135 632 102 759 180 680
Add: Equity compensation benefit - - 20 000
Less: Taxation - - (6 000)
Outside shareholders` interest - - (2 884)
Adjusted headlind earnings 135 632 102 759 191 796
ACQUISITION OF THE MINORITY SHAREHOLDERS IN CAXTON PUBLISHERS & PRINTERS LTD
("CAXTON")
During the six months under review, the company proposed a scheme of
arrangement in terms of which it acquired the minority shareholder`s shares in
Caxton and Caxton was constituted as a wholly-owned subsidiary and has since
been delisted. In terms thereof 20,6% of the issued share capital was acquired.
Shareholders in Caxton holding 5 870 037 shares elected a cash payment of 410
cents per Caxton share and shareholders holding 113 935 295 shares elected to
exchange such shares for new shares in the company in the ratio of 8,1 new
shares for every 100 shares held. Accordingly 92 287 586 ordinary shares were
issued and listed with effect from 23 December 2002. These new shares have, in
view of their date of issue being at the close of the financial period, not been
taken into consideration for purposes of calculating earnings per share.
The company has also sub-divided its ordinary shares in the ratio of 10-for-1
and changed its name from CTP Holdings Ltd to Caxton and CTP Publishers and
Printers Ltd to reflect the change in the operations of the company from that of
a holding company.
COMMENT
Excellent results have been achieved during the six months under review which
saw a resumption in the level of advertising spend and a reversal in the
fortunes of the packaging division. According to a major research group the
total value of traditional advertising was up by 15,8% between December 2001 and
November last year and advertising in Print media was up by 16,7% which is the
first time in a long while that increases of this nature have been experienced.
The company`s publishing interests, in view of their extremely good positioning,
experienced gains in excess of the industry average.
Earnings
Turnover which excludes inter-company turnover increased a creditable 19,7%
from R1,215 million to R1,454 million.
Profit from operations rose by 28,4% to R243,5 million. Depreciation increased
from R42,7 million to R48,2 million which increase reflects the additional
amounts invested in equipment. Net profit from operations amounted to R195,3
million which resulted in a margin of 13,4% being achieved which compares
favourably with 12,1% achieved during the six months ended 31 December 2001.
In spite of further substantial sums having been expended on the purchase of
plant for the packaging division and a number of the printing divisions, cash
resources amounted to R910,7 million which is ahead of the level of cash
resources at the same time last year. This notwithstanding substantial amounts
of tax having been paid during the current six months as the company is now in a
full tax paying position.
Finance income increased from R43,5 million to R62,4 million reflecting the
higher level of interest rates which prevailed during the period.
Associated companies performed better achieving income of R3,2 million and
exceptional items which comprise goodwill arising on the purchase of the
additional shares in Caxton amounted to R8 million. The exceptional item of a
positive R42,8 million in the previous period was an unusual and non-recurring
surplus which arose on the disposal of certain investments. Taxation absorbed
R88,2 million, and an amount of R36,7 million has been set aside in respect of
the minority shareholders` share of profits in Caxton for the period 1 July 2002
to 31 December 2002. As Caxton is now a wholly-owned subsidiary it will no
longer be necessary to provide profits due to outside shareholders.
Earnings attributable to the shareholders therefore amounted to R127,9
million. Diluted earnings per share amounted to 33,2 cents and diluted headline
earnings per share amounted to 35,2 cents which compares with 26,5 cents
achieved during the comparable period - an excellent improvement of 33%.
Divisional performance
As referred to earlier, in view of the gains in advertising revenues,
excellent results were achieved by the Newspaper Division and especially the
Community newspapers. Good progress has been made in improving "The Citizen" the
company`s daily newspaper and here too it pleasing to report that revenues have
increased despite a difficult environment for all daily newspapers where
circulations have not been increasing.
The Magazine Division continues to achieve improved results and their market
share increased during the period.
The investment in Academic Publishing held by Maskew Miller Longman, which is
owned jointly with Pearsons PLC, had an extremely good year and their increases
in volumes together with more publishing by other publishers, as a consequence
of the additional expenditure by the Provinces on education, resulted in very
pleasing results being achieved by CTP Book Printers who are located in the
Cape.
Web Printing produced reasonable results considering the competitive nature
of the industry, but margins were under pressure and it was only as a result of
additional efficiencies from new presses that have been installed coming
through, and the relentless control over costs, that a stable performance was
recorded.
Over the past two years, large amounts have been invested in the company`s
packaging division and further plant purchases are currently being undertaken.
These divisions comprise niche packaging operations involved in the production
of labels, folding cartons and flexographic packaging in Gauteng and Cape Town.
Efficiencies have improved but still have further room for improvement which
will only come about when the new items of equipment referred to above, have
been commissioned. Results are somewhat better because of the consolidation and
rationalisation of a number of activities.
In spite of a large increase in the price of raw materials brought about by the
fall of the Rand, the stationery division did well in a fiercely competitive
area.
Prospects
Retailers appear to have enjoyed a good trading period for the festive period
which augurs well for the remainder of the company`s financial year. With the
strengthening of the Rand, cost pressures experienced over the last eighteen
months should start abating. Economic conditions in South Africa appear to be
improving with reasonable growth being forecast. This is in spite of an
International economy which remains uncertain and highly unpredictable.
The company has prospered over the past period and is reaping the rewards of
past acquisitions and the excellent titles and facilities which it owns. With
continued emphasis on cost control and the economy maintaining a reasonable
momentum it is not anticipated that there will be any major deviation in the
results of the company in the forthcoming six months from those now being
reported.
Basis of preparation
The accounting policies used in the preparation of the financial statements
for the period under review are in accordance with South African Statements of
Generally Accepted Accounting Practice and are consistent with those applied in
the prior year.
By order of the Board
Dr F van Zyl Slabbert G M Utian T D Moolman
(Chairman) (Managing Director) (Chief Executive Officer)
20 February 2003
Date: 20/02/2003 10:00:00 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
