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Audited annual financial statements for the year ended 31 March 2025, dividend declaration and results presentation
NOVUS HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2008/011165/06)
JSE share code: NVS
ISIN: ZAE000202149
("Novus Holdings" or "the Company" or "the Group")
AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025,
DIVIDEND DECLARATION AND RESULTS PRESENTATION
SALIENT FEATURES
• Revenue up by 6,6% to R4 222 million (2024: R3 961 million)
• EBITDA* of R663,4 million (2024: R628,8 million) with a net working capital increase of
R144,3 million (2024: decrease of R327,4 million)
• Operating profit* increased slightly to R394,4 million (2024: R393,5 million)
• Headline earnings per share increased to a headline profit of 88,3 cents per share (2024:
headline profit of 78,8 cents per share). This is based on a weighted average number of shares
of 313 816 306 (2024: 318 879 670)
• Earnings per share increased to 110,9 cents (2024: 75,9 cents per share)
• Diluted headline earnings per share** increased to a diluted headline profit of 80,2 cents per
share (2024: diluted headline profit of 67,6 cents per share)
• Diluted earnings per share** increased to 102,7 cents (2024: diluted earnings of 64,7 cents per
share)
• Ordinary cash dividend of 55 cents per ordinary share (2024: 50 cents per ordinary share)
• Net asset value increased to 703,5 cents per share (2024: 644,4 cents per share)
• Closing cash position decreased to R812,2 million (2024: R871,4 million)
* Excluding "other gains/(losses) of R27.2 million gain in 2025 and R11,1 million loss in 2024."
** Earnings per share and Headline earnings per share have been adjusted for the after-tax dilutive effect of the
future conversion of the accelerated empowerment (AE) shares to ordinary shares held by the minority
shareholders in Maskew Miller Learning Proprietary Limited ("MML"), which will result in increased earnings
attributable to non-controlling interest.
PERFORMANCE OVERVIEW
Group revenue and operating profit increased compared to the prior year, with improved profitability
in the Print segment being the major contributor. The inclusion of the newly acquired Novus Media
Proprietary Limited ("Novus Media"), Novus Sport Proprietary Limited ("Novus Sport") and On the
Dot Supply Chain Management Proprietary Limited ("On the Dot"), reported within the Print,
Publishing and Distribution segment of the Group also contributed to the improved operating profit,
which was offset by the decreased operating profit of the Education segment.
Overall Group revenue increased by R261 million from R3 961 million to R4 222 million. The Print
and Education segments both experienced marginal declines in revenue, which was offset by the
Packaging segment delivering improved revenue. The inclusion of the Publishing and Distribution
segments contributed to the year-on-year revenue improvement, an encouraging outcome
considering the challenging trading environment in which the various segments in the Group
operates.
The increase in operating profit to R394,4 million (2024: R393,5 million) and gross profit margin
improvement of 28,7% to 31,4%, is mainly attributable to improved profitability in the Print, Publishing
& Distribution segment.
Overhead costs were well contained throughout the Group. However, the inclusion of the newly
acquired Publishing and Distribution segment as well as the Education segment's investment in
technology of R18 million and an increase in the expected credit loss allowance of R27,3 million
resulted in the overhead cost increasing from R743 million to R932 million. During the year
loadshedding costs were limited to R3,2 million (2024: R17 million). Retrenchment costs amounted
to R4 million in the current year (2024: R1 million).
Once off items included in the Group's results included the following:
• a net gain on investment in associate of R51,1 million relating to the associate accounting of
the Group's associate Mustek Limited ("Mustek").
• a gain on bargain purchase of R16,3 million, mainly relating to the acquisitions of Novus Media,
Novus Sport and On the Dot. The prior year included R0,7 million gain on bargain purchase relating
to the acquisition of the remaining 51% of Free 4 All Pty Ltd;
• an impairment of a supplier development loan in the Education segment of R2,5 million (2024:
R24,5 million impairment of property, plant & equipment of which R21,7 million was accounted
for in the Print segment and R2,9 million relating to leasehold improvement within the Education
segment).
• profit on sale of property, plant and equipment of R0,6 million (2024: R12,2 million profit on sale
of the held for sale property); and
• a gain of R3,7 million on the proportionate sale of shares of the Group's associate Mthembu
Paper Mill Proprietary Limited (MPM).
• a fair value gain of R9,0 million on derivative instruments held by the Group.
Print, Publishing & Distribution
Revenue improved to R2 625 million (2024: R2 419 million), while operating profit improved from
R55,0 million in the prior year to R149,2 million in the current year. The decline of Print revenue in
Magazines & Newspapers was offset by gains in Books. Overall sales tonnages decreased by 6,9%.
The Magazines & Newspapers saw the largest tonnage decrease.
Improved margins led to improved profitability in the Print segment, and together with the inclusion
of the Publishing & Distribution segments the gross margin increased from 17,4% in the prior year
to 24,8% in the current year.
Packaging
Revenue improved to R736,9 million (2024: R655,1 million), while operating profit improved by
14,8% to R77,5 million (2024: R67,5 million).
Education
Revenue decreased by 4,2% to R926 million (2024: R966 million), due to a lower-than-expected
order from the Limpopo province, partially offset by unexpected orders from other provincial
departments. Operating profit decreased to R162,6 million (2024: R264,0 million) principally due to
a R18 million investment in technology, an increased expected credit loss allowance of R21 million
and the amortisation of product development cost for the Foundation Phase submission of R32
million.
CASH GENERATION
The Group closed the period with a cash balance of R812, 2 million (2024: R871,4 million). Net cash
after debt is R375,8 million (2024: net cash of R461,1 million).
Net working capital cash outflows of R144 million were largely from increased inventory purchases of
R82 million by the Print segment due to favorable pricing, significant government debtors being
outstanding at 31 March 2025 in the Print & Education segment of R242 million, offset by increased
trade payables to effectively manage cash flow in the Print segment of R232 million.
Capital and interest repayments on the outstanding loan balance in the period amounted to
R151,5 million (2024: R132,2 million).
Capital expenditure, which amounted to R57 million (2024: R108,1 million) of which R14 million of
the expansion capex was incurred at the Montague Gardens Print facility relating to office
renovations.
Taxation paid in the period amounted to R121,8 million (2024: R131,7 million).
Dividends paid to the Company's shareholders amounted to R157,0 million (2024: R155,5 million).
ACQUISITIONS
During the year the Group acquired 48,58% of Bytefuse Proprietary Limited ("Bytefuse") for R40,8
million and recognised an equity loss of R0,3 million during the current year.
The Group acquired three divisions of Media24 Proprietary Ltd, being: On the Dot (Media supply chain
management division), Novus Media (local community news portfolio) and Novus Sport (football
publication division), for a total purchase consideration of R38,5 million. R20 million was paid on the
effective date and the balance is payable one year from effective date.
Effective 14 November 2024, the Group acquired the ordinary shares in Mustek for R221 million and
owned 35,07% of the issued share capital of Mustek at 31 March 2025.The Group has therefore
made a mandatory offer to the remaining shareholders, on the terms set out in the firm intention
announcement published on SENS on 15 November 2024 and the Offer Circular which was
circulated to Mustek shareholders on 30 May 2025, as follows:
• A cash consideration of R13 per share; or
• A cash amount of R7 per share plus one ordinary share in Novus Holdings: or
• Two Novus Holdings shares for each Mustek share tendered.
The offer is expected to close by 15 August 2025.
The Group recognised an equity accounted loss of R7,2 million for its 35,07% associate share in
Mustek. A net gain on investment in associate of R51,1 million was recognised mainly due to the
gain on bargain purchase recognised at acquisition.
OUTLOOK
The ongoing decline in print volumes places pressure on the recovery of fixed costs and this trend
is expected to continue. Future advertising spend also remains uncertain as brand owners and
retailers continue to alternate between print and digital formats. Paper prices remain a key driver of
value relative to digital marketing.
MML successfully submitted the Foundation Phase curriculum update to the Department of Basic
Education, but remains unsure if the procurement of new material will commence for the 2026 year.
There is no indication if the next phase of the curriculum update, covering grades 4 to 6, will be
announced. Provincial education budgets are already under pressure and the additional cost to
replace all the material for a phase is significant. The cost to the Group of developing material for
each update is significant with no income certainty.
The Group's artificial intelligence ("AI") associate, Bytefuse, is working with MML to leverage its
expertise to deliver learning outcomes through Maski, our AI tutor. Technology and AI supported
tools will change the way that education is delivered, and the Group needs to develop expertise and
products in this area. It is not clear what will be required in order to be successful in this segment
and the Group expects significant competition and new entrants into the education market.
The Packaging segment's focus area is to continue to develop new packaging options with our
strategic clients in order to retain margin. The successful commissioning of their expanded
production capacity within the current year and future capital expansion positions them to grow their
product offering and customer base.
The Group successfully acquired three divisions from Media24 Proprietary Limited which transforms
the Group into a publisher. The challenge remains to make print products relevant and to build a
digital presence at the same time. Our Distribution segment needs to add additional products to its
network in order to leverage fixed costs.
The Mustek acquisition reflects our focus to deploy capital into attractive investment opportunities.
Mustek has significant scale in the South African market and when its working capital profile is
normalised, the business should generate the required return for shareholders.
Novus Holdings is proud to have achieved a B-BBEE Level One Contributor status during the current
year and will continue with initiatives to transform and maintain its status.
The board of directors of Novus Holdings ("the Board") wishes to express its appreciation to
management and all staff for their continued efforts.
DIVIDEND DECLARATION
The Board has approved and hereby declares an ordinary final gross dividend (No. 7) of 55 cents
per share for the year ended 31 March 2025. The source of the dividend is from distributable
reserves and will be paid in cash. The dividend declared is subject to dividend withholding tax at
20%. The tax payable is 11 cents per share, leaving shareholders who are not exempt from dividends
tax with a net dividend of 44 cents per share.
The issued share capital of Novus Holdings at the declaration date comprises 343 183 023 ordinary
shares.
The Company's income tax reference number is 9656/360/15/4.
The salient dates for the payment of the dividend are:
Last day to trade (cum dividend) Tuesday, 15 July 2025
Trading ex dividend commences Wednesday, 16 July 2025
Record date Friday, 18 July 2025
Payment date Monday, 21 July 2025
Share certificates may not be dematerialised or rematerialised between Wednesday, 16 July 2025
and Friday, 18 July 2025, both dates inclusive.
RESULTS PRESENTATION
Shareholders are advised that Novus Holdings will be hosting their results presentation at the Novus
Holdings Offices situated at 10 Freedom Way, Montague Gardens at 11h00 (SA time) on Tuesday,
17 June 2025.
For access and details of this webinar, go to the Group's website at www.novus.holdings and view
the invitation at https://novus.holdings/wp-content/uploads/2025/06/IAR25_Annual-Results-Invite-
v2.pdf
RESULTS ANNOUNCEMENT
This results announcement is the responsibility of the directors of Novus Holdings, and the content
was approved by the Board on 12 June 2025. This results announcement contains only a summary
of the information in the audited annual financial statements for the year ended 31 March 2025
("2025 AFS") and does not include full or complete details. Any investment decisions by investors
and/or shareholders should be based on consideration of the 2025 AFS, as a whole. None of the
information in this announcement has been reviewed or reported on by the Company's auditors.
The 2025 AFS have been audited by the Company's external auditor, BDO South Africa Incorporated,
who expressed an unmodified opinion thereon. The audit opinion, along with the 2025 AFS, are
available on the Company's website at:
https://novus.holdings/wp-content/uploads/2025/06/IAR25-Annual-Financial-Statements-v_Final.pdf
and on the JSE's cloudlink at:
https://senspdf.jse.co.za/documents/2025/jse/isse/nvse/YE25.pdf
RESPONSIBILITY STATEMENT
Each member of the Board, to the extent that the information relates directly to Novus Holdings:
• accepts responsibility for the information contained in this announcement;
• confirms that to the best of its knowledge and belief, the information contained in this
announcement is true and correct; and
• confirms that this announcement does not omit anything likely to affect the importance of the
information contained in it.
On behalf of the Board
Adrian Zetler
Chairman
Cape Town
13 June 2025
Sponsor
PSG Capital
Date: 13-06-2025 02:57:00
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