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CAXTON AND CTP PUBLISHERS AND PRINTERS LIMITED - Reviewed Provisional Group Results for the year ended 30 June 2021

Release Date: 20/09/2021 13:34
Code(s): CAT CATP     PDF:  
Wrap Text
Reviewed Provisional Group Results for the year ended 30 June 2021

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


  R563.9 million         R619.1 million        R2 038.3 million               HEPS              dividend                    R17.17
     profit from              cash from              total cash         75.4 cents              declared           net asset value
       operating             operations                                                        per share                 per share
      activities                                                                              50.0 cents
        UP 61.0%               UP 88.0%                UP 13.8%          UP 255.7%                                        UP 24.1%

                                                                                                       Reviewed            Audited
                                                                                                   for the year       for the year
                                                                                                          ended              ended
                                                                                    % Change       30 June 2021       30 June 2020
                                                                                                          R’000              R’000
Revenue                                                                                (6.3)          5 220 415          5 572 359
Profit from operating activities before
depreciation and amortisation                                                           61.0            563 860            350 301
Profit/(loss) for the year                                                                              565 924           (64 067)
Cash, cash equivalents and listed preference shares                                     13.8          2 038 263          1 790 460
Earnings/(loss) per share (cents)                                                                         148.1             (14.8)
Headline earnings per share (cents)                                                    255.7               75.4               21.2
Net asset value per share (cents)                                                       24.1              1 717              1 384
Ordinary dividend per share (cents)                                                                          50                  –


The Caxton group has proved its resilience with a largely restored full year performance notwithstanding the effects of the
pandemic that are still being felt across all sectors of the business. Financial discipline, excellent cost management, huge efforts by
our staff, commitment to our customers and well-timed strategic decisions have all contributed to this recovery.

The group has delivered an excellent recovery in profit from operating activities as follows:

•   Profit before depreciation and amortisation increased by R213.6 million (61%) to R563.9 million compared to R350.3 million
    in the prior year; and
•   Profit after depreciation and amortisation increased fivefold by R258.5 million to R310.4 million compared to R51.9 million
    in the prior year.

The year was affected by massive disruptions to national economic activity and customer/consumer demand as a result of the
lockdown regulations, which had a profound effect in our local newspaper business, commercial printing operations and to a
lesser extent, in our packaging businesses.

The improved demand during the second half of the financial year, as restrictions on economic activity were partially eased, and
much reduced cost structures in many of our operations, had a positive impact on profitability. In addition, the closure of loss-
making divisions in the prior year, particularly magazine publishing and distribution, have been earnings enhancing.

Revenues declined by only R351.9 million (6.3%), in spite of the closure of operations which contributed R460.0 million of
revenue in the prior year. The continuing operations therefore ended the year R108.1 million (2.1%) up on the prior year, as the
second half of the financial year reflected improving demand. However, these operations are still not generating the same levels
of revenue as before the pandemic.

The group continues to manage its cost base well with staff costs and other operating expenses respectively ending the year
R248.7 million (17.6%) and R416.3 million (31.1%) below the prior year. Obviously, the closure of operations played an
important role, but excluding these businesses, staff costs and operating expenses respectively ended R91 million (7.3%) and
R19.3 million (2.1%) below the prior year.

Raw material input prices were a tale of two halves – in the second half of the year global supply tightened significantly and
this was further exacerbated by constrained container supply and increased shipping costs. This manifested itself in large price
increases of commercial grades of paper and packaging materials.

The group’s profit after taxation is R565.9 million, representing earnings per share of 148.1 cents (2020: loss of 14.8 cents),
headline earnings per share of 75.4 cents, a growth of 255.7% on prior year (21.2 cents), and included:

•   The sale of our investment in associate companies Octotel (Pty) Ltd, our fibre-to-home operation, and RSAWeb (Pty) Ltd, our
    internet service provider, resulting in a profit on disposal of R399.7 million.
•   The group exchanged its 16% investment in Ince (Pty) Ltd for a 38% investment in Coax Partners (Pty) Ltd resulting in a profit
    of R10.5 million.
•   The acquisition of a controlling stake in its associate Shumani Mills (Pty) Limited, resulting in loss on disposal of an associate
    of R10.5 million, and on assessment of the carrying values, an impairment of the investment of R3.2 million and resulting
    goodwill of R9.7 million.
•   Impairments of loans to associates amounted to R17.3 million as the group came to the end of its commitments to fund certain
    digital assets whose future sustainability is uncertain.
•   Further impairment of plant and equipment of R64.7 million due to permanent decline in magazine and newspaper printing
    markets, and
•   A decline in net finance income of R60.6 million as a result of the lower interest rate environment and less dividends received
    from our preference share investments.

The past year has re-established the group’s operations on a stable base and, as turnovers recover on the scaled down cost
base, this should improve profitability. The uncertain issue is the time period for the turnovers of our different operations to fully
recover to pre-pandemic levels. The continued threat of further regulations in the face of fourth and fifth waves of Covid-19 makes
it impossible to predict the future. The group will continue to take the necessary actions to protect profitability and to look for
further growth prospects.

The focus is on proactive management of all the different and diverse aspects of our business, attention to detail and meeting the
expectations of our customers.

We have stable businesses, loyal, committed and resourceful management and staff, significant cash resources, creative investment
strategies, and above all, excellent facilities that can capitalise on growth opportunities. Our group represents a value enhancing
portfolio of assets that we are confident we can grow and expand.


The board has declared a dividend of 50.00 cents (2020: nil cents) per ordinary share (gross) and a preference dividend of
410.00 cents (2020: nil cents) per preference share (gross) for the year ended 30 June 2021.
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 370 488 772 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, 26 October 2021.
Shares will trade ex-dividend from Wednesday, 27 October 2021.
The record date will be Friday, 29 October 2021 and payment will be made on Monday, 1 November 2021.
Share Certificates may not be dematerialised or materialised between Wednesday 27 and Friday 29 October 2021, both days


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 20 September 2021 and
can be found on the company’s website at /about/announcements and also on the following link: 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

20 September 2021

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:

Date: 20-09-2021 01:34:00
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