Wrap Text
Reviewed Provisional Group Results for the year ended 30 June 2024 and Dividend Announcement
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 2024
Reviewed Audited
for the year for the year
ended ended
30 June 30 June
% 2024 2023
change R'000 R'000
Revenue (4.7) 6,647,278 6,974,558
Profit from operating activities before depreciation and amortisation (5.5) 927,225 981,140
Profit from operating activities after depreciation and amortisation (11.4) 657,903 742,392
Profit for the year (12.6) 657,357 751,876
Headline earnings 3.3 703,237 680,766
Cash and cash equivalents 32.7 2,505,764 1,888,376
Earnings per share (cents) (10.0) 182.9 203.3
Headline earnings per share (cents) 4.0 196.1 188.6
Net asset value per share (cents) 6.9 2,162 2,022
Ordinary dividend declared/paid per share (cents) - 60.0 60.0
COMMENTARY
The Group has delivered an expected set of results in the context of a difficult trading environment, where
the decline in operating profits was to a large extent offset by insurance proceeds of R173.2 million
(2023: R118.2 million) and net finance income of R237.0 million (2023: R134.2 million).
Revenues, including R176.1 million loss of revenue relating to the sale of a business and closure of a subsidiary,
declined by R327.3 million (4.7%) from R6 974.6 million to R6 647.3 million. As reported at the half
year, the publishing and printing operations faced reduced printing throughputs and overall decline in media
advertising revenues, as national retailers reduced their spending to take account of the constrained consumer
environment. In a difficult trading environment, the packaging businesses managed to grow revenues,
which confirmed the resilience of the markets that we serve.
Overall margins were under pressure as competition in most markets intensified while the weighted average
cost of raw materials increased relative to the prior year. Overall raw material pricing has stabilized but
with exchange rates at elevated levels, this placed pressure on margins that could not be fully recovered
from customers.
In the absence of any growth in revenue and increasing margin decline, it was important to focus on cost
containment. Staff costs declined by R49,8 million (3.8%) and operating costs by R12.0 million (1.1%).
This includes the impact of a closed operation, the sale of a subsidiary and once off flood costs in the prior
year. If these factors are excluded, the staff costs were flat and operating costs increased by 6.2% which is a
commendable achievement. Operating costs were impacted by large increases in electricity and water utility
costs but the electricity portion was mitigated by the savings from the solar rollout.
Profit from operating activities before depreciation and amortization declined by R53.9 million (5.5%), and
after depreciation of R269.3 million, profit from operating activities decreased by 11.4% to R657,9 million.
The increase in net finance income of R102.8 million (76.6%) is due to substantially higher average cash and
near cash balances.
The Group's profit before taxation was R837.9 million, a decrease of 12.0% compared to the prior year, and
after taxation of R180,5 million, the Group achieved an after tax profit of R657.4 million. Headline earnings
per share increased by 4.0% to 196.1 cents (2023: 188.6 cents), and earnings per share decreased by 10.0% to
182.9 cents (2023: 203.3 cents). The decline in earnings per share is as a result of a profit on disposal of a
subsidiary (R79.0 million) in the prior year, compared to a loss on disposal of an investment (R45.3 million)
or 34.5 cents per share.
The Group's cash flow improved strongly, ending with cash and cash equivalents of R2 505.8 million,
compared to the prior year of R1 888.4 million - an increase of R617.4 million. Likewise, cash balances
increased from the interim reporting period by R 695.7 million.
The Group's operations are well placed to capitalise on any uptick in consumer spending and the hope that
loadshedding risks continue to decline, inflationary pressures reduce and interest rates drop which translate
into improved trading conditions. Should this not materialise, the Group is fortunate that its balance sheet
remains strong with significant cash balances to deploy should opportunities arise.
Dividends
The Board has declared a dividend of 60.0 cents (2023: 60.0 cents) per ordinary share (gross) and a
preference dividend of 490.0 cents (2023: 490.0 cents) per preference share (gross) for the year ended
30 June 2024.
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 60.00 cents per ordinary share and 490.00 cents per preference share for
shareholders exempt from Dividend Withholding Tax
- the nett dividend amount is 48.00 cents per ordinary share and 392.00 cents per preference share for
shareholders liable for Dividend Withholding Tax
- the Company has 358 288 097 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, 3 December 2024.
Shares will trade ex-dividend from Wednesday, 4 December 2024.
The record date will be Friday, 6 December 2024 and payment will be made on Monday, 9 December 2024.
Share Certificates may not be dematerialised or materialised between Wednesday, 4 and Friday 6 December 2024,
both days inclusive.
Review of the Independent Auditors
The Company's auditors, Forvis Mazars, have reviewed these results. Their unmodified review conclusion
is available for inspection at the registered office of the Company. The auditor's report does not necessarily
report on all of the information contained in this announcement/financial results. Shareholders are therefore
advised that in order to obtain a full understanding of the nature of the auditor's engagement they should
obtain a copy of the auditor's report together with the accompanying financial information from Caxton's
registered office.
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 6 September 2024 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/2024/JSE/ISSE/CAT/CATAR2024.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
6 September 2024
Executive Directors:
TD Moolman, TJW Holden, LR Witbooi
Transfer Secretaries:
Computershare Investor Services Proprietary Limited
Sponsor:
AcaciaCap Advisors Proprietary Limited.
Independent Non-Executive Directors:
PM Jenkins, ACG Molusi, NA Nemukula, JH Phalane, T Slabbert
Registered Office:
368 Jan Smuts Avenue, Craighall Park, 2196
Company website:
www.caxton.co.za
Date: 06-09-2024 10:00:00
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