Johannesburg - Caxton, the publishing and printing group, yesterday reported adjusted headline earnings of 31c a share for the year to June 30, down from 37c a share in the previous period. No cash dividend was being paid.
The group's operating results were below earlier expectations as the expected recovery in the economy did not materialise during the review period. The share price eased back 20c to close at R3,80 yesterday on the JSE.
The directors noted that the results should be seen against a low level of advertising in the print medium as well as new markets that have opened up such as gambling, cellphones and the national lottery.
"National retailers and advertising agencies have probably just gone through one of their worst business cycles in many years."
Turnover increased 11 percent to R2,3 billion from R2 billion and operating income nudged up 5 percent to R261 million from R248 million. This reflects a squeeze on margins to 11,5 percent from 12,2 percent.
Gordon Utian, an executive director, said that a number of one-off factors had adversely affected operating profit including investment in the magazine division and in The Citizen; disruptions caused by the installation of new plant; the final commissioning of the new newspaper printing facility and the completion of the Perskor merger, which began a few years ago.
Attributable earnings were down from R314 million, or 67c a share, to R161,7 million, or 32c a share. There was an increase in the weighted number of shares in issue, following last year's rights issue.
If adjustments are made for a wide variety of non-operating factors, the adjusted drop in earnings was a more modest 11 percent to R156 million in financial 2000 from R175 million.
The directors said that all divisions of the group were operating satisfactorily and were in a position to take advantage of any improvement in the business climate. "It is anticipated that good growth will be achieved in the coming year."
CTP Holdings, which has a 77 percent stake in Caxton, reported adjusted headline earnings of 368c a share, down 20 percent from the previous year's 463c.