Caxton earnings up despite global crisis

2011-09-08 08:37

Johannesburg - Media company Caxton and CTP Publishers and Printers [JSE:CAT] on Thursday reported headline earnings per share of 106.2 cents for the year ended June 2011 from 76.1c a year ago. A dividend of 40c per share was declared.

Turnover was up 6% to R4.34bn and profit from operating activities was up 14.4% to R522.6m.

The company said that while retail and wholesale sales continued to grow throughout the year, unemployment remained high. In addition, recent volatile international economic conditions have created greater uncertainty and at this moment in time it appears that difficult trading conditions, with minimal growth occurring worldwide, can be expected to continue for some time.

Advertising spend has increased but print advertising as a percentage of total spend has declined.

"Against this background the company performed reasonably and increased its market share in the major areas in which it operates notwithstanding the increased levels of competition," it said.

The financial position remains strong with cash and cash equivalents amounting to R1.6bn at the year-end which is lower than the corresponding amount at the previous year-end of R1.8bn due to extensive investments in the purchase of new capital equipment, working capital and the repurchase of shares in the company.

Looking ahead, the group said the economy appears to once again be entering a volatile period with little or no growth being predicted by a range of economists. The level of employment continues to decline and there has been a deterioration in consumer confidence.

In addition, the migration to digital products is reducing advertising spent on print, it said.