Novus Holdings expects the terms of the new printing agreement with former controlling shareholder Media24 to have a material effect on the group’s results when it becomes effective after March 2018. The just-released interim results show that despite tough trading conditions, Novus was able to generate a 13.3% increase in earnings to 71.7c a share in the six months to end-September. The results also show the Media24 printing agreement accounted for almost 20% of Novus’s turnover in the period. This first release of the details of sales to Media24 confirms analysts’ speculation about the importance of the agreement to Novus. During the six-month period, Media24 sales made up R450m of the total R2.3bn. In the notes to the results, Novus discloses that the amount outstanding from Media24 for the interim period was R82m. The termination of the long-standing agreement with Media24 followed the Competition Tribunal’s ruling that Media24 had to reduce its majority shareholding in Novus to...
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