Tough operating environment weighs on Caxton
Printing and publishing group Caxton said on Thursday that after-tax profit for the year to end-June slipped 12.4% to R355m, with the company battling with a tough operating environment.
Earnings per share fell 12% to 86.7c with the company reporting higher raw material input prices, which it is unable to pass on to consumers.
The group also impaired a printing press, saying there was no certain prospect that it could be used in the short to medium term.
Net finance income, however, increased to R133.3m from R114.7m, with the company receiving a dividend from its Novus investment.
The company said cash and cash equivalents rose R158.9m to R1.75bn, and remain an important asset as it considers new growth opportunities.
At 2.18pm, Caxton’s share price was up 1.3% to R7.01, having fallen 10.49% so far in 2019.
Correction: September 19 2019
An earlier version of this article stated that headline earnings per share fell 12%, instead of earnings per share. Business Day regrets the error.