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Publishing and printing group Caxton wrote down R64.7 million on its factories and equipment, following a slowdown in printing of magazines and newspapers.
In 2020, Caxton retired from magazine publishing and shut down ten of its brands such as People, Your Family, Bona, Country Life and Rooi Rose.
“As reported in the first half of the year, the business environment of the newspaper and magazine printing market has seen a permanent decline and some equipment that is [in] exceeding current requirements, required a depreciation of R64.7 million, â€Caxton said in its results for the year ended June 30, 2021.
At the same time, the group said that improving demand in the second half of the year – following the relaxation of some of South Africa’s foreclosure restrictions, a cost structure downsizing and closing loss-making divisions – had helped him to recover significantly.
The group reported profit of Rand 565.9 million in 2021, compared to a loss of Rand 64 million in 2020. Revenue fell 6.3 percent year-on-year to Rand 351.9 million.
In addition to printing, Caxton’s businesses include digital advertising, graphic design, packaging and distribution.
“The past year has restored the group’s operations to a stable basis and, as sales recover from the reduced cost basis, this should improve profitability. The uncertain question is the time period for that the turnover of our various operations is fully recovering to pre-pandemic levels, with the continued threat of new regulations in the face of the fourth and fifth waves of Covid-19, it is impossible to predict the future â€, declared Caxton.
The board declared a dividend of 50 cents per common share and a preferred dividend of 410 cents per preferred share.
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