Terrence Moolman, the longtime chief executive and major shareholder of Caxton CTP Publishers Printers, is poised for a multimillion-dollar payday after the South African media and printing group reported solid financial results and boosted its dividend despite a sluggish economy. Caxtons shares jumped 4.7 on Friday afternoon when the company announced a 16 increase in its annual dividend to 70 cents USD 0.04 for the year ended June 30. Moolman, who controls about 46 of the company through 165,652,708 shares, will earn an estimated ZAR 115.96 million USD 6.67 million from the payout. We delivered commendable results in difficult operating circumstances, characterized by little to no growth and subdued consumer spending in a highly competitive environment, Moolman said. The groups cash and cash equivalents climbed 20.7 to R3 billion USD 172 million, underscoring its strong cash generation. Shares traded at R12.25 USD 0.70, slightly below R12.70 USD 0.73 a year earlier on the same day. Normalised headline earnings per share rose 12 to 178.9 cents USD 0.10 even though revenue edged up just 0.9 to R6.71 billion USD 385.6 million. Profit from operating activities before depreciation and amortisation slipped 10.7 to R828.03 million USD 47.6 million, while profit for the year dropped 9.1 to R597.79 million USD 34.4 million. Excluding a one-time R173.2 million USD 9.95 million insurance receipt from the previous year, operating profit before depreciation and amortisation was up 9.8, and after depreciation and amortisation, operating profit rose 17.1. Moolman credited cost discipline, timely investments, and opportunistic sourcing of raw materials for cushioning the weaker top-line performance. Impairments totaled R50.8 million USD 2.92 million, mainly from reduced throughput at the Durban gravure printing operation R32.4 million / USD 1.86 million, retired equipment R13.1 million / USD 0.75 million, and a closed digital business R5.3 million / USD 0.30 million. Net finance income improved by R10.4 million USD 0.60 million to R247.4 million USD 14.2 million as stronger interest income offset lower dividends from associates. Over two years, Caxtons cash reserves have swelled by R1.1 billion USD 63.2 million, including R668.4 million USD 38.4 million added during the interim period. Moolman warned that South Africas economic outlook remains uncertain and said the company is managing all operations closely to protect profitability. Still, he struck an optimistic note about Caxtons ability to capitalize on opportunities: Our balance sheet grows from strength to strength and puts us in the enviable position of being able to continue to allocate capital wisely and take advantage of any opportunities that might present themselves. The robust performance and generous dividend highlight Moolmans standing as one of South Africas most seasoned media executives. His careful stewardship has helped Caxton navigate weak consumer spending, a shifting advertising landscape, and tough competitionwhile still delivering for shareholders.
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