Johannesburg — CAXTON and CTP Publishers and Printers reported a high creditable 11% rise in headline earnings to 135,2c per share in the year to June off a 8,4% increase in turnover.

There was a healthy cash balance of R1,035bn in the bank at year-end, which was in line with the balance at the last year. The capital spending programme is drawing to a close.

But the group was particularly vague in its prospects because of how the downturn in consumer spending is hurting advertising spending.

Management does not expect economic conditions to improve much before the end of next year. In fact, the group may be "hard-pressed" to repeat 2008's performance.

As expected, the free-sheet newspaper businesses showed some resilience in the past year, a trend that is likely to continue. It is in the magazines and other media that the advertising downturn is being felt quite strongly.

But Caxton hasn't ruled out some new product launches. It remains a well-run group that will no doubt show its mettle through the next 18 months.

Just don't expect any fireworks.

The Bottom Line is Edited By Edward West