Cognition interim results December 2018
Gross revenue for the interim period grew by 5.1% to R210.7 million (2017: R200.4 million) and gross profit increased by 14% to R56.2 million (2017: R49.3 million). Profit attributable to owners of the parent rose 1.3% to R9.3 million (2017: R9.2 million). Furthermore, headline earnings per share increased to 6.79 cents per share (2017: 6.70 cents per share).
Although an interim dividend was declared in 2017 the Group traditionally only pays an annual dividend. The Board has decided to not declare an interim dividend and to rather preserve cash for acquisition purposes.
Trading conditions will remain challenging and uncertain, particularly leading up to the election. Despite this the core operating divisions have continued to show resilience and provide a much-needed connection between brands and consumers, particularly when niche marketing and communication becomes more relevant. These core assets will provide the foundation for the changing nature of the Group?s future strategy. During November 2018 shareholders were notified of the Group?s intention to acquire the 50.01% shareholding in Private Property from CTP Limited, a subsidiary of Caxton and CTP Publishers and Printers Limited, as part of the Group's changing strategy. Post the reporting period under review, shareholders were advised on 7 February 2019 that all the conditions precedent had been fulfilled and the transaction had been concluded. Following the successful Private Property transaction, the Caxton Group effectively holds a 63% stake in Cognition. This is a very exciting phase in the Group?s journey as it is now better placed to exploit the digital economy with the opportunity to acquire appropriate "owner-managed" digital assets from third parties which, together with existing operational divisions, will result in the Group becoming a growth-focussed company within the digital sphere. The forward-looking strategy will be to blend investments that offer innovative technology platforms with digital opportunities that can be collaborative, creative and flexible. The opportunity for the Group in its "next chapter" is thus to provide creative scope for each investment to be fully empowered and operate independently, whilst spontaneously leveraging opportunities within the investment portfolio of the Group, with the intention of maximising value for all stakeholders.