Johannesburg - Kagiso Media, which has radio and specialist publishing interests, would return R85 million in surplus capital to shareholders after making a turnaround in the year to June 30, it said yesterday.
Roger Jardine, the chief executive of Brainware, said this return demonstrated black empowerment companies could be genuine creators of shareholder value.
The company made its JSE listing debut in 1997.
"We took the view that our cash pile should be regarded as shareholder resource," he said.
Earnings attributable to shareholders stood at R43 million from a loss of R14,5 million.
Kagiso Media controls Durban-based East Coast Radio, which grew its KwaZulu Natal market penetration from 11,5 percent to 17,4 percent, and Johannesburg-based Jacaranda 94.2 FM. It also holds a 24,9 percent stake in Orange FM.
Jacaranda's audience grew 37 percent to over 1 million, and expected this to convert into revenue in the next year.
The broadcasting division, composed of the three stations, is the group's highest revenue contributor at 38 percent and and dominates by 80 percent the group's R30 million operating profit before interest and taxation.
Headline earnings a share rose 20,1 percent to 38c on turnover that increased 12,7 percent to R145,2 million.
Cash reserves grew by R86 million to R106 million, of which R44 million came from the sale of 9 million Caxton shares last October.
Radmark, the radio advertising sales house, lost two clients in the African Media Entertainment stable, but offset this with the new signings of Classic FM and KFM.
Butterworths, the subscription-based publishing business, performed positively, while Systems Publishers disappointed by dropping turnover by 24 percent, which translated into a R3,7 million loss.
Exhibition businesses Saitex, Auto Africa and Rand Easter Show are expected to contribute R37,3 million turnover, and operating profit of R7,1 million in the next financial year.
Kagiso stock closed unchanged at R2,50 yesterday.