Johannesburg - Kagiso Media, the radio broadcasting, exhibition and specialist publishing investment company, said in its recently released annual report that it would strengthen its performance through continued organic and acquisitive growth.
The company acquired 42,5 percent of Jacaranda 94.2, a Johannesburg-based private radio station, during the 1999 financial year.
Eric Molobi, the chairman of Kagiso Media, said this investment "effectively positions the group as a leading player in the private radio broadcasting industry".
The company also holds a 91 percent majority stake in Durban-based East Coast Radio, and 24 percent interest in Radio Orange.
It also acquired a 16,48 percent of Nala Investments, its intermediate subsidiary, for a cash consideration of R53,2 million, and trade and consumer exhibition businesses for R52,3 million.
Molobi said the investment in exhibitions, its growth market, was a building block to execute the group`s philosophy "to acquire critical mass in business-to-business and relationship marketing".
The company had posted a 47,4 percent increase in headline earnings a share to 31,7c.
"Kagiso Media is particularly proud of the performance of its investments in radio, specialist print and exhibitions," he said.
The company`s equity accounted investments exceeded budget, resulting in headline earnings upping by a whopping 97 percent to R40,3 million.
Despite an adverse consumer environment, said Molobi, the group managed to increase turnover from continuing operations by 36 percent to R106,4 million.
Operating margins increased by 21 percent to yield an operating profit of R21,8 million.
He said the group remained "essentially debt free" with cash reserves of R20 million and 9,2 million shares in publisher Caxton, priced at R42,3 million.
The company had intentions to dispose these shares, acquired following Perbel group`s restructuring and its subsequent takeover by Caxton.
Molobi said Caxton shares would contribute meaningfully to the group`s future results with proceeds expected to be in the region of R59 million.
Its acquisition strategy would be aimed at building the market share and strengthening existing operations and explore further broadcasting interests. It would also pursue Internet-based revenue sources, outdoor advertising and investigate direct marketing, said Molobi.