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Unaudited interim results for the six months ended 30 September 2025
NOVUS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2008/011165/06)
JSE share code: NVS
ISIN: ZAE000202149
("Novus Holdings" or "the Group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
SALIENT FEATURES
- Revenue up 1,0% to R2 109 million (2024: R2 088 million)
- Operating profit* down to R102,5 million (2024: R196,4 million)
- Headline earnings per share decreased to 26,57 cents per share (2024: 59,36 cents per share)
- Earnings per share decreased to 26,51 cents per share (2024: 59,46 cents per share)
- Diluted headline earnings per share** decreased to 26,57 cents per share (2024: 55,56 cents per share)
- Diluted earnings per share** decreased to 26,51 cents (2024: 55,65 cents per share)
- Net asset value per share increased to 679,08 cents (2024: 656,19 cents)
- Closing cash position of R741,7 million (2024: R310,0 million)
- No dividends have been declared for the six months ended 30 September 2025 (2024: Rnil)
* Operating profit/(loss) excluding "other gains/(losses)".
**Earnings per share and Headline Earnings per share have been adjusted for the after-tax dilutive effect of the future
conversion of the accelerated empowerment (AE) shares to ordinary shares held by the minority shareholders in Maskew
Miller Learning Proprietary Limited, which will result in increased earnings attributable to non-controlling interest. During the
interim period, diluted earnings per share have been limited to basic earnings per share as the assumed conversion of
potential ordinary shares would be anti-dilutive.
PERFORMANCE OVERVIEW
The financial results for the six months ended 30 September 2025 ("period") is down compared to the prior
period, largely due to the lower profitability of the Education segment following delayed procurement from the
provincial departments. This decline was partially offset by the improved profitability in the Print segment and
the first-time inclusion within the period of Novus Media Proprietary Limited ("Novus Media"), Novus Sport
Proprietary Limited ("Novus Sport") and On the Dot Supply Chain Management Proprietary Limited ("On the
Dot"), reported within the Print, Publishing and Distribution segment of the Group. During the prior year, the
results included profits from derivative instruments held in Mustek Limited ("Mustek") amounting to R59,7
million, within the Packaging Segment, compared to equity accounted earnings of R8.6 million in Mustek being
recognised during this period.
Group revenue increased by R21 million (1,0%) from R2 088 million to R2 109 million. The Education and
Packaging segments decreased by 64,9% and 6,2% respectively, while the Print Segment increased by 0,5%.
The Education Segment experienced delayed orders during this reporting period due to the delay in the
Department of Basic Education ("DBE") finalising the Foundation Phase Catalogue, lateness of the 2025/2026
National Budget finalisation and overall financial constraints experienced by the provincial education
departments. The Publishing and Distribution segment contributed 16,3% to total Group revenue during the
period.
Operating profit* decreased to R102,5 million (2024: R196,4 million) and gross profit margin increased to
31,2% (2024: 30,2%), mainly driven by improved margins in the Print segment.
Operating expenses increased since the prior year due to the first-time inclusion of the Publishing and
Distribution segment, most significantly staff cost of R84 million and technology cost of R14 million. The
Education segment's investment in technology of R14,3 million and the Group's acquisition-related cost of
R9,8m resulted in the total overhead costs increasing from R435 million to R556 million for the Group.
Retrenchment costs of R3,9 million were recognised during the period (2024: Rnil).
Print, Publishing & Distribution
Revenue increased by 23,2% to R1 640 million (2024: R1 331 million) and operating profit* increased to
R153,2 million (2024: R86,3 million). Revenue increased mainly due to the Publishing & Distribution segment's
first-time inclusion during this period. The revenue recognition of the DBE contract in the Print segment is
higher than the prior year, with more than half of the contract recognised at 30 September 2025. The Print
segment's overall revenue however remained almost flat with a 0,5% increase from the prior period, due to
increased recognition of the DBE contract and increased Magazine sales with a tonnage increase of 38,1%,
which was offset by reduced print revenue from Newspapers. Newspapers saw a tonnage drop of 44,5%, with
overall sales tonnages decreasing with 8,9% for the Print segment.
Improved margins due to price increases and recovering paper prices led to improved profitability in the Print
segment. This resulted in an overall increased gross margin from 23,1% in the prior period to 31,2% in the
current period for the Print, Publishing and Distribution segment.
Education
Revenue decreased by 64,9% to R156,9 million (2024: R447,2 million) due to delayed orders from the
provincial departments, resulting in an operating loss* of R81,6 million (2024: R75,1 million operating profit).
This includes R14,3 million (2024: R15,8 million) investment in technology and R64,3 million (2024: R64,3
million) amortisation on acquired intangible assets.
Packaging
Revenue decreased by 6,2% to R345,4 million (2024: R368,0 million). ITB experienced lower revenue
compared to the prior year, with general market pressures which have contributed to this decline.
Gross margin is in line with the prior year of 18,2% with the segment achieving an operating profit* of R32,0
million (2024: R35,7 million), representing a decrease of 10,4%.
CASH GENERATION
The Group closed the period with a cash balance of R741,7 million, a decrease of R70,4 million for the six
months. The first half of the financial year typically sees the Group invest substantially in working capital to
fund seasonal demand and to deliver on the DBE contract.
The cash balance includes an amount of R309,4 million being tied up for the mandatory offer made to Mustek
shareholders to enable the Group to fulfill its cash consideration of the offer.
The Group was in a net cash position of R205,9 million (2024: R172 million net debt) as at 30 September 2025.
Capital and interest repayments on the outstanding loan balance in the period amounted to R102,3 million with
an external dividend of R174,1 million paid to Company's shareholders during the period.
Capital expenditure amounted to R41,3 million with spend directed towards expansion projects of current plant
and equipment of R11,5 million and R14,8 million for maintenance in the Print segment.
Acquisition of additional shares in Mustek amounted to R26,8 million cash outflow.
ACQUISITIONS
During the six months period, the Group acquired an additional 2,8 million shares in Mustek Limited
increasing its shareholding from 35,07% to 39,95% as at 30 September 2025.
Following the Mustek mandatory offer and the offer circular which was circulated to Mustek shareholders on
30 May 2025, the Take Over Regulation Panel ("TRP") investigation remains ongoing, which results in a
certificate of compliance not being able to be issued. In the absence of obtaining a certificate of compliance
from the TRP, the Group cannot implement or give effect to the mandatory offer. Notwithstanding the
regulatory delays, the Group is committed to the mandatory offer to the shareholders of Mustek and looks
forward to the conclusion of the regulatory process.
OUTLOOK
The decline in print volumes and anticipated paper price increases places pressure on future margins which
the Group needs to manage on an ongoing basis. Revenue growth in the Print, Publishing and Distribution
segment requires investment in the development and support of products that meet our customers' advertising
and promotion needs. Clients are moving to digital advertising and communicating the cost effectiveness of
print is a priority if we want to arrest the decline in print advertising spend. We remain confident that print
advertising is valuable and effective, but digital data and integration is required as part of our offering.
Maskew Miller Learning ("MML") received confirmation from the DBE that the Foundation Phase catalogue is
anticipated to be released in the 2025 calendar year with procurement taking place in the 2026 year. The
extent of future orders for the current curriculum catalogue remains uncertain and there is no indication when
the next phase of the curriculum update will be announced. While additional orders are expected from
provincial education departments, aggregated annual orders are expected to be lower than the prior year due
to budget constraints.
MML continues to work closely with the Group's AI associate, Bytefuse, to develop our AI supported education
tutor.
Novus Holdings is proud to have achieved a B-BBEE Level One Contributor status for the second year and
will continue with initiatives to transform and further enhance its status.
RESULTS ANNOUNCEMENT
Shareholders are advised that Novus Holdings will be hosting their results presentation at the Novus Holdings
Offices situated at 10 Freedom Way, Montague Gardens at 10h30 (SA time) on Friday, 28 November 2025.
For access and details of this webinar, go to the Group's website at www.novus.holdings and view the invitation
at https://novus.holdings/wp-content/uploads/2025/11/NVS-Interims-Results-2026-Invite_vFINAL.jpg
SHORT FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the Board and has not been reviewed or reported on by
the Group's external auditors. It contains only a summary of the information in the full unaudited interim results
for the six months ended 30 September 2025 ("full announcement") and does not contain full or complete
details.
The full announcement is available on the JSE's cloudlink at:
https://senspdf.jse.co.za/documents/2025/jse/isse/nvse/interims26.pdf and on the Company's website at:
https://novus.holdings/wp-content/uploads/2025/11/Interim-Results-27-November-2025.pdf
Any investment decisions by investors and/or shareholders should be based on consideration of the full
announcement, as a whole.
On behalf of the Board
Adrian Zetler
Chairman
Cape Town
27 November 2025
Sponsor
PSG Capital
Date: 27-11-2025 10:50:00
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