Johannesburg - KAP Industrial Holdings - which has as its biggest investor Steinhoff - says it grew revenue 4 percent to R16.2 billion in the year to June.
It also grew operating profit 19 percent to R2 billion, off revenue of R16.2 billion, and said headline earnings from continuing operations increased 18 percent to 47.8 cents per share. Headline earnings is a key indicator of profitability in South Africa as it strips out unusual items.
The listed company, which recently said it was buying plastics manufacturer Safripol Holdings for R4.1 billion, noted its cash generated from operations gained 44 percent to R3.3 billion, and it increased its dividend 20 percent, at 18c a share. KAP says the revenue improvement was despite the challenging economic environment, and buoyed primarily by KAP’s positions in the industries that it serves.
Read also: KAP shares surge on impending Safripol buy
“Following the group’s rationalisation and consolidation strategy which took place during the past 18 months, our continued focus on optimising existing operations, organic expansion activities and the acquisition of complementary businesses, has successfully improved our market share in our areas of operation,” says CEO Gary Chaplin.
Its diversified logistics division underwent further consolidation with the Unitrans Supply Chain Solutions operations amalgamating into a single contractual logistics division which delivered enhanced operating efficiencies. “It also provided us with a platform to reallocate capital towards higher return activities and to reduce overhead costs which directly improved operating margins,” says Chaplin.
During the period, the company bought SA.s largest supplier of original equipment manufacturer (OEM) approved automotive accessories, Autovest, for R560 million. The company also spent R752 on expansion.
IOL
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