Jordan Shoes, a subsidiary of KAP International Holdings, contributed about 7 percent to its parent's turnover and profit for the year to December, chief executive Paul Schouten said yesterday.
Following the release of its results, KAP's shares rose almost 6 percent yesterday after closing at R3.18 on Monday. The price traded down during the day to close at R3.20, while the diversified industrial sector declined 1.29 percent.
Jordan, which employs 900 of KAP's 5 213 staff, manufactures certain lines for Nike, Asics, Adidas and Puma at its factory in Elsies River in Cape Town, but imports some of the brands' other lines from China, which accounts for about 50 percent of its products.
By mixing manufacturing and imports, Jordan has continued to flourish in an environment in which the local shoe industry has been decimated.
Schouten said Jordan was the only Nike-accredited manufacturer and distributor in sub-Saharan Africa. Four new brands were introduced during 2004 and Jordan was going all out to grow awareness of its sportswear and fashion shoes brands.
As Kolosus, the KAP group originally consisted of a fresh meat and canned meat division, an automotive leather manufacturer and a shoe leather plant.
Kolosus purchased Feltex, Jordan, Hosaf Fibres and Glodina for R375.9 million, changed its name to KAP and moved to the diversified industrial sector of the JSE Securities Exchange.
Schouten said trading had been buoyant and there had been a strong performance from the automotive division, especially leather, as well as footwear.
"Solid progress was also made on Glodina's turnaround and Hosaf made a modest profit despite very difficult trading conditions.
"Bull Brand also performed strongly in November and December after a slow start to the year," he said.
The group's annual headline earnings a share rose 44 percent to 35.86c for the period under review, compared with 24.85c for the eight months to December 2003.
Revenue climbed 210 percent to R1.9 billion, translating into earnings a share of R1.0275 from 23.13c.
Long-term borrowings increased from R185 000 to R78.6 million and short-term loans from R69.9 million to R118.7 million, while net interest-bearing debt to equity rose to 22.2 percent from 16 percent.
The basic health of the business was reflected in the cash generated from its diverse operations, which climbed to R114 million from R18.2 million. Shareholders received the option of a 5c dividend a share.