The group said that during the period the company concluded a B-BBEE transaction in its Unitrans logistics business, which resulted in a non-recurring, non-cash cost of R196million being expensed.
Chief executive Gary Chaplin said the BEE deal will create a lot of value for all stakeholders and assist in growing their logistics business. KAP operates three divisions: industrial, chemical and logistics, and each of them have their underlying businesses.
Despite the decline in earnings the group is confident about its operations going forward.
The board set a strategy for the 2019 financial year, which was to ensure the completion of the expansion projects and the effective integration of acquisitions into the group, with a focus on market share growth, extraction of value and generation of cash to improve gearing and strengthen its balance sheet. Chaplin said with their strong cash generation and healthy balance sheet, the company is well positioned for growth.