DURBAN - JSE-listed diversified industrial group KAP Industrial Holdings said yesterday that its businesses had not been affected by the coronavirus outbreak in the country, but it was putting controls in place in case the outbreak occurred at one of its operations.
However, the group said it acknowledged the seriousness of the current situation.
“While the nature and extent of the impact of Covid-19 on South Africa, its people, its economy and the company is currently unknown, it could be potentially significant. To date there are no confirmed cases of Covid-19 in any of KAP’s operations,” the group said.
It added that the situation was being monitored on an ongoing basis and management were putting controls in place to prevent and minimise potential infections.
KAP operates three divisions: industrial, chemical and logistics, and each of them have their underlying businesses.
The group said that it had provided clear and defined communication to its employees in this regard and had formulated crisis management plans in the event of infections within the organisation.
KAP’s sales had not been affected by the Covid-19 outbreak and the group had not experienced any significant operational or supply chain disruptions.
“Management is monitoring the situation closely and appropriate contingency plans are being developed to address known potential risks,” the group said.
However, should the impact of Covid-19 become material and quantifiable, KAP would provide guidance through the Stock Exchange News Service platform in terms of the JSE Listings Requirements.
It said its cash generation and balance sheet remained strong and the company remained within its agreed financial covenants.
In the six months to end December, KAP reported that cash generated from operations amounted to R571 million during the period.
The group’s share price traded higher on the JSE yesterday afternoon and was up by more than 7percent.
It closed at R1.74 on the JSE yesterday.