A lot was expected from KAP when Steinhoff used it to reverse-list its SA industrial assets in 2012.And KAP is delivering growth.Headline EPS have grown at a cracking pace, coming in 18% up in the year to June. Over four years the annual average is 19%, despite a modest 6% average annual rise in revenue.Operating margins have been rising."KAP is one of a few SA industrial companies with a plan to do something about improving operational profitability," says Anthony Sedgwick, asset manager at Abax Investments.He has KAP as the number two holding in the R2.1bn-asset Nedbank Entrepreneur Fund he manages.KAP has been through a lot of change since 2012, ridding itself of noncore assets to create a group divided into two distinct segments — each accounting for roughly half the group’s R16bn annual revenue.Segment components have a common feature. They are number one or two players in sectors with high barriers to entry and are strong cash generators.One segment houses logistics heavyweigh...
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