Jo Grové, CEO of KAP. Picture: FINANCIAL MAIL
Jo Grové, CEO of KAP. Picture: FINANCIAL MAIL

Diversified industrial group KAP reported a 23% rise in first-half profit to R657m on Monday, despite subdued economic conditions.

The company, whose businesses range from transporting goods for the mining and agricultural sectors to manufacturing parts for the motor industry, increased revenue 10% to R9bn in the six months to December.

"(The) results were driven primarily by organic growth and market share gains which are the result of recent technology investments, improved efficiencies and increased integration across the group," CEO Gary Chaplin said on Monday,

Operating profit before capital items was up 24% to R1.11bn as operating margin increased to 12.3% from 11% as a result of divisional integration benefits, continued operational streamlining and recent capital investments.

The medium-sized company by market value said it was continuing to focus on optimising and expanding its existing operations and growing market share in all areas of operation.

In 2016, KAP acquired Safripol, which manufactures plastics, as well as Autovest, which makes car accessories.

The share price was up 3.4% to R8.22 in mid-afternoon trade on Monday, giving the company a market value of R21.9bn.

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