Kap Industrial keeps dividend unchanged as annual profit falls
Kap says it is launching some capacity expansion projects and tech investments, and those will be commissioned during financial year 2020
Kap Industrial, which counted Steinhoff as a major investor until March, has kept its annual dividend unchanged even as profits fell by nearly a third, partly because of once-off costs.
The group, which consists of industrial, chemical and logistics businesses, said revenue from continuing operations increased 12% to R25.6bn in the year to end-June.
But net profit fell 31% to R1.1bn partly because of a R196m charge linked to a black economic empowerment transaction.
Core headline earnings per share from continuing operations decreased 14% to 53.2c.
Despite the profit decline, Kap said it would pay a gross dividend of 23c a share for the year, unchanged from the prior year.
“The macroeconomic and political environment in SA is expected to remain challenging and uncertain for the foreseeable future, with limited real economic growth and subdued consumer spending,” Kap said.
The group said it was launching several capacity expansion projects and technology investments, and these would be commissioned during financial year 2020.
“Management continue to seek out further capacity expansion opportunities, in line with the group’s strategy in order to grow earnings and enhance shareholder returns.”
Acquisitions were on the agenda, Kap said. “It is anticipated that the current distressed economic environment will yield increased opportunities in this regard.”
The group’s shares were 3.7% down at R4.69 shortly after 12pm on Tuesday.