Big things have been expected of KAP since Steinhoff’s industrial and transport assets were reverse-listed into it in 2012. KAP has so far delivered unfailingly. In the six months to December, it lifted headline EPS (HEPS) by 18%. It took average interim HEPS growth over the past five years to 16%. Consistent performance has endeared KAP to the market. In the past four years its share price has trebled to about 850c. In the latest half year, acquisitions contributed 8% of KAP’s 18% HEPS growth. The driving force behind KAP’s first-half growth was its industrial operations, which upped combined operating profit by 49% to R624m, 56% of the group total of R1.11bn. Growth was achieved off revenue that grew at a far slower 12% to R4.64bn and came primarily thanks to an impressive rise in average operating margin from 10.1% to 13.5%. "The strategic initiatives we have implemented over the past few years and capital investments are now boosting our bottom-line performance," says CEO Gary C...
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