The group specialises in the manufacturing and distribution of wood based panels, specifically used in the construction, furniture manufacturing and shop fitting industries.
The company has three subsidiaries in South Africa, namely, Davidson’s Discount Boards, Kayreed Board and Timber.
Profit for the year increased by 16.5 per cent to 23.7 million rand while headline earnings per share grew by 18.1 per cent from 11.6 cents in 2012 to 13.7 cents in 2013.
There was however continued pressure on the company’s gross profit margins, leading to a nominal gross profit growth of only 16.8 per cent, 4.1 percentage points lower than the sales growth number, to 197.3 million rand.
Operating expenses increased by 15.7 per cent from 139.5 million rand to 161.3 million rand, resulting in a fairly consistent operating profit margin of 5.5 per cent.
The group also declared a dividend out of share premium of 7.5 cents per share, a seven percent increase from the previous period.
“KayDav is hopeful that economic growth will accelerate in the near to medium term and the Group is well positioned to take advantage of such growth when it occurs. KayDav remains focused on increasing its market share and profitability while maintaining and improving working capital efficiency,” commented the group in a statement.