KAP rewards shareholders with a 50% dividend increase - CNBC Africa

KAP rewards shareholders with a 50% dividend increase

Earnings

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Greyhound buses are provided by Unitrans, a subsidiary of KAP Industrial. PHOTOS: Greyhoundrsa/ Gilltimbers

“In light of the good cash flows for the year and cash flows received from the disposal of non-core assets, the board has approved a gross dividend of 12 cents per share from income reserves, for the year ended 30 June 2014,” said [DATA KAP:KAP Industrial Holdings Limited] in a statement.

During the period, KAP sold off its footwear and food divisions for 290 million rand and 278 million rand respectively.

The group reported a nine per cent increase in revenue to 14.7 billion rand due to growth in all its segments, while operating profit from continuing operations increased from 1.3 billion rand to 1.4 billion rand.

(WATCH VIDEO: KAP Industrial Interim Results with CEO Jo Grove)

KAP is an industrial group focused on businesses operating in emerging African markets. The company delivers services and manufactured products to a wide range of customers through four main divisions.

The logistics division’s operating profit increased by 10 per cent to 762 million rand while the integrated timbers division improved operating profit by eight per cent to 412 million rand.

The manufacturing division’s operating profit grew by nine per cent to 298 million rand.

Headline earnings per share (HEPS) increased by 21 per cent to 34 cents while net asset value (NAV) grew by nine per cent to 286 cents.

(WATCH VIDEO: KAP H1 revenue up 9%)

The group said that its supply chain solutions division will be undergoing a restructure while its passenger divisions will be expanding to Mozambique.

“The group continues to apply its strategy of focusing on its core industrial assets in emerging African markets.”

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