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Updated Trading Statement For The Year Ended 30 June 2020
KAP INDUSTRIAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1978/000181/06)
Share code: KAP
ISIN: ZAE000171963
(“KAP” or “the Company”)
UPDATED TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2020
KAP is currently in the process of finalising its results for the year ended 30 June 2020, which
will be announced on the Stock Exchange News Service ("SENS") of the JSE Limited (“JSE”)
on or about 20 August 2020.
On 26 June 2020 the Company published a trading statement in which it advised shareholders
that while the Company’s annual impairment testing is not yet complete, a reasonable degree
of certainty exists that operating profit before depreciation, amortisation and capital items
(“EBITDA”) from continuing operations for the twelve months to 30 June 2020 will be between
19% and 28% lower than in the prior year and operating profit before capital items from
continuing operations will be between 35% and 48% lower than in the prior year. The
Company reconfirms these ranges.
Similarly, the Company advised shareholders that headline earnings per share (“HEPS”) and
earnings per share (“EPS”) is expected to be at least 45% lower than the prior year before the
effect of any potential impairments.
The Company has now completed comprehensive impairment testing of its assets in terms of
International Financial Reporting Standards (“IFRS”), the outcome of which will impact its
earnings. Due primarily to the impact of Covid-19, the national lockdown imposed by the South
African government with effect from 27 March 2020, the cyclical imbalance in global polymer
supply and demand and the resultant asset impairments related thereto, a reasonable degree
of certainty now exists that:
- HEPS will be between 12.7 cents and 15.0 cents, representing a decrease of between
70% and 65% compared to the HEPS of 42.9 cents reported for the year ended
30 June 2019; and
- Loss per share will be between 86.8 cents and 79.8 cents, compared to the EPS of
38.3 cents reported for the year ended 30 June 2019.
The Company was cash generative and operated within its financial covenant ratios for the
year ended 30 June 2020. Trading conditions post year end have been encouraging and the
Company’s financial forecasts reflect that the Company will be profitable, cash generative and
will remain within its financial covenant ratios for the foreseeable future.
The financial information on which this announcement is based has not yet been reported on
by the Company’s auditors.
By order of the Board
KAP Secretarial Services Proprietary Limited
Stellenbosch
14 August 2020
Sponsor
PSG Capital
Date: 14-08-2020 09:50:00
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