KAP KAP - KAP International Holdings Limited - Audited group results for the year
paid 82,2 51,8
was in credit for the year mainly due to adjustments to assessed
losses in respect of prior periods.
in accordance with International Standards on Auditing
They have issued an
unmodified audit opinion.
Operating profit declined by 16%
compared to the prior
The interest-bearing debt-to-equity ratio improved to 39,7%
over the prior
period, although finance costs increased from 2006/7 due to higher debt levels
during the year for the funding of the Hosaf expansion.
Capital expenditure in respect of the Hosaf expansion and five-year shut-down
amounted to R85
,8 million during the year, and a further R111
,6 million is
earmarked for the completion of the project, including power generators.
is cognisant of the challenging trading environment and the difficulties in
raising additional cash by way of debt, due to the persuasive and continuing
credit crunch, as well as the increased cost of debt.
As a consequence and, in order to ensure optimal gearing, adequate working
capital and capital expenditure resources, as well as compliance with the
relevant bank covenants, KAP
requires long-term funding of approximately R300
This is to be raised by way of a renounceable rights offer.
underwriting commitment in respect of the full amount of such rights offer has
been secured at an offer price not exceeding 120 cents per share.
are advised to exercise caution in trading with their KAP shares
until such time as the detailed terms, conditions and timing relating to the
rights offer have been announced.
The announcement will be made as soon as
Sales volumes were affected by the slow-down in retail vehicle sales in South
and the two-week strike which took place in September 2007.
were eroded by high raw material input costs.
Price increases have been agreed
The number of pairs of shoes sold increased by 7%
over the previous twelve
months, but margins were lower due to intense pressure from retailers.
The directors subscribe to the principles incorporated in the Code of Corporate
the new SANS 16001 standard, which is a management system for HIV/AIDS
Directors and officers
There were no changes to the directors and officers during the year.
Due to the cash requirements imposed by the Hosaf expansion, no distribution
is to be paid.
will resume once the expansion is completed and
the group is generating sufficient cash flow.