KAP In­dus­trial plan­ning steps for ‘just in case’

Pretoria News - - THE X-FILES - SANDILE MCHUNU sandile.mchunu@inl.co.za

JSE-LISTED di­ver­si­fied in­dus­trial group KAP In­dus­trial Hold­ings said yes­ter­day that its busi­nesses had not been af­fected by the coro­n­avirus out­break in the coun­try, but it was putting con­trols in place in case the out­break oc­curred at one of its op­er­a­tions.

How­ever, the group said it ac­knowl­edged the se­ri­ous­ness of the cur­rent sit­u­a­tion.

“While the na­ture and ex­tent of the im­pact of Covid-19 on South Africa, its peo­ple, its econ­omy and the com­pany is cur­rently un­known, it could be po­ten­tially sig­nif­i­cant. To date there are no con­firmed cases of Covid-19 in any of KAP’s op­er­a­tions,” the group said.

It added that the sit­u­a­tion was be­ing mon­i­tored on an on­go­ing ba­sis and man­age­ment were putting con­trols in place to pre­vent and min­imise po­ten­tial in­fec­tions.

KAP op­er­ates three di­vi­sions: in­dus­trial, chem­i­cal and lo­gis­tics, and each of them have their un­der­ly­ing busi­nesses.

The group said that it had pro­vided clear and de­fined com­mu­ni­ca­tion to its em­ploy­ees in this re­gard and had for­mu­lated cri­sis man­age­ment plans in the event of in­fec­tions within the or­gan­i­sa­tion.

KAP’s sales had not been af­fected by the Covid-19 out­break and the group had not ex­pe­ri­enced any sig­nif­i­cant op­er­a­tional or sup­ply chain dis­rup­tions.

“Man­age­ment is mon­i­tor­ing the sit­u­a­tion closely and ap­pro­pri­ate con­tin­gency plans are be­ing de­vel­oped to ad­dress known po­ten­tial risks,” the group said.

How­ever, should the im­pact of Covid-19 be­come ma­te­rial and quan­tifi­able, KAP would pro­vide guid­ance through the Stock Ex­change News Ser­vice plat­form in terms of the JSE List­ings Re­quire­ments.

It said its cash gen­er­a­tion and bal­ance sheet re­mained strong and the com­pany re­mained within its agreed financial covenants.

In the six months to end De­cem­ber, KAP re­ported that cash gen­er­ated from op­er­a­tions amounted to R571 mil­lion dur­ing the pe­riod.

The group’s share price traded higher on the JSE yes­ter­day af­ter­noon and was up by more than 7 per­cent.

It closed at R1.74 on the JSE yes­ter­day.

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