KAP AG

KAP Ltd reported an 88% jump in headline earnings per share to ZAR0.452 for its 2026 fiscal year, even as impairments of ZAR1.568 billion pushed the group to a loss per share of ZAR0.048. Revenue held steady at ZAR29.6 billion, while EBITDA rose 13% to ZAR3.9 billion and operating profit before capital items climbed 28% to ZAR2.5 billion, lifting the operating margin by 190 basis points to 8.4%. Net interest-bearing debt fell 14% to ZAR7 billion, exceeding the company's ZAR500 million reduction target, and net debt-to-EBITDA improved to 1.8 times with EBITDA interest cover at 4.6 times. Among the group's units, PG Bison revenue rose 15% and operating profit 30% on a 13% increase in panel sales volumes, Unitrans operating profit rose 41% despite a 7% revenue decline, and Feltex operating profit jumped 63% to ZAR270 million at an 18% return on capital employed, while Sleep Group operating profit fell 26% and Optix revenue dropped 10%. The company said it targets a further ZAR500 million net debt reduction in FY27 and flagged ZAR1.3 billion to ZAR1.5 billion of catch-up capital expenditure required in Unitrans over the next few years.