Kap full-year revenue up 6% to R30bn

South African company CAP has announced a 6% increase in full-year revenue to R30 billion despite facing challenges in the operating environment. In a recent interview with CNBC Africa, CEO Gary Chaplin discussed the company's performance and outlook for the future. The decision to suspend shareholder dividends raised questions, with Chaplin explaining that the move was necessary due to capital allocation priorities and the need to focus on optimizing returns. He emphasized the importance of deploying capital at optimal rates and actively restructuring the business to adapt to changing market conditions. The loss of a major contract at Unitrans was highlighted as a significant challenge, leading to a deep restructuring process to reallocate assets and streamline operations. Despite the impact of load shedding and economic uncertainties, Chaplin remains optimistic about the company's ability to maintain market share and pursue export opportunities. The focus on cost-efficiency and margin protection is key to navigating the current economic landscape. One of the major projects in the pipeline is the 2 billion rand expansion at PJ Bison, aimed at increasing capacity and enhancing competitiveness in global markets. With a continued focus on operational efficiency and debt reduction, CAP is poised for future growth and resilience in the face of ongoing challenges.