Kairos Industrial Holdings Ltd, Pretoria

Whilst the 2009 financial year was characterised by a relatively buoyant economy, in recent months we have witnessed an economic downturn of unexpected rapidity and severity - the full extent and duration of which still remains uncertain. The effects of higher than expected inflationary increases on the Group’s input costs, most notably steel, fuel and coal, and labour unrest in the brick manufacturing operations, has resulted in a drastic decline at the operating profit level and the Group has posted an operating loss for the year of R8,743 million comparative to an operating profit of R5,777 million in the previous year.