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Summarised Preliminary Consolidated Financial Results for the year ended 31 August 2022
ENX GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/029771/06)
JSE share code: ENX ISIN: ZAE000222253
("enX" or "the Group" or "the Company")
SUMMARISED PRELIMINARY CONSOLIDATED FINANCIAL RESULTS
for the year ended 31 August 2022
- Revenue from continuing operations of R5.556 billion (2021: R4.210 billion)
- HEPS from continuing operations of 160c per share (2021: 90c per share)
- Net asset value per share R12.22 (2021: R14.47)
- Cash generated before financing activities of R1.019 billion (2021: R1.003 billion)
Restated#
For the For the
% year ended year ended
change 31 August 2022 31 August 2021
Total operations
Basic earnings per share (EPS) (cents) (24) 126 165
Diluted earnings per share (EPS) (cents) (24) 126 165
Headlines earnings per share (HEPS) (cents) 28 266 208
Continuing operations
Basic EPS (cents) 67 149 89
Diluted EPS (cents) 67 149 89
HEPS (cents) 78 160 90
Net asset value per share (cents)* (16) 1 222 1 447
Net tangible asset value per share (cents) (19) 1 167 1 434
* Equity attributable to equity holder of the parent/Number of ordinary shares in issue net of treasury
shares.
# During the year, the Group entered into an agreement with Highest Mountain Proprietary Limited
to divest its ownership in Austro. The divestment was effective from 30 June 2022 and resulted in
Austro being recognised as a discontinued operation in 2022. The prior year has been restated as
to include EIE SA, Austro and Impact Handling (UK) as a discontinued operation in terms of
IFRS 5. The Total operations EPS and HEPS remained unchanged with only the split between
continuing and discontinuing operations having changed.
On 20 June 2022, the Group paid a special distribution of R2.00 per enX ordinary share.
Shareholders are also referred to the SENS announcement dated 18 August 2022, in which the
directors declared a further special distribution out of contributed tax capital of R1.50 per share to enX
ordinary shareholders. This was paid after year end on 5 September 2022.
The results for the year ended 31 August 2022 reflect robust performance underpinned by solid
profitability, an improved financial position and continued strong generation of net cash flow before
financing.
Revenue from continuing operations increased by 32% to R5.556 billion (2021: R4.210 billion) mainly
supported by the continuing recovery in activity and higher selling prices due to the pass through of
increasing base oil and chemical input prices. Shortages in products continued as demand increased
coupled with global supply chain challenges. Revenue included vehicle disposals from the termination
of the Clover contract at the end of June 2022. Excluding these once off vehicle disposals, revenue
from continuing operations increased 21% year on year.
Operating profit from continuing operations before net finance costs, our share of profits from our
associate and impairments, was R445 million (2021: R341 million), an increase of 30%.
Net finance charges in respect of continuing operations were R105 million (2021: R152 million), a
reduction of 31% arising from lower debt balances primarily in Eqstra.
Headline earnings per share from continuing operations was 160 cents per share (2021: 90 cents per
share), an increase of 78%.
enX's financial position improved significantly with net debt to equity declining to 31% (August 2021:
50%) supported by the disposal of EIE SA, the release of cash from the termination of the Clover
contract and overall reduction of net debt. Net asset value per share of R12.22 per share (2021:
R14.47 per share) decreased by 16% as cash was returned to shareholders in the form of special
distributions of R2.00 and R1.50 per enX ordinary share paid on 20 June 2022 and 5 September 2022
respectively.
Net cash flows before financing activities amounted to an inflow of R1.019 billion (2021: R1.003
billion). Included in working capital movements of R514 million (2021: R984 million) is the
reclassification of leasing assets into inventories amounting to R797 million (2021: R540 million) and
the acquisition of leasing assets of R1.095 billion (2021: R1.733 billion).
enX's independent auditor, Deloitte & Touche, has issued their audit opinion on the consolidated and
separate financial statements for the year ended 31 August 2022. The audit report including key audit
matters can be accessed via the enX website https://www.enxgroup.co.za/annual-results. The audit
was conducted in accordance with International Standards on Auditing. Deloitte & Touche has issued
an unmodified audit opinion and the audit opinion includes a key audit matter related to the valuation
of the maintenance fund as it relates to maintenance revenue recognition.
This short-form announcement is the responsibility of the directors of the Company. This short-form
announcement is only a summary of the full announcement which is published on the Company's
website (https://www.enxgroup.co.za/annual-results) on 3 November 2022 and does not contain
complete or full details. Any investment decisions by investors and/or shareholders should be based
on consideration of the full announcement. This short-form announcement has not been audited by
the Company's auditors.
The full announcement can be accessed directly using the following JSE link:
https://senspdf.jse.co.za/documents/2022/jse/isse/enx/FY2022.pdf
The consolidated annual financial statements including the audit opinion, can be accessed via the
enX website https://www.enxgroup.co.za/annual-results/
The full announcement is also available for inspection from 3 November 2022:
- at the Company's registered office (9th Floor, Katherine Towers, 1 Park Lane, Sandton); and
- copies of the full announcement may be requested during office hours at no charge by emailing
info@enxgroup.co.za or the Company's sponsor at jsesponsor@standardbank.co.za.
By order of the board
P Baloyi A Hannington R Lumb
Chairman Chief Executive Officer Chief Financial Officer
3 November 2022
DIRECTORS
Executive directors: A Hannington (Chief Executive Officer), R Lumb (Chief Financial Officer)
Non-executive directors: P Baloyi (Chairman), W Chapman, V Jarana(1), K Matthews(2), L Molefe(2),
B Ngonyama(2)
(1) Lead Independent
(2) Independent
Registered office: 9th Floor, Katherine Tower, 1 Park Lane, Sandton
Postal address: PostNet Suite X86, Private Bag X7, Aston Manor, 1630
Sponsor: The Standard Bank of South Africa Limited
Company secretary: Acorim Proprietary Limited, represented by R Cloete
Transfer secretaries: Computershare Investor Services Proprietary Limited
Date: 03-11-2022 03:00:00
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