enX GROUP LIMITED - Trading Statement

Trading Statement

enX Group Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2001/029771/06)
JSE share code: ENX ISIN: ZAE000222253
(“enX” or ‘’the Company’’ or ‘’the Group’’)


TRADING STATEMENT


 In terms of the JSE Listings Requirements, companies are required to publish a trading
 statement as soon as they are satisfied that a reasonable degree of certainty exists that the
 financial results for the period to be reported on next will differ by at least 20% from the
 financial results for the previous corresponding period.

 Shareholders are advised that the Company anticipates results for the half year ended 28
 February 2022 (‘’Current Range’’) to differ by more than 20% compared to the half year ended
 28 February 2021 (‘’Prior Period’’), as follows:

                                    Current Range        Prior Period        Percentage
                                                          (Restated)        change range
  enX Group
    EPS                                30c to 36c             63c          (42%) to (52%)
    Diluted EPS                        30c to 36c             63c          (42%) to (52%)
    HEPS                              145c to 151c            62c                 -
  Continuing
    EPS                                50c to 56c             28c           79% to 100%
    Diluted EPS                        50c to 56c             28c           79% to 100%
    HEPS                               50c to 56c             28c           79% to 100%
  Discontinued
    EPS                              (18c) to (22c)           35c                  -
    Diluted EPS                      (18c) to (22c)           35c                  -
    HEPS                               93c to 97c             34c                  -


 Discontinued operations
 
Current period
 
 Shareholders are referred to the SENS announcement dated 30 September 2021 announcing
 the disposal of enX’s South African materials handling business, EIE Group Proprietary
 Limited (‘’EIE SA’’) to CFAO Holdings South Africa Proprietary Limited (‘’CFAO South Africa’’).
 In line with IFRS 5, EIE SA has been reported as an asset held for sale and discontinued
 operation from 31 August 2021, the date that the conditions were met to be classified as an
 asset held for sale. enX was required to cease depreciation and amortisation and assess the
 carrying value of the held for sale assets relative to the transaction value. Consequently,
 depreciation and amortisation from 1 September 2021 to 28 February 2022 of R222 million
 (after tax: R160 million) was not recorded in the current period and the assets held for sale
 were impaired by R187.7 million relative to the transaction value. As referred to in the SENS
 announcement dated 4 April 2022, EIE SA was disposed of effective 1 April 2022.
 In addition, in line with IFRS 5, enX’s woodworking equipment and tooling business, Austro
 Proprietary Limited (‘’Austro’’), has been reported as an asset held for sale and discontinued
 operation from 26 February 2022, the date that the conditions were met to be classified as an
 asset held for sale. enX was required to cease depreciation and amortisation and assess the
 carrying value of the held for sale assets in terms of the transaction value. The assets held for
 sale were impaired by R24.6 million relative to the transaction value.

Prior period

Shareholders are referred to the SENS announcement dated 15 April 2021 announcing the
disposal of Impact Fork Trucks Limited (‘’Impact Handling (UK)’’). In line with IFRS 5, Impact
Handling (UK) has been reported as an asset held for sale and discontinued operation from 1
February 2021, the date that the conditions were met to be classified as an asset held for sale.
enX was required to cease depreciation and amortisation and assess the carrying value of the
held for sale assets relative to the transaction value. Consequently, depreciation and
amortisation from 1 February 2021 of R25 million (after tax: R18 million) was not recorded in
the prior period. Impact Handling (UK) was disposed of effective 14 June 2021.
The prior period has been restated as to include EIE SA and Austro as discontinued operations
in terms of IFRS 5. The Group EPS and HEPS remain unchanged with only the split between
continuing and discontinued operations having changed.

Trading commentary
Revenue from continuing operations is expected to increase by around 17%.
Operating profit before net finance charges and earnings from associate from continuing
operations is expected to increase between 55% and 59% compared to the same period last
year.

The financial information on which this trading statement is based has not been reviewed or
reported on by the Company’s auditors.

12 May 2022
Sponsor:
The Standard Bank of South Africa Limited

Date: 12-05-2022 05:31:00
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