Wrap Text
Financial results for the period ended 28 February 2021
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")
FINANCIAL RESULTS
for the six months ended 28 February 2021
- Revenue from continuing operations of R3.147 billion (2020: R3.095 billion)
- Profit from continuing operations before depreciation and amortisation of R758 million (2020: R832 million)
- Cash generated before financing activities R336 million (2020: outflow of R275 million)
- Net asset value per share R13.91 (2020: R17.77)
For the For the For the
period ended period ended year ended
% 28 February 29 February 31 August
change 2021 2020 2020
Total operations
Basic earnings/(loss) per share (cents) (62%) 63 167 (283)
Diluted earnings/(loss) per share (cents) (62%) 62 165 (284)
Headline earnings/(loss) per share (cents) (63%) 61 166 (20)
Net asset value per share (cents)** (22%) 1 391 1 777 1 361
Net tangible asset value per share (cents) (3%) 1 380 1 420 1 280
Continuing operations
Basic earnings/(loss) per share (cents) (74%) 39 151 (306)
Diluted earnings/(loss) per share (cents) (74%) 39 149 (306)
Headline earnings per share (cents) (74%) 39 150 (41)
Discontinued operations
Basic earnings per share (cents) 50% 24 16 23
Diluted earnings per share (cents) 50% 24 16 22
Headline earnings per share (cents) 44% 23 16 21
** Equity attributable to equity holder of the parent/Number of shares in issue less treasury shares
In line with the Group policy to reduce debt and prevailing uncertainties, no cash dividend
has been declared for the period.
The six months ended 28 February 2021 remained challenging but continued to improve
with increasing activity as COVID-19 restrictions were eased. Despite the economic
outlook for South Africa remaining weak and challenging in the immediate and medium
term, the results for the period reflect operational progress across most of the businesses.
Revenue from continuing operations increased by 2% to R3.147 billion (2020: R3.095 billion),
a good performance as the prior period was unaffected by the COVID-19 lock down restrictions
which commenced during March 2020. Profit from operations before depreciation and amortisation
was down by 9% to R758 million (2020: R832 million), a result of a change in mix of revenue to
more annuity-based revenue.
Prior period reporting
Following a strategic review in 2019, the board of directors of enX ("Board'') decided to
disinvest of its ownership in Eqstra Fleet Management (''Eqstra''). The final outstanding
condition precedent to the disinvestment of Eqstra to Bidvest Bank Limited was not
fulfilled and accordingly, the disinvestment transaction did not become effective. As a
result, Eqstra, which was previously classified as an asset held for sale, was reclassified
as a continuing operation in May 2020. The prior period has been represented as
though Eqstra was a continuing operation in terms of IFRS 5, with the Group EPS and
HEPS remaining unchanged with only the split between continuing and discontinued
operations changing.
Current period - Discontinued operation
During November 2020, the Board decided to proceed with the disinvestment of
one of the enX businesses with the aim of reducing the overall gearing of the Group.
Shareholders are referred to the SENS announcement dated 15 April 2021 announcing
the disposal of 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
asset held for sale in terms of the transaction value. Consequently, depreciation and
amortisation from 1 February 2021 amounting to R25 million (after tax: R18 million) was
not recorded in this period.
The proforma impact for the six months ended 28 February 2021 if like-for-like
depreciation and amortisation has been applied in both the current and prior six months
would have been as follows:
28 Feb 29 Feb
2021 2020
IFRS 5 IFRS 5
28 Feb adjust- 28 Feb 29 Feb adjust- 29 Feb
2021 ments 2021 2020 ments 2020
R '000 (unless stated) Reported (note 1) Proforma Reported (note 2) Proforma
Continuing operations
Profit from operations
before depreciation
and amortisation 758 128 - 758 128 832 176 - 832 176
Profit before interest
and tax 231 180 - 231 180 569 343 (283 526) 285 817
Net finance charges (138 302) - (138 302) (198 891) - (198 891)
Net profit before
taxation 104 886 - 104 886 376 307 (283 526) 92 781
Headline earnings 69 837 - 69 837 271 222 (204 139) 67 083
Earnings per share
(cents per share) 39 - 39 151 (113) 38
Diluted earnings per
share (cents per share) 39 - 39 149 (112) 37
Headline earnings per
share (cents per share) 39 - 39 150 (113) 37
Total operations
Headline earnings 110 927 (17 752) 93 175 300 089 (204 139) 95 950
Earnings per share
(cents per share) 63 (10) 53 167 (113) 54
Diluted earnings per
share (cents per share) 62 (10) 52 165 (112) 53
Headline earnings per
share (cents per share) 61 (10) 51 166 (113) 53
(1) The proforma figures include the impact of reinstating the depreciation and amortisation of R25 million
(after tax: R18 million) or 10 cents per share for the period 1 February 2021 to 28 February 2021 due to
Impact Handling (UK) being classified as an asset held for sale from 1 February 2021.
(2) The proforma figures include the impact of reinstating the depreciation and amortisation of R284 million
(after tax: R204.million) or 113 cents per share for the period 1 September 2019 to 29 February
2020 due to Eqstra being classified as an asset held for sale from 15 July 2019.
The directors are responsible for compiling the proforma financial information.
The proforma information does not constitute financial statements fairly presented
in accordance with IFRS. The proforma information has been prepared for illustrative
purposes only and because of its nature may not fairly present the Group's financial
position, changes in equity, results of operations and cash flows. The proforma information
has not been audited or reviewed by the Group's external auditors.
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/interim-results) on 19 May 2021 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 reviewed or audited by the Company's auditors.
The full announcement can be accessed directly using the following JSE link:
https://senspdf.jse.co.za/documents/2021/jse/isse/enx/H1_FY2021.pdf
Copies of the full announcement may be requested during office hours at no charge by
emailing info@enxgroup.co.za or from the Company Secretary at enx@acorim.co.za
By order of the board
A Hannington R Lumb
Chief Executive Officer Chief Financial Officer
19 May 2021
DIRECTORS
Executive directors: A Hannington (Chief Executive Officer), R Lumb (Chief Financial Officer)
Non-executive directors: P Baloyi (Chairman), W Chapman, V Jarana^, O Mabandla,
Z Matthews*, L Molefe*, B Ngonyama*
(* Independent) (^ Lead independent)
Registered office: 11 Gross Street, Tunney Industrial, Isando
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 N Petrides
Transfer secretaries: Computershare Investor Services Proprietary Limited
Date: 19-05-2021 04:08:00
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