enX interim results February 2019
Revenue for the interim period increased to R3.7 billion (2018: R3.6 billion), operating profit was higher at R378.3 million (2018: R354.1 million). Net profit attributable to equity holders of the parent decreased to R127.4 million (2018: R138.4 million) and headline earnings per share fell to 71.2 cents per share (2018: 77.4 cents per share).
In line with the Group policy to reinvest for growth, no cash dividend has been declared for the period.
Equipment: We expect EIE to improve on their first half reported performances following further acquisitions in the UK. The UK operation has increased inventory due to the uncertainty surrounding BREXIT. The business however anticipates minimal impact no matter which scenario unfolds and is well prepared. While Power has seen an increase in orders due to recent load shedding, primarily in the residential market, both Power and Wood remain highly geared to the construction industry and the overall economy, which the Board does not anticipate improving in the short to medium term.
Fleet: We expect EFML to continue growing its leasing book in line with current performance. Encouraging progress has been made in the first half with regard to improving customer retention rates and winning new business. Petrochemicals will continue to build on its relationship with ExxonMobil and implement the local blending approvals recently granted by ExxonMobil, thereby reducing input costs.
The Group will continue to pursue the various corporate actions as set out in cautionary announcements published on SENS over the past few months. Key risks to our business are posed by declines in overall levels of economic sentiment, growth rates, currency volatility and higher interest rates. Whilst recognising this, enX believes its business model and current portfolio of businesses have defensive characteristics given the annuity generating nature of its assets, strong market positions, brand partnerships and long-term client commitments.