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enX GROUP LIMITED - Financial results for the period ended 29 February 2020

Release Date: 27/05/2020 08:00
Code(s): ENX     PDF:  
Wrap Text
Financial results for the period ended 29 February 2020

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 period ended 29 February 2020


   -   Revenue from continuing operations of R2.850 billion (2019: R2.780 billion)
   -   EBITDA from continuing operations of R609.8 million (2019: R558.5 million)
   -   Operating Profit from continuing operations of R207.7 million (2019: R200.5 million)
   -   Cash flows from operating activities R826.2 million (2019: 719.8 million)


                                             % change       For the period      For the period      For the year
                                                         ended 29 February   ended 28 February   ended 31 August
                                                                      2020                2019              2019
Total operations
Basic earnings per share (cents)                 134%                166.9                71.2              58.9
Diluted earnings per share (cents)               135%                165.4                70.2              58.3
Headline earnings per share (cents)              133%                166.1                71.2             141.0
Net asset value per share (cents)                 10%              1 777.3             1 608.9           1 597.0
Net tangible asset value per share (cents)**      34%              1 586.6             1 186.2           1 410.7
Continuing operations
Basic (loss)/earnings per share (cents)          (8%)                 32.4                35.4            (40.1)
Diluted (loss)/earnings per share (cents)        (7%)                 32.3                35.0            (40.1)
Headline earnings per share (cents)             (10%)                 31.8                35.4              41.2
Discontinued operations
Basic earnings per share (cents)                 275%                134.2                35.8              99.0
Diluted earnings per share (cents)               277%                133.0                35.3              97.9
Headline earnings per share (cents)              275%                134.2                35.8              99.8

** Equity attributable to equity holder of the parent/Number of shares in issue less treasury shares

In line with the Group policy to reinvest for growth and prevailing uncertainties, no cash dividend has been declared
for the period.

The six months ended 29 February 2020 have been exceptionally challenging characterised by low economic growth, low
business confidence and depressed consumer demand within South Africa. 

Revenue from continuing operations increased by 3% to R2.850 billion (2019: R2.780 billion). EBITDA from continuing
operations increased by 9% to R609.8 million (2019: R558.5 million). EBITDA was positively impacted by R41.0 million
being the reclassification of operating lease charges to depreciation and interest of R29.8 million and R11.2 million
respectively in line with the adoption of IFRS 16: Leases. The Group's Operating profit from continuing operations
increased by 4% to R207.7 million (2019: R200.5 million).

On 15 July 2019, the Group decided to disinvest of its ownership in Fleet and announced the disposal of Fleet to Bidvest
Bank. From that date, Fleet was classified as an asset held for sale. The final outstanding condition precedent to the
disinvestment of Fleet was not fulfilled by 4 May 2020, the long stop date and accordingly, the disinvestment
transaction did not become effective. Due to these circumstances transpiring after our interim reporting date, as a
subsequent event, Fleet was still required to be recorded as an asset held for sale at 29 February 2020. As required by
IFRS 5, 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. As a consequence, depreciation and amortisation of R204.1 million (R283.5 million 
before tax) was not recorded in this reporting period which had the effect of increasing total HEPS by 113c per share.

The pro forma impact for the six months ended 29 February 2020 if Fleet had been disclosed as a continuing operation
would have been as follows: 

                                                  29 February 2020       29 February 2020    28 February 2019
                                                          Reported           Pro forma(1)            Reported
EBITDA (R'000) (2)                                       1 032 065              1 032 065             976 495
EBIT (R'000)                                               629 961                346 437             378 321
Net finance charges (2)                                    223 281                223 281             196 275
Headline earnings (R'000)                                  300 089                 95 952             127 410
Basic earnings per share (cents)                             166.9                   53.9                71.2
Diluted earnings per share (cents)                           165.4                   53.4                70.2
Headline earnings per share (cents)                          166.1                   53.1                71.2

1  The pro forma figures include the impact of re-instating depreciation and amortisation for the six months ended 29 February 2020 
   on all held for sale fleet designated assets amounting to R204.1 million (after tax) or 113c per share
2. EBITDA was positively impacted by R41.9 million being the reclassification of operating lease charges to depreciation and interest 
   of R29.8 million and R12.1 million (Continuing: R11.2 million and Discontinued operations: R0.9 million) respectively in line with 
   the adoption of IFRS 16: Leases

The directors are responsible for compiling the pro forma financial information. The pro forma information does not
constitute financial statements fairly presented in accordance with IFRS. The pro forma 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 pro forma 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 27 May 2020 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/2020/jse/isse/enx/H1_FY2020.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

SF Booysen            GD Neubert                       RA Lumb
Chairman              Chief Executive Officer          Chief Financial Officer

27 May 2020

DIRECTORS

Executive directors: GD Neubert (Chief Executive Officer), RA Lumb (Chief Financial Officer)

Non-executive directors: SF Booysen* (Chairman), PC Baloyi, A Joffe, LN Molefe*, B Ngonyama*, 
PS O'Flaherty and E Oblowitz* 

(* 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: 27-05-2020 08:00:00
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