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Financial Results for the year ended 31 August 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" or "the Company")
FINANCIAL RESULTS
for the year ended 31 August 2020
- Revenue of R7.206 billion (2019 re-presented*: R7.791 billion).
- Profit from operations before depreciation and amortisation of R1.795 billion (2019 re-presented*: R1.909 billion).
- Operating profit of R381.8 million (2019 re-presented*: R757.2 million).
- Impairment of goodwill and intangibles within EIE SA, Eqstra, AG Lubricants and WAG of R543.1 million.
- Cash generated before financing activities of R224.0 million (2019: outflow of R531.2 million).
*During the prior year the Group entered into an agreement with Bidvest Bank to
divest its ownership in Eqstra. This resulted in Eqstra being recognised as a discontinued
operation in 2019. However, the disinvestment to Bidvest Bank did not take place during
the current year and as a result the consolidated statement of financial position and the
consolidated statement of profit or loss and other comprehensive income for 2019 has
been re-presented in accordance with IFRS 5.
For the For the
% year ended year ended
change 31 August 2020 31 August 2019*
Basic (loss)/earnings per share (cents) - (283.1) 58.9
Diluted (loss)/earnings per share (cents) - (283.1) 58.3
Headline (loss)/earnings per share (cents) - (20.1) 141.0
Net asset value per share (cents)** (15) 1 361 1 597
Net tangible asset value per share (cents) 3 1 280 1 246
** Equity attributable to equity holder of the parent/Number of shares in issue less treasury shares.
In line with Group policy to re-invest for growth, no dividends have been declared.
The year ended 31 August 2020 has been extraordinarily challenging with almost every
business in the Group being faced with unprecedented circumstances arising from the
COVID-19 pandemic. Revenue decreased by 8% to R7.206 billion (2019: R7.791 billion)
mainly due to lower activity levels arising from the COVID-19 lockdown restrictions
in South Africa and the UK. While annuity revenue remained strong with several enX
customers being essential service providers, revenue from the sale of equipment, used
vehicles and goods was significantly impacted.
Profit from operations before depreciation and amortisation decreased by 6% to
R1.795 billion (2019: R1.909 billion) and was positively impacted by R68.0 million being
the reclassification of operating leases to depreciation and interest of R60.0 million and
R8.0 million respectively in line with the adoption of IFRS16: Leases.
Operating profit decreased to R381.8 million (2019: R757.2 million). The main areas
impacting operating profit on a once off basis include:
- Net one off costs of R95.3 million, which are primarily related to COVID-19 lockdown
restrictions, offset by government assistance in the form of the furlough scheme in
the UK
- Additional depreciation and amortisation, as a result of the reclassification of Eqstra from
a discontinued operation to a continuing operation in May 2020, of R65.9 million (after
tax: R47.4 million) which related to the period from the effective date of the Eqstra
transaction to 31 August 2019 that needed to be recognised in the 2020 financial year
following the termination of the transaction.
As a result of challenges created by the COVID-19 pandemic with a new economic reality
and an anticipated slow economic recovery, the Group incurred impairment charges of
goodwill and intangibles within EIE SA, Eqstra, AG Lubricants and WAG of R543.1 million.
A fair value adjustment on deferred amount payable relating to enX's acquisition of 37%
of Zestcor amounted to R30.7 million.
enX's independent auditor, Deloitte & Touche, has issued its opinion on the consolidated
and separate financial statements for the year ended 31 August 2020 which 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 opinion and the audit opinion includes a key audit matter related
to the impairment of goodwill and intangible assets.
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 23 November
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 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/FY_20.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 23 November 2020 until
23 December 2020 at:
By order of the board
P Baloyi A Hannington R Lumb
Chairman Chief Executive Officer Chief Financial Officer
23 November 2020
DIRECTORS
Executive directors: A Hannington (Chief Executive Officer), R Lumb (Chief Financial Officer)
Non-executive directors: P Baloyi (Chairman), W Chapman, V Jarana(1), O Mabandla, K Matthews(2),
L Molefe(2), B Ngonyama(2)
((1) Lead Independent)
((2) 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: 23-11-2020 05:30:00
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