| Mon 6 Nov 2023, 10:08 | | ENX GROUP LIMITED - Summarised Consolidated Financial Results |
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Summarised Consolidated Financial Results
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")
SUMMARISED CONSOLIDATED FINANCIAL RESULTS
for the year ended 31 August 2023
- Revenue from continuing operations of R4.195 billion (2022: R3.331 billion), up 26%
- Profit before tax from continuing operations of R260 million (2022: R199 million), up 31%
- HEPS from continuing operations of 94c per share (2022: 81c per share), up 16%
- Net asset value per share R13.91 (2022: R12.22), up 14%
% For the year ended For the year ended
change 31 August 2023 31 August 2022
Total operations
Basic earnings per share (EPS) (cents) 28 163 127
Diluted earnings per share (cents) 28 163 127
Headline earnings per share (HEPS) (cents) (38) 164 265
Net asset value per share** 14 1 391 1 222
Net tangible asset value per share 17 1 364 1 167
** Equity attributable to equity holder of the parent/Number of shares in issue less treasury shares.
Restated(#)
% For the year ended For the year ended
change 31 August 2023 31 August 2022
Continuing operations
Basic earnings per share (cents) 13 90 80
Diluted earnings per share (cents) 13 90 80
Headline earnings per share (cents) 16 94 81
Discontinuing operations
Basic earnings per share (cents) 55 73 47
Diluted earnings per share (cents) 55 73 47
Headline earnings per share (cents) (62) 70 184
(#) During the strategic and budget process in July 2023, management took a decision to dispose of Eqstra. As at 31 August 2023, management is of the
view that, based on progress to date, the transaction is likely to be executed in the next 12 months. In terms of IFRS 5, Eqstra has been reported
as a disposal group held for sale and discontinued operation from 31 August 2023. The prior year has been restated to include Eqstra as discontinued
operation in terms of IFRS 5. The total EPS, diluted EPS and HEPS remain unchanged with only the split between continuing and discontinued
having changed.
The special distribution out of contributed tax capital of R1.50 per share, as declared on 18 August 2022, was paid to enX ordinary shareholders
on 5 September 2022. On 6 November 2023, the directors declared and announced on SENS a special distribution of R1.00 per enX share which will be
implemented by way of a reduction of contributed tax capital.
The results for the year ended 31 August 2023 reflect continued strong performance in all our business units notwithstanding the challenging economic
conditions experienced.
Revenue from continuing operations increased 26% to R4.195 billion (2022: R3.331 billion) mainly supported by increased demand for power solutions and
related services arising from load-shedding and higher volumes of toll-blending, natural and synthetic rubber, conveyor belting, steel cord and
conveyor belting fabric sales.
Operating profit from continuing operations before net finance costs, our share of profit from our associate and impairments, was R248 million
(2022: R190 million), an increase of 31%. This was achieved despite once-off items in the prior year of R39 million arising from realised foreign
exchange profits earned from the conversion of the Impact Handling (UK) proceeds as well as insurance proceeds arising from business interruption
claims in respect of COVID-19. Profitability was negatively impacted by a charge of R16 million arising from the derecognition of the Right of
Use Asset and related lease obligation in AG Lubricants as a result of the Group acquiring its blending and storage facilities at the end of
December 2022. The current year also includes the once-off receipt of R37 million in respect of a key man insurance policy payout in WAG.
Profit before tax was R260 million (2022: R199 million), an increase of 31%.
Headline earnings per share from continuing operations was 94 cents (2022: 81 cents), an increase of 16%.
enX's financial position improved significantly even after taking into account cash that was returned to shareholders in the form of special
distributions of R2.00 and R1.50 per enX ordinary share paid on 20 June 2022 and 5 September 2022 respectively. Net debt to equity including the
disposal group held for sale was 39% (2022: 30%), significantly reduced from the high gearing levels of 208% as at 31 August 2020. The net asset
value per share was R13.91 (31 August 2022: R12.22).
Net cash flows before financing amounted to an outflow of R85 million (2022: inflow of R1.019 billion) with cash being utilised to increase working
capital to replace and expand the leasing book following the termination of the Clover contract and to acquire the blending plant. Included in working
capital outflows of R868 million (2022: R513 million) is the net book value of leasing assets reclassified into inventories amounting to R418 million
(2022: R797 million) and the acquisition of leasing assets of R1.128 billion (2022: R1.095 billion). The prior year includes the net proceeds on
disposal of EIE SA of R517 million.
enX's independent auditor, KPMG Inc, has issued their audit opinion on the consolidated and separate financial statements for the year ended
31 August 2023. The audit report including key audit matters 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. KPMG Inc has issued an unmodified audit opinion and the audit opinion
includes two key audit matters related to the valuation of the maintenance fund as it relates to maintenance revenue recognition as well as the
classification of Eqstra as a disposal group held for sale and discontinued operation.
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 published on the Company's website (https://www.enxgroup.co.za/annual-results) on 6 November 2023 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/2023/jse/isse/enx/FY2023.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 6 November 2023:
- at the Company's registered office (9th Floor, Katherine Towers, 1 Park Lane, Sandton); and
- copies of the full announcement may be requested during office hours at no charge by emailing info@enxgroup.co.za or the Company's
sponsor at jsesponsor@standardbank.co.za.
By order of the board
P Baloyi A Hannington R Lumb
Chairman Chief Executive Officer Chief Financial Officer
6 November 2023
DIRECTORS
Executive directors: A Hannington (Chief Executive Officer), R Lumb (Chief Financial Officer)
Non-executive directors: P Baloyi (Chairman), W Chapman, R Mokhobo(1), K Matthews(2), N Simamane(2)
(1) Lead Independent
(2) Independent
Registered office: 9 th Floor, Katherine Tower, 1 Park Lane, Sandton
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 R Cloete
Transfer secretaries: Computershare Investor Services Proprietary Limited
Date: 06-11-2023 10:08:00
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