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Summarised Group Financial Results for the year ended 31 August 2024
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 GROUP FINANCIAL RESULTS
for the year ended 31 August 2024
- Revenue from continuing operations of R4.078 billion (2023: R4.195 billion), down 3%
- Profit before tax from continuing operations of R241 million (2023: R260 million), down 7%
- HEPS from continuing operations of 84c per share (2023: 94c per share), down 11%
- Net asset value per share R9.06 (2023: R13.91)
% For the year ended For the year ended
change 31 August 2024 31 August 2023
Total operations
Basic earnings per share (EPS) (cents) (29) 116 163
Diluted earnings per share (cents) (29) 116 163
Headline earnings per share (HEPS) (cents) 82 298 164
Net asset value per share** (35) 906 1 391
Net tangible asset value per share** (35) 885 1 364
Continuing operations
Basic earnings per share (cents) (7) 84 90
Diluted earnings per share (cents) (7) 84 90
Headline earnings per share (cents) (11) 84 94
Discontinuing operations
Basic earnings per share (cents) (56) 32 73
Diluted earnings per share (cents) (56) 32 73
Headline earnings per share (cents) - 214 70
** Equity attributable to equity holders of the parent / Number of ordinary shares in issue net of treasury shares
The special distribution out of contributed tax capital of R1.00 per enX ordinary share amounting to R182 million was paid to enX
ordinary shareholders on 27 November 2023 and Stated Capital reduced accordingly. Further, a special distribution of R5.00 per
enX ordinary share was paid on 8 July 2024. enX elected for the special distribution to be a dividend, for South African tax purposes,
in terms of section 1 of the Income Tax Act No 58 of 1962 (''Income Tax Act'') being a distribution not funded from contributed tax
capital as defined in the Income Tax Act. The special distribution of R912 million has been reflected as a reduction of Stated capital
being a return of capital arising from the Eqstra disposal proceeds.
Despite challenging economic conditions, the results for the year ended 31 August 2024 reflect good performances in both the
Lubricants and Chemicals segments but, with no load-shedding in the last six months, trading in the Power segment slowed.
Revenue from continuing operations decreased 3% to R4.078 billion (2023: R4.195 billion). While volumes of toll blending in
Lubricants and volumes of polyethylene in Chemicals increased, average selling prices were down due to pass through of lower
base oil and chemical pricing. Power revenues across all revenue streams were down due to no load-shedding in the second six
months of the financial year, which previously presented significant opportunities.
Operating profit from continuing operations before net finance costs, our share of profit from our associate and impairments,
was R194 million (2023: R248 million) was supported by better margins in the Lubricants and Chemical segments but negatively
impacted by lower demand in the Power segment. Once-off legal fees of R18 million and restructuring charges of R17 million
were incurred as the Service Centre downsized following the disposal of Eqstra. The prior year included the once-off receipt of
R37 million in respect of a key man insurance policy in WAG and 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.
Profit before tax from continuing operations was R241 million (2023: R260 million).
Headline earnings per share from continuing operations was 84 cents (2023: 94 cents), down 11%.
The Group's total gross interest-bearing liabilities (including total leased liabilities) was R278 million (31 August 2023: R282 million).
Cash and cash equivalents was R772 million (2023: R303 million), of which R584 million is cash held at the Service Centre and
R188 million is held at the operating companies to meet working capital requirements.
Net cash flow before financing amounted to an inflow of R811 million (2023: outflow of R85 million), including disposal proceeds
from the sale of Eqstra. Cash was utilised to increase working capital and replace and grow the leasing book while Eqstra was still
part of the Group. Included in working capital outflows of R838 million (2023: R868 million) is the net book value of leasing assets,
reclassified into inventories amounting to R372 million (2023: R418 million) and the acquisition of leasing assets of R1.207 billion
(2023: R1.128 billion) from 1 September 2023 to disposal.
enX's independent auditor, KPMG Inc, has issued their audit opinion on the group and company financial statements for the year
ended 31 August 2024. The audit report 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 one key audit matter related to the disposal of Eqstra.
This short-form announcement is the responsibility of the directors of the Company. This short-form announcement
is only a summary of the Annual Financial Statements and further narrative published on the Company's website
(https://www.enxgroup.co.za/annual-results) on 4 November 2024 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 Annual Financial Statements can be accessed directly using the following JSE link:
https://senspdf.jse.co.za/documents/2024/jse/isse/enx/FY2024.pdf
The group financial statements including the audit opinion, can be accessed via the enX website:
https://www.enxgroup.co.za/annual-results/
The Annual Financial Statements are also available for inspection from 4 November 2024:
- at the Company's registered office (9th Floor, Katherine Towers, 1 Park Lane, Sandton); and
- copies of the Annual Financial Statements 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 R Lumb J Dawson
Chairman Chief Executive Officer Chief Financial Officer
4 November 2024
DIRECTORS Registered office: 9th Floor, Katherine Tower, 1 Park Lane, Sandton
Executive directors: R Lumb (Chief Executive Officer), Postal address: PostNet Suite X86, Private Bag X7, Aston Manor, 1630
J Dawson (Chief Financial Officer) Sponsor: The Standard Bank of South Africa Limited
Non-executive directors: P Baloyi (Chairman), Company secretary: Acorim Proprietary Limited, represented by R Cloete
R Mokhobo(1), K Matthews(2), N Simamane(2) Transfer secretaries: Computershare Investor Services Proprietary Limited
(1) Lead Independent
(2) Independent
Date: 04-11-2024 11:00:00
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