• Revenue from continuing operations of R3.147 billion (2020: R3.095 billion)
  • Profit from continuing operations before depreciation and amortisation of R758 million (2020: R832 million)
  • Cash generated before financing activities R336 million (2020: outflow of R275 million)
  • Net asset value per share R13.91 (2020: R17.77)
 
change 
For the 
period ended 
28 February 
2021 
For the 
period ended 
29 February 
2020 
For the 
year ended 
31 August 
2020
Total operations         
Basic earnings/(loss) per share (cents) (62%) 63  167  (283)
Diluted earnings/(loss) per share (cents) (62%) 62  165  (284)
Headline earnings/(loss) per share (cents) (63%) 61  166  (20)
Net asset value per share (cents)**  (22%) 1 391  1 777  1 361 
Net tangible asset value per share (cents) (3%) 1 380  1 420  1 280 
Continuing operations         
Basic earnings/(loss) per share (cents) (74%) 39  151  (306)
Diluted earnings/(loss) per share (cents) (74%) 39  149  (306)
Headline earnings per share (cents) (74%) 39  150  (41)
Discontinued operations         
Basic earnings per share (cents) 50%  24  16  23 
Diluted earnings per share (cents) 50%  24  16  22 
Headline earnings per share (cents) 44%  23  16  21 

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

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

The six months ended 28 February 2021 remained challenging but continued to improve with increasing activity as COVID-19 restrictions were eased. Despite the economic outlook for South Africa remaining weak and challenging in the immediate and medium term, the results for the period reflect operational progress across most of the businesses.

Revenue from continuing operations increased by 2% to R3.147 billion (2020: R3.095 billion), a good performance as the prior period was unaffected by the COVID-19 lock down restrictions which commenced during March 2020. Profit from operations before depreciation and amortisation was down by 9% to R758 million (2020: R832 million), a result of a change in mix of revenue to more annuity-based revenue.

Prior period reporting

Following a strategic review in 2019, the board of directors of enX (“Board”) decided to disinvest of its ownership in Eqstra Fleet Management (“Eqstra”). The final outstanding condition precedent to the disinvestment of Eqstra to Bidvest Bank Limited was not fulfilled and accordingly, the disinvestment transaction did not become effective. As a result, Eqstra, which was previously classified as an asset held for sale, was reclassified as a continuing operation in May 2020.   The prior period has been represented as though Eqstra was a continuing operation in terms of IFRS 5, with the Group EPS and HEPS remaining unchanged with only the split between continuing and discontinued operations changing.

Current period – Discontinued operation

During November 2020, the Board decided to proceed with the disinvestment of one of the enX businesses with the aim of reducing the overall gearing of the Group. Shareholders are referred to the SENS announcement dated 15 April 2021 announcing the disposal of Impact Handling (UK). In line with IFRS 5, Impact Handling (UK) has been reported as an asset held for sale and discontinued operation from 1 February 2021, the date that the conditions were met to be classified as an asset held for sale. enX was required to cease depreciation and amortisation and assess the carrying value of the asset held for sale in terms of the transaction value. Consequently, depreciation and amortisation from 1 February 2021 amounting to R25 million (after tax: R18 million) was not recorded in this period.

The proforma impact for the six months ended 28 February 2021 if like-for-like depreciation and amortisation has been applied in both the current and prior six months would have been as follows:

R ‘000 (unless stated)     28 Feb 
2021 
Reported 
28 Feb 
2021 
IFRS 5 
adjustments 
(note 1)
28 Feb 
2021 
Proforma 
29 Feb 
2020 
Reported 
29 Feb 
2020 
IFRS 5 
adjustments 
(note 2)
29 Feb 
2020 
Proformaa 
Continuing operations             
Profit from operations before depreciation and amortisation  758 128  –  758 128  832 176  –  832 176 
Profit before interest and tax  231 180  –  231 180  569 343  (283 526) 285 817 
Net finance charges  (138 302) –  (138 302) (198 891) –  (198 891)
Net profit before taxation  104 886  –  104 886  376 307  (283 526) 92 781 
Headline earnings  69 837  –  69 837  271 222  (204 139) 67 083 
Earnings per share (cents per share) 39  –  39  151  (113) 38 
Diluted earnings per share (cents per share) 39  –  39  149  (112) 37 
Headline earnings per share (cents per share) 39  –  39  150  (113) 37 
Total operations             
Headline earnings  110 927  (17 752) 93 175  300 089  (204 139) 95 950 
Earnings per share (cents per share) 63  (10) 53  167  (113) 54 
Diluted earnings per share (cents per share) 62  (10) 52  165  (112) 53 
Headline earnings per share (cents per share) 61  (10) 51  166  (113) 53 
1.    The proforma figures include the impact of reinstating the depreciation and amortisation of R25 million (after tax: R18 million) or 10 cents per share for the period 1 February 2021 to 28 February 2021 due to Impact Handling (UK) being classified as an asset held for sale from 1 February 2021.
2. The proforma figures include the impact of reinstating the depreciation and amortisation of R284  million (after tax: R204.million) or 113 cents per share for the period 1 September 2019 to 29 February 2020 due to Eqstra being classified as an asset held for sale from 15 July 2019.

The directors are responsible for compiling the proforma financial information. The proforma information does not constitute financial statements fairly presented in accordance with IFRS. The proforma 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 proforma 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 19 May 2021 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/2021/jse/isse/enx/H1_FY2021.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

Hannington    R Lumb
Chief Executive Officer   Chief Financial Officer

19 May 2021

DIRECTORS
Executive directors: A Hannington (Chief Executive Officer), R Lumb (Chief Financial Officer)
Non-executive directors: P Baloyi (Chairman), W Chapman , V Jarana^, O Mabandla, Z Matthews*, L Molefe*, B Ngonyama*
(* Independent)
(^ Lead 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