Wrap Text
Condensed Unaudited Interim Financial Results for the six months ended 28 February 2019
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")
CONDENSED UNAUDITED INTERIM
FINANCIAL RESULTS
for the six months ended 28 February 2019
NATURE OF BUSINESS
enX is a diversified industrial group that provides quality branded industrial, petrochemical, and fleet
management and logistics products and services.
enX is organised into the three business segments as follows:
- enX Equipment ("Equipment"):
- Industrial Equipment ("EIE") provides distribution, rental and value added services for industrial
and materials handling equipment in South Africa, other African countries and the United
Kingdom and Ireland ("UK");
- Power comprise New Way Power which manufactures, installs and maintains diesel generators
as well as provides temporary power through Genmatics; and
- Wood trades through Austro, which distribute professional woodworking equipment, tooling,
edging, adhesives and the provision of associated services.
- enX Fleet ("Fleet"):
- The Eqstra Fleet Management and Logistics business ("EFML" or "Eqstra") provides a full
spectrum of passenger vehicle services including leasing, fleet management, outsourcing
solutions, maintenance, warranty management and vehicle tracking solutions. It also provides
fleet management solutions.
- enX Petrochemicals ("Petrochemicals"):
- Centlube and African Group Lubricants ("AGL") produce and market oil lubricants and greases
in South Africa and sub-Saharan Africa. They are the sole distributors of ExxonMobil lubricants
(excluding marine and aviation) and Houghton International's Advanced Fluids Solutions
and Services.
- West African International ("WAI") distribute plastics, polymers, rubber and
speciality chemicals into Southern African. They are the sole agents and distributors of
ExxonMobil chemicals in South Africa.
Overview
enX operates quality industrial assets with strong market positions and represents leading global
brands with committed customer partnerships. We endeavour to drive returns through the disciplined
allocation of capital.
EIE outperformed expectations, both from a market growth and market share perspective. The EFML
lease book is now increasing, both in units and in value, reflecting the significant progress made in
customer retention rates and winning new business, facilitated by the availability of growth capital.
Petrochemicals continues to develop its relationship with ExxonMobil, reflected in its approvals for
local blending, its investment in Zestcor, an ExxonMobil base oil distributor and the potential for further
growth opportunities with ExxonMobil in Southern Africa.
In terms of transformation, the operating entities have been verified at levels 3, 4 and 5 contributors in
terms of the amended B-BBEE codes of good practice. The board remains committed to transformation
and endeavours to improve the rating. In this regards the operating companies are in the process of
reviewing structures to improve B-BBEE levels.
FINANCIAL RESULTS
Overview
Revenue for the period increased to R3.7 billion (2018: R3.6 billion). Revenue for Petrochemicals
increased to R865.8 million (2018: R778.4 million) following good growth in both the Lubricant and
Chemical businesses. The Group's EBIT improved to R380.2 million (2018: R354.1 million) while PBT
increased to R183.9 million (2018: R182.7 million). Consistent with prior disclosures, management has
elected to disclose adjusted EBIT which provides a more meaningful reflection of sustainable earnings.
Adjusted EBIT increased to R404.6 million (2018: R377.9 million).
The effective tax rate for the period of 29.9% exceeded the South African statutory rate of 28%, primarily
due to higher effective taxation rates in Zambia and Democratic Republic of Congo, offset by a lower
tax rate in the UK. This compares to an effective tax rate of 22.9% in 2018, which was reduced by the
inclusion of non-taxable gains in the prior year.
Earnings
Operating profit increased 6.8% to R378.3 million. As a result of net finance costs having increased to
R196.8 million (2018: 171.4 million), primarily due to deemed interest income in the prior year relating
to the eXtract loan not re-occurring in the current year, and the higher effective tax rate explained
above, headline earnings decreased by 7.7% to R127.4 million (2018: R138.0 million). This translates
into headline earnings per share ("HEPS") of 71.2 cents (2018: 77.4 cents). Adjusted headline earnings
decreased by 6.3% to R146.1 million (2018: R156.0 million) and translated into adjusted HEPS of
81.6 cents (2018: 87.5 cents). The weighted average number of shares (net of treasury shares) in issue
during the current reporting period was 178 939 229 as compared to the previous reporting period's
weighting of 178 332 559.
Capex
Capital expenditure increased by R1 065.0 million (2018: R823.2 million), primarily to maintain and grow
the leasing fleets. When this increase is offset by proceeds from the disposal of assets of Rnil (2018:
R9.2 million) and proceeds from the disposal of leasing assets through inventory of R228.9 million (2018:
R254.8 million), this results in net capital expenditure of R836.1 million (2018: R559.2 million).
Funding
The Group's net interest-bearing debt (including deferred vendor consideration and net of cash)
increased to R4 663.4 million (August 2018: R4 331.0 million). The increase is primarily as a result of the
increased leasing assets and inventories. R325 million of new notes were issued and R178 million of
notes redeemed and repurchased. Bank liquidity facilities of R281 million were utilised in April 2019 to
settle maturing bonds.
Cash flow
Cash generated by operations amounted to R719.8 million. However, bank and cash balances reduced
to R261.8 million due to further investment in working capital and leasing assets to further increase the
lease book. This was offset by proceeds from vehicle sales at the end of term.
OPERATIONAL OVERVIEW
Equipment
Revenues increased to R1 898.7 million (2018: R1 835.0 million). Adjusted EBIT of R200.7 million (2018:
R183.0 million) and adjusted PBT of R107.9 million (2018: R96.6 million) were achieved. The Wood and
Power businesses reported a combined PBT loss of R3.3 million (2018: R5.3 million loss) off Turnover
of R244.2 (2018: R273.7 million). Leasing assets grew by R86.8 million since August 2018, primarily as a
result of the UK acquisitions. Inventory increases are largely supported by committed customer orders.
Fleet
Revenues of R1 000.8 million (2018: R1 032.3 million), adjusted EBIT of R188.1 million (2018:
R194.9 million) and adjusted PBT of R93.1 million (2018: R103.5 million) were achieved. The six-month
performance was affected by an after tax loss of R5.1 million in Eqstra Zambia, which is being closed
down. The fleet leasing book showed positive growth of R147.2 million since August 2018, which should
manifest in increased turnover going forward. Though this is positive for the long-term sustainability
of the business, a growing lease book has an initial negative impact on profitability as the increase in
depreciation and interest costs exceeds the growth in EBITDA in the earlier part of the lease term. Lower
aftermarket sales at the end of lease term affected revenues in the current year.
Our Quest system continues to show differentiating benefits and will allow scalability to the segment
without a proportionate increase in overhead structure.
Petrochemicals
Revenues of R865.8 million (2018: R778.4 million), adjusted EBIT of R38.2 million (2018: R36.2 million)
and adjusted PBT of R24.2 million (2018: R26.4 million) were achieved. Increased inventory resulted in
higher interest charges, affecting profitability.
PROSPECTS
Equipment
- EIE will continue to seek growth in its South African share of the forklift market in line with Toyota's
aspirations and improve its operational efficiencies through the use of technology.
- In addition to the companies acquired in the prior year, EIE will further look to expand its UK market
share through the acquisition of complementary forklift businesses and strengthen its long-term
partnership with Mitsubishi, the supplier of Cat Lift Trucks. EIE has also positioned itself with
products that have lower price points, namely Hangcha and Heli, which allow it to cover more
segments of the market. This expansion strategy could also include European countries in the
long term.
- The Group continues to review its long-term strategic options for the Power business.
- Wood aims to maintain its leading market share in a declining market. The business has
implemented various cost cutting initiatives to counter the impact of reduced sales. Reduced
construction projects negatively impacted both the Wood and the Power businesses and cost
reductions have been a key focus.
Fleet
- EFML is focused on growing revenues derived from VAPs, which are non-capital intensive.
The business has seen an increase in customer retention rates and winning new business and
this focus continues. The Quest system continues to present opportunities to offer outsourced
processing and fleet management services and drive operational efficiencies.
Petrochemicals
- The Lubricants business will focus on rolling out the blending contract with ExxonMobil and growing
its distribution and contract manufacturing volumes. It will also seek new product distribution
opportunities through its relationship with ExxonMobil.
- The Chemicals business will focus on growing volumes in selected polymer, natural rubber,
performance polyethylene and speciality chemicals. The business will also seek new
distributorships to increases volumes through its existing infrastructure.
Outlook
Equipment: We expect EIE to improve on their first half reported performances following further
acquisitions in the UK. The UK operation has increased inventory due to the uncertainty surrounding
BREXIT. The business however anticipates minimal impact no matter which scenario unfolds and is
well prepared. While Power has seen an increase in orders due to recent load shedding, primarily in
the residential market, both Power and Wood remain highly geared to the construction industry and the
overall economy, which the Board does not anticipate improving in the short to medium term.
Fleet: We expect EFML to continue growing its leasing book in line with current performance.
Encouraging progress has been made in the first half with regard to improving customer retention rates
and winning new business.
Petrochemicals will continue to build on its relationship with ExxonMobil and implement the local
blending approvals recently granted by ExxonMobil, thereby reducing input costs.
The Group will continue to pursue the various corporate actions as set out in cautionary announcements
published on SENS over the past few months.
Key risks to our business are posed by declines in overall levels of economic sentiment, growth rates,
currency volatility and higher interest rates. Whilst recognising this, enX believes its business model and
current portfolio of businesses have defensive characteristics given the annuity generating nature of its
assets, strong market positions, brand partnerships and long-term client commitments.
SUBSEQUENT EVENTS
The Group raised R130 million bonds and draw on bank liquidity facilities to redeem R281 million of
notes due in April 2019.
The Group, through its UK operations, has purchased Grant Handling Plc, a UK based Heli distributor
for GBP6.5 million. The business model is similar to that of the current operations in the UK with the added
benefit of expanding its footprint and diversifying its product offering.
DIVIDENDS
In line with the Group policy to reinvest for growth, no cash dividend has been declared for the period.
DIRECTORS
Executive directors: SB Joffe (Chief Executive Officer), JS Friedman (Financial Director)
Non-executive directors: PM Makwana* (Chairman), PC Baloyi, SF Booysen*, A Joffe, NV Lila*,
LN Molefe*, PS O'Flaherty and AJ Phillips*
(* Independent)
No directors changed during the period.
For and on behalf of the board
SB Joffe JS Friedman
Chief Executive Officer Financial Director
17 April 2019
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
as at as at as at
28 February 2019 28 February 2018 31 August 2018
R'000 R'000 R'000
ASSETS
Non-current assets 7 013 951 6 439 158 6 781 132
Property, plant and equipment 395 247 387 849 397 055
Leasing assets 5 611 832 5 045 852 5 377 858
Goodwill 478 461 530 352 478 746
Intangible assets 385 937 415 485 400 245
Trade and other receivables 16 899 5 339 7 540
Investment in associate 56 077 - 54 240
Other investments and loans 20 279 19 556 18 214
Deferred taxation 49 219 34 725 47 234
Current assets 2 900 741 3 138 090 2 928 340
Inventories 1 559 177 1 339 986 1 352 939
Trade, other receivables and derivatives 1 039 047 1 162 666 1 117 551
Other investments and loans 741 73 739 -
Taxation receivable 17 883 11 576 6 545
Bank and cash balances 283 893 550 123 451 305
Total assets 9 914 692 9 577 248 9 709 472
EQUITY AND LIABILITIES
Total shareholders' interests 2 914 460 2 646 822 2 793 220
Stated capital 3 104 893 3 103 366 3 103 455
Other reserves (689 045) (950 561) (681 952)
Accumulated profits 463 072 460 525 335 715
Equity attributable to equity holders of
the parent 2 878 920 2 613 330 2 757 218
Non-controlling interests 35 540 33 492 36 002
Non-current liabilities 4 972 485 4 573 459 4 420 505
Interest-bearing liabilities 4 403 944 4 054 000 3 870 081
Deferred vendor consideration 12 601 - 11 989
Non-current financial liabilities 12 955 - 13 513
Deferred taxation 542 985 519 459 524 922
Current liabilities 2 027 747 2 356 967 2 495 747
Interest-bearing liabilities 496 515 795 517 832 161
Deferred vendor consideration 12 179 25 922 23 342
Trade, other payables and provisions 1 445 820 1 477 934 1 548 604
Taxation payable 51 148 37 380 46 931
Bank overdrafts 22 085 20 214 44 709
Total equity and liabilities 9 914 692 9 577 248 9 709 472
Supplementary information:
Number of shares in issue 181 317 725 181 317 732 181 317 725
Number of shares in issue (net of
treasury shares) 178 939 229 179 036 173 179 288 484
Net asset value per share (cents) 1 608.9 1 459.7 1 537.9
Net tangible asset value per share (cents) 1 186.2 993.7 1 110.1
CONDENSED CONSOLIDATED STATEMENT OF PROFIT
AND LOSS AND OTHER COMPREHENSIVE INCOME
Unaudited Unaudited Audited
for the six for the six for the year
months ended months ended ended
28 February 2019 28 February 2018 31 August 2018
R'000 R'000 R'000
Revenue 3 749 868 3 624 391 7 429 294
Net operating expenses (2 765 260) (2 662 802) (5 479 869)
Profit from operations before
depreciation and amortisation 984 608 961 589 1 949 425
Depreciation and amortisation (593 362) (577 152) (1 141 121)
(Loss)/profit on disposal of property, plant
and equipment (73) 524 (1 036)
Share-based payment expense (3 724) (4 086) (26 110)
Foreign exchange losses (9 128) (26 770) (39 933)
Operating profit 378 321 354 105 741 225
Impairment of goodwill - - (56 184)
Profit before interest and taxation 378 321 354 105 685 041
Net finance costs (196 275) (171 385) (377 176)
Interest received 4 574 33 871 24 423
Interest paid (200 849) (205 256) (401 599)
Share of profit from associate 1 837 - 1 246
Net profit before taxation 183 883 182 720 309 111
Taxation (54 553) (41 910) (78 448)
Net profit after taxation 129 330 140 810 230 663
Attributable to:
Equity holders of the parent 127 357 138 380 225 722
Non-controlling interests 1 973 2 430 4 941
Net profit after taxation 129 330 140 810 230 663
Other comprehensive income net
of taxation:
Net profit after taxation 129 330 140 810 230 663
Items that may be reclassified
subsequently to profit or loss:
- Foreign currency translation reserve (8 844) (14 368) 41 578
Total comprehensive income 120 486 126 442 272 241
Attributable to:
Equity holders of the parent 118 513 124 012 267 300
Non-controlling interests 1 973 2 430 4 941
Total comprehensive income 120 486 126 442 272 241
Supplementary information:
Basic earnings per share (cents) 71.2 77.6 126.2
Headline earnings per share (cents) 71.2 77.4 158.0
Adjusted headline earnings per share
(cents) # 81.6 87.5 188.5
Diluted earnings per share (cents) 70.2 76.6 124.7
Diluted headline earnings per
share (cents) 70.3 76.4 156.2
EBITDA 978 332 931 257 1 835 568
Adjusted EBIT # 404 574 377 937 815 185
Adjusted headline earnings 146 081 155 989 337 073
Number of shares in issue 181 317 725 181 317 732 181 317 725
Weighted average number of shares in
issue (net of treasury shares) 178 939 229 178 332 559 178 851 235
Diluted number of shares in issue 181 317 725 180 614 117 180 968 812
HEADLINE EARNINGS RECONCILIATION
Unaudited Unaudited Audited
for the six for the six for the year
months ended months ended ended
28 February 2019 28 February 2018 31 August 2018
R'000 R'000 R'000
Net profit after taxation attributable to
equity holders of the parent 127 357 138 380 225 722
Adjusted for:
Loss/(profit) on disposal of property, plant
and equipment 73 (524) 1 036
Impairment of goodwill - - 56 184
Taxation effect on adjustments (20) 147 (290)
Headline earnings attributable to
ordinary shareholders 127 410 138 003 282 652
Adjusted for:
IFRS 2 charges 3 724 4 086 26 110
Restructuring and
IFRS 3 transaction costs 3 899 2 953 7 382
Retrenchment costs - - 5 636
Amortisation of intangible assets 16 793 16 793 33 586
Taxation effect on adjustments (5 745) (5 846) (18 293)
Adjusted headline earnings attributable
to ordinary shareholders # 146 081 155 989 337 073
EBIT RECONCILIATION
Earnings before interest, taxation,
depreciation and amortisation 978 332 931 257 1 835 568
Depreciation and amortisation (598 174) (577 152) (1 149 281)
EBIT 380 158 354 105 686 287
IFRS 2 charges 3 724 4 086 26 110
Restructuring and
IFRS 3 transaction costs 3 899 2 953 7 382
Retrenchment costs - - 5 636
Amortisation of intangible assets 16 793 16 793 33 586
Impairment of goodwill - - 56 184
Adjusted EBIT # 404 574 377 937 815 185
Adjusted EBIT % 11 10 11
# Adjusted headline earnings per share and adjusted EBIT take into account all the profits and losses from
operational, trading, and funding activities for the period and exclude adjustments in line with those of the
comparative period.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
for the six for the six for the year
months ended months ended ended
28 February 2019 28 February 2018 31 August 2018
R'000 R'000 R'000
Stated capital 3 104 893 3 103 366 3 103 455
Balance at beginning of the period 3 103 455 3 087 083 3 087 083
Increase through the issue of shares (net
of costs) - 16 283 18 493
Additional treasury shares acquired - - (2 121)
Transfer from treasury shares to
issued shares 1 438 - -
Other reserves (689 045) (950 561) (681 952)
Balance at beginning of the period (681 952) (725 389) (725 389)
Foreign currency translation reserve (8 844) (14 368) 41 578
Share-based payment expense 1 751 1 372 1 859
Transfer from accumulated
profits (eXtract) - (212 176) -
Accumulated profits 463 072 460 525 335 715
Balance at beginning of the period 335 715 322 145 322 145
Total comprehensive income for the period 127 357 138 380 225 722
Dividend in specie - (212 176) (212 152)
Transfer to other reserves (eXtract) - 212 176 -
Non-controlling interests 35 540 33 492 36 002
Balance at beginning of the period 36 002 31 411 31 411
Total comprehensive income for the period 1 973 2 430 4 941
Dividends paid to minority shareholders (2 435) (349) (350)
Balance at end of the period 2 914 460 2 646 822 2 793 220
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
for the six for the six for the year
months ended months ended ended
28 February 2019 28 February 2018 31 August 2018
R'000 R'000 R'000
Cash flows from operating activities 719 808 888 013 2 007 418
Cash generated from operations before
working capital movements 969 028 935 987 1 893 662
Working capital movements (4 484) 177 821 559 935
Interest received 4 272 6 684 24 423
Interest paid (200 849) (202 151) (401 022)
Taxation paid (48 159) (30 328) (69 580)
Cash flows from investing activities (1 068 601) (688 629) (1 656 842)
Capital expenditure (1 065 000) (823 217) (1 781 109)
Additions to goodwill - - (11 983)
Proceeds on disposal of assets - 3 103 9 177
Business combinations - (43 515) (67 179)
(Advances)/proceeds from other
investments and loans (3 601) 175 000 194 252
Cash flows from financing activities 207 872 37 367 (248 827)
Net increase/(decrease) in
interest-bearing borrowings 218 121 47 198 (238 803)
Deferred vendor consideration paid (10 249) (9 482) (9 674)
Payments on transactions with
non-controlling interests - (349) (350)
Net (decrease)/increase in cash and cash equivalents (140 921) 236 751 101 749
Exchange rate translation on cash and cash equivalents (3 867) (8 299) 3 390
Cash and cash equivalents at beginning of the period 406 596 301 457 301 457
Cash and cash equivalents at end of the period 261 808 529 909 406 596
CONDENSED CONSOLIDATED SEGMENTAL ANALYSIS
Equipment Fleet Petrochemicals Group, financing and consolidation Total
Unaudited Unaudited Audited Unaudited Unaudited Audited Unaudited Unaudited Audited Unaudited Unaudited Audited Unaudited Unaudited Audited
for the six for the six for the for the six for the six for the for the six for the six for the for the six for the six for the for the six for the six for the
months ended months ended year ended months ended months ended year ended months ended months ended year ended months ended months ended year ended months ended months ended year ended
28 February 28 February 31 August 28 February 28 February 31 August 28 February 28 February 31 August 28 February 28 February 31 August 28 February 28 February 31 August
2019 2018 2018 2019 2018 2018 2019 2018 2018 2019 2018 2018 2019 2018 2018
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Revenue 1 898 740 1 835 005 3 718 995 1 000 827 1 032 268 2 134 020 865 774 778 441 1 624 632 (15 473) (21 323) (48 353) 3 749 868 3 624 391 7 429 294
- South Africa 1 281 365 1 335 888 2 689 005 883 279 934 159 1 932 375 776 721 717 448 1 477 800 25 977 23 856 47 712 2 967 342 3 011 351 6 146 892
- Rest of world 615 962 494 808 1 017 326 105 301 87 545 179 717 87 242 54 543 133 075 - - - 808 505 636 896 1 330 118
- Intercompany 1 413 4 309 12 664 12 247 10 564 21 928 1 811 6 450 13 757 (41 450) (45 179) (96 065) (25 979) (23 856) (47 716)
EBITDA# 531 018 485 699 971 717 430 164 444 506 857 140 44 525 40 806 87 044 (27 375) (39 754) (80 333) 978 332 931 257 1 835 568
Depreciation and amortisation (331 888) (304 070) (622 491) (243 064) (251 045) (482 338) (6 195) (4 839) (10 169) (17 027) (17 198) (34 283) (598 174) (577 152) (1 149 281)
EBIT 199 130 181 629 349 226 187 100 193 461 374 802 38 330 35 967 76 875 (44 402) (56 952) (114 616) 380 158 354 105 686 287
- South Africa 149 861 138 979 270 820 164 955 171 930 335 215 25 949 25 607 53 840 (44 402) (56 952) (114 616) 296 363 279 564 545 259
- Rest of world 49 269 42 650 78 406 22 145 21 531 39 587 12 381 10 360 23 035 - - - 83 795 74 541 141 028
Adjusted EBIT 200 674 182 959 400 660 188 075 194 881 380 210 38 216 36 233 80 434 (22 391) (36 136) (46 119) 404 574 377 937 815 185
Net finance costs (92 795) (86 354) (177 933) (95 014) (91 340) (183 127) (13 984) (9 828) (24 414) 5 518 16 137 8 298 (196 275) (171 385) (377 176)
Adjusted PBT 107 879 96 605 222 727 93 061 103 541 197 083 24 232 26 405 56 020 (16 873) (19 999) (37 821) 208 299 206 552 438 009
Total assets 4 966 372 4 404 417 4 676 400 3 224 355 2 988 357 3 050 455 909 184 825 319 997 906 814 781 1 359 155 984 711 9 914 692 9 577 248 9 709 472
- Goodwill and intangibles 29 558 27 496 30 077 28 939 22 571 26 543 3 759 3 671 3 295 802 142 892 099 819 076 864 398 945 837 878 991
- Leasing assets 2 850 171 2 550 585 2 763 398 2 761 661 2 495 267 2 614 460 - - - - - - 5 611 832 5 045 852 5 377 858
- Inventory 1 064 154 868 318 877 462 30 349 30 681 13 918 464 674 440 987 461 559 - - - 1 559 177 1 339 986 1 352 939
- Trade and other receivables 571 825 574 469 544 970 268 037 314 754 256 029 218 024 278 569 344 446 (1 199) 213 (20 354) 1 056 687 1 168 005 1 125 091
- Other assets 450 664 383 549 460 493 135 369 125 084 139 505 222 727 102 092 188 606 13 838 466 843 185 989 822 598 1 077 568 974 593
Total liabilities 3 789 255 3 385 100 3 567 297 2 589 016 2 469 371 2 457 554 620 853 591 539 778 819 1 108 484 416 112 582 7 000 232 6 930 426 6 916 252
- Interest-bearing liabilities and overdraft 2 739 193 2 370 268 2 553 820 1 965 472 1 886 450 1 874 605 272 431 224 153 284 609 (54 552) 388 860 33 917 4 922 544 4 869 731 4 746 951
- Deferred vendor consideration - 4 695 5 000 - - - 24 780 21 227 30 331 - - - 24 780 25 922 35 331
- Trade and other payables and provisions 800 070 799 653 768 342 337 029 304 288 307 696 312 277 338 903 453 553 (3 556) 35 090 19 013 1 445 820 1 477 934 1 548 604
- Other liabilities 249 992 210 484 240 135 286 515 278 633 275 253 11 365 7 256 10 326 59 216 60 466 59 652 607 088 556 839 585 366
Capital expenditure net of proceeds 584 188 400 922 851 287 477 946 400 349 893 843 2 854 18 836 26 768 12 7 34 1 065 000 820 114 1 771 932
Number of employees 1 746 1 857 1 811 551 600 563 136 102 129 11 14 15 2 444 2 573 2 518
GEOGRAPHICAL SEGMENTATION
Total assets 4 966 372 4 404 417 4 676 400 3 224 355 2 988 357 3 050 455 909 184 825 319 997 906 814 781 1 359 155 984 711 9 914 692 9 577 248 9 709 472
- South Africa 3 376 733 3 166 154 3 155 168 2 825 333 2 639 497 2 674 156 843 875 794 606 952 563 814 781 1 359 155 984 711 7 860 722 7 959 412 7 766 598
- Rest of world 1 589 639 1 238 263 1 521 232 399 022 348 860 376 299 65 309 30 713 45 343 - - - 2 053 970 1 617 836 1 942 874
Total liabilities 3 789 255 3 385 100 3 567 297 2 589 016 2 469 371 2 457 554 620 853 591 539 778 819 1 108 484 416 112 582 7 000 232 6 930 426 6 916 252
- South Africa 2 547 886 2 407 028 2 370 495 2 448 983 2 364 790 2 339 710 582 232 570 981 754 511 1 108 484 416 112 582 5 580 209 5 827 215 5 577 298
- Rest of world 1 241 369 978 072 1 196 802 140 033 104 581 117 844 38 621 20 558 24 308 - - - 1 420 023 1 103 211 1 338 954
# Excludes intercompany management fees.
NOTES
1. Basis of preparation
The condensed unaudited interim financial results for the six months ended 28 February
2019 have been prepared in accordance with International Financial Reporting Standards ("IFRS")
and complies with IAS 34 - Interim Financial Reporting, the SAICA Financial Reporting Guides
as issued by the Accounting Practices Board, the Financial Pronouncements as issued by the
Financial Reporting Standards Council, the requirements of the Companies Act, No. 71 of 2008 of
South Africa and the Listings Requirements of the JSE Limited. The accounting policies used in
the preparation of the condensed unaudited interim financial results for the six months ended
28 February 2019 are consistent with those applied in the audited financial statements for the year
ended 31 August 2018.
During the current period, the Group adopted those standards and interpretations in issue and
effective for the period. The adoption of these new and amended standards and interpretations has
not had a significant impact on the Group's adopted accounting policies.
These results have been compiled under the supervision of Jarrod Friedman CA(SA), the Financial
Director. The condensed interim financial results have not been reviewed or reported on by the
Group auditors.
Unaudited
for the six
months ended
28 February 2019
R'000
2. Capital commitments
Total capital commitments contracted -
Future expenditure will be financed from cash generated from operations and existing banking facilities.
On 13 February 2017 shareholders approved financial assistance in the form of a R15 million enX indemnity
with regards to Capleverage Propriety Limited.
There were no contingent liabilities as at 28 February 2019.
Unaudited Unaudited Audited
for the six for the six for the
months ended months ended year ended
28 February 2019 28 February 2018 31 August 2018
R'000 R'000 R'000
3. Interest-bearing borrowings and overdraft
Medium Term Note Program 1 252 740 1 210 000 1 106 166
Bank debt and overdraft - South Africa 2 671 070 2 861 553 2 645 323
Bank debt and overdraft - Rest of world 998 734 798 178 995 462
Deferred vendor consideration 24 780 25 922 35 331
4 947 324 4 895 653 4 782 282
Comprising:
Non-current 4 416 545 4 054 000 3 882 070
Current 530 779 841 653 900 212
4 947 324 4 895 653 4 782 282
4. Net finance costs
Interest received 4 272 6 684 11 875
Interest paid (200 849) (204 653) (400 728)
Deemed interest income 302 26 584 11 677
(196 275) (171 385) (377 176)
5. Fair value hierarchy disclosures
Valuation methodology
Level 1 - Valuations with reference to quoted prices in an active market:
Financial instruments valued with reference to unadjusted quoted prices for identical assets or
liabilities in active markets where the quoted price is readily available and the price represents
actual and regularly occurring market transactions on an arm's length basis.
Level 2 - Valuations based on observable and unobservable inputs include:
Financial instruments valued using inputs other than quoted prices as described above for
level 1 but which are observable for the asset or liability, either directly or indirectly, such as a
quoted price for similar assets or liabilities in an active market; a quoted price for identical or
similar assets or liabilities in inactive markets; a valuation model using observable inputs; and a
valuation model using inputs derived from/corroborated by observable market data.
Level 3 - Valuations based on unobservable inputs include:
Financial instruments are valued using significant inputs which are not based on observable
market data.
The table below shows the Group's financial asset and liabilities that are recognised and
subsequently measured at fair value, analysed by valuation technique.
Level 2 Level 3 Fair value
28 February 2019 R'000 R'000 R'000
Financial assets
Other investments and loans - 21 020 21 020
Designated as fair value
through profit and loss
- Derivative financial assets - - -
- 21 020 21 020
Financial liabilities
Financial liabilities designated as fair
value through profit and loss
- Derivative financial liabilities 1 100 - 1 100
1 100 - 1 100
Registered office:
202D 11 Crescent Drive, Melrose Arch, Johannesburg, 2196
Postal address:
PostNet Suite X86, Private Bag X7, Aston Manor, 1630
Sponsor:
The Standard Bank of South Africa Limited
Company secretary:
L Moller
Transfer secretaries:
Computershare Investor Services Proprietary Limited
Release date:
17 April 2019
Date: 17/04/2019 07:37:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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