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enX GROUP LIMITED - Trading Statement

Release Date: 14/11/2019 17:45
Code(s): ENX     PDF:  
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Trading Statement

ENX GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/029771/06)
JSE share code: ENX ISIN: ZAE000222253
(“enX” or “the company”)


TRADING STATEMENT

Shareholders are advised that the company anticipates results for the year ended 31 August 2019 (“Current Year”) to differ
by more than 20% compared to 31 August 2018 (“Prior Year”), and are summarized as follows:

                                   Current Year range              Prior Year          Percentage change range
 Total enX Group
       EPS                       52.7 cents to 65.3 cents          126.2 cents              (48%) to (58%)
       Diluted EPS               52.1 cents to 64.5 cents          124.7 cents              (48%) to (58%)
       HEPS                    133.1 cents to 148.9 cents          158.0 cents              (6%) to (16%)
 Continuing operations
       (LPS)/EPS               (37.6 cents) to (42.8 cents)        52.8 cents             (171%) to (181%)
       Diluted (LPS)/EPS       (37.6 cents) to (42.8 cents)        52.1 cents             (171%) to (181%)
       HEPS                      37.0 cents to 45.4 cents          84.6 cents              (46%) to (56%)
 Discontinued operations
      EPS                       95.5 cents to 102.9 cents          73.4 cents                30% to 40%
      Diluted EPS               94.3 cents to 101.5 cents          72.6 cents                30% to 40%
      HEPS                      96.4 cents to 103.8 cents          73.5 cents                31% to 41%

During the current year there have been various exceptional movements, impacting both continuing and discontinued
operations.

Continuing Operations:
In the Current Year the businesses that comprise the oil lubricants cash generating unit (“Lubricants CGU”) incurred
obsolescence and net realisable value impairments relating to inventory and restructuring costs of R55.8 million (after tax).
Goodwill and intangible assets amounting to R93.5 million and R72.9 million, including associated deferred tax assets,
relating to the Lubricants CGU and Chemicals CGU respectively have also been impaired in the current year.

In the Industrial Equipment segment the power and wood businesses incurred retrenchment costs, restructuring costs and
the derecognition of deferred tax assets amounting to R22.6 million. The EIE group, which comprises the local and
international forklift businesses, showed growth in profit before tax of 15.6%

Early in the year a decision was taken to wind down the Zambian fleet management and logistics business due to a decline
in the long-term prospects of operating in that region, resulting in a R13.6 million after tax loss. The Zambian business is
excluded from the fleet businesses which is being divested. Accordingly, this loss as well as R7.2million of fleet divestment
related transaction costs form part of the results of continuing operations.

Discontinued operations:
enX’s fleet management and logistics business (“Fleet”) offers integrated fleet management solutions and leasing, rentals
and customised value-added services for both passenger and commercial vehicles in South Africa, Namibia, Botswana and
Swaziland. As a result of the divestment of this business, Fleet related assets and liabilities have been designated as held-
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for-sale from the 12 July 2019. In terms of IFRS, enX is required to cease depreciation and amortisation on held-for-sale
assets. This has resulted in a post-tax reduction in enX’s depreciation expense of R44.7million. Had this depreciation been
normally incurred, the effect would have been to reduce the Total and Discontinued EPS, Diluted EPS and HEPS as
disclosed in the table by 25cps respectively.
The financial information on which this trading statement is based has not been reviewed or reported on by the Company’s
auditors.

The Company’s financial results for the year ended 31 August 2019 are expected to be released on SENS on or about
25 November 2019.

14 November 2019

Sponsor
The Standard Bank of South Africa Limited

Date: 14/11/2019 05:45:00
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