enX GROUP LIMITED - Financial Results for the Year Ended 31 August 2019

Financial Results for the Year Ended 31 August 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")


FINANCIAL RESULTS FOR THE YEAR ENDED 31 AUGUST 2019


 -   Revenue from continuing operations of R5.8 billion (2018: R5.3 billion)
 -   enX Industrial Equipment ("EIE") PBT of R245 million (2018: R212 million)
 -   Maintained a zaA- credit rating from S&P Global Ratings
 -   Classified enX Fleet as a discontinued operation post divestment announcement

                                                                  For the year         For the year
                                                           %             ended                ended
                                                      change    31 August 2019       31 August 2018
Total operations
Basic earnings per share (cents)                      (53%)               58.9                126.2
Diluted earnings per share (cents)                    (53%)               58.3                124.7
Headline earnings per share (cents)                   (11%)              141.0                158.0
Net asset value per share (cents)                        4%            1 597.0              1 537.9
Net tangible asset value per share (cents)**            27%            1 410.7              1 110.1
Continuing operations
Basic (loss)/earnings per share (cents)               (176%)            (40.1)                 52.8
Diluted (loss)/earnings per share (cents)             (177%)            (40.1)                 52.1
Headline earnings per share (cents)                    (51%)              41.2                 84.6
Discontinued operations
Basic earnings per share (cents)                        35%               99.0                 73.4
Diluted earnings per share (cents)                      35%               97.9                 72.6
Headline earnings per share (cents)                     36%               99.8                 73.5

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

In line with Group policy to re-invest for growth, no cash dividends have been declared.

The year under review was extremely challenging. The solid performance from EIE and Fleet was
largely offset by the disappointing results from the lubricants and wood businesses. Earnings from
continuing operations, which exclude Fleet, decreased from 52.8 cents per share to a loss of 40.1 cents
per share and headline earnings from continuing operations decreased from 84.6 cents per
share to 41.2 cents per share.

The annual review of the assumptions underlying the carrying values of the businesses comprising
the Petrochemicals segment was undertaken. As a consequence of this review, the carrying values of
this segment were impaired by R166.4 million. Therefore, goodwill and intangible assets amounting to
R93.5 million and R72.9 million respectfully, including associated deferred tax assets, relating to the
Lubricants CGU and Chemicals CGU respectively were impaired in the current year.

Following a strategic review, the board decided to divest of its ownership in Fleet. This has resulted in
the enX Fleet segment being classified as a discontinued operation. We await regulatory and
shareholder approval for this transaction.

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/annual-results) on 25 November 2019 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/2019/jse/isse/enx/FY_19.pdf

The full announcement is also available for inspection from 25 November 2019 until 31 December 2019 at:

 -   the company's registered office (11 Gross Street, Tunney Industrial, Isando);
 -   the offices of the sponsor, The Standard Bank of South Africa Limited (30 Baker Street, Rosebank, 2196); and
 -   copies of the full announcement may be requested during office hours at no charge by emailing info@enxgroup.co.za


By order of the board

SF Booysen                  GD Neubert                         JS Friedman
Chairman                    Chief Executive Officer            Chief Financial Officer

25 November 2019

DIRECTORS

Executive directors:
GD Neubert (Chief Executive Officer)
JS Friedman (Chief Financial Officer)

Non-executive directors:
SF Booysen* (Chairman)
PC Baloyi
A Joffe
B Ngonyama*
L Molefe*
PS O'Flaherty
AJ Phillips*

(* 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

Date: 25-11-2019 07:45:00
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