14 May - 4 min read

Trading Statement

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’’ or ‘’the Group’’)


 In terms of the JSE Listings Requirements, companies are required to publish a trading
 statement as soon as they are satisfied that a reasonable degree of certainty exists that the
 financial results for the period to be reported on next will differ by at least 20% from the
 financial results for the previous corresponding period.

 Shareholders are advised that the company anticipates results for the half year ended 28
 February 2021 (‘’Current Range’’) to differ by more than 20% compared to the half year ended
 28 February 2020 (‘’Prior Period’’), as follows:

                             Current Range         Prior Period       Percentage change
                                                  (Represented)             range
  enX Group
    EPS                         54c to 71c             167c              (58%) to (68%)
    Diluted EPS                 54c to 70c             165c              (57%) to (67%)
    HEPS                        53c to 69c             166c              (58%) to (68%)
    EPS                         31c to 46c             151c              (69%) to (79%)
    Diluted EPS                 31c to 46c             149c              (69%) to (79%)
    HEPS                        31c to 46c             150c              (69%) to (79%)
    EPS                         23c to 25c             16c                 42% to 52%
    Diluted EPS                 23c to 24c             16c                 43% to 53%
    HEPS                        22c to 23c             16c                 37% to 47%

 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 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 assets held for sale in terms of the
 transaction value. Consequently, depreciation and amortisation from 1 February 2021 of R24.7
 million (after tax: R17.8 million) was not recorded in this period.

Trading commentary
Revenue from continuing operations for the six months ended 28 February 2021 is expected
to increase by around 2%, a good performance considering the prior period was unaffected by
the COVID-19 lockdown restrictions which commenced during March 2020. Even though
South Africa remains at level 1 lockdown restrictions, most of the businesses have recovered
to pre-lockdown activity levels.

Profit from operations before depreciation and amortisation from continuing operations is
expected to decline between 8% and 10% compared to the same period last year. There has
been a change in mix of revenue to more annuity-based revenue in EIE SA. While aftermarket
revenue and preowned unit sales remained strong, the new equipment market remained under
pressure with a decrease in new unit orders and a larger percentage of new equipment going
into the forklift rental fleet compared to that of the prior period.

The main areas impacting earnings per share from continuing operations on a once off basis
are as follows:

• In the prior period, Eqstra was still required to be recorded as an asset held for sale. As
  required by IFRS 5, enX was required to cease amortisation and depreciation from 15 July
  2019 and assess the carrying value of the assets held for sale in terms of the transaction
  value. Depreciation and amortisation of R283.5 million (after tax: R204.1 million) for the
  period 1 September 2019 to 29 February 2020 was not recorded, which increased EPS by
  113c per share.
• Following the refinancing of EIE SA and Eqstra, which was concluded in December 2020,
  R9.1 million of unamortised bank structuring fees was written off in full in the current period.

The current range for the continuing operations EPS, Diluted EPS and HEPS would have been
37c to 41c, 37c to 41c and 37c to 40c respectively compared to 38c, 37c and 37c respectively
on like-for-like basis had Eqstra depreciation and amortisation from 1 September 2019 to 29
February 2020 been charged in the six months period ending 29 February 2020.

Financial information on which this trading statement is based has not been reviewed or
reported on by the Company’s auditors.

14 May 2021

The Standard Bank of South Africa Limited

Date: 14-05-2021 01:14:00
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