Acquisitions concluded by JSE-listed enX Group have contributed to higher revenue and net profit for the six months to February 28.
Revenue increased to R2.4-billion, from R517.7-million in the first half of the prior financial year.
Revenues for the petrochemicals division increased to R695.7-million following the inclusion of WAI and AGL for the full period, while the group’s adjusted profit before taxation (PBT) improved to R224.8-million.
Speaking at the company’s results presentation on Monday, executive deputy chairperson Paul Mansour said the results illustrated the extent of the transformation that enX had undergone owing to these acquisitions.
“Our rapidly developing petrochemicals segment has begun to demonstrate its earnings potential. enX has evolved into a diversified industrial business with significantly increased market capitalisation, assets under management and earnings base. We now have the foundations of a much larger industrial business,” he noted.
Mansour added that, for the last six months, the company’s focus had been on integrating acquisitions and driving profitability of its existing operations.
“The proposed recapitalisation and unbundling of enX’s investment in eXtract Group will unlock the benefits of certainty and simplicity for our stakeholders. Our goal is to build a growing, cash-generative industrial business.”
The company’s adjusted earnings before interest and taxation (Ebit) increased to R306.7-million in the six months while adjusted headline earnings increased to R160.3-million and translated into adjusted headline earnings a share of 103.3c.
The equipment segment performed in line with expectations for the period and achieved revenues of R1.16-billion, adjusted Ebit of R133.9-million and adjusted PBT of R75-million.
The fleet business achieved revenues of R554.8-million, adjusted Ebit of R145.3-million and adjusted PBT of R83-million.
OUTLOOK
enX expects forklift manufacturer EIE, which is owned by enX, to marginally improve on its performance in the first half of the year, as the fruit harvesting season drives sales and short-term rentals, with its UK operations expected to perform in line with its plan.
“The order book that the power division has built up over the past six months will begin to translate into revenues, resulting in a marked improvement in second-half performance, while performance of the wood business should continue to be stable,” Mansour said.
He added that the petrochemicals division is expected to maintain its strong half-year performance.