enX Group posts lower earnings loss per share following recent disposals
Industrial
EnX Group directors said they would grow the chemical distribution and power equipment manufacturing and distribution businesses, but it would also enhance shareholder value by disposing of these businesses if the opportunity arises
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Industrial lubricant, chemicals and power company enX Group, following recent disposals, said headline earnings per share (HEPS) of continuing operations is expected to improve to between 1 cent and -3 cents for the year to August 31, compared with -8 cents reported last year.
HEPS for the total group, according to a trading statement released Tuesday, was forecast to decline by 78% to 87%, after performance was negatively impacted by lower demand in its Power division.
The total HEPS of between 40 cents and 66 cents, compared with 298 cents at the same time last year, was due mainly to minimal loadshedding compared to about 120 days of loadshedding last year.
On June 30, 2025, enX's Chemical segment was classified as held for sale and a discontinued operation. The Fleet and Lubricants segments were disposed of in June 2024 and March 2025 respectively. enX's continuing operations comprise the Power segment and the Service Centre.
Revenue from continuing operations is expected to decrease by about 32%, primarily due to lower demand in the Power segment. The first half of the prior period included significant opportunities arising from loadshedding.
Profit before taxation from continuing operations is expected to decrease between 30% and 34%. The results were also negatively impacted by a delay in large-scale power data centre customer projects, and the once-off payment of aR15 million limited guarantee claim under the Cap Leverage shareholder indemnity, which became due when the Industrial Development Corporation called on its guarantee.
enX’s share price was unchanged at R4.11 on the JSE Tuesday morning.
The group said in its integrated report last November that while there was a robust order book for the sale of generators to data-centre customers, profitability continued to be negatively impacted by no loadshedding. The strategy to increase shareholder value by growing underlying businesses and, if the opportunities available are right, to make strategic disposals of those businesses, would continue.
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