Our opinion on the current state of ENX

2 thg 11, 2023

The enX Group (ENX) is a "...diversified industrial group that provides branded products and services to the petrochemical, fleet management, logistics and industrial sectors". It includes Austro which distributes wood-working equipment and tooling. Finally, it includes New Way Power which manufactures, installs, and maintains diesel generators. Its fleet division engages in fleet management and logistics as well as vehicle tracking. Then ENX Petrochemicals produces and markets oil lubricants, plastics polymers, rubber, and speciality chemicals in Southern Africa". It disposed of the EIE group with effect from 1st April 2022. On 15th July 2019, the company announced that it had sold Eqstra, a fleet management company, to Bidvest for R3,1bn. On 15th April 2021, the company announced that it had sold its British fork-lift and container business for GBP31m. The proceeds will be used to pay down debt. This is clearly a company that will benefit directly from any improvement in the South African economy, but which is making acquisitions both locally and, in the UK, to ensure growth, no matter what happens. On 4th April 2022, the company announced a special dividend of 200c per share as a result of the sale of its subsidiary, EIE. On 1st August 2022, the company announced a special dividend of R1.50 per share as a result of the disposal of Impact Forktrucks and EIE Group. In its results for the six months to 28th February 2023 the company reported revenue from continued operations up 22% and headline earnings per share (HEPS) up 32%. The company said, "Revenue from continuing operations increased 22% to R2.917 billion (2022: R2.386 billion) mainly supported by increased demand for power solutions and related services arising from load-shedding, higher selling prices due to pass through of increasing base oil and chemical input prices period-on-period, and continuing recovery in activity". In a trading statement for the year to 31st August 2023 the company estimate that HEPS would decrease by between 34% and 43% lower. The share is trading much better volumes recently with an average of R370 000 worth of shares changing hands each day - which makes it practical for private investors. It has also been in an upward trend recently.