Eskom’s improved reliability is not good news for enX
The lack of load shedding is not good news for everyone. Equipment services specialist enX group announced on Wednesday that it had managed to grow revenue 30% to R1.1bn during the year to end-August. This was despite sales of its backup power systems suffering due to Eskom’s improved reliability. A one-off R78m goodwill impairment for its power division caused the group to fall into a R71m aftertax loss from the previous year’s R21.8m profit. Power segment revenues were up 19% to R370m compared with R455m in 2015 due to a decrease in load shedding during the reporting period. The group’s gross margins reduced to 23% compared with last year as a result of the decline in margins in the power segment. The group completed its acquisition of Eqstra, profitable industrial equipment and logistics operations that operates in SA and sub-Saharan Africa. The group said that it completed three other major transactions that would contribute to transforming the company into an industrial busines...
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