Picture: iSTOCK
Picture: iSTOCK

enX Group, which provides industrial and petrochemical products as well as fleet management and logistics services, said on Wednesday that net profit in the six months to February fell 8% to R129.3m.

Revenue edged slightly higher to R3.7bn, boosted by “good growth in both the lubricant and chemical businesses”.

While operating profit increased 6.8% to R378.3m, higher net finance costs and a higher effective tax rate weighed on earnings, enX said.

The group said its industrial equipment business, which sells Toyota forklifts in SA, “outperformed expectations both from a market growth and market share perspective”.

The Eqstra fleet management and logistics business’s lease book “is now increasing” after improving customer retention rates and winning new business.

“Petrochemicals continues to develop its relationship with ExxonMobil, reflected in its approvals for local blending, its investment in Zestcor, an ExxonMobil base oil distributor and the potential for further growth opportunities with ExxonMobil in Southern Africa.”

Meanwhile, enX said it plans to improve its broad-based BEE rating. “In this regard, the operating companies are in the process of reviewing structures to improve B-BBEE levels.”

hedleyn@businesslive.co.za