ENX: Look past market’s misgivings
The industrial services and supplies group is going steady, despite the downward trend of its share price
There was not too much wrong with the interim numbers delivered by industrial services and supplies conglomerate enX Group for the six months to end-February. But the share price, which continues to dribble down, suggests the market still has misgivings, despite the plan to unbundle the stake in mining services specialist eXtract. The interim numbers are well worth crunching. Revenue came in at R2.4bn, yielding earnings before interest, tax, depreciation and amortisation of R692m, which was reassuringly underpinned by cash flow before working capital movements of almost R700m. The operational cash flow is key considering interest-bearing borrowings of more than R4.8bn at the end of February, which resulted in finance costs of R147m. The earnings before interest and tax margin was 13%, with headline earnings coming in at R160m, or 103c/share. The divisional breakdown makes for interesting reading, showing three stout operational pillars. The equipment division is the largest, gener...
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