enX Group shares rise 10% as it reaffirms growth strategy

enX Group, the JSE-listed manufacturer and distributor of power equipment and chemicals, saw its share price shoot up over 10% on Wednesday after it confirmed a strategy to grow its businesses and dispose of them if opportunities become available.

The share price increased by 10.89% to R4.99 on the JSE Wednesday afternoon, but the price is much lower than the R9.20 it traded at a year ago. The net asset value per share was R8.65, compared to R9.06 on August 31, 2024. The company had paid a special distribution of R1.55 per ordinary share on April 7, 2025, amounting to R283 million.

In its results for the six months to February 28, the company directors reported a good performance in the Chemical segment; however, with almost no load-shedding in the period, demand within the Power segment reduced considerably compared to the prior period.

Profit before tax from continuing operations was 19% lower at R64m. Headline earnings per share from continuing operations were 29% lower at 22 cents a share.

Revenue from continuing operations decreased by 10% to R1.13 billion. Chemical segment revenue was similar to the prior period, with average selling prices of chemicals increasing, but this was offset by lower period-on-period volumes.

Power revenues across all revenue streams were down significantly due to minimal load-shedding, which previously presented significant opportunities.

Operating profit from continuing operations before finance costs and impairments was R41m, down significantly from R69m at the same time last year, due to lower demand in Power, offset by better margins from the Chemicals segment. Net financing income was R23m, well up from R10m last year, due to lower borrowings and higher cash balances.

New Way Power revenue was R194m, a decrease of 42%. Revenue across all revenue streams, particularly in equipment rental, renewables, diesel, and services and installations, fell significantly.

While average chemical selling prices increased, volumes of polyethylene and polystyrene declined; however, this was offset by higher synthetic and natural rubber volumes compared to the same period last year.

On December 13, 2024, the disposal of the Lubricants Segment as a single transaction to Abakhulu Investments was announced. The deal became unconditional in March, and gross proceeds of R287.9m were paid to enX Trading.

As a result, AG Lubricants was classified as a disposal group held for sale and discontinued operation in terms of IFRS 5, effective from December 1, 2024, the date that the conditions to be classified as such were met.

The group had received total gross proceeds of the Eqstra Fleet sale to Nedbank of R1.15bn. Following the disposal of the Lubricants segment, cash was returned to shareholders via the R1.55 per share special distribution.

“Conditions within WAG are expected to remain stable, with growth opportunities arising from the investment by Trichem SA into WAG. Growth in New Way continues to be dependent on the extent and duration of load shedding in presenting opportunities,” the directors said.

While there is a robust order book for the sale of generators to data-centre customers, profitability continues to be negatively impacted by minimal load shedding.”

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