Eqstra lifts earnings

Johannesburg - Eqstra Holdings [JSE:EQS] has reported an 18% rise in headline earnings per share from continuing operations to 36.8 cents for the six months ended December 2011.

In line with the group's dividend policy, the board will consider an annual dividend declaration at the financial year-end.

Eqstra's core business is the distribution, long-term lease and rental of mobile capital equipment and the provision of related value-added annuity services to clients in the construction, mining, industrial and commercial sectors in SA, Africa, the UK and Ireland.

Revenue increased 11.2% to R4.022bn, operating profit rose 12.6% to R455m, while profit before taxation surged 45.3% to R263m.

The company said it had grown earnings in an environment characterised by continued economic uncertainty and a challenging climate for industrial relations.

Contract mining and plant rental's Benga project in Mozambique continued to deliver good results; however, the division was negatively impacted by industrial action in the domestic market and an underperforming contract.

Construction and mining equipment distributorships' performance was below expectations due to lumpy mining sector demand and weak demand from the construction industry.

Passenger and commercial vehicles delivered another pleasing operating performance underpinned by annuity contracts, value-added services and the resumption of leasing asset growth. Industrial equipment performed well despite a strong yen.

United Kingdom forklift operations delivered a good performance, with increased market share in a difficult market.

Looking ahead, the group said with its robust balance sheet, leading market positions and strong cash generation it is well positioned to sustain earnings, despite growth concerns in the global economy.