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Johannesburg - Eqstra Holdings [JSE:EQS] on Tuesday reported a major turnaround, with diluted headline earnings per share of 74.9c per share for the year ended June 2011 from a loss of 21.7c per share a year ago. The company declared a maiden dividend of 25c per share.
Revenue increased 9.3% to R7.586bn, primarily as a result of increased revenue in construction and mining equipment distributorships (CMED) and industrial equipment.
Operating profit increased 25.8% to R903m, mainly on the back of the turnaround in CMED, and profit before tax was up 385% to R388m.
Eqstra said the group delivered improved results during another challenging year, testifying to the resilience of its underlying business model. However, it noted that contract mining and plant rental performance remained below expectations.
The construction and mining equipment distributorships (CMED) turnaround was due to the benefits of past restructuring and increased equipment demand from the mining sector. Passenger and commercial vehicles delivered a solid performance underpinned by annuity contracts and growth in non-capital based value added services.
The group successfully concluded its long-term debt funding package in February 2011, whereby the quantum and duration of long-term debt was increased. In August the group renewed its UK debt facilities for a further three years. The board believes that sufficient facilities are in place to meet the group's liquidity requirements.
Revenue increased 9.3% to R7.586bn, primarily as a result of increased revenue in construction and mining equipment distributorships (CMED) and industrial equipment.
Operating profit increased 25.8% to R903m, mainly on the back of the turnaround in CMED, and profit before tax was up 385% to R388m.
Eqstra said the group delivered improved results during another challenging year, testifying to the resilience of its underlying business model. However, it noted that contract mining and plant rental performance remained below expectations.
The construction and mining equipment distributorships (CMED) turnaround was due to the benefits of past restructuring and increased equipment demand from the mining sector. Passenger and commercial vehicles delivered a solid performance underpinned by annuity contracts and growth in non-capital based value added services.
The group successfully concluded its long-term debt funding package in February 2011, whereby the quantum and duration of long-term debt was increased. In August the group renewed its UK debt facilities for a further three years. The board believes that sufficient facilities are in place to meet the group's liquidity requirements.
