EQSTRA reported a R438m loss for the six months ended-December from continuing operations, from a R80m profit in the previous matching period, amid poor mining and construction markets.
The diversified industrial group made an overall loss for the period of R1.1bn, from a R152m profit in 2014. This included costs from discontinued operations at the Benga coal project in Mozambique, closure of the construction equipment business, and shutdown of the commodities unit.
CEO Jannie Serfontein said on Tuesday the past six months period had been one of consolidation, with a focus on the balance sheet and restructuring the group out of noncore businesses. "We are doing more with less — working smarter."
Mr Serfontein said that the company wanted to reduce gearing that was more than 200% to about 100% within the next five years, in the absence of an equity injection. He also acknowledged that the company might be a tempting takeover target, but said there was "nothing formal on the table".
The company said yesterday the overall loss was mainly attributable to an asset impairment of R736m in contract mining operations and plant rental. It also has divisions for industrial equipment and fleet management and logistics.
The group said the period under review was "pivotal", as management implemented key initiatives. This was expected to speed up the transition of Eqstra to a services oriented group, focusing on liquidity and working capital management.
Eqstra also announced on Tuesday Hulamin chief financial officer David Austin would be its chief financial officer from next month. Mr Serfontein has been doubling as CEO and chief financial officer since July.
Mr Serfontein said Eqstra now had far less exposure to contract mining. Instead, the firm’s transformation to a services-oriented group was gathering momentum. He said the forklift business in the UK was doing well, along with the group’s commercial and passenger vehicle leasing operations. About 50% of revenue was being generated by value-added services, he said.
Contract mining now comprises about 28% of group revenue. The fleet management and industrial equipment businesses each make up another 36% of turnover.
Picture: THINKSTOCK
EQSTRA reported a R438m loss for the six months ended-December from continuing operations, from a R80m profit in the previous matching period, amid poor mining and construction markets.
The diversified industrial group made an overall loss for the period of R1.1bn, from a R152m profit in 2014. This included costs from discontinued operations at the Benga coal project in Mozambique, closure of the construction equipment business, and shutdown of the commodities unit.
CEO Jannie Serfontein said on Tuesday the past six months period had been one of consolidation, with a focus on the balance sheet and restructuring the group out of noncore businesses. "We are doing more with less — working smarter."
Mr Serfontein said that the company wanted to reduce gearing that was more than 200% to about 100% within the next five years, in the absence of an equity injection. He also acknowledged that the company might be a tempting takeover target, but said there was "nothing formal on the table".
The company said yesterday the overall loss was mainly attributable to an asset impairment of R736m in contract mining operations and plant rental. It also has divisions for industrial equipment and fleet management and logistics.
The group said the period under review was "pivotal", as management implemented key initiatives. This was expected to speed up the transition of Eqstra to a services oriented group, focusing on liquidity and working capital management.
Eqstra also announced on Tuesday Hulamin chief financial officer David Austin would be its chief financial officer from next month. Mr Serfontein has been doubling as CEO and chief financial officer since July.
Mr Serfontein said Eqstra now had far less exposure to contract mining. Instead, the firm’s transformation to a services-oriented group was gathering momentum. He said the forklift business in the UK was doing well, along with the group’s commercial and passenger vehicle leasing operations. About 50% of revenue was being generated by value-added services, he said.
Contract mining now comprises about 28% of group revenue. The fleet management and industrial equipment businesses each make up another 36% of turnover.
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