The company’s full year revenue increased from 8.1 billion rand in 2012 to 9 billion rand in 2013 while its three major divisions saw significant revenue increase as well.
The integrated leasing and capital equipment group specialises in industrial equipment, fleet management and logistics and contract mining and plant rental, each of which saw a revenue increase of 12.3 per cent, 8.3 per cent and 13.9 per cent respectively.
“Revenue increased due to increased equipment sales and the positive impact of new acquisitions in industrial equipment, and improved domestic contract mining production volumes in contract mining and plant rental,” Eqstra Holdings said in a statement.
“South African mining industry revenue accounts for 68.7 per cent of the contract mining and plant rental division's revenue and 31.9 per cent of group revenue.”
[DATA EQS:Eqstra] also reported that revenue-generating assets increased 7.8 per cent to 9.5 billion rand.
“The group will continue to target growth in revenue-generating assets, which results in the generation of long-term annuity income,” Eqstra had said.
Operating profit increased from 893 million rand in 2012 to 1 billion rand in 2013 while profit before tax decreased from 488 million rand to 486 million rand.
“Profit before taxation decreased marginally on a weak performance from fleet management and logistics and an impairment charge for sub-standard tyres purchased in contract mining and plant rental. This resulted in the profit before taxation margin decreasing to 5.3 per cent,” Eqstra explained.
Headline earnings per share increased by 34.7 per cent to 104 cents per share, net asset value increased by 14.4 per cent to 791.4 cents per share and return on equity decreased to 13.7 per cent.
“The group expects its earnings performance to continue into the next financial year. However, the domestic economy will remain under pressure and the current nationwide industrial action could impact on 2014 operating results.”