The mobile capital equipment distributor, which also provides related value-added annuity services to clients in the construction, mining, industrial and commercial sectors, saw revenue increase to 9.9 billion rand for the year ending 30 June 2014 from nine billion rand for the same period in 2013.
(READ MORE: Eqstra records marginal growth as interim HEPS decrease 25.4%)
“Revenue increased by 9.8 per cent due to benefits arising from investment in revenue-generating assets, increased used vehicle remarketing and increased sales activity in the United Kingdom (UK),” the company said.
“Revenue-generating assets, leasing assets and finance lease receivables, increased by 456 million rand or 4.8 per cent. The group will continue to target growth in revenue-generating assets, which results in the generation of long-term annuity income.”
However, its operating profit decreased by 9.6 per cent from one billion rand in the 2013 year to 938 million rand in 2014. The group’s profit before taxation declined as well.
“Profit before taxation decreased 44.7 per cent to 269 million rand on a weak performance from contract mining and plant rental, and the Protech impairment. This resulted in the profit before taxation margin decreasing to 2.7 per cent,” [DATA EQS:Eqstra] said.
Basic and diluted earnings per share, from continuing operations, decreased to 60.6 cents in 2014 from 100 cents in 2013. The company also reported a basic and diluted loss per share from discontinuing operations.
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“Industrial equipment anticipates the SA forklift market to remain challenging with the UK market expected to increase marginally. We aim to further balance our product portfolio and grow into sub-Saharan Africa and the UK, with a much stronger basket of products in place,” said Eqstra.
“We aim to drive organic leasing growth by acquiring new contracts from increased activity in government and parastatal outsourced tenders and growth in the African market. Our investment in a state of the art ERP system comes on line next year and will unlock business efficiencies.”