Wrap Text
EQS - Eqstra Holdings Limited - Audited abridged year-end results for the
year ended 30 June 2010
Eqstra Holdings Limited
("Eqstra" or "the group")
Registration number 1998/011672/06
Share code: EQS
ISIN: ZAE000117123
AUDITED ABRIDGED YEAR-END RESULTS for the year ended 30 June 2010
Salient Features
Revenue decreased by 12.0% to R 6 939 million
Profit before tax of R80 million
Headline loss per share of 21.7 cents
Inventory decreased by 29.9% to R1 130 million
Raised R650 million through rights issue
Achieved all bank covenants before and after rights issue
Credit rating affirmed at zaBBB/zaA-2
Cash generated by operations increased by 37.6% to R2 884 million
INTRODUCTION
We are pleased to report that the Eqstra Group has returned to pre-tax
profitability from a loss of R20 million at the interim period to a profit
before tax of R100 million for the second half of the year.
The Group maintained leading commercial positions in the markets within which
it operates. Management had no real expectations that the 2010 financial year
would be without challenges. These included depressed sales, inclemental
weather patterns and illegal industrial action. Strides were made to contain
the impact of these challenges and secure new contracts.
OVERVIEW OF RESULTS
Profit before taxation reduced from R93 million in 2009 to R80 million.
Losses
after taxation amounted to R55 million compared to a profit after taxation of
R45 million for the corresponding period. This is due to the impairment of
deferred tax assets of R112 million.
Revenue for the year decreased by 12.0% from R7 889 million to R6 939
million
mainly as a result of significantly reduced sales from our Construction and
Mining Equipment Distributorships division. Revenue for the second half of
the
year was marginally lower by R75 million than that of the interim period as
the
market stabilised post the global crisis.
Operating profit decreased by 23.9% from R943 million to R718 million. This
occurred mainly in the Construction and Mining divisions as a result of low
asset utilisation and reduced gross profit margins.
Basic and headline loss per share at 30 June 2010 was 19.6 cents and 21.7
cents respectively, which is lower than the comparable basic earnings of 15.1
cents per share and headline earnings of 10.9 cents per share. The 2009
earnings per share and headline earnings per share have been restated for the
effects of the rights issue.
Interest cover as at 30 June 2010 is 3.6 times, an improvement from 3.2
times
at 30 June 2009. Interest cover for the second half of the year was 3.9
times.
Total assets reduced by R571 million to R9 662 million mainly due to a
reduction in leasing assets of 5.6% to R6 740 million and inventories by
29.9%
to R1 130 million.
Debt reduced by R1 214 million to R5 516 million as a result of the rights
issue and reduced working capital. The proceeds of the rights issue of R650
million was utilised to reduce short term debt and R250 million is reserved
for
the capitalisation of the Benga coal project in Mozambique. The decreased
debt and lower interest rates resulted in net finance costs decreasing by
20.3% from R795 million to R634 million. The group`s commercial paper
issuance continues with R569 million in issue at 30 June 2010 supported by a
standby liquidity facility of R1 950 million. In November 2009 Eqstra
successfully issued a five year inflation-linked bond of R270 million that
was used to repay existing funders.
Capital adequacy improved from 17.8% to 24.6% post the rights issue and
18.6%
excluding the effects of the rights issue.
Cash generated by operations increased by 37.6% from R2 096 million to R2
884
million through focused management of working capital.
DIVISIONAL REVIEW
Contract Mining and Plant Rental
H1`10 H2`10 2010
Rm Rm Rm
Revenue 1 588 1 535 3 123
Operating profit 194 163 357
Operating margin 12.2 10.6 11.4
Net finance costs (130) (120) (250)
Leasing assets 3 173 3 061 3 061
H1`09 H2`09 2009
Rm Rm Rm
Revenue 1 770 1 392 3 162
Operating profit 318 104 422
Operating margin 15.1 14.6 13.3
Net finance costs (151) (146) (297)
Leasing assets 3 029 3 117 3 117
The Contract Mining and Plant Rental division has implemented a number of
strategies which bode well for a turnaround in the year ahead. These include
the continued diversification of the division`s historical focus on hard rock
(largely platinum) mining to other mining areas in particular coal,
uninterrupted equipment maintenance programs, efficient equipment utilisation
and a renewed focus on skills development.
Revenue reduced marginally by 1.2% to R3 123 million as a result of the
negative impact of the heavy rain during the year and the effects of illegal
industrial actions. Leasing assets decreased by 1.8% to R3 061 million
without
compromising replacement capital expenditure. Whilst the plant rental
business
unit benefited from the scarcity of accessible funding and pre-World Cup
infrastructure spend, with many customers electing to rent rather than
purchase
heavy equipment, uncertainty exists in the market with respect to future
capital projects. Contract mining faces the challenge to improve utilisation
of
equipment, improve production output from existing contracts and contain
costs.
As a consequence of the developments of the CoAL of Africa Vele project,
Eqstra has stalled the ramp up of the project and is considering alternatives
for the utilisation of equipment already deployed while awaiting regulatory
clarity.
Construction and Mining Equipment Distributorships
H1`10 H2`10 2010
Rm Rm Rm
Revenue 530 550 1 080
Operating (loss) profit (89) (27) (116)
Operating margin (16.8%) (4.9%) (10.7%)
Net finance costs (76) (63) (139)
Inventories 1 088 771 771
H1`09 H2`09 2009
Rm Rm Rm
Revenue 1 434 535 1 969
Operating (loss) profit 123 (139) (16)
Operating margin 8.6% (26.0%) (0.8%)
Net finance costs (61) (82) (143)
Inventories 1 429 1 266 1 266
Bucyrus Mining, Terex and New Holland Construction suffered from lack of
demand in depressed mining and civil construction markets resulting in the
division incurring losses before taxation.
Revenue declined by 45.1% from R1 969 million to R1 080 million. Exposure to
the diamond and platinum industries remains a risk for this division as these
industries continue to be cautious about production levels. This resulted in
an
operating loss of R116 million. Revenue has increased marginally by R20
million
from R530 million to R550 million compared to the interim period of this
financial year. Efforts to reduce operating costs have had a positive effect
as
operating losses were R27 million in the second half compared to R89 million
for the interim period.
Through focused working capital management, inventories reduced by R495
million
to R771 million from R1 266 million. Bank financing and market activity for
capital equipment is improving. The division will continue concentrating on
reducing inventory and costs and target sales without compromising margin.
Passenger and Commercial Vehicles
H1`10 H2`10 2010
Rm Rm Rm
Revenue 911 911 1 822
Operating profit 160 166 326
Operating margin 17.6% 18.2% 17.9%
Net finance costs (81) (85) (166)
Leasing assets 2 691 2 567 2 567
H1`09 H2`09 2009
Rm Rm Rm
Revenue 907 940 1 847
Operating profit 194 167 361
Operating margin 21.4% 17.8% 19.5%
Net finance costs (131) (102) (233)
Leasing assets 2 840 2 760 2 760
The Passenger and Commercial Vehicles division performed well on the back of
its annuity revenue model and the expansion of its fleet management products.
Coupled with stringent working capital management and cost cutting exercises
the
division has maintained solid operating margins and negative working capital.
Revenue decreased marginally by R25 million from R1 847 million to R1 822
million mainly as a result of the decrease in the prime interest rate.
Leasing assets decreased by 7.0% from R2 760 million to R2 567 million on the
back of a strategy to improve returns.
The division is well positioned for organic and incremental growth of capital
and value added solutions.
Industrial Equipment
H1`10 H2`10 2010
Rm Rm Rm
Revenue 655 690 1 345
Operating profit 80 105 185
Operating margin 12.2% 15.2% 13.8%
Net finance costs (52) (46) (98)
Leasing assets 1 134 1 096 1 096
H1`09 H2`09 2009
Rm Rm Rm
Revenue 752 751 1 503
Operating profit 107 84 191
Operating margin 14.2% 11.2% 12.7%
Net finance costs (65) (64) (129)
Leasing assets 1 272 1 227 1 227
The Industrial Equipment division managed to maintain operating profit and
return healthy operating margin through the annuity nature of the leasing and
after-market services in a tough and competitive environment. It further
benefited from a back-office rationalisation to improve efficiencies and
reduce
costs. The division has however, seen a recovery in the second half and is
strongly positioned to grow market share and expand the after-sales component
of revenue in the year ahead.
The division`s revenue decreased by 10.5% from R1 503 million to R1 345
million
mainly due to the decrease in rental fleet and sale of goods. Operating
profit decreased marginally by 3.1% to R185 million as a result of lower
revenue
offset by a decrease of 11.7% in operating costs to R868 million.
Leasing assets decreased by 10.7% to R1 096 million due to the defleeting of
the short term rental fleet to improve yield management and increased cash
sales due to bank financing appetite returning.
DIVIDEND
As a result of the poor trading conditions and results for the year, the
board of Eqstra recommends that no dividend be paid for the year under
review.
OUTLOOK
While uncertainty remains regarding the outlook for the global economy and
the expected recovery of the construction and mining industries in the year
ahead, we believe that Eqstra is poised to reap the benefits of the decisive
actions taken by management over the past two years.
By order of the board
D C Cronje W S Hill
Chairman Chief executive officer
24 August 2010
CONDENSED GROUP STATEMENT OF FINANCIAL POSITION
as at 30 June 30 June
2010 2009
Rm Rm
ASSETS
Non-current assets 7 259 7 734
Intangible assets 9 9
Property, plant and equipment 367 348
Leasing assets 6 740 7 138
Deferred tax assets 54 89
Other investments and loans (3) 89 150
Current assets 2 403 2 499
Inventories 1 130 1 612
Trade and other receivables 955 785
Taxation in advance 51 51
Cash and cash equivalents 267 51
Total assets 9 662 10 233
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 2 060 1 475
Other reserves 22 (2)
Retained income 278 334
Equity attributable to owners of the parent 2 360 1 807
Non-controlling interest 20 19
Total equity 2 380 1 826
Non-current liabilities 5 403 4 772
Interest-bearing borrowings 4 796 4 256
Deferred tax liabilities 607 516
Current liabilities 1 879 3 635
Trade and other payables 1 085 1 031
Provisions for liabilities and other charges 21 17
Derivative financial liabilities 36 54
Current tax liabilities 17 59
Current portion of interest-bearing borrowings (4) 720 2 474
Total liabilities 7 282 8 407
Total equity and liabilities 9 662 10 233
CONDENSED GROUP INCOME STATEMENT
for the years ended
30 June 30 June
2010 2009
Rm Rm
Revenue 6 939 7 889
Profit from operations before depreciation and
recoupments 2 257 2 477
Depreciation and recoupments (1 539) (1 534)
Operating profit 718 943
Foreign exchange losses (20) (46)
Reversal of impairment (impairment) of share scheme loan 16 (9)
Profit before net finance costs 714 888
Net finance costs (634) (795)
Finance costs including fair value losses (9) (653) (833)
Finance income 19 38
Profit before taxation 80 93
Income tax expense 135 48
(Loss) profit for the year (55) 45
Attributable to:
Owners of the parent (56) 43
Non-controlling interest 1 2
(Loss) profit for the year (55) 45
(Loss) earnings per share (cents)*
Ordinary shares
- Basic (19.6) 15.1
- Diluted (19.6) 13.6
*2009 restated for the effects of the rights issue.
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
for the years ended 30 June 30 June
2010 2009
Rm Rm
(Loss) profit for the year (55) 45
Other comprehensive income
Net loss arising on translation of foreign subsidiaries (2) (17)
Fair value gain (loss) 11 (50)
Other comprehensive income (loss) for the year 9 (67)
Total comprehensive loss for the year (46) (22)
Attributable to:
Owners of the parent (47) (24)
Non-controlling interest 1 2
(46) (22)
NOTES
(1) Basis of preparation
The audited abridged financial information has been prepared in accordance
with
the framework concepts and the measurement and recognition requirements of
International Financial Reporting Standards (IFRS), the AC 500 standards as
issued by the Accounting Practices Board and contains information required by
IAS 34: Interim Financial Reporting, the JSE Limited Listings Requirements
and
the Companies Act of South Africa.
(2) Accounting policies
The audited abridged financial information has been prepared using the
accounting policies that comply with IFRS which are consistent with those
applied in the annual financial statements for the year ended 30 June 2010.
The Group adopted the following new standards, amendments and circulars for
the
year ended 30 June 2010:
- The revised IAS 1 "Presentation of Financial Statements" was issued,
requiring certain changes to existing disclosures as well as the introduction
of the "Statement of Comprehensive Income". These changes had no effect on
the
financial position or results of the Group.
- IFRS 8 "Operating Segments" that replaced IAS 14 "Segment Reporting" is now
presented on the same basis as for internal management reporting purposes.
- Circular 3/2009 "Headline Earnings" was issued by the South African
Institute
of Chartered Accountants. The circular was changed to incorporate the latest
amendments and revisions to IFRS. The circular is effective for the periods
under review but had no material effect on the Group`s results.
(3) Other investments and loans
- Listed, at market value 47 35
- Unlisted, at fair value or directors` valuation 26 63
- Loans receivable 16 52
89 150
(4) Current portion of interest-bearing borrowings
The current portion of interest-bearing borrowings includes
R569 million commercial paper that is supported by a
R1 950 million standby liquidity facility that has an
18-month notice period.
(5) Net asset value per share (cents) 576.0 706.7
(6) (Loss) earnings per share
Ordinary shares
- Basic# (19.6) 15.1
- Diluted## (19.6)* 13.6
Headline (loss) earnings per share (7)
- Basic# (21.7) 10.9
- Diluted## (21.7)* 9.8
(Loss) earnings per share reconciliation (cents)
Basic (loss) earnings per share (19.6) 15.1
Profit on sale of property, plant and equipment (0.3) (0.7)
Profit on sale of leasing assets (2.7) (5.2)
Taxation effect 0.9 1.7
Headline (loss) earnings per share (21.7) 10.9
# Based on the adjusted weighted average number of shares.
## Based on the adjusted diluted weighted average number of shares.
*Limited to basic loss per share and headline loss per share as per IAS:33.
(7) Adjusted weighted average number of shares in issue for the period
The weighted average number of shares have been adjusted for the effects of
the
rights issue
Number of ordinary shares (million)
- in issue 413.2 258.4
- weighted average 258.4 258.4
- effect of rights issue 28.6 27.4
- transfer to treasury shares (1.1)
- adjusted weighted average number of shares 285.9 285.8
- dilutionary shares 26.7 30.4
- adjusted diluted weighted average 312.6 316.2
(8) Capital commitments and contingent liabilities Rm Rm
Capital commitments 2 506 2 342
- Contracted 1 160 172
- Authorised by directors but not contracted 1 367 2 170
Contingent liabilities 27 30
(9) Finance costs including fair value losses
Interest expense 648 817
Fair value losses on borrowings and interest swaps 5 16
653 833
(10) The auditors, Deloitte & Touche, have issued their opinion on the
Group`s annual financial statements for the year ended 30 June 2010. The
audit was conducted in accordance with International Standards on Auditing.
They have issued an unmodified audit opinion. These abridged financial
statements have been derived from the Group financial statements and are
consistent in all material aspects, with the Group financial statements. A
copy of their audit report is available for inspection at the company`s
registered office.
CONDENSED GROUP CASH FLOW STATEMENT
for the years ended
30 June 30 June
2010 2009
Rm Rm
Cash flows from operating activities
Cash generated by operations before working capital
movements 2 203 2 408
Working capital movements 681 (312)
Cash generated by operations 2 884 2 096
Finance income 19 38
Interest expense (648) (817)
Income tax (paid) received (51) 33
Net cash flows from operating activities 2 204 1 350
Cash flows from investing activities
Gross capital expenditure (1 657) (3 214)
Proceeds on disposal of assets 140 768
Decrease (increase) in other investments and loans 73 (19)
Net cash flows from investing activities (1 444) (2 465)
Cash flows from financing activities
Increase of share capital 650
Share issue expenses (17)
Share call option (1) (27)
Net (decrease) increase in interest-bearing borrowings (1 175) 1 074
Net cash flows from financing activities (543) 1 047
Net increase (decrease) in cash and cash equivalents 217 (68)
Foreign exchange movement on cash and cash equivalents (1) (9)
Cash and cash equivalents at beginning of year 51 128
Cash and cash equivalents at end of year 267 51
GROUP STATEMENT OF CHANGES IN EQUITY
for the years ended
Share capital Other Retained
and premium reserves income
Rm Rm Rm
Balance at 30 June 2008 1 475 72 291
- Profit for the year 43
- Other comprehensive loss (67)
Total comprehensive (loss) income
for the year (67) 43
Impairment of Lereko call option (1)
Share based payment expense 13
Acquisition of share call option (19)
- Gross (27)
- Tax effect 8
Expenses recognised directly in
equity (7)
Balance at 30 June 2009 1 475 (2) 334
- Loss for the year (56)
- Other comprehensive income 9
Total comprehensive income (loss)
for the year 9 (56)
Proceeds from share issue 650
Share issue expenses (17)
Transfer to treasury shares (48)
Revaluation of Lereko call option 5
Increase in share call option (1)
Share based payment expense 11
Expenses recognised directly in
equity 15
Balance at 30 June 2010 2 060 22 278
Non-controlling
interest Total
Rm Rm
Balance at 30 June 2008 17 1 855
- Profit for the year 2 45
- Other comprehensive loss (67)
Total comprehensive (loss) income for the year 2 (22)
Impairment of Lereko call option (1)
Share based payment expense 13
Acquisition of share call option (19)
- Gross (27)
- Tax effect 8
Expenses recognised directly in equity (7)
Balance at 30 June 2009 19 1 826
- Loss for the year 1 (55)
- Other comprehensive income 9
Total comprehensive income (loss) for the year 1 (46)
Proceeds from share issue 650
Share issue expenses (17)
Transfer to treasury shares (48)
Revaluation of Lereko call option 5
Increase in share call option (1)
Share based payment expense 11
Expenses recognised directly in equity 15
Balance at 30 June 2010 20 2 380
SEGMENT INFORMATION - STATEMENTS OF FINANCIAL POSITION
for the year ended
Group
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Assets
Intangible assets 9 9
Property, plant and equipment 367 348
Leasing assets 6 740 7 138
Other investments and loans 89 150
Inventories 1 130 1 612
Trade and other receivables 955 785
Operating assets 9 290 10 042
Deferred tax assets 54 89
Taxation in advance 51 51
Cash and cash equivalents 267 51
Total assets per balance sheet 9 662 10 233
Liabilities
Accounts payable and provisions 1 142 1 102
Non interest-bearing liabilities 1 142 1 102
Interest-bearing borrowings 5 516 6 730
Deferred tax liabilities 607 516
Current tax liabilities 17 59
Total liabilities per balance sheet 7 282 8 407
GEOGRAPHIC SEGMENTATION
Operating assets 9 290 10 042
- South Africa 8 624 9 135
- Rest of world 666 907
Non interest-bearing liabilities 1 142 1 102
- South Africa 997 867
- Rest of world 145 235
Interest-bearing borrowings 5 516 6 730
- South Africa 5 136 6 204
- Rest of world 380 526
Gross capital expenditure 1 657 3 214
- South Africa 1 520 2 949
- Rest of world 137 67
Gross capital expenditure 1 657 3 214
Less: Proceeds on disposal (140) (768)
Net 1 517 2 446
Contact Mining and Plant Rental
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Assets
Intangible assets
Property, plant and equipment 150 113
Leasing assets 3 061 3 117
Other investments and loans 64 53
Inventories 62 79
Trade and other receivables 461 302
Operating assets 3 798 3 664
Deferred tax assets
Taxation in advance
Cash and cash equivalents
Total assets per balance sheet
Liabilities
Accounts payable and provisions 335 261
Non interest-bearing liabilities 335 261
Interest-bearing borrowings
Deferred tax liabilities
Current tax liabilities
Total liabilities per balance sheet
GEOGRAPHIC SEGMENTATION
Operating assets 3 798 3 664
- South Africa 3 733 3 563
- Rest of world 65 101
Non interest-bearing liabilities 335 261
- South Africa 318 255
- Rest of world 17 6
Interest-bearing borrowings 2 340 2 387
- South Africa 2 340 2 317
- Rest of world 70
Gross capital expenditure 695 1 279
- South Africa 688 1 270
- Rest of world 7 9
Gross capital expenditure 695 1 279
Less: Proceeds on disposal (85) (63)
Net 610 1 216
Construction and Mining
Equipment Distributorships
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Assets
Intangible assets 4 4
Property, plant and equipment 74 77
Leasing assets 60 75
Other investments and loans
Inventories 771 1 266
Trade and other receivables 216 262
Operating assets 1 125 1 684
Deferred tax assets
Taxation in advance
Cash and cash equivalents
Total assets per balance sheet
Liabilities
Accounts payable and provisions 191 315
Non interest-bearing liabilities 191 315
Interest-bearing borrowings
Deferred tax liabilities
Current tax liabilities
Total liabilities per balance sheet
GEOGRAPHIC SEGMENTATION
Operating assets 1 125 1 684
- South Africa 1 078 1 578
- Rest of world 47 106
Non interest-bearing liabilities 191 315
- South Africa 174 205
- Rest of world 17 110
Interest-bearing borrowings 842 1 422
- South Africa 807 1 422
- Rest of world 35
Gross capital expenditure 28 86
- South Africa 28 86
- Rest of world
Gross capital expenditure 28 86
Less: Proceeds on disposal (1) (15)
Net 27 71
Passenger and
Commercial Vehicles
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Assets
Intangible assets 5 5
Property, plant and equipment 44 54
Leasing assets 2 567 2 760
Other investments and loans 3 2
Inventories 28 31
Trade and other receivables 127 121
Operating assets 2 774 2 973
Deferred tax assets
Taxation in advance
Cash and cash equivalents
Total assets per balance sheet
Liabilities
Accounts payable and provisions 335 288
Non interest-bearing liabilities 335 288
Interest-bearing borrowings
Deferred tax liabilities
Current tax liabilities
Total liabilities per balance sheet
GEOGRAPHIC SEGMENTATION
Operating assets 2 774 2 973
- South Africa 2 575 2 723
- Rest of world 199 250
Non interest-bearing liabilities 335 288
- South Africa 275 238
- Rest of world 60 50
Interest-bearing borrowings 1 507 1 625
- South Africa 1 422 1 513
- Rest of world 85 112
Gross capital expenditure 731 983
- South Africa 659 925
- Rest of world 72 58
Gross capital expenditure 731 983
Less: Proceeds on disposal (52) (158)
Net 679 825
Industrial Equipment
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Assets
Intangible assets
Property, plant and equipment 72 79
Leasing assets 1 096 1 227
Other investments and loans
Inventories 269 236
Trade and other receivables 168 152
Operating assets 1 605 1 694
Deferred tax assets
Taxation in advance
Cash and cash equivalents
Total assets per balance sheet
Liabilities
Accounts payable and provisions 180 150
Non interest-bearing liabilities 180 150
Interest-bearing borrowings
Deferred tax liabilities
Current tax liabilities
Total liabilities per balance sheet
GEOGRAPHIC SEGMENTATION
Operating assets 1 605 1 694
- South Africa 1 250 1 244
- Rest of world 355 450
Non interest-bearing liabilities 180 150
- South Africa 129 81
- Rest of world 51 69
Interest-bearing borrowings 1 034 1 237
- South Africa 774 893
- Rest of world 260 344
Gross capital expenditure 212 877
- South Africa 154 679
- Rest of world 58 198
Gross capital expenditure 212 877
Less: Proceeds on disposal (2) (532)
Net 210 345
Corporate office
and eliminations
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Assets
Intangible assets
Property, plant and equipment 27 25
Leasing assets (44) (41)
Other investments and loans 22 95
Inventories
Trade and other receivables (17) (52)
Operating assets (12) 27
Deferred tax assets
Taxation in advance
Cash and cash equivalents
Total assets per balance sheet
Liabilities
Accounts payable and provisions 101 88
Non interest-bearing liabilities 101 88
Interest-bearing borrowings
Deferred tax liabilities
Current tax liabilities
Total liabilities per balance sheet
GEOGRAPHIC SEGMENTATION
Operating assets (12) 27
- South Africa (12) 27
- Rest of world
Non interest-bearing liabilities 101 88
- South Africa 101 88
- Rest of world
Interest-bearing borrowings (207) 59
- South Africa (207) 59
- Rest of world
Gross capital expenditure (9) (11)
- South Africa (9) (11)
- Rest of world
Gross capital expenditure (9) (11)
Less: Proceeds on disposal
Net (9) (11)
SEGMENT INFORMATION - INCOME STATEMENTS
for the year ended
Group
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 1 492 2 421
- Rendering of services 5 443 5 464
- Other 4 4
6 939 7 889
Inter-segment revenue
6 939 7 889
Operating expenses (4 682) (5 412)
Depreciation (1 548) (1 551)
Recoupments 9 17
Operating profit (loss) 718 943
Foreign exchange losses (37) (4)
Fair value gain (losses) on foreign exchange derivatives 17 (42)
Reversal of impairment (impairment) of share scheme loan 16 (9)
Profit (loss) before net finance costs 714 888
Net finance costs (634) (795)
Profit (loss) before taxation 80 93
Taxation 135 48
(Loss) profit for the year (55) 45
GEOGRAPHIC SEGMENTATION
Revenue 6 939 7 889
- South Africa 6 227 7 042
- Rest of world 712 847
Operating profit (loss) 718 943
- South Africa 622 844
- Rest of world 96 99
Net finance costs 634 795
- South Africa 601 738
- Rest of world 33 57
Contact Mining and Plant Rental
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods
- Rendering of services 2 921 2 888
- Other
2 921 2 888
Inter-segment revenue 202 274
3 123 3 162
Operating expenses (2 137) (2 134)
Depreciation (631) (611)
Recoupments 2 5
Operating profit (loss) 357 422
Foreign exchange losses 10
Fair value gain (losses) on foreign exchange
derivatives
Reversal of impairment (impairment) of
share scheme loan
Profit (loss) before net finance costs 357 432
Net finance costs (250) (297)
Profit (loss) before taxation 107 135
Taxation 31 38
(Loss) profit for the year 76 97
GEOGRAPHIC SEGMENTATION
Revenue 3 123 3 162
- South Africa 2 988 3 034
- Rest of world 135 128
Operating profit (loss) 357 422
- South Africa 321 386
- Rest of world 36 36
Net finance costs 250 297
- South Africa 246 286
- Rest of world 4 11
Construction and Mining
Equipment Distributorships
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 647 1 549
- Rendering of services 219 118
- Other
866 1 667
Inter-segment revenue 214 302
1 080 1 969
Operating expenses (1 180) (1 972)
Depreciation (17) (13)
Recoupments 1
Operating profit (loss) (116) (16)
Foreign exchange losses (34) (8)
Fair value gain (losses) on foreign exchange derivatives 17 (42)
Reversal of impairment (impairment) of share scheme loan
Profit (loss) before net finance costs (133) (66)
Net finance costs (139) (143)
Profit (loss) before taxation (272) (209)
Taxation 38 (44)
(Loss) profit for the year (310) (165)
GEOGRAPHIC SEGMENTATION
Revenue 1 080 1 969
- South Africa 976 1 828
- Rest of world 104 141
Operating profit (loss) (116) (16)
- South Africa (123) (19)
- Rest of world 7 3
Net finance costs 139 143
- South Africa 138 143
- Rest of world 1
Passenger and
Commercial Vehicles
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 338 302
- Rendering of services 1 469 1 517
- Other
1 807 1 819
Inter-segment revenue 15 28
1 822 1 847
Operating expenses (889) (898)
Depreciation (613) (599)
Recoupments 6 11
Operating profit (loss) 326 361
Foreign exchange losses (5)
Fair value gain (losses) on foreign exchange derivatives
Reversal of impairment (impairment) of share scheme loan
Profit (loss) before net finance costs 326 356
Net finance costs (166) (233)
Profit (loss) before taxation 160 123
Taxation 50 44
(Loss) profit for the year 110 79
GEOGRAPHIC SEGMENTATION
Revenue 1 822 1 847
- South Africa 1 669 1 685
- Rest of world 153 162
Operating profit (loss) 326 361
- South Africa 292 328
- Rest of world 34 33
Net finance costs 166 233
- South Africa 154 211
- Rest of world 12 22
Industrial Equipment
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 507 570
- Rendering of services 830 933
- Other
1 337 1 503
Inter-segment revenue 8
1 345 1 503
Operating expenses (868) (983)
Depreciation (292) (331)
Recoupments 2
Operating profit (loss) 185 191
Foreign exchange losses (2) (2)
Fair value gain (losses) on foreign exchange
derivatives
Reversal of impairment (impairment) of
share scheme loan
Profit (loss) before net finance costs 183 189
Net finance costs (98) (129)
Profit (loss) before taxation 85 60
Taxation 18 14
(Loss) profit for the year 67 46
GEOGRAPHIC SEGMENTATION
Revenue 1 345 1 503
- South Africa 1 025 1 087
- Rest of world 320 416
Operating profit (loss) 185 191
- South Africa 166 164
- Rest of world 19 27
Net finance costs 98 129
- South Africa 82 105
- Rest of world 16 24
Corporate office
and eliminations
30 June 30 June
2010 2009
Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods
- Rendering of services 4 8
- Other 4 4
8 12
Inter-segment revenue (439) (604)
(431) (592)
Operating expenses 392 575
Depreciation 5 3
Recoupments (1)
Operating profit (loss) (34) (15)
Foreign exchange losses (1) 1
Fair value gain (losses) on foreign exchange
derivatives
Reversal of impairment (impairment) of
share scheme loan 16 (9)
Profit (loss) before net finance costs (19) (23)
Net finance costs 19 7
Profit (loss) before taxation (16)
Taxation (2) (4)
(Loss) profit for the year 2 (12)
GEOGRAPHIC SEGMENTATION
Revenue (431) (592)
- South Africa (431) (592)
- Rest of world
Operating profit (loss) (34) (15)
- South Africa (34) (15)
- Rest of world
Net finance costs (19) (7)
- South Africa (19) (7)
- Rest of world
REGISTERED OFFICE AND BUSINESS ADDRESS
12 Corobrik Road, Meadowdale, 1614 (PO Box 1050, Bedfordview, 2008)
NON-EXECUTIVE DIRECTORS
DC Cronje*(Chairman), MJ Croucamp*,S Dakile-Hlongwane, VJ Mokoena, PS Molefe
SD Mthembi-Mahanyele*, AJ Phillips*, TDA Ross*
* independent
EXECUTIVE DIRECTORS
WS Hill (CEO), E Clarke (CFO)
TRANSFER SECRETARIES
Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown,2107)
COMPANY SECRETARY
L Moller
www.eqstra.co.za
24 August 2010
Sponsor:
Merrill Lynch South Africa (Pty) Limited
Date: 24/08/2010 07:05:11 Supplied by www.sharenet.co.za
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