EQSTRA HOLDINGS LIMITED - Trading statement and notification of interim results presentation

Trading statement and notification of interim results presentation

Eqstra Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/011672/06)
Share code: EQS, EQS05, EQS06, EQS07, EQS08A, EQS09
ISIN: ZAE000117123
(“Eqstra” or “the group”)

TRADING STATEMENT AND NOTIFICATION OF INTERIM RESULTS PRESENTATION

Trading statement

In terms of the Listings Requirements of the JSE Limited, companies are
required to publish a trading statement as soon as they are satisfied that
a reasonable degree of certainty exists that the financial results for the
period to be reported on next will differ by 20% or more from the financial
results of the previous corresponding reporting period.

Shareholders are advised that the group anticipates that both headline
earnings per share (“HEPS”) and earnings per share (“EPS”) for the six
months ended 31 December 2015 will be at least 20% lower than the HEPS and
EPS reported for the previous corresponding reporting period (the six
months ended 31 December 2014).

In this regard Eqstra announced on the Stock Exchange News Service on 3
February 2016 that Eqstra Mozambique Limitada has signed a memorandum of
intent with Minas de Benga Limitada (“the client”), for the disposal of all
plant and equipment assets (“the proposed sale assets”) used in the
provision of mining services under the terms of the Contract to the client.

The sale of these assets is aligned with the stated strategy to reduce
exposure to the mining industry. In lieu of the proposed sale an impairment
of assets and related closure costs will impact discontinued operations
HEPS and EPS.

The impairment of assets takes place in the context of the excess of mining
assets in the international market and subdued mining activity. Eqstra
therefore anticipates that it will realise below market values on the sale
of these assets. Eqstra is still in the process of concluding the sale of
the assets. For this reason, the board deems it prudent not to announce the
specific scale of the anticipated impairments until it has completed
examining various options that may limit the scale of the impairments.

Therefor there is currently insufficient certainty to enable the group to
provide specific guidance on the extent of the impact on HEPS end EPS and
it is anticipated that Eqstra will publish a further trading statement once
it has certainty on the terms of the proposed disposal of contract mining
assets and discontinuation or disposal of non-core operations.

As communicated in its strategic direction in September 2015, the group is
also in the process of closing or selling other non-core operations. This
includes the Heavy Equipment business in the Industrial Equipment division.
The continuing operations HEPS is not anticipated to materially differ
period on period.

The financial information on which this trading statement is based has not
been reviewed and reported on by Eqstra’s external auditors. The statement
is based on financial information available at the time of this
publication.

Results presentation

Eqstra’s financial results for the six months ended 31 December 2015 will
be released on the Stock Exchange News Service on or about 1 March 2016.

The group will be updating the market on its business in a presentation in
Johannesburg on the same day (and in Cape Town the following day), which
presentation will also be webcast on www.eqstra.co.za. The presentation and
dial-in   details  will   be  made   available  on   the  group’s   website
www.eqstra.co.za on or about 1 March 2016.

Kempton Park
3 February 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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