EQSTRA CORPORATION LIMITED - Updated trading statement and notification of interim results presentation

Updated 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” or “the company”)

UPDATED TRADING STATEMENT AND NOTIFICATION OF INTERIM RESULTS PRESENTATION

Updated trading statement

Shareholders are referred to the announcement released on the Stock
Exchange News Service (“SENS”) on 3 February 2016 in which Eqstra reported
that both headline earnings per share (“HEPS”) and earnings per share
(“EPS”) for the six months ended 31 December 2015 (“the period”) are
expected to be at least 20% lower than the HEPS and EPS reported for the
previous corresponding reporting period (the six months ended 31 December
2014).

Shareholders are now advised that the group anticipates continuing HEPS to
be in line with previous period of between 17 and 20 cents per share (31
December 2014: 18.8 cents). This constitutes a change of between 6% and
10%. Continuing loss per share is anticipated to be between (110) and (114)
cents (31 December 2014 continuing EPS: 18.9 cents) for the six months
ended 31 December 2015, constituting a decrease of between 682% and 703%.

Eqstra expects a headline loss per share of between (2.5) and (4.5) cents
(31 December 2014 HEPS: 36.9 cents), a decrease of between 107% and 112%.
Eqstra also anticipates a loss per share of between (284) and (290) cents
(31 December 2014 EPS: 37.0 cents) for the six months ended 31 December
2015, constituting a decrease of between 868% and 884%.

The primary reason for the expected loss for the period is an impairment of
R1 174 million of mining equipment assets held for sale during the period.
The sale of these assets is fundamental to the group strategy as set out in
Eqstra’s integrated report for the year ended 30 June 2015.

Discontinued operations include the costs associated with the group’s
strategy of closure of non-core business units in the commodities and
construction equipment sectors and the closure of the Benga operations in
Mozambique.

The closure of these operations aligns with Eqstra’s strategy to improve
liquidity and to drive further improvement in business divisions that
continue to perform strongly, even in challenging conditions.

The Industrial Equipment and Fleet Management and Logistics divisions
continued to deliver solid operational performance during the period.
Contract Mining and Plant Rental showed improved operating performance.

The management of Eqstra remains focused on implementing the group’s stated
strategy in a manner that ensures that the best possible value is obtained
in the process of selling certain assets and exiting non-core businesses.
The board is confident that this will further enable the company to pursue
its revised strategy which will position itself for growth and maximize
shareholder returns.

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 publication.

Notification of interim results presentation

Eqstra’s financial results for the six months ended 31 December 2015 will
be released on SENS 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
24 February 2016

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

Date: 24/02/2016 09:51:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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