Eqstra: Profit forecast changes after Protech

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EQSTRA has amended its guidance on its expected decline in earnings in the year to June because of listed civil engineering company Protech Khuthele being placed in liquidation. Eqstra said Protech had been placed in liquidation after its earlier earnings guidance, resulting in the group adjusting the R63 million investment impairment for headline earnings a share that had not been added back in previously. The listed leasing and capital equipment group now expects headline earnings a share to decline by between 25 percent and 30 percent and earnings a share by between 37 percent and 42 percent compared with the previous year. It had previously expected both measures to decline by between 32 percent and 42 percent. In the year to June last year it reported headline earnings a share of R1.04 and earnings a share from continuing operations of R1. Eqstra made an unsuccessful hostile bid in December 2010 for the 67.2 percent of Protech it did not already own with the support of Protech’s black economic empowerment trust. The offer lapsed in July last year. Eqstra’s share price fell 2.68 percent to close at R6.18 on Friday. – Roy Cokayne


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