Eqstra Holdings Limited has reported operating profit of R436 million in the six months to 31 December, a rise of 7.1%.

Eqstra chief executive officer Jannie Serfontein says the six-month period was a pivotal one as management moved ahead with implementation of several key initiatives. These initiatives are expected to accelerate the transition of the company to a services oriented group.

“The operating performance was encouraging as it took place in the context of the ongoing implementation of the group’s 2020 strategy. The heart of this strategy is to transform Eqstra into a services-oriented company. Implementing this strategy involves disposing of non-core operations, selling excess assets and re-engineering our funding structure over time,” says Serfontein.

The reported profit from continuing operations before depreciation, amortisation and recoupments was R1 360 million (2014: R1 301 million) for the period.

During the period, the Fleet Management and Logistics division delivered improved continuing operating profit of R202 million (2014: R192 million). The division’s operating margin improved to 19.2% (2014: 17.0%) mainly as a result of benefits flowing from previous restructuring. The division also consciously decreased its revenue-generating assets as part of its ongoing drive to preserve cash. The division is in the process of closing the Commodity business unit.

“We will continue with the refinancing of maturing debt within Eqstra. In addition to addressing the core short-term funding and liquidity requirements, management continues to explore partnerships and other arrangements that will support Eqstra’s 2020 strategy,” says Serfontein.