The group has a clear strategy of creating sustainable annuity revenue streams through the distribution, long-term lease and rental of mobile capital equipment, and the provision of related value-added services to clients in the construction, mining, industrial and commercial sectors.
The divisions in the group are all established operations, with a number of them more than 27 years old.
Eqstra creates value through its ability to extract optimal value throughout the equipment lifecycle by:
||Managing the use of mobile capital equipment from acquisition or distribution to the point of sale or scrapping of the used equipment (Contract Mining and Plant Rental and Industrial Equipment)
||Managing vehicles from point of purchase to point of sale (Fleet Management and Logistics)
This annuity income and highly cash generative business model ensures the effective servicing of debt in the group. Eqstra focuses on business to business clients and has limited direct retail exposure. The group only deals in core production mobile capital equipment from reputable brands, which results in strong tradability and residual values during the lifecycle of equipment.
Client contracts are generally between three to eight years and are priced in a way that ensures the full absorption of asset costs through value-added services. As a result, a profit is usually realised on disposal. These long-term asset-based contracts are matched by the long-term debt taken on by the group.
OUR VALUE-CREATION BUSINESS MODEL
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