South African construction, industrial and
mining lessor Eqstra Holdings, which owns Hull-based UK forklift
rental group Impact Handling, is to cut up to 7 percent of its
4,500 staff as a result of decreased demand in its markets of
operation.

Eqstra’s first quarter leasing sales volumes
for materials handling assets were down 40 percent year-on-year,
with CEO Walter Hill stating in an interview with Reuters that the
company had no expansion plans for the next two to three years.

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He went on to comment that he saw
opportunities in iron ore and coal mining, but that these were
unlikely to become revenue producing projects in the near
future.

Despite this, Hill said that British arm
Impact Handling remained profitable, due in part to leasing
contracts with fixed interest rates.

Speaking to Leasing Life, chief
financial officer Jose Vieira-Pereira added that restructuring
would not necessarily affect Impact Handling, with management in
the UK responsible for meeting covenants according to its own
strategy.

• Impact Handling was set up in Hull in 1985,
and was acquired by South African group Imperial Holdings in 2000,
later to be transferred to Eqstra Holdings in 2008. In the same
year, Impact acquired forklift dealership Apollo Plant.

• Impact has nine offices, 300 employees, and
a turnover of £40 million, with around 5,000 rental units and 2,000
leased units in the marketplace.

• Impact has major partnerships with Nissan
and Bobcat, and also provides finance and rental for Kalmar,
Combilift, Lancer, Mobicon and Hako products. It provides contract
hire, finance lease, hire purchase and refinance products.