Unaudited Interim Report 2000     E-mail

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Income before tax and abnormal items for the six months ended 31 December 2000 was R265 million (1999: loss R395 million) and undiluted headline earnings per share were 116,3 cents (1999: 15,2 cents). The period under review was characterised by a sharp decline in the value of the rand against the US dollar and an excellent performance by Textainer. The weaker rand resulted in a net increase in income before tax of R262 million: a foreign exchange revaluation gain of R358 million, less an adjustment of R96 million arising from the translation of the existing dollar-based provision against the net long-term receivables.

Textainer contributed R65 million to headline earnings. The financial statements R65 million to headline earnings.

The financial statements are based on an exchange rate of US$1=R7,56 at
31 December 2000; the rate at 30 June 2000 was R6,78.


Textainer's fleet utilisation peaked at 85% towards the end of September 2000 but has been declining since November, partly due to the economic slowdown in the USA. It ended the year at 82%, the same as 1999, and is currently just below 80%. By the end of 2000, Textainer had become the world's largest lessor of standard dry freight containers, with a fleet of 925 000 TEUs (twenty foot equivalent units) under management.

The stakbed container factory at Montague Gardens was closed at the end of December. All costs associated with the closure, amounting to just under R7 million, have been included in "Discontinuing" operations in the attached financial reports. Production of stainless steel tank containers at the Parow plant continues, albeit on a reduced scale, and remains under constant review.

Our other operations experienced very difficult trading conditions during the period under review.

There are no significant seasonal trading patterns in our businesses.

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Textainer has entered into a joint venture with an overseas financial institution with the formation of a new financing entity, Textainer Marine Containers Limited ("TMCL"), in which Textainer and the institution each hold a 49,9% interest. TMCL is a vehicle for purchasing new containers that will be managed by Textainer. The debt in TMCL, which is provided by overseas financial institutions, is without recourse to Textainer. The results of TMCL have been accounted for by Trencor on the proportionate consolidation method, on a line-by-line basis.

Virtually all of the capital expenditure in this period was incurred in TMCL by Textainer.

The ratio of Trencor's consolidated interest-bearing debt to the sum of total shareholders' funds and convertible debentures decreased from 165% at
30 June 2000 to 141% by the end of December.

With Textainer notionally equity accounted (its debt is without recourse to Trencor), this ration at 31 December 2000 was 43% compared to 62% at
30 June 2000.

R224 million of rand-denominated debt was repaid during the period under review. Borrowings denominated in dollars, principally in Textainer, were also reduced, but were higher when translated into rand because of the weaker exchange rate. In the same period, Trencor shareholders' equity increased by R311 million to R1,67 billion.

During the period under review, the group's interests in Waco International Limited were sold for a net cash receipt of R170 million, realising a net capital gain of R94,1 million. The premium of R5,5 million over net asset value paid on the acquisition of shares is Dynanet, whose business complements that of Trencor Solutions, was written off. These transactions resulted in a net non-trade gain of R88,6 million.

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The enquiry by the South African Revenue Service ("SARS") into the tax treatment of the Group's export partners' participation in the export of cargo containers (in respect of transactions concluded in prior years) continues. It is not possible to anticipate when it will be concluded. We remain confident that the supportive legal advice we have received will prevail should SARS seek to challenge the tax treatment.


Trencor will not declare dividends until the advances under its South African banking facilities have been repaid.


Mobile Acceptances has had a satisfactory six months' trading. As Mobile Industries derives most of its income from dividends it receives from Trencor, Mobile will not declare dividends unless and until Trencor does.


Holders of securities in Trencor and Mobile are reminded that the current financial period is for the eighteen months ending 31 December 2001. An interim report on the twelve months to 30 June 2001 will be published towards the end of August 2001.



21 FEBRUARY 2001

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