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  Unaudited Interim Results Unaudited 2003     E-mail

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HIGHLIGHTS

  • Trading income was R254 million (2002: R272 million) despite the adverse effect of the stronger rand on translation of these mainly foreign currency earnings into rand
  • Textainer’s taxed income improved from US$4,5 million to US$12 million
  • Utilisation of Textainer’s expanding container fleet (1 024 000 TEU at 30 June 2003) remained high at 89%
  • 57% of Textainer’s fleet now on long-term lease, resulting in less volatile revenue
  • TrenStar made good progress, securing contracts with high profile international companies in the US in the tyre, automotive and food industries
  • Implementation of TrenStar’s beer keg contracts in the UK is going well and management systems go ‘live’ on 1 September 2003
  • Trailer business (40% held) continued to perform well
  • The tank container factory at Parow traded satisfactorily in difficult trading conditions but did not achieve breakeven
  • Strong rand resulted in an unrealised loss of R327 million (2002: unrealised loss R394 million) on translation of net receivables, partially mitigated by gains of R54 million (2002: R11 million) on translation of dollar loans
  • Headline attributable loss, after unrealised translation gains and losses, was 88,4 cents per share (2002: loss 140,7 cents)
  • Consolidated gearing ratio was 201% (2002: 210%) – ratio with Textainer and Brewers Logistics International notionally equity accounted was 24% (2002: 44%)
  • The boards of Trencor and Mobile have decided not to declare a dividend at this time

Tax Queries

The inquiry 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 entered into in prior years) has now been open for almost five years. We have reason to believe that SARS has completed its enquiries and we are hopeful that it will come to its conclusions in the near future. The income tax principles underlying the tax treatment of the participation of our partners in the export trade have been the subject of a number of supportive legal opinions, including from various Senior Counsel, and we remain confident that the legal advice received will prevail should SARS seek to challenge the tax treatment. 

As previously reported, a successful challenge by SARS may result in the cceleration of the payment of a portion of the amounts attributable to third parties (i.e. our export partners) which are carried at the net present values, and which would otherwise be paid over an average period of about nine years. Such an outcome would have an adverse effect on the cash flow and profitability of the group. It is not possible to quantify these effects, as it is not known what form any challenge from SARS may take.

ON BEHALF OF THE BOARDS

NI JOWELL CHAIRMAN TRENCOR LIMITED
C JOWELL CHAIRMAN MOBILE INDUSTRIES LIMITED

21 AUGUST 2003

Registered Office:
1313 Main Tower
Standard Bank Centre
Heerengracht
Cape Town 8001

Transfer Secretaries:
Computershare Limited
70 Marshall Street
Johannesburg 2001
(PO Box 61051 Marshalltown 2107)

Directors:

Trencor: NI Jowell* (Chairman/CEO), HR van der Merwe* (Managing), HA Gorvy, JE Hoelter (USA), C Jowell*, JE McQueen*, DM Nurek (*Executive)
Mobile: C Jowell (Chairman), HA Gorvy, NI Jowell, DM Nurek (all non-executive)
Secretaries to Trencor and Mobile: Trencor Services (Pty) Ltd (Reg No 1967/004868/07)

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