Reviewed Results 2003     E-mail

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  • Condensed income statements and balance sheets for Trencor are also presented in US dollars for a better appreciation of the group's results as virtually all of its revenue and assets and much of its expenditure are denominated in that currency. The US dollar statements have not been reviewed by the auditors
  • Trading income, after interest, from continuing operations was R273 million (2002: R248 million) despite the adverse effect of the stronger rand. In US dollar terms it was US$35,2 million (2002: US$23,6 million) up 49%
  • Strong rand has again resulted in unrealised losses on the translation of net receivables of R519 million (2002: R875 million). These losses were partially mitigated by gains on translation of certain dollar loans of R84 million (2002: R71 million)
  • Headline attributable loss, after unrealised translation gains and losses, was 108,2 cents per share (2002: 230,3 cents). In US dollar terms, headline earnings for the year were 5,6 US cents (2002: 6,8 US cents). Note that earnings in 2002 included the benefit of the change in the discount rate amounting to approximately 61 SA cents or 5 US cents per share
  • Tank container manufacturing equipment sold effective 15 April 2004 and loss-making factory in Parow to close
  • Consolidated gearing ratio was 174% (2002: 205%) ­ ratio with Textainer and Brewers Logistics International notionally equity accounted was 24% (2002: 38%) 


  • Textainer's headline income increased by 81% to US$29,5 million
  • Average fleet utilisation at 88% was the highest since 1995
  • 62% of the managed container fleet of nearly 1,1 million twenty foot equivalent units ("TEU") now on long-term lease
  • 78% of the 388 000 TEU owned by Textainer itself are on long-term lease, resulting in higher utilisation and less volatile revenue 


  • Continues to expand its markets and secure contracts with large global companies
  • Revenue expectations were not achieved in 2003; the company anticipates becoming profitable in the second half of 2004
  • TrenStar raised US$33,5 million in new equity to finance expansion


As previously reported, during September and October 1999 the South African Revenue Service ("SARS") issued queries to some of the group's export partners relating to the tax treatment of their participation in the container export trade through export partnerships. This process continues into its sixth year but it is not possible to anticipate when it will be concluded.

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.

A successful challenge by SARS may result in the acceleration of the payment of certain amounts attributable to third parties (i.e. our export partners) which are carried at their net present values and which would otherwise be paid over an average period of eight to 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 possible challenge from SARS may take. 

The boards of Trencor and Mobile have decided not to declare a dividend at this time. 

On 3 March 2004 Mr Edwin Oblowitz was appointed as an independent non-executive director of Trencor and Mobile.


These results, other than the figures stated in US dollars, have been reviewed by the auditors, KPMG Inc, and their unmodified review reports are available for inspection at the registered office. 

4 MARCH 2004    

Trencor: NI Jowell* (Chairman), HR van der Merwe* (Managing), HA Gorvy,
JE Hoelter (USA), C Jowell, JE McQueen*, DM Nurek, E Oblowitz (*Executive) 

Mobile: C Jowell (Chairman), HA Gorvy, NI Jowell, DM Nurek, E Oblowitz (All non-executive)

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) 

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