Unaudited Interim Results Unaudited 2004     E-mail

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  • Headline earnings per share (after unrealised foreign exchange translation losses and gains) were 10,5 cents (June 2003: loss of 88,4 cents). In US dollar terms, headline earnings were 4,4 cents per share (June 2003: 1,0 cent per share)
  • Trading income from continuing operations (which is mainly earned in foreign currency), after net financing costs, increased by 10% from US$16,4 million to US$18,1 million. However, translated into rand, this declined to R125 million from R134 million at June 2003 due to the strengthening of the rand
  • Unrealised exchange losses on translating net dollar receivables into rand declined to R75 million compared to the loss of R272 million for the corresponding period in 2003
  • Investment in Marlio and certain properties occupied by it, disposed of for an aggregate consideration of R63 million
  • Consolidated gearing ratio is 179% (2003: 201%). The ratio excluding Textainer and TrenStar Inc has declined to 12% (2003: 24%)


  • Headline earnings for the half year were US$17,1 million (2003: US$12 million)
  • Average utilisation of the container fleet under management for six months to 30 June 2004 was 90,7% (June 2003: 88,3%). Current utilisation is at an all-time time high of 95,5%
  • 65% of the more than 1,1 million twenty foot equivalent units (“TEU”) under management now on long-term lease


  • Headline loss for the half year was US$5,7 million (2003: loss US$2,4 million)
  • Delays in closing certain significant contracts (including Coors UK) adversely affected attainment of profitability
  • Revenue for the half year was US$23,3 million (2003: US$19,6 million)
  • Acquired the beer keg fleet of Coors UK in June 2004 and will provide outsourced management. This brings the kegs owned and managed by TrenStar to 60% of all kegs in the UK

Tax Queries

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. The resultant investigation by SARS is well into its sixth year but it is not possible to anticipate when it will be concluded. We continue to use our best efforts to bring this matter to a conclusion. 

The income tax principles underlying the 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 of about eight 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.

Mobile Directorate

Mr DM Nurek resigned as a director of Mobile on 19 May 2004.


26 AUGUST 2004


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

Transfer Secretaries:
Computershare Investor Services 2004 (Pty) Ltd 
70 Marshall Street
Johannesburg 2001
(PO Box 61051 Marshalltown 2107)


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, E Oblowitz (all non-executive)
Secretaries to Trencor and Mobile: Trencor Services (Pty) Ltd (Reg No 1967/004868/07)

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