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  Reviewed Results 2004     E-mail

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HIGHLIGHTS

TRENCOR: GROUP

  • 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 profit from continuing operations after net financing costs increased by 34% from US$35,2 million in 2003 to US$47,3 million. In rand terms, trading profit has grown at a slower rate (from R273 million to R305 million) due to the negative effect of the much stronger rand on translation of income from Trencor's predominantly US dollar based operations.
  • Valuation provision against the long-term receivables has been reduced by a net R155 million in recognition of the favourable conditions currently being experienced in the container leasing industry and the improved outlook for the collectability and timing of receipts from the long-term receivables.
  • Once-off financial effect of the settlement of the dispute with the South African Revenue Service ("SARS") over the tax treatment of our export partners has been brought to account.
  • Stronger rand again resulted in unrealised losses on translation of net receivables of R232 million (2003: R519 million).
  • Discount rate applied to rand amounts attributable to third parties in respect of long-term receivables reduced from 12% p.a. to 10% p.a. which had an adverse effect of R42 million on pre-tax income.
  • Headline earnings, after taking account of the above, were 20,1 US cents per share (2003: 5,6 US cents). Expressed in rand, headline earnings per share were 61,8 cents per share (2003: 108,2 cents loss).
  • Dividend declared: 12 SA cents per share (2003: nil).

TEXTAINER

  • Headline income increased by 57% to US$46,4 million. This follows an 81% increase in 2003.
  • Average fleet utilisation in 2004 was 93%; utilisation at 31 December 2004, excluding new production in manufacturers' yards, was 97%.
  • 150 000 TEU (20-foot equivalent unit) of new containers added to the fleet in 2004.
  • Textainer purchased 79 000 units owned by Xtra International and which were being managed by Textainer, for US$85,3 million.
  • 67% of the total managed fleet of 1,14 million TEU is on long-term lease.
  • Almost 70% of the 484 000 TEU owned by Textainer itself is on long-term lease.

TRENSTAR

  • Acquired the beer keg fleet of Coors UK in June 2004, increasing the number of kegs owned and managed in the UK by TrenStar to 4,1 million.
  • Despite revenue increasing by 28% to US$51 million in 2004, delays in closing certain significant contracts adversely affected attainment of profitability.

SETTLEMENT OF TAX MATTER

As reported on 22 December 2004, Trencor and SARS concluded an agreement that disposed of the income tax queries raised by SARS on some of the group's export partners relating to the tax treatment of their participation in the container export trade through export partnerships. The agreement did not involve any admission by either SARS or Trencor and its partners as to the correctness of the other parties' contentions.

In terms of the agreement, the tax treatment of the export partners up to and including their 2004 tax years will be as contended for by Trencor and its export partners. At the end of each of their respective first tax years ending on or after 1 January 2005, the export partners collectively will, in effect, accelerate payment of approximately R305 million in aggregate to SARS, being a portion of the amount which Trencor and its partners had contended should be paid over the following four to five years. Beyond the four to five year period, the tax treatment of the partners will continue on the basis contended for by Trencor and its export partners. It should be noted that of the amount of R305 million to be paid in 2005, approximately R68 million would have been paid in that year in any event.

DECLARATION OF DIVIDENDS

Dividends in respect of the year ended 31 December 2004 have been declared as follows:
TRENCORNO 7812 CENTS PER SHARE
MOBILENO 630,9 CENTS PER SHARE
The salient dates pertaining to the dividend payments are as follows:
Last day to trade cum the dividendFriday, 1 April 2005
Trading commences ex the distributionMonday, 4 April 2005
Record dateFriday, 8 April 2005
Payment dateMonday, 11 April 2005

Share certificates may not be dematerialised or rematerialised between Monday, 4 April 2005 and Friday, 8 April 2005, both days inclusive. It is the intention of the board to consider paying dividends on an annual basis.

REVIEW OPINION

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.

ON BEHALF OF THE BOARDS
NI JOWELL CHAIRMAN TRENCOR LIMITED
C JOWELL CHAIRMAN MOBILE INDUSTRIES LIMITED
28 FEBRUARY 2005

Directors:
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
Registered Office: 1313 Main Tower, Standard Bank Centre, Heerengracht, Cape Town 8001
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd, 
70 Marshall Street, Johannesburg 2001 (PO Box 61051, Marshalltown 2107)
Sponsors: Rand Merchant Bank (A division of FirstRand Bank Ltd) Corporate Finance

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