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HIGHLIGHTS

TRENCOR: GROUP

  • Trading profit from continuing operations after net financing costs increased by 23% from R549 million in 2006 to R675 million. In US dollar terms, the increase was 17%, from US$82 million to US$96 million.
  • Adjusted headline earnings per share, which include net gains and losses arising from the ongoing disposals of containers from Textainer’s leasing fleet, were 214,0 cents, which are comparable to adjusted diluted headline earnings per share of 175,2 cents in 2006. Following the conversion of the convertible debentures into ordinary shares on a one-for-one basis effective 1 January 2007, all per share comparatives are against diluted amounts.
  • Headline earnings per share, which include net unrealised foreign exchange gains and losses as well as two adjustments referred to below, were 212,9 cents, which are comparable to diluted headline earnings per share in 2006 of 209,1 cents.
    Earnings per share were enhanced by 21,6 cents because International Financial Reporting Standards (“IFRS”) required that TrenStar Inc cease charging depreciation (of approximately US$10 million) on its UK beer keg fleet from 30 March 2007, the date the company resolved to exit this business, although it continued to earn revenue on these assets until the contracts were finally terminated later in 2007.
    Earnings in 2007 were further enhanced by an IFRS requirement that TrenStar Inc create a deferred tax asset of US$10,5 million which may be realised in 2008 pursuant to the implementation of the strategic decisions referred to below. The effect of this non-recurring item on Trencor’s earnings was 22,7 cents per share.
  • Net realised and unrealised exchange losses arising on translation of net dollar receivables and the related provisions, not included in adjusted headline earnings per share, were R29 million or 11,0 cents per share (2006: net gain of R135 million or 51,2 cents per share).
  • The above may be summarised as follows:

      2007 2006  
      CENTS PER SHARE
     
    CENTS PER SHARE
    (DILUTED)
    CHANGE
     
    Adjusted headline earnings per share 214,0175,2 22,1%
    Deduct: Net gains on container sales 34,417,3  
      179,6157,9 
    Add: TrenStar Inc depreciation adjustment 21,6 
             TrenStar Inc deferred tax adjustment 22,7 
    Net (loss)/gain on translation of net dollar receivables (11,0)51,2  
    Headline earnings per share (per circular 08/07) 212,9 209,11,8%

  • Fair value adjustment relating to net long-term receivables reduced by R61 million (2006: R60 million) in recognition of continuing improved outlook for collectability and timing of receipts.
  • Consolidated gearing ratio, including borrowings associated with TrenStar assets classified as held for resale at 31 December 2007 was 92% (2006: 174%).
  • Final dividend of 58 cents per share declared, making a total of 80 cents per share for the year (2006: total 57 cents per share), an increase of 40%.

TEXTAINER: 62,6% interest

  • Textainer’s shares listed on the New York Stock Exchange for the first time on 10 October 2007.
  • Net profit for the year was US$66,6 million (2006: US$54,2 million) after charging unrealised losses on interest-rate swaps of US$8,3 million (2006: unrealised loss US$0,6 million).
  • Acquired the management of the 500 000 TEU (20 foot equivalent unit) fleet of Capital Lease effective 1 September 2007.
  • Increased holding in the asset-owning subsidiary TMCL by purchasing one half of the amount formerly owned by Fortis Bank, our joint venture partner, for an investment of US$71,4 million.
  • Average utilisation of the fleet under management for the year calculated on a basis consistent with the past was 91,5% (2006: 91,1%). With effect from 1 January 2007, the basis of calculation was changed to conform to that used by most competitors; on this basis average utilisation for the year was 93,9%.
  • 64,6% of the on-hire total fleet under management are on long-term lease.
  • 69,2% of the on-hire owned container fleet are on long-term lease.
  • Re-entered the refrigerated container market segment and plans investment of US$30 million in 2008, increasing original capex budget for the year by 10%.
  • New equipment purchased during the year amounted to 137 600 TEU.

TRENSTAR INC: 58% interest and TRENSTAR SA: 100% interest

We previously reported a review of strategic alternatives for the TrenStar companies, in the context of greater focus on our core container businesses (mainly Textainer). The review has resulted in the TrenStar companies being categorised as “held for sale”, thus they have in these results for accounting purposes been treated as “discontinued operations”. Plans for the implementation of this strategic decision are well advanced and shareholders will be advised of further developments.

DECLARATION OF DIVIDENDS

Cash dividends in respect of the year ended 31 December 2007 have been declared as follows:

   

TRENCOR

NO 84

58,0 CENTS PER SHARE

MOBILE

NO 69

4,7 CENTS PER SHARE

 

The salient dates pertaining to the cash dividend payments are as follows:

  

Last day to trade cum the dividend

Friday, 28 March 2008

Trading commences ex the dividend

Monday, 31 March 2008

Record date

Friday, 4 April 2008

Payment date

Monday, 7 April 2008

 

Share certificates may not be dematerialised or rematerialised between Monday, 31 March 2008 and Friday, 4 April 2008, both days inclusive.

REVIEW OPINION

These results, other than the figures stated in US dollars, have been reviewed by the independent 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

 

22 FEBRUARY 2008

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)

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