| Fri 22 Feb 2008, 7:22 | | Trencor Reviewed Results For The Year Ended 31 Dec |
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MOB TRE
MOB TRE
TRE / MOB - Trencor / Mobile - Reviewed Results For The Year Ended 31 December
2007 And Declaration Of Dividends
TRENCOR LIMITED
REG NO 1955/002869/06
("Trencor")
SHARE CODE: TRE
ISIN: ZAE000007506
MOBILE INDUSTRIES LIMITED
REG NO 1968/014997/06
("Mobile")
SHARE CODE: MOB
ISIN: ZAE000091435
REVIEWED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007 AND DECLARATION OF
DIVIDENDS
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 includes 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 includes 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 CHANGE
(DILUTED)
Adjusted headline earnings
per share 214,0 175,2 22,1%
Deduct: Net gains on container sales 34,4 17,3
179,6 157,9
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) 212,9 209,1 1,8%
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
Condensed consolidated income statements for the year ended 31 December 2007
TRENCOR
REVIEWED AUDITED
RE-PRESENTED
R Million 2007 2006
Revenue (including exchange differences)
(Note 2) 1 697,9 1 729,6
Continuing operations
Trading profit 922,8 744,2
Realised exchange (losses)/gains (46,0) 205,4
Translation of long-term receivables,
included in revenue, excluding
fair value adjustment (46,0) 204,5
Translation of borrowings - 0,9
Net long-term receivable fair value adjustment 78,3 (9,5)
Increase/(Decrease) due to translation
of dollar amount 17,5 (69,1)
Reduction in fair value adjustment 60,8 59,6
Impairment of plant and equipment (4,0) (1,2)
Profit from operations 951,1 938,9
Net finance costs (Note 4) (247,7) (195,0)
Finance expense (295,9) (224,7)
Finance income 48,2 29,7
Share of profit of equity-accounted investee - 0,6
Exceptional items (Note 5) 197,3 (3,0)
Profit before tax 900,7 741,5
Income tax (expense)/credit (73,4) (97,8)
Profit after tax from continuing operations 827,3 643,7
Discontinued operations
Profit/(Loss) for the year from discontinued
operations (net of income tax) (Note 3) 132,6 (148,9)
Profit for the year 959,9 494,8
Attributable to:
Equity holders of the company 659,9 319,4
Minority interest 300,0 175,4
959,9 494,8
Number of shares in issue (million) 187,3 158,4
Weighted average number of shares
in issue (million) 187,2 156,5
Basic earnings/(loss) per share (cents)
Entity as a whole 352,5 204,1
Continuing operations 302,2 262,5
Discontinued operations 50,3 (58,4)
Diluted earnings/(loss) per share (cents)
Entity as a whole 351,8 176,6
Continuing operations 301,6 225,5
Discontinued operations 50,2 (48,9)
Year-end rate of exchange: SA rand to US dollar 6,78 6,98
Average rate of exchange for year: SA rand
to US dollar 7,02 6,77
Condensed consolidated balance sheets at 31 December 2007
TRENCOR
REVIEWED AUDITED
R Million 2007 2006
Assets
Property, plant and equipment 5 726,0 7 981,5
Goodwill arising on increase in holding in TMCL 122,0 -
Intangible assets 476,8 136,2
Other investments 106,4 114,6
Long-term loans 3,1 8,5
Net investment in finance leases 331,1 251,6
Long-term receivables 1 113,3 1 267,8
Deferred tax assets 178,0 104,5
Derivative financial instruments 0,9 29,3
Restricted bank balances 113,5 409,8
Total non-current assets 8 171,1 10 303,8
Current assets (Note 8) 1 919,2 1 284,9
Total assets 10 090,3 11 588,7
Equity
Share capital and premium (Note 9) 455,6 193,8
Reserves 2 730,2 2 164,0
Equity attributable to equity holders
of the company 3 185,8 2 357,8
Minority interest 1 428,7 1 078,8
Total equity 4 614,5 3 436,6
Liabilities
Convertible debentures (Note 9) - 260,5
Interest-bearing borrowings 3 490,7 5 806,3
Amounts attributable to third parties
in respect of long-term receivables 262,7 263,0
Derivative financial instruments 29,9 4,2
Share-based payments - 88,2
Deferred income - 52,8
Deferred tax liabilities 330,3 308,3
Total non-current liabilities 4 113,6 6 783,3
Current liabilities (Note 10) 1 362,2 1 368,8
Total liabilities 5 475,8 8 152,1
Total equity and liabilities 10 090,3 11 588,7
Capital expenditure incurred during the year 1 416,8 1 698,5
Capital expenditure committed and authorised,
but not yet incurred 157,2 281,0
Market value of listed investments 15,6 14,1
Directors` valuation of unlisted investments 90,8 100,5
Ratio to aggregate of total equity and
convertible debentures:
Total liabilities excluding
convertible debentures (%) 118,7 213,5
Interest-bearing debt excluding
convertible debentures (%) 91,8 173,8
Condensed consolidated cash flow statements for the year ended 31 December 2007
TRENCOR
REVIEWED AUDITED
R Million 2007 2006
Cash generated from operations 1 193,8 1 424,7
Finance income received 52,1 36,9
Dividends received - 0,9
Finance expenses paid (340,5) (362,6)
Dividends paid to shareholders of the company (99,8) (78,1)
Dividends paid to minorities (99,1) (49,2)
Taxation paid (50,5) (44,2)
Net cash inflow from operating activities 656,0 928,4
Cash flows from investing activities 806,0 (1 475,6)
Cash flows from financing activities (1 249,8) 615,1
Net increase in cash and cash equivalents
before exchange rate changes 212,2 67,9
Net cash and cash equivalents
at the beginning of the year 616,1 495,8
Effects of exchange rate changes on
cash and cash equivalents (20,1) 52,4
Net cash and cash equivalents at the
end of the year 808,2 616,1
Condensed consolidated statements of changes in equity for the year ended
31 December 2007
TRENCOR
REVIEWED AUDITED
RE-PRESENTED
R Million 2007 2006
Balance at the beginning of the year 3 436,6 2 801,2
Movement in share capital and premium 261,8 14,6
Proceeds on issue of shares 1,3 14,6
Conversion of convertible debentures 260,5 -
Movement in reserves
Fair-value reserve - change in fair value
of available-for-sale assets 1,5 3,2
Foreign currency translation reserve (57,5) 130,5
Equity compensation reserve - current year
share-based payments 7,9 -
Equity compensation reserve - amount transferred
from share-based payment liability 54,2 -
Gain/(Loss) on dilution of investment
in subsidiaries - amount transferred from
retained income 197,3 (5,1)
Retained income 362,8 246,4
Profit for the year 659,9 319,4
Dividends paid to shareholders of the company (99,8) (78,1)
Transfers to specific reserves
(Gain)/Loss on dilution of investment
in subsidiaries (197,3) 5,1
Movements in minority interest 349,9 245,8
Share of profit for the year 300,0 175,4
Increase in investment in subsidiary 353,2 9,9
Foreign currency translation differences (42,8) 98,9
Share-based payment - current year 3,5 (0,5)
Share-based payment - transfer from share-based
payment liability 32,4 -
Amount arising on change in minority interest (197,3) 11,3
Dividends (99,1) (49,2)
Balance at the end of the year 4 614,5 3 436,6
Notes to the condensed consolidated financial statements for the year
ended 31 December 2007
1.These condensed consolidated annual financial statements have been prepared
in accordance with International Financial Reporting Standards (IFRS),
including IAS 34 Interim Financial Reporting. The accounting policies used in
the preparation of these consolidated condensed financial statements are
consistent with those used in the annual financial statements for the year ended
31 December 2006.
TRENCOR
REVIEWED AUDITED
RE-PRESENTED
R Million 2007 2006
2. Revenue
Goods sold and services rendered 179,0 95,7
Leasing income 1 352,1 1 261,9
Management fees 169,3 109,6
Finance income 43,5 57,9
1 743,9 1 525,1
Realised and unrealised exchange differences (46,0) 204,5
1 697,9 1 729,6
3. Discontinued operations
During the year under review the group exited the mobile asset ownership and
management businesses. The operations were previously reported in the mobile
asset management segment. Comparative information has been re -presented to show
the discontinued operations separately from continuing operations.
Profits/(Losses) attributable to the discontinued operation were as follows:
Revenue 431,0 516,4
Other operating income 1,7 3,4
Expenses (269,2) (421,7)
Asset impairments, net of reversals (0,8) (114,2)
Profit/(Loss) from operations 162,7 (16,1)
Finance expenses (102,8) (138,2)
Finance income 3,9 7,2
Profit/(Loss) from discontinued operations 63,8 (147,1)
Income tax credit/(charge) 68,8 (1,8)
Profit/(Loss) after tax 132,6 (148,9)
Minority interest (38,5) 57,5
94,1 (91,4)
4. Net finance costs
Finance expenses 295,9 224,7
Interest expense incurred by: 260,3 240,1
- Textainer 260,2 224,0
- Other group companies 0,1 16,1
Gains/(Losses) on derivative financial instruments 35,6 (15,4)
Finance income - interest income earned from: (48,2) (29,7)
Cash and cash equivalents (46,9) (29,2)
Other (1,3) (0,5)
247,7 195,0
5. Exceptional items
Net gain/(loss) on dilution of interest
in subsidiaries 197,3 (5,1)
Premium paid on shares repurchased by a subsidiary - (0,6)
Profit on disposal of investment - 2,7
197,3 (3,0)
6. Headline earnings
Profit attributable to equity holders
of the company 659,9 319,4
Adjustments relating to continuing activities
Net (gain)/loss on dilution of investment
in subsidiaries (197,3) 5,1
Net profit on disposal of investment - (2,7)
Impairment of plant and equipment 4,0 1,2
Profit on sale of plant and equipment (127,7) (64,7)
Adjustments relating to discontinued activities
Impairment of goodwill - 33,9
Impairment of plant and equipment - 61,4
Profit on sale of plant and equipment - 8,3
Loss on disposal of intangible asset - 2,6
Net loss on remeasurement of fair value
less costs to sell 0,8 18,8
Total tax effects of adjustments 16,2 0,3
Total minority share of adjustments 42,6 (3,6)
Headline earnings 398,5 380,0
Weighted average number of shares in issue (million) 187,2 156,5
Headline earnings per share (cents) 212,9 242,8
Diluted headline earnings per share (cents) 212,4 209,1
Adjusted headline earnings
Headline earnings (as above) 398,5 380,0
Profit on sale of containers 64,4 32,4
TrenStar Inc depreciation adjustment (40,3) -
TrenStar Inc deferred tax adjustment (42,5) -
Net loss/(gain) on translation of net dollar receivables 20,6 (95,8)
Adjusted headline earnings 400,7 316,6
Adjusted undiluted headline earnings per share (cents) 214,0 202,3
Diluted adjusted headline earnings per share (cents) 213,6 175,2
7. Segmental reporting
Revenue
Continuing operations
Containers - finance (including exchange differences) (1,9) 262,3
Containers - owning, leasing and management 1 698,3 1 465,8
Other 1,5 1,5
1 697,9 1 729,6
Segment result
Continuing operations
Containers - finance 69,1 248,6
Containers - owning, leasing and management 903,4 720,9
Mobile asset management services
Other (21,4) (30,6)
951,1 938,9
8. Current assets
Inventories 25,8 31,2
Trade and other receivables 530,8 619,5
Current tax asset - 13,1
Assets classified as held for sale (Note 11) 605,2 5,0
Cash and cash equivalents 757,4 616,1
1 919,2 1 284,9
9. Conversion of convertible debentures
In view of the fact that the total dividends declared in respect of the year
ended 31 December 2006 exceeded the specified level, each debenture was
converted into one ordinary share. For calculation of the weighted average
number of shares in issue, the shares issued have been included with effect from
1 January 2007.
Number of shares issued (million) 28,6 -
Increase in share capital and premium
Share capital 0,1 -
Share premium 260,4 -
260,5 -
10. Current liabilities
Trade and other payables 442,0 663,1
Provisions - 5,9
Current tax liability 85,3 79,2
Current portion of interest-bearing borrowings 437,9 620,5
Liabilities classified as held for sale (Note 12) 396,9 -
Short-term borrowings 0,1 0,1
1 362,2 1 368,8
11. Assets classified as held for sale
Property, plant and equipment 485,7 5,0
Intangible assets 1,0 -
Investments 26,1 -
Restricted bank balances 0,9 -
Inventories 2,9 -
Trade and other receivables 37,8 -
Cash and cash equivalents 50,8 -
605,2 5,0
12. Liabilities classified as held for sale
Interest-bearing borrowings 307,9 -
Derivative financial instruments 6,5 -
Deferred income 1,5 -
Trade and other payables 75,3 -
Provisions 5,7 -
396,9 -
In order to provide a better appreciation of the results of the group`s
activities, condensed income statements and balance sheets are also presented
in US dollars, as virtually all of the group`s revenue and assets and much of
its expenditure are denominated in that currency.
The amounts stated in US dollars have been prepared by management and are
unaudited.
Unaudited Trencor condensed consolidated income statement in US dollars
for the year ended 31 December 2007
UNAUDITED UNAUDITED
RE-PRESENTED
US$ Million 2007 2006
Revenue 247,8 190,1
Continuing operations
Trading profit 132,1 111,1
Exchange gains arising on translation (0,7) 4,0
Net long-term receivable fair value adjustment 9,1 9,0
Impairment of plant and equipment (0,6) (0,2)
Profit from operations 139,9 123,9
Net finance costs (35,4) (28,9)
Finance expense (42,2) (33,2)
Finance income 6,8 4,3
Share of profit of equity-accounted investee - 0,1
Exceptional items 28,4 (0,5)
Profit before taxation 132,9 94,6
Income tax expense (11,5) (9,9)
Profit after tax from continuing operations 121,4 84,7
Discontinued operations (net of income tax) 19,1 (21,8)
Profit for the period 140,5 62,9
Attributable to:
Equity holders of the company 97,7 36,9
Minority interest 42,8 26,0
140,5 62,9
Number of shares in issue (million) 187,3 155,6
Weighted average number of shares in issue
(million) 187,2 156,5
Basic earnings/(loss) per share (US cents)
Entity as a whole 52,2 23,6
Continuing operations 45,0 32,0
Discontinued operations 7,2 (8,4)
Diluted earnings/(loss) per share (US cents)
Entity as a whole 52,1 20,6
Continuing operations 44,9 27,7
Discontinued operations 7,2 (7,1)
Headline earnings per share (US cents) 31,8 29,3
Diluted headline earnings per share (US cents) 31,8 25,4
Adjusted headline earnings per share (US cents) 36,8 32,3
Diluted adjusted headline earnings per share
(US cents) 36,7 27,9
Period-end rate of exchange: SA rand to US dollar 6,78 6,98
Average rate of exchange for the period: SA rand
to US dollar 7,02 6,77
Trading profit from continuing operations comprises:
Textainer 129,3 106,7
Other 2,8 4,4
132,1 111,1
396,9 -
Unaudited Trencor condensed consolidated balance sheet in US dollars
at 31 December 2007
UNAUDITED UNAUDITED
US$ Million 2007 2006
Assets
Non-current assets
Property, plant and equipment 844,5 1 144,2
Long-term receivables 164,2 181,6
Other non-current assets 196,4 151,0
1 205,1 1 476,8
Current assets 283,1 183,4
Inventories 3,8 4,5
Trade and other receivables 78,3 90,6
Assets classified as held for sale 89,3 -
Cash and cash equivalents 111,7 88,3
Total assets 1 488,2 1 660,2
Equity and liabilities
Equity attributable to equity holders of the company 469,9 337,7
Minority interest 210,7 154,6
Total equity 680,6 492,3
Liabilities
Convertible debentures - 37,3
Interest-bearing borrowings 514,9 831,8
Amounts attributable to third parties in respect of
long-term receivables 38,7 37,7
Derivative financial instruments 4,4 0,6
Share-based payments - 12,6
Deferred income - 7,6
Deferred taxation 48,7 44,2
Total non-current liabilities 606,7 971,8
Current liabilities 200,9 196,1
Trade and other payables 77,8 107,2
Current portion of interest-bearing borrowings 64,6 88,9
Liabilities classified as held for sale 58,5 -
Total liabilities 807,6 1 167,9
Total equity and liabilities 1 488,2 1 660,2
Ratio to aggregate of total equity and convertible
debentures:
Total liabilities excluding convertible debentures (%) 118,7 213,5
Interest-bearing debt excluding convertible
debentures (%) 91,8 173,8
Condensed consolidated income statements for the year ended 31 December 2007
MOBILE
REVIEWED AUDITED
R Million 2007 2006
Revenue (including exchange differences)
(Note 2) 0,8 8,2
Continuing operations
Trading (loss)/profit (0,9) 7,4
Fair value adjustment - convertible debentures - 115,3
(Loss)/Profit from operations (0,9) 122,7
Finance expense - (7,8)
Share of profit of equity-accounted investee 305,6 148,9
Exceptional items (Note 3) (1,3) (11,5)
Profit before tax 303,4 252,3
Income tax (expense)/credit (0,2) 0,5
Profit after tax from continuing operations 303,2 252,8
Profit for the year attributable to
equity holders of the company 303,2 252,8
Number of shares in issue (million) 1 068,0 897,8
Weighted average number of shares
in issue (million) 1 068,0 897,8
Basic earnings per share (cents)
Continuing operations 28,4 28,2
Diluted earnings/(loss) per share (cents)
Continuing operations 28,4 24,2
Condensed consolidated balance sheets at 31 December 2007
MOBILE
REVIEWED AUDITED
R Million 2007 2006
Assets
Investment in equity-accounted investee (Note 5) 1 734,2 1 085,9
Investment in convertible debentures
in associate - 387,2
Participation in export partnerships 2,6 2,9
Total non-current assets 1 736,8 1 476,0
Current assets (Note 6) 9,5 11,6
Total assets 1 746,3 1 487,6
Equity
Share capital and premium (Note 7) 192,7 66,5
Reserves 1 548,5 1 288,1
Equity attributable to equity holders of the company 1 741,2 1 354,6
Total equity 1 741,2 1 354,6
Liabilities
Convertible debentures (Note 7) - 127,6
Deferred tax liabilities 2,6 2,9
Total non-current liabilities 2,6 130,5
Current liabilities (Note 8) 2,5 2,5
Total liabilities 5,1 133,0
Market value of listed investments 2 427,5 2 612,6
Condensed consolidated cash flow statements for the year ended 31 December 2007
MOBILE
REVIEWED AUDITED
R Million 2007 2006
Cash (utilised by)/generated from operations (0,8) 7,9
Finance income received 0,7 8,2
Dividends received 46,1 36,5
Finance expenses paid - (7,8)
Dividends paid to shareholders of the company (45,6) (34,6)
Taxation paid (0,6) (0,2)
Net cash (outflow)/inflow from operating activities (0,2) 10,0
Cash flows from financing activities (1,5) -
Net increase/(decrease) in cash and
cash equivalents before exchange rate changes (1,7) 10,0
Net cash and cash equivalents
at the beginning of the year 11,0 1,0
Net cash and cash equivalents at the
end of the year 9,3 11,0
Condensed consolidated statements of changes in equity for the year ended
31 December 2007
MOBILE
REVIEWED AUDITED
R Million 2007 2006
Balance at the beginning of the year 1 354,6 1 074,1
Movement in share capital and premium 126,2 -
Conversion of convertible debentures 127,6 -
Return of capital to shareholders (1,4) -
Movement in reserves
Non-distributable reserves 90,0 101,3
Share of net increase in non-distributable
reserves of associate 2,8 62,3
Retained income 167,6 116,9
Profit for the year 303,2 252,8
Dividends paid to shareholders of the company (45,6) (34,6)
Loss on dilution of investment in associate 1,3 11,6
Unrealised gain on investment in
convertible debentures - (115,3)
(Gain)/Loss on dilution of associate`s
interest in subsidiaries (91,3) 2,4
Balance at the end of the year 1 741,2 1 354,6
Notes to the condensed consolidated financial statements for the year
ended 31 December 2007
1.These condensed consolidated annual financial statements have been prepared
in accordance with International Financial Reporting Standards (IFRS),
including IAS 34. The accounting policies used in the preparation of these
consolidated condensed financial statements are consistent with those used in
the annual financial statements for the year ended 31 December 2007.
MOBILE
REVIEWED AUDITED
R Million 2007 2006
2. Revenue
Finance income 0,8 8,2
3. Exceptional items
Loss on dilution of investment in associate (1,3) (11,5)
4. Headline earnings
Profit attributable to equity holders of the company 303,2 252,8
Loss on dilution of investment in associate 1,3 11,5
Attributable share of headline
earnings adjustments of associate (121,0) 28,3
Headline earnings 183,5 292,6
Weighted average number of shares
in issue (million) 1 068,0 897,8
Headline earnings per share (cents) 17,2 32,6
Diluted headline earnings per share (cents) 17,2 27,9
5. Investment in equity-accounted investee (Mobile)
On conversion of the debentures referred to in note 7, Mobile received
13 730 780 shares in Trencor and its effective holding in Trencor increased to
46.3%. Goodwill amounting to R259,6 million arose on this transaction.
6. Current assets
Trade and other receivables 0,2 0,6
Cash and cash equivalents 9,3 11,0
9,5 11,6
7. Conversion of convertible debentures
In view of the fact that the total dividends declared in respect of the year
ended 31 December 2006 exceeded the specified level, each debentures was
converted into three ordinary shares. For calculation of the weighted average
number of shares in issue, the shares issued have been included with effect from
1 January 2007.
Number of shares issued (million) 170,2 -
Increase in share capital and premium
Share capital - -
Share premium 127,6 -
127,6 -
8. Current liabilities
Trade and other payables 2,2 1,9
Current tax liability 0,3 0,4
Amount due to subsidiary of associate - 0,2
2,5 2,5
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)
THESE RESULTS CAN BE VIEWED ON THE WEBSITES:
WWW.TRENCOR.NET AND WWW.MOBILE- INDUSTRIES.NET
Date: 22/02/2008 07:00:02 Produced by the JSE SENS Department.
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completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
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