| Mon 28 Feb 2011, 16:30 | | TRE/MOB - Trencor/ Mobile - Reviewed results for t |
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MOB TRE
MOB TRE
TRE/MOB - Trencor/ Mobile - Reviewed results for the year ended 31 December 2010
and declaration of cash dividend
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 2010 AND DECLARATION OF CASH
DIVIDEND
HIGHLIGHTS
TRENCOR: GROUP
- Trading profit from continuing operations after net financing costs (but
excluding gains on the repurchase of debt by Textainer in 2009) increased by 28%
from R781 million in 2009 to R1 002 million.
- The net long-term receivable valuation adjustment was reduced by R189 million
following the significantly improved outlook for collections as a result of the
prevailing strong container leasing market. This increased earnings by 72 cents
per share.
- Headline earnings per share which includes net unrealised foreign exchange
losses and gains were 335,5 cents (2009: 134,8 cents).
- Adjusted headline earnings per share, which excludes net unrealised foreign
exchange losses and gains arising on translation of net dollar receivables and
the related valuation adjustments and excludes gains realised in 2009 by
Textainer on the repurchase of portion of its own debt, at 369,4 cents (2009:
203,5 cents), were up by 81%.
- Net realised and unrealised foreign exchange losses arising on translation of
net dollar receivables and the related valuation adjustments, not included in
adjusted headline earnings per share, were R88 million or 34 cents per share
(2009: loss R298 million or 115 cents per share).
- These different earnings are better reflected in tabular form:
2010 2009
Cents per share Cents per share
Headline earnings 335,5 134,8
Add:
Unrealised foreign exchange translation
losses 33,9 114,6
369,4 249,4
Deduct:
Gain realised on the repurchase of debt
by Textainer - (45,9)
Adjusted headline earnings 369,4 203,5
- Consolidated gearing ratio at 31 December 2010 was 98% (2009: 88%). All of the
interest-bearing debt is in Textainer.
- Final dividend of 100 cents per share declared, making a total of 140 cents
per share for the year (2009: total 120 cents per share), an increase of 17%
over the previous year.
- Shareholders in Trencor are reminded that Trencor will, out of cash resources,
undertake the specific repurchase of 10 800 881 shares at R38,61 per share
referred to in the circular to shareholders dated 22 November 2010.
Implementation of the specific repurchase is anticipated to occur on or about 14
March 2011.
TEXTAINER: 61,6% interest at 31 December 2010 (2009: 62,3%)
- Profit for the year was US$128,0 million (2009: US$92,0 million including
gains on the repurchase of debt amounting to US$15,3 million); profit in 2010
included a reversal of certain taxation provisions amounting to US$11,1 million
(2009: nil) no longer required under IFRS.
- Current fleet utilisation is 98,6% compared to 91,0% a year ago.
- Purchased a total of 214 000 TEU (twenty foot equivalent units) of new
equipment in 2010 representing a total of US$503,7 million in capital
expenditure.
- Increased the owned portion of the total fleet to 51% as at 31 December 2010
from 45% in 2009.
DECLARATION OF CASH DIVIDEND
Trencor has declared a final cash dividend (number 90) of 100 cents per share in
respect of the year ended 31 December 2010.
The salient dates pertaining to the cash dividend payments are as follows:
Last day to trade cum dividend Friday, 25 March 2011
Trading commences ex dividend Monday, 28 March 2011
Record date Friday, 1 April 2011
Payment date Monday, 4 April 2011
Share certificates may not be dematerialised or rematerialised between Monday,
28 March 2011 and Friday, 1 April 2011, 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 C Jowell
Chairman Trencor Limited Chairman Mobile Industries Limited
28 February 2011
Condensed consolidated statement of comprehensive income for the year ended 31
December 2010
TRENCOR
Reviewed Audited
R Million 2010 2009
Revenue (Note 2) 2 353 1 958
Continuing operations
Trading profit/(loss) before items listed below 1 226 885
Realised and unrealised exchange losses on
translation of long-term receivables, excluding fair
value adjustment (149) (442)
Net long-term receivable fair value adjustment 250 130
Impairment of plant and equipment (12) (16)
Net gain on disposal of available-for-sale
financial asset transferred from equity - 7
Profit from operations 1 315 564
Net finance (expenses)/income (Note 3) (224) 71
Finance expenses - Interest expense (132) (95)
- Losses on derivative financial instruments (102) (29)
Finance income - Interest income 10 20
- Gain on repurchase of debt - 175
Profit before tax 1 091 635
Income tax (expense)/credit (9) 32
Profit after tax from continuing operations 1 082 667
Discontinued operations
Profit for the year from discontinued operations
(net of income tax) - 24
Profit for the year 1 082 691
Other comprehensive loss (583) (1 205)
Foreign currency translation differences (583) (1 196)
Net change in fair value of available-for-sale
financial asset - (2)
Net gain on disposal of available-for-sale
financial asset transferred to profit or loss - (7)
Total comprehensive income/(loss) for the year 499 (514)
Total comprehensive income/(loss) for the year
attributable to:
Equity holders of the company 268 (471)
Non-controlling interest 231 (43)
499 (514)
Profit attributable to:
Equity holders of the company 624 259
Non-controlling interest 458 432
1 082 691
Basic earnings per share (cents)
Entity as a whole 332,5 138,1
Continuing operations 332,5 134,7
Discontinued operations - 3,4
Diluted earnings per share (cents)
Entity as a whole 331,8 138,0
Continuing operations 331,8 134,6
Discontinued operations - 3,4
Number of shares in issue (million) 187,5 187,5
Weighted average number of shares in issue (million) 187,5 187,4
Year-end rate of exchange: SA rand to US dollar 6,61 7,35
Average rate of exchange for the year: SA rand to
US dollar 7,33 8,33
Condensed consolidated statement of financial position at 31 December 2010
TRENCOR
Reviewed Audited
R Million 2010 2009
ASSETS
Property, plant and equipment 9 604 7 858
Intangible assets 400 493
Investments 15 272
Long-term receivables 828 838
Net investment in finance leases 325 447
Derivative financial instruments 9 5
Deferred tax assets 77 101
Restricted cash 99 48
Total non-current assets 11 357 10 062
Inventories 22 9
Trade and other receivables 718 767
Current tax assets 3 2
Investments 235 -
Cash and cash equivalents 1 029 1 104
Assets classified as held for sale - 11
Current assets 2 007 1 893
Total assets 13 364 11 955
EQUITY
Share capital and premium 457 457
Reserves 3 438 3 384
Equity attributable to equity holders of the company 3 895 3 841
Non-controlling interest 2 056 1 905
Total equity 5 951 5 746
LIABILITIES
Interest-bearing borrowings 5 475 4 538
Amounts attributable to third parties in respect
of long-term receivables 221 204
Derivative financial instruments 90 66
Deferred income 20 83
Deferred tax liabilities 225 230
Total non-current liabilities 6 031 5 121
Trade and other payables 933 389
Current tax liabilities 64 138
Current portion of interest-bearing borrowings 340 500
Current portion of deferred income 45 58
Liabilities classified as held for sale - 3
Current liabilities 1 382 1 088
Total liabilities 7 413 6 209
Total equity and liabilities 13 364 11 955
Capital expenditure incurred during the year 3 566 1 496
Capital expenditure committed and authorised,
but not yet incurred - 62
Directors` valuation of unlisted investments 250 272
Ratio to aggregate of total equity:
Total liabilities (%) 124,6 108,1
Interest-bearing debt (%) 97,7 87,7
Condensed consolidated statement of cash flows for the year ended 31
December 2010
TRENCOR
Reviewed Audited
R Million 2010 2009
Cash generated from operations 1 881 1 483
Acquisition of container leasing equipment (2 934) (1 162)
Finance income received 10 20
Finance expenses paid (175) (201)
Dividends paid to equity holders of the company (234) (206)
Dividends paid to non-controlling interest (136) (139)
Taxation paid (56) (82)
Net cash outflow from operating activities (1 644) (287)
Cash inflow from investing activities 105 55
Cash inflow from financing activities 1 562 74
Net increase/(decrease) in cash and cash
equivalents before exchange rate changes 23 (158)
Net cash and cash equivalents at the
beginning of the year 1 115 1 526
Effects of exchange rate changes on cash
and cash equivalents (109) (253)
Net cash and cash equivalents at the end
of the year 1 029 1 115
Condensed consolidated statement of changes in equity for the year ended
31 December 2010
TRENCOR
Reviewed Audited
R Million 2010 2009
Balance at the beginning of the year 3 841 4 502
Total comprehensive income/(loss) for the year 268 (471)
Profit for the year 624 259
Foreign currency translation differences (356) (721)
Net change in fair value of
available-for-sale financial asset - (2)
Net gain on disposal of available-for-sale
financial asset transferred to profit or loss - (7)
Dividends paid (234) (206)
Share-based payments 24 25
Change in holding in subsidiary (4) (10)
Shares issued - 1
Shareholders` interest 3 895 3 841
Non-controlling interest in subsidiaries 2 056 1 905
Balance at the beginning of the year 1 905 2 117
Total comprehensive income/(loss) for the year 231 (43)
Profit for the year 458 432
Foreign currency translation differences (227) (475)
Dividends paid to non-controlling interest (136) (139)
Share-based payments 15 15
Liquidation dividend paid by subsidiary company - (55)
Shares issued by subsidiary 37 -
Change in holding in subsidiary 4 10
Equity 5 951 5 746
Notes to the condensed consolidated annual financial statements for the year
ended 31 December 2010
1. These condensed consolidated financial statements have been prepared in
accordance with the recognition and measurement criteria of International
Financial Reporting Standards (IFRS), South African Statements and
Interpretations of Statements of Generally Accepted Accounting Practice (AC 500
Series) and presentation and disclosure requirements of IAS 34 Interim Financial
Reporting and the Companies Act of South Africa. The accounting policies applied
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 2009.
TRENCOR
Reviewed Audited
R Million 2010 2009
2. Revenue
Goods sold and services rendered 521 562
Leasing income 1 744 1 596
Management fees 214 210
Finance income 23 32
2 502 2 400
Realised and unrealised exchange differences (149) (442)
2 353 1 958
3. Net finance expenses/(income)
Finance expenses 234 124
Interest expense - Textainer 131 95
Interest expense - other group companies 1 -
Losses on derivative financial instruments 102 29
Finance income (10) (195)
Interest income - cash and cash equivalents (10) (20)
Gain on repurchase of debt by Textainer - (175)
(71)
4. Headline earnings
Profit attributable to equity holders of
the company 624 259
Impairment of plant and equipment 12 16
Net gain on disposal of available-for-sale
financial asset transferred from equity - (7)
Profit on disposal of discontinued operations - (26)
Total tax effects of adjustments (1) (1)
Total non-controlling interests` share of adjustments (6) 12
Headline earnings 629 253
Weighted average number of shares in issue (million) 187,5 187,4
Headline earnings per share (cents) 335,5 134,8
Diluted headline earnings per share (cents) 334,8 134,7
Adjusted headline earnings
Headline earnings (as above) 629 253
Gain on repurchase of debt - (175)
Net loss on translation of net US dollar
receivables 88 298
Total tax effects of adjustments (25) (79)
Total non-controlling interests` share of adjustments - 84
Adjusted headline earnings 692 381
Undiluted adjusted headline earnings per
share (cents) 369,4 203,5
Diluted adjusted headline earnings per
share (cents) 368,6 203,3
5. Segmental reporting
Revenue
Reportable segments
Containers - finance (including exchange
differences) (126) (410)
Containers - owning, leasing, management
and reselling 2 477 2 365
2 351 1 955
Unallocated 2 3
2 353 1 958
Profit from operations
Reportable segments
Containers - finance 123 (286)
Containers - owning, leasing, management
and reselling 1 223 878
1 346 592
Unallocated (31) (28)
1 315 564
Assets
Capital expenditure incurred by the container
owning, leasing, management and reselling segment 3 566 1 496
In order to provide a better appreciation of the results of the group`s
activities, a condensed consolidated income statement and a consolidated
statement of financial position 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 2010
Unaudited Unaudited
US$ Million 2010 2009
Revenue 337,1 282,2
Continuing operations
Trading profit before items listed below 167,2 106,1
Realised and unrealised exchange losses arising
on translation (4,3) (5,8)
Net long-term receivable fair value adjustment 29,3 (4,7)
Impairment of plant and equipment (1,6) (2,0)
Other - 1,0
Profit from operations 190,6 94,6
Net finance (expenses)/income (30,7) 7,0
Finance expense - Interest expense (18,1) (11,4)
- Losses on derivative financial instruments (13,9) (3,5)
Finance income - Interest income 1,3 2,4
- Gain on repurchase of debt - 19,5
Profit before tax 159,9 101,6
Income tax expense (4,7) (3,5)
Profit after tax from continuing operations 155,2 98,1
Discontinued operations
Profit for the year from discontinued operations
(net of income tax) - 3,1
Profit for the year 155,2 101,2
Attributable to:
Equity holders of the company 92,8 49,8
Non-controlling interest 62,4 51,4
155,2 101,2
Number of shares in issue (million) 187,5 187,5
Weighted average number of shares in
issue (million) 187,5 187,4
Basic earnings per share (US cents)
Entity as a whole 49,5 26,6
Continuing operations 49,5 26,1
Discontinued operations - 0,5
Diluted earnings per share (US cents)
Entity as a whole 49,4 26,6
Continuing operations 49,4 26,1
Discontinued operations - 0,5
Headline earnings per share (US cents) 49,9 26,0
Diluted headline earnings per share (US cents) 49,8 26,0
Adjusted headline earnings per share (US cents) 51,5 23,2
Diluted adjusted headline earnings per
share (US cents) 51,4 23,1
Year-end rate of exchange: SA rand to US dollar 6,61 7,35
Average rate of exchange for the year: SA rand
to US dollar 7,33 8,33
Trading profit from continuing operations comprises:
Textainer 168,5 107,4
Other (1,3) (1,3)
167,2 106,1
Unaudited Trencor condensed consolidated statement of financial position in US
dollars at 31 December 2010
Unaudited Unaudited
US$ Million 2010 2009
ASSETS
Property, plant and equipment 1 453,0 1 069,1
Long-term receivables 125,2 114,0
Other non-current assets 139,9 186,0
Non-current assets 1 718,1 1 369,1
Current assets 303,7 257,5
Inventories 3,3 1,3
Trade and other receivables 108,6 104,4
Current tax assets 0,5 0,2
Investment 35,6 -
Assets classified as held for sale - 1,5
Cash and cash equivalents 155,7 150,1
Total assets 2 021,8 1 626,6
Equity and liabilities
Equity attributable to equity holders of the
company 589,1 522,7
Non-controlling interest 311,1 259,1
Total equity 900,2 781,8
LIABILITIES
Interest-bearing borrowings 828,4 617,4
Amounts attributable to third parties in respect
of long-term receivables 33,5 27,8
Derivative financial instruments 13,6 9,0
Deferred income 3,0 11,3
Deferred tax liabilities 34,0 31,3
Total non-current liabilities 912,5 696,8
Current liabilities 209,1 148,0
Trade and other payables 141,0 53,9
Current tax liability 9,7 17,8
Current portion of interest-bearing borrowings 51,5 68,0
Current portion of deferred income 6,9 7,9
Liabilities classified as held for sale - 0,4
Total liabilities 1 121,6 844,8
Total equity and liabilities 2 021,8 1 626,6
Ratio to aggregate of total equity:
Total liabilities (%) 124,6 108,1
Interest-bearing debt (%) 97,7 87,7
HIGHLIGHTS
MOBILE
Shareholders in Mobile are reminded that Mobile distributed its entire
shareholding in Trencor to Mobile shareholders on 7 February 2011 and, as such,
Mobile itself is not entitled to any dividend declared by Trencor. Accordingly,
Mobile has not declared a dividend and will be delisted and wound up in due
course.
Condensed consolidated statement of comprehensive income for the year ended
31 December 2010
MOBILE
Reviewed Audited
R Million 2010 2009
Revenue (Note 2) 0,4 0,6
Trading loss before items listed below (6,9) (1,1)
Other - (0,6)
Loss from operations (6,9) (1,7)
Share of profit of associate 257,5 119,7
Profit before tax 250,6 118,0
Income tax (expense)/credit (0,1) 0,1
Profit after tax 250,5 118,1
Profit for the year 250,5 118,1
Other comprehensive loss (164,4) (336,7)
Share of other comprehensive loss of associate (164,4) (336,7)
Total comprehensive income/(loss) for the year 86,1 (218,6)
Total comprehensive income/(loss) for the year
attributable to equity holders of the company 86,1 (218,6)
Profit attributable to equity holders of the
company 250,5 118,1
Basic earnings per share (cents) 23,5 11,1
Diluted earnings per share (cents) 23,5 11,1
Number of shares in issue (million) 1 068,0 1 068,0
Weighted average number of shares in
issue (million) 1 068,0 1 068,0
Condensed consolidated statement of financial position at 31 December 2010
MOBILE
Reviewed Audited
R Million 2010 2009
ASSETS
Investment in associate - 2 036,0
Participation in export partnerships 1,8 2,0
Total non-current assets 1,8 2 038,0
Trade and other receivables 0,3 0,4
Asset held for distribution (Note 4) (FAIR
VALUE R2 774,3 MILLION) 2 029,9 -
Cash and cash equivalents 5,8 6,9
Current assets 2 036,0 7,3
Total assets 2 037,8 2 045,3
EQUITY
Share capital and premium 192,7 192,7
(Accumulated deficit)Reserves/ (937,2) 1 849,7
(Deficit)Equity/ attributable to equity holders
of the company (744,5) 2 042,4
Total equity/(deficit) (Note 4) (744,5) 2 042,4
LIABILITIES
Deferred tax liabilities 1,8 2,0
Total non-current liabilities 1,8 2,0
Trade and other payables 6,0 0,9
Current tax liabilities 0,1 -
Amount owing to subsidiary of associate 0,1 -
Distribution payable (Note 4) 2 774,3 -
Current liabilities 2 780,5 0,9
Total liabilities 2 782,3 2,9
Total equity and liabilities 2 037,8 2 045,3
Market value of listed investments 2 774,3 2 275,8
Condensed consolidated statement of cash flows for the year ended 31
December 2010
MOBILE
Reviewed Audited
R Million 2010 2009
Cash (utilised by)/generated from operations (1,7) (2,4)
Finance income received 0,4 0,6
Dividends received 108,3 95,4
Finance expenses paid (0,1) -
Dividends paid to equity holders of the company (107,8) (94,5)
Taxation paid (0,2) (0,4)
Net cash outflow from operating activities (1,1) (1,3)
Cash inflow from investing activities - 0,2
Net decrease in cash and cash equivalents
before exchange rate changes (1,1) (1,1)
Net cash and cash equivalents at the beginning of
the year 6,9 8,0
Net cash and cash equivalents at the end of the year 5,8 6,9
Condensed consolidated statement of changes in equity for the year ended
31 December 2010
MOBILE
Reviewed Audited
R Million 2010 2009
Balance at the beginning of the year 2 042,4 2 348,7
Total comprehensive income/(loss) for the year 86,1 (218,6)
Profit for the year 250,5 118,1
Share of other comprehensive loss of associate (164,4) (336,7)
Dividends paid (107,8) (94,5)
Distribution of shares in associate to
shareholders (Note 4) (3 198,2) -
Change in fair value of distribution to shareholders
Note 4) 423,9 -
Share of net increase in non-distributable reserves
of associate 9,1 6,8
Shareholders` (deficit)/interest (744,5) 2 042,4
(Deficit)Equity (744,5) 2 042,4
Notes to the condensed consolidated annual financial statements for the year
ended 31 December 2010
1. These condensed consolidated financial statements have been prepared in
accordance with the recognition and measurement criteria of International
Financial Reporting Standards (IFRS), South African Statements and
Interpretations of Statements of Generally Accepted Accounting Practice (AC 500
Series) and presentation and disclosure requirements of IAS 34 Interim Financial
Reporting and the Companies Act of South Africa. The accounting policies applied
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 2009, except for the first-time application of IFRIC 17 Distribution
of Non-cash Assets to Owners which became effective on 1 January 2010. The
effects of applying IFRIC 17 are detailed in Note 4.
MOBILE
Reviewed Audited
R Million 2010 2009
2. Revenue
Finance income 0,4 0,6
0,4 0,6
3. Headline earnings
Profit attributable to equity holders of the company 250,5 118,1
Net loss on dilution of investment in associate - 0,6
Attributable share of headline earnings adjustments
of associate 2,6 (2,9)
Headline earnings 253,1 115,8
Weighted average number of shares in issue (million) 1 068,0 1 068,0
Headline earnings per share (cents) 23,7 10,8
Diluted headline earnings per share (cents) 23,7 10,8
4. Unbundling of Trencor shares by Mobile
As a result of Mobile announcing on 22 November 2010 its intention to unbundle
its entire investment in Trencor, Mobile ceased to equity account its investment
in Trencor at that date. In terms of IFRS 5 Non-current Assets Held for Sale and
Discontinued Operations, its investment in Trencor, at 22 November 2010 has been
measured at the lower of its carrying amount and fair value less costs to
distribute.
In terms of IFRIC 17 Distribution of Non-cash Assets to Owners, Mobile became
committed to distribute its investment in Trencor to its shareholders when the
distribution was approved at a general meeting held on 14 December 2010. The
liability resulting from the obligation to distribute the asset was measured at
fair amount of R3 198,2 million, and is based on the quoted bid price of the
Trencor share on that date.
At 31 December 2010, the carrying amount of Mobile`s investment in Trencor was
R2 029,9 million, whereas its fair value, based on the quoted bid price of the
Trencor share, was R2 774,3 million. The change in the fair value of the
investment in Trencor resulted in a remeasurement of the carrying value of the
distribution payable. This change was recognised in equity.
The recognition of the liability at fair value and the asset at its carrying
amount has resulted in an accounting mismatch between the liability and the
asset, giving rise to a temporary deficit in equity only until such time as the
liability is settled. The difference between the carrying amount of the asset
distributed and the carrying amount of the distribution payable was recognised
in profit or loss at the date of distribution on 4 February 2011 (the record
date), thereby reversing the temporary deficit in equity created by the
mismatch.
At 28 February 2011 the financial position of Mobile is as follows:
R Million
Total assets 1,1
Total liabilities (0,9)
Total equity 0,2
Directors:
Trencor: NI Jowell* (Chairman), HR van der Merwe* (Managing), JE Hoelter (USA),
C Jowell*, JE McQueen*, DM Nurek, E Oblowitz, RJA Sparks (*executive)
Mobile: C Jowell (Chairman), NI Jowell, DM Nurek, 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 (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
www.mobile-industries.net
Date: 28/02/2011 16:00:01 Produced by the JSE SENS Department.
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