| Thu 22 Feb 2001, 0:00 | | Trencor Limited/mobile Industries Limited - Interi |
|
TRENCOR LIMITED
REG. NO. 1995/002869/06
MOBILE INDUSTRIES LIMITED
REG. NO. 19968/014997/06
INTERIM REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
TRENCOR
6 months ended 31 December
Continuing Discontinuing Enterprise as a whole
R Million 2000 1999 2000 1999 2000 1999
TURNOVER (INCLUDING
EXCHANGE GAINS) 1 046,3 685,9 78,2 86,7 1 124,5 772,6
EXCHANGE GAINS INCLUDED IN
TURNOVER 357,9 43,0 - - 357,9 43,0
LONG-TERM RECEIVABLE
REVALUATION ADJUSTMENT (96,0) - - (260,0) (96,0) (260,0)
EMPLOYEE RETRENCHMENT
COSTS - - (0,2) (33,6) (0,2) (33,6)
IMPAIRMENT OF FIXED
ASSETS - - (2,4) (42,0) (2,4) (42,0)
RECOVERY ON DISPOSAL/
(WRITE DOWN) OF INVENTORY - - 12,6 (31,6) 12,6 (31,6)
LEASES AND OTHER
COMMITMENTS - - (1,1) (43,4) (1,1) (43,4)
INCOME/(LOSS) FROM
OPERATIONS 428,0 211,2 2,7 (487,4) 430,7 (276,2)
NET INTEREST EXPENSE (153,1) (118,9) - - (153,1) (118,9)
274,9 92,3 2,7 (487,4) 277,6 (395,1)
ATTRIBUTABLE (LOSS)/INCOME OF
ASSOCIATE COMPANIES:
FROM CONTINUING
OPERATIONS (12,8) 0,2 - - (12,8) 0,2
FROM DISCONTINUING
OPERATIONS - - - - - -
INCOME/(LOSS) BEFORE TAXATION
AND ABNORMAL ITEMS 262,1 92,5 2,7 (487,4) 264,8 (394,9)
ABNORMAL ITEMS 88,6 - - - 88,6 -
PROFIT ON SALE OF
INVESTMENT 94,1 - - - 94,1 -
GOODWILL WRITTEN OFF (5,5) - - - (5,5) -
INCOME/(LOSS) BEFORE
TAXATION 350,7 92,5 2,7 (487,4) 353,4 (394,9)
TAXATION 58,6 1,6 0,8 (143,2) 59,4 (141,6)
INCOME/(LOSS) AFTER
TAXATION 292,1 90,9 1,9 (344,2) 294,0 (253,3)
OUTSIDE SHAREHOLDERS'
INTEREST 24,2 13,9 - - 24,2 13,9
NET INCOME/(LOSS)
ATTRIBUTABLE
TO SHAREHOLDERS 267,9 77,0 1,9 (344,2) 269,8 (267,2)
NUMBER OF SHARES IN ISSUE
(MILLION) 152,8 152,8
UNDILUTED EARNINGS/(LOSS)
PER SHARE (CENTS) 176,6 (174,9)
DILUTED EARNINGS/(LOSS) PER
SHARE (CENTS) (NOTE 2) 154,7 (174,9)
UNDILUTED HEADLINE EARNINGS PER
SHARE (CENTS) (NOTE 2) 116,3 15,2
DILUTED HEADLINE EARNINGS PER
SHARE (CENTS) (NOTE 2) 103,9 15,2
PERIOD-END RATE OF EXCHANGE:
SA RAND TO US DOLLAR 7,56 6,12
TRENCOR
The unaudited results for the six
months ended 31 December 2000, and
comparative figures, are as follows:
Year ended 30 June 2000
Audited
Continuing Discontinuing Enterprise as a whole
R Million
TURNOVER (INCLUDING
EXCHANGE GAINS) 1 676,3 103,6 1 779,9
INCOME/(LOSS) BEFORE
ITEMS LISTED BELOW: 348,8 (78,4) 270,4
EXCHANGE GAINS INCLUDED
IN TURNOVER 346,0 - 346,0
LONG-TERM RECEIVABLE
REVALUATION ADJUSTMENT (50,8) (299,2) (350,0)
EMPLOYEE RETRENCHMENT
COSTS - (30,3) (30,3)
IMPAIRMENT OF FIXED ASSETS - (51,1) (51,1)
RECOVERY ON DISPOSAL/
(WRITE DOWN) OF INVENTORY - (24,4) (24,4)
LEASES AND OTHER
COMMITMENTS - (37,7) (37,7)
INCOME/(LOSS) FROM
OPERATIONS 644,0 (521,1) 122,9
NET INTEREST EXPENSE (240,7) - (240,7)
403,3 (521,1) (117,8)
ATTRIBUTABLE (LOSS)/INCOME OF
ASSOCIATE COMPANIES:
FROM CONTINUING OPERATIONS 0,3 - 0,3
FROM DISCONTINUING
OPERATIONS - - -
INCOME/(LOSS) BEFORE
TAXATION
AND ABNORMAL ITEMS 403,6 (521,1) (117,5)
ABNORMAL ITEMS - - -
PROFIT ON SALE OF
INVESTMENT - - -
GOODWILL WRITTEN OFF - - -
INCOME/(LOSS) BEFORE
TAXATION 403,6 (521,1) (117,5)
TAXATION 63,4 (153,3) (89,9)
INCOME/(LOSS) AFTER
TAXATION 340,2 (367,8) (27,6)
OUTSIDE SHAREHOLDERS'
INTEREST 33,2 - 33,2
NET INCOME/(LOSS)
ATTRIBUTABLE
TO SHAREHOLDERS 307,0 (367,8) (60,8)
NUMBER OF SHARES IN ISSUE
(MILLION) 152,8
UNDILUTED EARNINGS/(LOSS)
PER SHARE (CENTS) (39,8)
DILUTED EARNINGS/(LOSS) PER
SHARE (CENTS) (NOTE 2) (39,8)
UNDILUTED HEADLINE EARNINGS PER
SHARE (CENTS) (NOTE 2) 165,0
DILUTED HEADLINE EARNINGS PER
SHARE (CENTS) (NOTE 2) 145,0
PERIOD-END RATE OF EXCHANGE:
SA RAND TO US DOLLAR 6,78
MOBILE
The unaudited results for the six
months ended 31 December 2000, and
comparative figures, are as follows:
Audited
6 months ended 31 December Year ended
R Million 2000 1999 30/6/2000
TURNOVER (INCLUDING EXCHANGE GAINS) 19,3 19,9 39,7
INCOME/(LOSS) BEFORE ITEMS
LISTED BELOW: 12,0 12,8 23,1
EXCHANGE GAINS INCLUDED IN TURNOVER
LONG-TERM RECEIVABLE
REVALUATION ADJUSTMENT
EMPLOYEE RETRENCHMENT COSTS
IMPAIRMENT OF FIXED ASSETS
RECOVERY ON DISPOSAL/
(WRITE DOWN) OF INVENTORY
LEASES AND OTHER COMMITMENTS
INCOME/(LOSS) FROM OPERATIONS 12,0 12,8 23,1
NET INTEREST EXPENSE (9,9) (10,0) (20,1)
2,1 2,8 3,0
ATTRIBUTABLE (LOSS)/INCOME OF
ASSOCIATE COMPANIES:
FROM CONTINUING OPERATIONS 84,9 36,5 145,6
FROM DISCONTINUING OPERATIONS 0,9 (163,0) (174,2)
INCOME/(LOSS) BEFORE TAXATION
AND ABNORMAL ITEMS 87,9 (123,7) (25,6)
ABNORMAL ITEMS 42,0 - -
PROFIT ON SALE OF INVESTMENT 44,6 - -
GOODWILL WRITTEN OFF (2,6) - -
INCOME/(LOSS) BEFORE TAXATION 129,9 (123,7) (25,6)
TAXATION 0,7 0,8 0,9
INCOME/(LOSS) AFTER TAXATION 129,2 (124,5) (26,5)
OUTSIDE SHAREHOLDERS' INTEREST 0,4 0,5 0,6
NET INCOME/(LOSS) ATTRIBUTABLE
TO SHAREHOLDERS 128,8 (125,0) (27,1)
NUMBER OF SHARES IN ISSUE (MILLION) 897,8 897,8 897,8
UNDILUTED EARNINGS/(LOSS)
PER SHARE (CENTS) 14,3 (13,9) (3,0)
DILUTED EARNINGS/(LOSS) PER
SHARE (CENTS) (NOTE 2) 12,6 (13,9) (3,0)
UNDILUTED HEADLINE EARNINGS PER
SHARE (CENTS) (NOTE 2) 9, 5 1,4 13,5
DILUTED HEADLINE EARNINGS PER
SHARE (CENTS) (NOTE 2) 8,5 1,4 11,8
PERIOD-END RATE OF EXCHANGE:
SA RAND TO US DOLLAR
ABRIDGED BALANCE SHEETS
TRENCOR
31 December 31 December 30 June
2000 1999 2000
Audited
ASSETS
NON-CURRENT ASSETS
FIXED ASSETS 3 127,5 2 280,1 2 730,1
INVESTMENTS 49,4 112,5 113,2
LONG-TERM LOANS 40,0 10,6 58,2
LONG-TERM RECEIVABLES 2 309,3 2 148,7 2 196,0
5 526,2 4 551,9 5 097,5
CURRENT ASSETS 880,5 828,0 851,2
TOTAL ASSETS 6 406,7 5 379,9 5 948,7
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
SHARE CAPITAL AND PREMIUM 164,5 164,5 164,5
RESERVES 1 505,6 1 017,7 1 194,3
SHAREHOLDERS' EQUITY 1 670,1 1 182,2 1 358,8
INTEREST OF OUTSIDE SHAREHOLDERS IN
SUBSIDIARIES 235,3 160,3 186,6
TOTAL SHAREHOLDERS' FUNDS 1 905,4 1 342,5 1 545,4
CONVERTIBLE DEBENTURES 260,5 260,5 260,5
OTHER NON-CURRENT LIABILITIES
INTEREST-BEARING BORROWINGS 2 777,7 2 253,4 2 549,9
AMOUNTS ATTRIBUTABLE TO THIRD PARTIES
IN RESPECT OF LONG-TERM RECEIVABLES 481,7 594,8 510,8
DEFERRED TAXATION 285,7 114,1 209,5
5 711,0 4 565,3 5 076,1
CURRENT LIABILITIES 695,7 814,6 872,6
TOTAL EQUITY AND LIABILITIES 6 406,7 5 379,9 5 948,7
CAPITAL EXPENDITURE 253,5 28,0 428,2
CAPITAL EXPENDITURE COMMITED AND
AUTHORISED 0,4 4,2 57,1
MARKET VALUE OF LISTED INVESTMENTS - 91,9 104,3
DIRECTORS' VALUATION OF UNLISTED
INVESTMENTS 49,4 38,0 38,7
RATIO TO AGGREGATE OF TOTAL
SHAREHOLDERS' FUNDS
AND CONVERTIBLE DEBENTURES:
TOTAL LIABILITIES EXCLUDING
CONVERTIBLE DEBENTURES (%) 195,8 235,6 229,4
INTEREST-BEARING DEBT EXCLUDING
CONVERTIBLE
DEBENTURES (%) 141,4 167,6 164,9
MOBILE
31 December 31 December 30 June
2000 1999 2000
Audited
ASSETS
NON-CURRENT ASSETS
FIXED ASSETS - - -
INVESTMENTS 908,1 676,9 760,7
LONG-TERM LOANS
LONG-TERM RECEIVABLES 116,0 120,7 110,4
1 024,1 797,6 871,1
CURRENT ASSETS 78,9 81,9 98,8
TOTAL ASSETS 1 103,0 879,5 969,9
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
SHARE CAPITAL AND PREMIUM 66,5 66,5 66,5
RESERVES 727,0 494,7 578,5
SHAREHOLDERS' EQUITY 793,5 561,2 645,0
INTEREST OF OUTSIDE SHAREHOLDERS
IN SUBSIDIARIES 3,3 2,8 2,9
TOTAL SHAREHOLDERS' FUNDS 796,8 564,0 647,9
CONVERTIBLE DEBENTURES 127,6 127,6 127,6
OTHER NON-CURRENT LIABILITIES
INTEREST-BEARING BORROWINGS 91,0 95,7 101,0
AMOUNTS ATTRIBUTABLE TO THIRD PARTIES
IN RESPECT OF LONG-TERM RECEIVABLES - - -
DEFERRED TAXATION (0,8) (0,8) (0,8)
1 014,6 786,5 875,7
CURRENT LIABILITIES 88,4 93,0 94,2
TOTAL EQUITY AND LIABILITIES 1 103,0 879,5 969,9
CAPITAL EXPENDITURE - - -
CAPITAL EXPENDITURE COMMITED
AND AUTHORISED - - -
MARKET VALUE OF LISTED INVESTMENTS 337,2 393,4 284,5
DIRECTORS' VALUATION OF UNLISTED
INVESTMENTS - - -
RATIO TO AGGREGATE OF TOTAL
SHAREHOLDERS' FUNDS
AND CONVERTIBLE DEBENTURES:
TOTAL LIABILITIES EXCLUDING
CONVERTIBLE DEBENTURES (%) 19,4 27,0 25,0
INTEREST-BEARING DEBT EXCLUDING
CONVERTIBLE DEBENTURES (%) 18,6 26,0 24,9
ABRIDGED CASH FLOW STATEMENTS
TRENCOR
6 months ended 31 December Year ended
2000 1999 30 June 2000
Audited
CASH GENERATED FROM/(UTILISED BY)
OPERATIONS 161,3 162,1 36,0
INTEREST RECEIVED 13,9 11,5 23,7
INTEREST PAID (167,0) (130,4) (264,5)
DIVIDENDS RECEIVED 0,1 4,5 4,9
DIVIDENDS PAID - (21,4) (21,4)
DIVIDENDS PAID TO OUTSIDE
SHAREHOLDERS - - (10,0)
TAXATION PAID (0,8) - (13,5)
NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES 7,5 26,3 244,8
CASH FLOWS FROM INVESTING ACTIVITIES (66,3) (38,0) (447,2)
CASH FLOWS FROM FINANCING ACTIVITIES 237,9 (107,9) 589,7
NET INCREASE/(DECREASE) IN CASH AND
CASH EQUIVALENTS BEFORE EXCHANGE
RATE CHANGES 179,1 (119,6) (102,3)
NET CASH AND CASH EQUIVALENTS AT
THE BEGINNING OF THE PERIOD 66,9 153,3 153,3
EFFECTS OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS 24,4 1,6 15,9
NET CASH AND CASH EQUIVALENTS AT
THE END OF THE PERIOD 270,4 35,3 66,9
MOBILE
6 months ended 31 December Year ended
2000 1999 30 June 2000
Audited
CASH GENERATED FROM/(UTILISED BY)
OPERATIONS 30,8 (26,6) (24,3)
INTEREST RECEIVED 5,3 9,3 10,0
INTEREST PAID (15,1) (15,6) (30,1)
DIVIDENDS RECEIVED - 10,1 10,1
DIVIDENDS PAID 0,3 (10,5) (10,5)
DIVIDENDS PAID TO OUTSIDE
SHAREHOLDERS - - -
TAXATION PAID (0,8) - (13,5)
NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES 20,4 (34,3) (45,9)
CASH FLOWS FROM INVESTING ACTIVITIES (5,8) - -
CASH FLOWS FROM FINANCING ACTIVITIES (10,1) 35,1 45,1
NET INCREASE/(DECREASE) IN CASH AND
CASH EQUIVALENTS BEFORE EXCHANGE
RATE CHANGES 4,5 0,8 (0,8)
NET CASH AND CASH EQUIVALENTS AT
THE BEGINNING OF THE PERIOD (1,8) (1,0) (1,0)
EFFECTS OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS - - -
NET CASH AND CASH EQUIVALENTS AT
THE END OF THE PERIOD 2,7 (0,2) (1,8)
ABRIDGED STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS
TRENCOR
6 months ended 31 December Year ended
2000 1999 30 June 2000
BALANCE AT THE BEGINNING OF
THE PERIOD 1 358,8 1 418,3 1 418,3
MOVEMENTS IN DISTRIBUTABLE RESERVES 269,8 (267,1) (64,4)
NET INCOME/(LOSS) FOR THE PERIOD 269,8 (267,2) (60,8)
TRANSFER FROM NON-DISTRIBUTABLE
RESERVES - 0,1 -
GOODWILL WRITTEN OFF - - (3,6)
MOVEMENTS IN NON-DISTRIBUTABLE
RESERVES 41,5 31,0 4,9
CURRENCY TRANSLATION DIFFERENCES 41,5 31,1 33,9
REVALUATION OF FIXED ASSETS - (0,1) (29,0)
RESERVES OF ASSOCIATE COMPANIES - - -
BALANCE AT THE END OF THE PERIOD 1 670,1 1 182,2 1 358,8
MOBILE
6 months ended 31 December Year ended
2000 1999 30 June 2000
BALANCE AT THE BEGINNING OF THE
PERIOD 645,0 671,5 671,5
MOVEMENTS IN DISTRIBUTABLE RESERVES 128,8 1,4 (28,8)
NET INCOME/(LOSS) FOR THE PERIOD 128,8 (125,0) (27,1)
TRANSFER FROM NON-DISTRIBUTABLE
RESERVES - 126,4 -
GOODWILL WRITTEN OFF - - (1,7)
MOVEMENTS IN NON-DISTRIBUTABLE
RESERVES 19,7 (111,7) 2,3
CURRENCY TRANSLATION DIFFERENCES - - -
REVALUATION OF FIXED ASSETS - - -
RESERVES OF ASSOCIATE COMPANIES 19,7 (111,7) 2,3
BALANCE AT THE END OF THE PERIOD 793,5 561,2 645,0
NOTES TO THE ABRIDGED FINANCIAL STATEMENTS
1. These consolidated abridged interim financial statements are prepared in
accordance with Generally Accepted Accounting Practice. The accounting policies
used in the preparation of the interim financial statements are consistent with
those used in the annual financial statements
for the year ended 30 June 2000.
TRENCOR
6 months ended 31 December Year ended
2000 1999 30 June 2000
Audited
2. Headline earnings
Earnings/(Loss) 269,8 (267,2) (60,8)
Discontinuing operations (1,9) 344,2 367,8
Losses incurred up to date of
discontinuance (1,6) (53,8) (54,9)
Abnormal items (88,6) - -
Headline earnings 177,7 23,2 252,1
Number of shares in issue (million) 152,8 152,8 152,8
Headline earnings per share (cents) 116,3 15,2 165,0
The dilution arises as a result of any future conversion of the convertible
debentures.
The directors are of the opinion that the debentures will not be converted in
the foreseeable future and therefore no dilution is anticipated for the
foreseeable future.
3. Segmental reporting
Turnover:
Trailers 134,8 125,4 259,2
Container sales and financing
continuing 454,0 241,0 690,6
Container sales and financing
discontinuing 78,2 86,7 103,6
Container leasing 442,3 315,3 683,9
Other 15,2 4,2 42,6
1 124,5 772,6 1 779,9
Income/(Loss) from operations:
Trailers (13,1) (5,8) (6,9)
Container sales and financing
continuing 293,0 96,6 423,1
Container sales and financing
discontinuing 2,7 (487,4) (521,1)
Container leasing 177,8 111,0 250,0
Other (29,7) 9,4 (22,2)
430,7 (276,2) 122,9
MOBILE
6 months ended 31 December Year ended
2000 1999 30 June 2000
Audited
2. Headline earnings
Earnings/(Loss) 128,8 (125,0) (27,1)
Discontinuing operations (0,9) 163,0 174,1
Losses incurred up to date of
discontinuance (0,5) (25,6) (26,0)
Abnormal items (42,0) - -
Headline earnings 85,4 12,4 121,0
Number of shares in issue (million) 897,8 897,8 897,8
Headline earnings per share (cents) 9,5 1,4 13,5
COMMENTS ON RESULTS
TRENCOR
Income before tax and abnormal items for the six months ended 31 December 2000
was R265 million (1999: loss R395 million) and undiluted headline earnings per
share were 116,3 cents (1999: 15,2 cents). The period under review was
characterised by a sharp decline in the value of the rand against the US dollar
and an excellent performance by Textainer. The weaker rand resulted in a net
increase in income before tax of R262 million: a foreign exchange revaluation
gain of R358 million, less an adjustment of R96 million arising from the
translation of the existing dollar-based provision against the net long-term
receivables.
Textainer contributed R65 million to headline earnings. The financial
statements are based on an exchange rate of US$1=R7,56 at 31 December 2000; the
rate at 30 June 2000 was R6,78.
TRADING
Textainer's fleet utilisation peaked at 85% towards the end of September 2000
but has been declining since November, partly due to the economic slowdown in
the USA. It ended the year at 82%, the same as 1999, and is currently just
below 80%. By the end of 2000, Textainer had become the world's largest lessor
of standard dry freight containers, with a fleet of 925 000 TEUs (twenty foot
equivalent units) under management.
The stakbed container factory at Montague Gardens was closed at the end of
December. All costs associated with the closure, amounting to just under R7
million, have been included in "Discontinuing" operations in the attached
financial report. Production of stainless steel tank containers at the Parow
plant continues, albeit on a reduced scale, and remains under constant review.
Our other operations experienced very difficult trading conditions during the
period under review.
There are no significant seasonal trading patterns in our businesses.
FINANCE
Textainer has entered into a joint venture with an overseas financial
institution with the formation of a new financing entity, Textainer Marine
Containers Limited ("TMCL"), in which Textainer and the institution each hold a
49,99% interest. TMCL is a vehicle for purchasing new containers that will be
managed by Textainer. The debt in TMCL, which is provided by overseas financial
institutions, is without recourse to Textainer. The results of TMCL have been
accounted for by Trencor on the proportionate consolidation method, on a
line-by-line basis.
Virtually all of the capital expenditure in this period was incurred in TMCL by
Textainer.
The ratio of Trencor's consolidated interest-bearing debt to the sum of total
shareholders' funds and convertible debentures decreased from 165% at 30 June
2000 to 141% by the end of December. With Textainer notionally equity accounted
(its debt is without recourse to Trencor), this ratio at 31 December 2000 was
43% compared to 62% at 30 June 2000.
R224 million of rand-denominated debt was repaid during the period under
review. Borrowings denominated in dollars, principally in Textainer, were also
reduced, but were higher when translated into rand because of the weaker
exchange rate. In the same period, Trencor shareholders' equity increased by
R311 million to R1,67 billion.
During the period under review, the group's interests in Waco International
Limited were sold for a net cash receipt of R170 million, realising a net
capital gain of R94,1 million. The premium of R5,5 million over net asset value
paid on the acquisition of shares in Dynanet, whose business complements that
of Trencor Solutions, was written off, These transactions resulted in a net
non-trade gain of R88,6 million.
TAX QUERIES
The enquiry by the South African Revenue Service ("SARS") into the tax
treatment of the Group's export partners' participation in the export of cargo
containers (in respect of transactions concluded in prior years) continues. It
is not possible to anticipate when it will be concluded. We remain confident
that the supportive legal advice we have received will prevail should SARS seek
to challenge the tax treatment.
DIVIDENDS
Trencor will not declare dividends until the advances under its South African
banking facilities have been repaid.
MOBILE
Mobile Acceptances has had a satisfactory six months' trading. As Mobile
Industries derives most of its income from dividends it receives from Trencor,
Mobile will not declare dividends unless and until Trencor does.
GENERAL
Holders of securities in Trencor and Mobile are reminded that the current
financial period is for the eighteen months ending 31 December 2001. An interim
report on the twelve months to 30 June 2001 will be published towards the end
of August 2001.
ON BEHALF OF THE BOARDS
N I Jowell Chairman Trencor Ltd
C Jowell Chairman Mobile Industries Ltd
21 February 2001
Registered office:
1313 main tower
standard bank centre
Heerengracht
Cape Town 8001
http://www.trencor.net
Transfer Secretaries:
Computershare services Limited
1st floor Edura , 41 Fox street
Johannesburg 2001
(P O box 61051 Marshalltown 2107)
