Wrap Text
Unaudited interim results and declaration of cash dividend for the six months ended 30 June 2014
Trencor Limited
(Incorporated in the Republic of South Africa)
Registration No. 1955/002869/06
Share code: TRE
ISIN: ZAE000007506
('the company' or 'Trencor')
Unaudited interim results
and declaration of cash dividend
for the six months ended 30 June 2014
HIGHLIGHTS
GROUP
- Trading profit, which is earned mainly in US dollars, after net financing costs,
declined by 12,6% from R1 008 million in 2013 to R881 million during the
period under review. Financing costs in the current period included a write-off
by Textainer of unamortised debt issuance costs amounting to R68 million.
- Headline earnings per share (including the effect of realised and net unrealised
foreign exchange translation gains and the write-off of unamortised debt issuance
costs ) were 223,8 cents (2013: 318,1 cents), a decrease of 29,6%. The effect on
earnings of the write-off of debt issuance costs was 18 cents per share.
- Adjusted headline earnings per share (which excludes the effect of net
unrealised foreign exchange translation gains and losses) were 220,6 cents
(2013: 264,5 cents), a decrease of 16,6%.
- These various earnings are better presented in tabular form:
Year ended
Six months ended 30 June 31 December
Cents per share 2014 2013 2013
Headline earnings, including for the year to
31 December 2013, the value placed on
the option to acquire the remaining 55,7%
of the shares in TAC (82,9 cents per share) 223,8 318,1 792,6
Deduct: Net unrealised foreign exchange
translation gains (3,2) (53,6) (64,7)
Deduct: Gain on modification of debt terms – – (97,2)
Adjusted headline earnings 220,6 264,5 630,7
- Based on the spot exchange rate of US$1 = R10,57 and the price of Textainer's
shares listed on the NYSE on 30 June 2014 (US$38,62), the net asset value of
Trencor at that date was as follows:
R million R per share
Net beneficiary interest in Textainer 11 136 62,88
Net beneficiary interest in TAC 311 1,76
Net interest in long-term receivables 598 3,38
Cash 1 518 8,57
Net liabilities (116) (0,66)
13 447 75,93
- Consolidated gearing ratio at 30 June 2014 was 196% (2013: 181%).
- Interim dividend of 72 cents per share declared (2013: 72 cents per share).
TEXTAINER (NYSE: TGH) 48,1% beneficiary interest
- Net profit for the half year in US GAAP was US$92,7 million (2013:
US$97,1 million). Profit for the first half of 2014 included a one-time
US$22,7 million income tax benefit following the completion of an IRS tax
examination and a write-off of US$6,4 million of unamortised debt issuance
costs related to the refinancing of certain debt on favourable terms. Adjusted to
conform with International Financial Reporting Standards, Textainer's net profit
for the half year was US$73,1 million (2013: US$100,8 million).
- Average fleet utilisation for the six months to June 2014 was 94,8% (2013:
95,4%) while utilisation for the second quarter to 30 June 2014 was 95,3%
(2013: 95,1%).
- Textainer acquired more than US$598 million in new and used containers year
to date.
- Total fleet under management at 30 June 2014 was 3 060 000 (2013: 2 860 000)
twenty foot equivalent units of which Textainer itself owned 76,7% (2013: 74,0%).
- Textainer declared dividends of US$0,47 per share in respect of each of
quarters 1 and 2 of 2014.
- Textainer's results may be viewed on its website www.textainer.com.
PREPARATION OF FINANCIAL STATEMENTS
These unaudited interim condensed consolidated financial statements have been
prepared by management under the supervision of the Financial Director and have
not been audited or reviewed by Trencor's independent auditors.
DECLARATION OF CASH DIVIDEND
The board has declared an interim cash dividend (number 98) of 72,0 cents per share
out of distributable reserves in respect of the six months ended 30 June 2014.
The salient dates pertaining to the dividend payment are as follows:
Last day to trade cum the dividend Friday, 5 September 2014
Trading commences ex the dividend Monday, 8 September 2014
Record date Friday, 12 September 2014
Payment date Monday, 15 September 2014
Share certificates may not be dematerialised or rematerialised between Monday,
8 September 2014 and Friday, 12 September 2014, both days inclusive.
Note that:
- As no secondary tax on companies' credits are available, dividend withholding
tax at the rate of 15% will be applicable to shareholders who are not exempt,
which will result in a net dividend of 61,2 cents per share;
- Trencor's tax reference number is 9676002711; and
- Trencor's issued share capital at the declaration date is R885 340 (177 068 011
ordinary shares of 0,5 cent each).
On behalf of the board
NI Jowell Chairman
14 August 2014
Directors:
NI Jowell* (Chairman), JE Hoelter (USA), C Jowell*, JE McQueen* (Financial), DM Nurek, E Oblowitz, RJA Sparks, HR van der Merwe*, H Wessels (*executive)
Secretaries: 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)
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Ltd)
Condensed Consolidated statement of
financial position at 30 June 2014
Unaudited Unaudited Audited
30 June 30 June 31 December
R million 2014 2013 2013
ASSETS
Property, plant and equipment 38 605 30 128 36 505
Intangible assets 288 311 305
Investment in equity accounted investees 68 61 57
Other investments 66 66 66
Long-term receivables 538 755 637
Net investment in finance leases 1 320 1 151 1 305
Derivative financial instruments 3 – 12
Deferred tax assets 16 23 16
Restricted cash 289 429 629
Total non-current assets 41 193 32 924 39 532
Inventories 395 465 471
Trade and other receivables 1 297 1 000 1 201
Current portion of long-term receivables 194 144 230
Current portion of net investment in finance
leases 499 361 447
Current tax assets – – 3
Cash and cash equivalents 2 679 2 109 2 744
Total current assets 5 064 4 079 5 096
Total assets 46 257 37 003 44 628
EQUITY
Share capital and premium 44 44 44
Reserves 8 041 6 942 7 868
Total equity attributable to equity holders of
the company 8 085 6 986 7 912
Non-controlling interests 6 939 5 787 6 647
Total equity 15 024 12 773 14 559
LIABILITIES
Interest-bearing borrowings 28 404 21 773 26 936
Amounts attributable to third parties in respect
of long-term receivables 103 140 119
Derivative financial instruments 40 52 43
Deferred revenue 32 33 34
Deferred tax liabilities 231 315 284
Total non-current liabilities 28 810 22 313 27 416
Trade and other payables 1 307 538 594
Current tax liabilities 89 40 76
Current portion of interest-bearing borrowings 992 1 308 1 943
Current portion of amounts attributable to third
parties in respect of long-term receivables 31 27 36
Current portion of deferred revenue 4 4 4
Total current liabilities 2 423 1 917 2 653
Total liabilities 31 233 24 230 30 069
Total equity and liabilities 46 257 37 003 44 628
Capital expenditure incurred during the period 3 615 2 735 6 928
Capital expenditure committed and authorised,
but not yet incurred 622 302 643
Directors' valuation of unlisted investments 66 66 66
Ratio to total equity:
Total liabilities (%) 207,9 189,7 206,5
Interest-bearing debt (%) 195,7 180,7 198,4
Condensed Consolidated statement of
comprehensive income for the six months ended 30 June 2014
Unaudited Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
R million 2014 2013 2013
Revenue (Note 2) 3 844 2 982 6 590
Trading profit before items listed below 1 470 1 364 2 855
Realised and unrealised exchange gains on
translation of long-term receivables, excluding
fair value adjustment 12 170 226
Fair value adjustment on net long-term receivable (19) (51) (49)
Impairment of plant and equipment (41) (13) (86)
Gain – fair value of option to acquire
non-controlling interest – – 147
Bargain purchase gain – – 54
Loss on step up to control – – (26)
Operating profit before net finance expenses 1 422 1 470 3 121
Net finance expenses (Note 3) (589) (356) (817)
Finance expenses Interest expense (539) (377) (829)
Realised and unrealised
(losses)/gains on derivative
financial instruments (56) 10 (6)
Finance income Interest income 6 11 18
Share of profit of equity accounted investees
(net of tax) 2 9 182
Profit before tax 835 1 123 2 486
Income tax credit/(expense) 1 (66) (83)
Profit for the period 836 1 057 2 403
Other comprehensive income
Items that are or may be reclassified
subsequently to profit or loss
Foreign currency translation differences 145 1 767 2 434
Total comprehensive income for the period 981 2 824 4 837
Total comprehensive income for the period
attributable to:
Equity holders of the company 454 1 489 2 666
Non-controlling interests 527 1 335 2 171
981 2 824 4 837
Profit for the period attributable to:
Equity holders of the company 377 557 1 391
Non-controlling interests 459 500 1 012
836 1 057 2 403
Basic earnings per share (cents) 207,9 314,7 785,7
Diluted earnings per share (cents) 207,9 314,7 785,7
Number of shares in issue (million) 177,1 177,1 177,1
Weighted average number of shares in issue
(million) 177,1 177,1 177,1
Period-end rate of exchange: SA Rand to US dollar 10,57 9,95 10,46
Average rate of exchange for the period:
SA rand to US dollar 10,65 9,24 9,67
Condensed Consolidated statement of cash flows
for the six months ended 30 June 2014
Unaudited Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
R million 2014 2013 2013
Cash generated from operations 2 975 2 197 5 104
Increase in container leasing equipment (2 879) (3 326) (7 595)
Finance income received 6 11 18
Finance lease income 90 65 139
Finance expenses paid (464) (360) (795)
Decrease in finance leases 236 153 392
Receipts from long-term receivables 136 96 202
Payments to third parties in respect of
long-term receivables (18) (20) (39)
Dividends paid to equity holders of the company (280) (903) (1 031)
Dividends paid to non-controlling interest (309) (250) (535)
Income tax paid (29) (26) (54)
Net cash outflow from operating activities (536) (2 363) (4 194)
Cash inflow (outflow) from investing activities 335 80 (26)
Cash inflow from financing activities 108 1 542 3 969
Net decrease in cash and cash equivalents
before exchange rate fluctuations (93) (741) (251)
Cash and cash equivalents at the beginning of
the period 2 744 2 513 2 513
Effects of exchange rate fluctuations on cash
and cash equivalents 28 337 482
Cash and cash equivalents at the end of the period 2 679 2 109 2 744
Condensed Consolidated statement of changes in equity
for the six months ended 30 June 2014
Equity holders of the company
Gain/(Loss)
Foreign on changes
currency Equity in ownership Non-
Share Share Fair value translation compensation interests Retained controlling Total
R million capital premium reserve reserve reserve in subsidiaries income Total interest equity
Six months ended 30 June 2014
Balance at 1 January 2014 1 43 52 1 983 281 383 5 169 7 912 6 647 14 559
Total comprehensive income for the period
Profit for the period – – – – – – 377 377 459 836
Other comprehensive income for the period
Foreign currency translation differences – – – 77 – – – 77 68 145
Total comprehensive income for the period – – – 77 – – 377 454 527 981
Transactions with owners of the company
Contributions and distributions
Share-based payments – – – – 28 – – 28 30 58
Share options exercised – – – – – – – – 15 15
Dividends – – – – – – (280) (280) (309) (589)
Total contributions and distributions – – – – 28 – (280) (252) (264) (516)
Changes in ownership interests in subsidiaries – – – – – (29) – (29) 29 –
Total transactions with owners of the company – – – – 28 (29) (280) (281) (235) (516)
Balance at 30 June 2014 1 43 52 2 060 309 354 5 266 8 085 6 939 15 024
Six months ended 30 June 2013
Balance at 1 January 2013 1 43 52 708 241 413 4 956 6 414 4 628 11 042
Total comprehensive income for the year
Profit for the year – – – – – – 557 557 500 1 057
Other comprehensive income for the year
Foreign currency translation differences – – – 932 – – – 932 835 1 767
Total comprehensive income for the year – – – 932 – – 557 1 489 1 335 2 824
Transactions with owners of the company
Contributions and distributions
Share-based payments – – – – 20 – – 20 21 41
Share options exercised – – – – – – – – 19 19
Dividends – – – – – – (903) (903) (250) (1 153)
Total contributions and distributions – – – – 20 – (903) (883) (210) (1 093)
Changes in ownership interests in subsidiaries – – – – – (34) – (34) 34 –
Total transactions with owners – – – – 20 (34) (903) (917) (176) (1 093)
Balance at 30 June 2013 1 43 52 1 640 261 379 4 610 6 986 5 787 12 773
Notes to the condensed consolidated interim
financial statements for the six months ended 30 June 2014
1. These condensed consolidated interim financial statements have been
prepared in accordance with the requirements of the JSE Limited's Listings
Requirements for interim reports and the requirements of the Companies Act of
South Africa. The Listings Requirements require interim reports to be prepared
in accordance with the framework concepts and the measurement and
recognition of International Financial Reporting Standards ('IFRS') and SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee
and financial pronouncements as issued by Financial Reporting Standards
Council and to also, as a minimum, contain the information required by IAS 34
Interim Financial Reporting.
The accounting policies applied in the preparation of these condensed
consolidated financial statements comply with IFRS and are consistent with
those used in the annual financial statements for the year ended 31 December
2013. The adoption of the amendments to IAS 32 Financial Instruments:
Presentation: Offsetting financial assets and financial liabilities has had no
impact the group's current or comparative financial results.
Unaudited Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
R million 2014 2013 2013
2. Revenue
Goods sold 963 608 1 477
Leasing income 2 783 2 089 4 681
Management fees 77 96 177
Finance income 9 19 29
3 832 2 812 6 364
Realised and unrealised exchange differences 12 170 226
3 844 2 982 6 590
3. net finance expenses
Finance expenses 595 367 835
Interest expense – Textainer 503 377 790
Interest expense – TAC 36 – 39
Realised and unrealised (losses)/gains on
derivative financial instruments 56 (10) 6
Finance income
Interest income – cash and cash
equivalents (6) (11) (18)
589 356 817
Unaudited Unaudited Audited
Six months ended Year ended
30 June 30 June 31 December
R million 2014 2013 2013
4. Headline earnings
Profit attributable to equity holders
of the company 377 557 1 391
Impairment of property, plant and
equipment 41 13 86
Bargain purchase gain – – (54)
Loss on step up to control – – 26
Total tax effects of adjustments (1) (1) (2)
Total non-controlling interests' share
of adjustments (21) (6) (43)
Headline earnings 396 563 1 404
Weighted average number of shares
in issue (million) 177,1 177,1 177,1
Headline earnings per share (cents) 223,8 318,1 792,6
Diluted headline earnings per share
(cents) 223,8 318,1 792,6
Adjusted headline earnings
Headline earnings (as above) 396 563 1 404
Gain on modification of debt terms
on initial recognition – – (172)
Net unrealised foreign exchange
gain on translation of long-term
receivables (8) (132) (159)
Total tax effects of adjustments 3 37 44
Adjusted headline earnings 391 468 1 117
Undiluted adjusted headline
earnings per share (cents) 220,6 264,5 630,7
Diluted adjusted headline earnings
per share (cents) 220,6 264,5 630,7
5. Segmental reporting
Revenue
Reportable segments
Containers – finance (including
exchange differences) 21 190 256
Containers – owning, leasing,
management and trading 3 823 2 792 6 334
3 844 2 982 6 590
Profit from operations
Reportable segments
Containers – finance (6) 136 196
Containers – owning, leasing,
management and trading 1 448 1 354 2 788
1 442 1 490 2 984
Unallocated (20) (20) 137*
1 422 1 470 3 121
Profit before tax
Reportable segments
Containers – finance (6) 136 196
Containers – owning, leasing,
management and trading 856 996 2 137
850 1 132 2 333
Unallocated (15) (9) 153*
835 1 123 2 486
* Primarily includes gain – fair value of option to acquire non-controlling interest R147 million.
Assets
Capital expenditure incurred by
the container owning, leasing,
management and trading segment 3 615 2 765 6 928
Unaudited Unaudited Audited
30 June 30 June 31 December
2014 2013 2013
Carrying Fair Carrying Fair Carrying Fair
R million amount value amount value amount value
6. Financial instr
The carrying amounts and fair values of financial assets and financial liabilities are as follows:
Assets
Other investments
– Equity securities –
available-for-sale 66 66 66 66 66 66
Long-term receivables –
designated at fair value
through profit or loss 732 732 899 899 867 867
Net investment in finance
leases – other 1 819 1 715 1 512 1 453 1 752 1 732
Derivative financial
instruments – held for
trading 3 3 – – 12 12
Restricted cash – loans
and receivables 289 289 429 429 629 629
Trade and other
receivables – loans and
receivables 1 208 1 208 969 969 1 116 1 116
Cash and cash
equivalents – loans and
receivables 2 679 2 679 2 109 2 109 2 744 2 744
6 796 6 692 5 984 5 925 7 186 7 166
Liabilities
Interest-bearing
borrowings – liabilities at
amortised cost (excluding
debt issuance costs) 29 598 29 734 23 319 23 388 29 182 29 266
Amounts attributable to
third parties in respect of
long-term receivables –
designated at fair value
through profit or loss 134 134 167 167 155 155
Derivative financial
instruments – held for
trading 40 40 52 52 43 43
Trade and other payables
– liabilities at amortised
cost 1 307 1 307 538 538 594 594
31 079 31 215 24 076 24 145 29 974 30 058
Financial instruments carried at fair value
Fair value hierarchy
The table below analyses the recurring fair value measurements for financial assets and financial liabilities.
These fair value measurements are categorised into different levels in the fair value hierarchy based on
the inputs to valuation techniques used. The different levels are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the group
can access at measurement date.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
Level 1 Level 2 Level 3 Total
At 30 June 2014
Assets
Other investments – Equity securities – available- – 66 – 66
for-sale
Long-term receivables – designated at fair value – – 732 732
through profit or loss
Interest rate swap contracts – 3 – 3
– 69 732 801
Liabilities
Amounts attributable to third parties in respect of – – 134 134
long-term receivables – designated at fair value
through profit or loss
Interest-bearing borrowings – – 459 459
Derivative financial instruments – held for trading – 40 – 40
– 40 593 633
R million Level 1 Level 2 Level 3 Total
At 30 June 2013
Assets
Other investments – Equity
securities – available-for-sale – 66 – 66
Long-term receivables –
designated at fair value
through profit or loss – – 899 899
– 66 899 965
Liabilities
Amounts attributable to
third parties in respect of
long-term receivables –
designated at fair value
through profit or loss – – 167 167
Derivative financial
instruments – held for trading – 52 – 52
– 52 167 219
At 31 December 2013
Assets
Long-term receivables –
designated at fair value
through profit or loss – – 867 867
Other investments – Equity
securities – available-for-sale – 66 – 66
Interest rate swap contracts – 12 – 12
– 78 867 945
Liabilities
Amounts attributable to
third parties in respect of
long-term receivables –
designated at fair value
through profit or loss – – 155 155
Interest-bearing borrowings – 556 556
Derivative financial
instruments – held for trading – 43 – 43
– 43 711 754
Details of the determination of Level 3 fair value measurements during the six months
ended 30 June 2014 are set out below:
Long-term receivables and amounts due to third parties in respect of long-term
receivables are valued by discounting future cash flows. The discount rate applied to the
long-term receivables (denominated in US$) is 8,5% p.a. (2013: 8,5% p.a), and amounts
attributable to third parties in respect of long-term receivables is 10% p.a. (2013: 10%
p.a). An appropriate fair value adjustment is made to the net investment for the estimated
timing of receipt and the possible non-collectability of these receivables, and the related
effect on the payment to third parties. The net present value of the long-term receivables
and the related fair value adjustment were translated into SA rand at US$1=R10,46
(June 2013: US$1=R9,95, December 2013: US$1=R10,46).
The fair value of the obligations under instalment sale agreements is determined by
discounting expected future cash flows at a pre-tax rate that reflects current assessments
of the time value of money and the risks specific to the liability.
The following table shows a reconciliation from the opening balances to the closing
balances for fair value measurements in Level 3 of the fair value hierarchy:
Amounts
attributable to
Long- third parties
term in respect of Interest-
receiva- long-term bearing
bles receivables debt Total
Six months to 30 June 2014
Balance at the beginning of the period 867 (155) (556) 156
Total gains/(losses) in profit or loss 1 3 (15) (11)
Settlements (136) 18 103 (15)
Effects of movements in exchange rates
included in equity – – 9 9
Balance at the end of the period 732 (134) (459) 139
Six months to 30 June 2013
Balance at the beginning of the period 832 (186) – 646
Total gains/(losses) in profit or loss 162 (1) – 161
Settlements (95) 20 – (75)
Balance at the end of the period 899 (167) – 732
Year to 31 December 2013
Balance at the beginning of the period 832 (186) – 646
Total gains/(losses) in profit or loss 237 (8) (14) 215
Settlements (202) 39 65 (98)
Effects of movements in exchange rates
included in equity – – (26) (26)
Amount arising through business
combination – – (581) (581)
Balance at the end of the period 867 (155) (556) 156
Amounts
attributable to
Long- third parties
term in respect of Interest-
receiva- long-term bearing
R million bles receivables debt Total
Total gains or losses included in profit or loss for the period in the above table are presented
in the statement of comprehensive income as follows:
Six months to 30 June 2014
Total gains or losses included in
profit or loss for the period
Operating profit 1 1 – 2
Finance expenses – – (15) (15)
Associate tax credit – 2 – 2
Total gains or losses for the period
included in profit or loss for assets and
liabilities held at the end of the period
Operating profit 24 4 – (20)
Finance expenses – – (17) (17)
Six months to 30 June 2013
Total gains or losses included in
profit or loss for the period
Operating profit (95) (27) – (122)
Associate tax credit – 7 – 7
Total gains or losses for the period
included in profit or loss for assets and
liabilities held at the end of the period
Operating profit 79 (12) 67
Year to 31 December 2013
Total gains or losses included in
profit or loss for the period
Operating profit 237 (12) – 225
Finance expenses – – (14) (14)
Associate tax credit – 4 – 4
Total gains or losses for the period
included in profit or loss for assets and
liabilities held at the end of the period
Operating profit 183 (3) – 180
Finance expenses – – (23) (23)
Although the group believes that its estimates of fair value are appropriate, the use
of different assumptions could lead to different measurements of fair value. For fair
value measurement in Level 3 of the fair value hierarchy, changing one or more of the
unobservable inputs used, to reasonably possible alternative assumptions, would have
the following effects:
30 June 30 June 31 December
Increase/(Decrease) 2014 2013 2013
in unobservable Favourable/(Unfavourable) impact on
inputs profit or loss
Interest rates –
discount rate
Long-term receivables 100 basis points (1) (1) (1)
(100) basis points 1 1 1
Amounts attributable
to third parties in
respect of long-term
receivables 100 basis points 1 1 1
(100) basis points (1) (1) (1)
Finance expense 100 basis points (2) – (3)
(100) basis points 2 – 3
Exchange rates
(SA Rand = US$1)
Long-term receivables 1% 7 6 6
(1%) (7) (6) (6)
7. Cash flow changes to classification
As reported in the financial statements for the year ended 31 December 2013, the group
has reclassified receipts from long-term receivables, payments to third parties in respect
of long-term receivables and decrease in finance leases to cash flows from operating
activities, as management believe that these cash flows are more closely aligned to the
operating activities of the group. These items were previously classified as cash flows from
financing and investing activities. A summary of the effects of the changes on the amounts
reported to 30 June 2013 are as follows:
Amount
previously Reclassifica- Restated
reported tion amount
Net cash outflow from operating activities (2 657)
Finance lease income 65
Receipts from long-term receivables 96
Payments to third parties in respect of long-
term receivables (20)
Decrease in finance leases 153
(2 657) 294 (2 363)
Net cash inflow from investing activities 298
Decrease in finance leases (218)
298 (218) 80
Net cash inflow from financing activities 1 618
Receipts from long-term receivables (96)
Payments to third parties in respect of long-
term receivables 20
1 618 (76) 1 542
Net increase in cash and cash equivalents
before exchange rate fluctuations (741) – (741)
In order to provide a better appreciation of the results of the group's activities, a condensed consolidated income statement and a condensed consolidated statement of financial position are also
presented in US dollars, as virtually all of the group's revenue and assets and much of its expenditure are denominated in that currency. The amounts stated in US dollars have been prepared by
management and are unaudited.
Unaudited Trencor condensed consolidated income
statement in US dollars
for the six months ended 30 June 2014
Unaudited Unaudited Unaudited
Six months ended Year ended
30 June 30 June 31 December
US$ million 2014 2013 2013
Revenue 658,0 303,9 658,0
Trading profit before items listed below 138,1 147,7 295,6
Realised and unrealised exchange losses on
translation of long-term receivables (0,4) (0,7) (0,4)
Fair value adjustment on net long-term
receivable (1,2) 1,8 3,9
Impairment of plant and equipment (3,8) (1,4) (8,9)
Gain – fair value of option to acquire
non-controlling interest – – 14,8
Bargain purchase gain – – 5,5
Loss on step up to control – – (2,6)
Operating profit before net finance expenses 132,7 147,4 307,9
Net finance expenses (55,3) (38,5) (84,3)
Finance expense Interest expense (50,7) (40,8) (85,7)
Realised and unrealised
(losses)/gains on derivative
financial instruments (5,1) 1,0 (0,5)
Finance income Interest income 0,5 1,3 1,9
Share of profit of equity accounted investees
(net of tax) 0,2 0,9 18,3
Profit before tax 77,6 109,8 241,9
Income tax credit/(expense) 0,3 (3,8) (4,6)
Profit for the year 77,9 106,0 237,3
Attributable to:
Equity holders of the company 34,9 52,0 132,6
Non-controlling interests 43,0 54,0 104,7
77,9 106,0 237,3
Number of shares in issue (million) 177,1 177,1 177,1
Weighted average number of shares in
issue (million) 177,1 177,1 177,1
Basic earnings per share (US cents) 19,7 29,4 74,9
Diluted earnings per share (US cents) 19,7 29,4 74,9
Headline earnings per share (US cents) 20,7 29,8 75,6
Diluted headline earnings per share (US cents) 20,7 29,8 75,6
Adjusted headline earnings per share (US cents) 46,0 28,6 64,5
Diluted adjusted headline earnings per share
(US cents) 46,0 28,6 64,5
Period-end rate of exchange: SA rand to US dollar 10,57 9,95 10,46
Average rate of exchange for the period:
SA rand to US dollar 10,65 9,24 9,67
Trading profit from operations comprises:
Textainer and TAC 139,9 147,9 297,2
Other (1,8) (0,2) (1,6)
138,1 147,7 295,6
Unaudited Trencor condensed consolidated
statement of financial position in US dollars
at 30 June 2014
Unaudited Unaudited Audited
30 June 30 June 31 December
US$ million 2014 2013 2013
ASSETS
Property, plant and equipment 3 652,3 3 028,0 3 489,9
Long-term receivables 50,9 75,8 60,9
Other non-current assets 193,9 205,1 228,5
Total non-current assets 3 897,1 3 308,9 3 779,3
Total current assets 479,1 410,0 487,2
Inventories 37,4 46,7 45,1
Trade and other receivables 122,7 100,6 117,5
Current portion of long-term receivables 18,3 14,4 21,6
Current portion of net investment in
finance leases 47,2 36,3 40,4
Current tax assets – – 0,3
Cash and cash equivalents 253,5 212,0 262,3
Total assets 4 376,2 3 718,9 4 266,5
Equity and liabilities
Equity attributable to equity holders of the
company 765,0 702,1 756,3
Non-controlling interests 656,5 581,6 635,5
Total equity 1 421,5 1 283,7 1 391,8
LIABILITIES
Interest-bearing borrowings 2 687,2 2 188,2 2 575,1
Amounts attributable to third parties in respect
of long-term receivables 9,7 14,1 11,4
Derivative financial instruments 3,8 5,2 4,2
Deferred revenue 3,1 3,3 3,3
Deferred tax liabilities 21,8 31,7 27,1
Total non-current liabilities 2 725,6 2 242,5 2 621,1
Total current liabilities 229,1 192,7 253,6
Trade and other payables 123,6 54,0 57,0
Current tax liability 8,4 4,1 7,1
Current portion of amounts attributable to third
parties in respect of long-term receivables 3,0 2,7 3,4
Current portion of interest-bearing borrowings 93,8 131,5 185,8
Current portion of deferred revenue 0,3 0,4 0,3
Total liabilities 2 954,7 2 435,2 2 874,7
Total equity and liabilities 4 376,2 3 718,9 4 266,5
Ratio to total equity:
Total liabilities (%) 207,9 189,7 206,5
Interest-bearing debt (%) 195,7 180,7 198,4
www.trencor.net
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Date: 14/08/2014 05:17:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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