Trading Statement – year ended
(Incorporated in the Republic of South Africa)
(Registration No 1955/002869/06)
Share Code: TRE
(“Trencor” or “the Company”)
TRADING STATEMENT – YEAR ENDED 31 DECEMBER 2018
As detailed in Trencor’s 2017 integrated annual report, with effect from 1 January 2018 the results of Textainer Group Holdings Limited (“Textainer”) are no longer required to be converted from US GAAP into IFRS for inclusion in the consolidated results of Trencor. As from that date, Textainer is deconsolidated and accounted for by Trencor as an investment measured at fair value through profit or loss. It follows that the results of Trencor for the year ended 31 December 2018 (“current period”) are not comparable with its results for the corresponding year ended 31 December 2017 (“prior period”).
Primarily due to the gain recognised on such deconsolidation of Textainer, there is an increase in Trencor’s basic earnings per share for the current period, with this gain however excluded from headline earnings. Conversely, accounting for Trencor’s shareholding in Textainer as an investment measured at fair value through profit or loss results in a headline loss per share for the current period.
Pending publication of the results for the current period, expected to occur on or about 29 March 2019, shareholders are advised that based on information currently available, the Company expects:
- basic earnings per share for the current period to be between 1 255 and 1 290 cents per share compared to the reported basic loss per share of 181,5 cents for the prior period; and
- headline loss per share for the current period to be between 1 850 and 1 880 cents per share compared to the reported headline earnings per share of 149,4 cents for the prior period.
The above estimates do not provide for the potential effects of any possible impairment to the TAC container fleets, still in the process of being assessed. A further more detailed trading statement will be released as soon as the Company has reasonable certainty on the expected earnings for the current period.
The financial information on which this trading statement is based has not been reviewed nor reported on by Trencor’s independent auditors.
On behalf of the Board
Hennie van der Merwe
Chief Executive Officer
28 January 2019
RAND MERCHANT BANK (A division of FirstRand Bank Limited)