Delayed interim results in respect of the six months ended 30 June 2016, cautionary announcement and trading statement
(Incorporated in the Republic of South Africa)
(Registration No 1955/002869/06)
Share Code: TRE
DELAYED INTERIM RESULTS IN RESPECT OF THE SIX MONTHS ENDED 30 JUNE 2016, CAUTIONARY ANNOUNCEMENT AND TRADING STATEMENT
DELAYED INTERIM RESULTS IN RESPECT OF THE SIX MONTHS ENDED 30 JUNE 2016
Shareholders are advised that Trencor’s planned release of its interim results in respect of the six months ended 30 June 2016 by 30 September 2016 has been delayed. The delay is largely due to the onerous and time-consuming exercise of converting to IFRS the US GAAP compliant results of Textainer Group Holdings Limited (“Textainer”) (NYSE: TGH), in which Trencor has a 48,2% beneficiary interest. This delay has been exacerbated by a significant recent event (described below) in the global marine container industry which may have material reporting implications for Trencor’s interim results. At this stage, it is anticipated that the interim results in respect of the six months ended 30 June 2016 will be released on the Stock Exchange News Service by Friday, 14 October 2016.
Hanjin Shipping Company Limited (“Hanjin”), a South Korean company and the 7th largest shipping company in the world, has filed for bankruptcy protection from its creditors and a receiver has been appointed. Hanjin is a substantial customer of Textainer. As at 2 September 2016 the containers leased to Hanjin with ownership interests attributable to Textainer represent approximately 4,8% of Textainer’s total owned and managed fleet in twenty foot equivalent units (TEU). On the basis that the impact of the Hanjin bankruptcy on Trencor is currently being assessed, shareholders are advised to exercise caution when dealing in their Trencor shares, until a further announcement is made.
The poor economic conditions experienced in the global container industry have had a detrimental effect on the results for the six months ended 30 June 2016. In addition, in compliance with the requirements of IFRS, Trencor has had to charge additional depreciation as well as having to impair the container fleets, beyond what is required under US GAAP. The strengthening of the South African rand against the US dollar has also had a negative effect on the results.
Shareholders are advised that Trencor’s (loss) earnings per share, headline (loss)/earnings per share and adjusted headline (loss)/earnings per share for the six months ended 30 June 2016 are currently expected to be within the ranges set out below. These ranges do not take into account any possible impact of the Hanjin bankruptcy. Trencor is currently working with Textainer to determine the impact and a further trading statement will be released if and when necessary.
|Headline (loss)/earnings per share||(206) – (227)||278||513|
|Adjusted headline (loss)/earnings per share (which excludes net unrealised foreign exchange losses/gains on translation of long-term receivables)||
(196) – (217)
|(Loss)/Earnings per share||(1202) – (1258)||278||(83)|
*As a result of the restatement disclosed in note 35 to the 2015 Trencor annual financial statements, the comparative amounts for the six months ended 30 June 2015 have been restated accordingly. Previously reported amounts: headline earnings 275,8, adjusted headline earnings 261,2 and earnings 275,3 cent per share respectively.
The financial information on which this trading statement is based has not been reviewed and reported on by Trencor’s independent auditors.
On behalf of the Board
DM Nurek Chairman
3 October 2016
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)