News
Distribution of integrated annual report, change statement, notice of annual general meeting, B-BBEE compliance report and Listings Requirements
TRENCOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration No 1955/002869/06)
Share Code: TRE
ISIN: ZAE000007506
(“Trencor” or “the Company”)
DISTRIBUTION OF INTEGRATED ANNUAL REPORT, CHANGE STATEMENT, NOTICE OF ANNUAL GENERAL MEETING, B-BBEE COMPLIANCE REPORT AND LISTINGS REQUIREMENTS
DISTRIBUTION OF INTEGRATED ANNUAL REPORT
Trencor will on Wednesday, 11 July 2018 distribute its integrated annual report, incorporating its audited annual financial statements for the year ended 31 December 2017 (“audited financial statements”), which are unchanged from the reviewed condensed consolidated financial statements (“reviewed provisional results”) released on the Stock Exchange News Service (“SENS”) on 22 May 2018 and distributed to shareholders on 23 May 2018, save as detailed in the Change Statement below.
The Company’s independent auditors have issued an unmodified audit opinion. The integrated annual report is available on the Company’s website: https://trencor.net/financial-reports/2017-reports/
CHANGE STATEMENT
The audited financial statements contain two changes from the reviewed provisional results for the year ended 31 December 2017, namely:
- Capital expenditure committed and authorised, but not yet incurred amounts to R3 030 million, previously reported as R2 365 million; and
- Incorrect allocation of impairment losses relating to containers on lease to defaulting customers which affected headline earnings.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the year ended 31 December 2017
|
6 July 2018 |
22 May 2018 |
||
|
Audited |
Reviewed |
Change |
|
|
Rm |
Rm |
Rm |
|
| Revenue | 8 344 | 8 344 | – |
| Trading profit/(loss) | 2 224 | 2 100 | 124 |
| Impairment of property, plant and equipment (note 1) | (1 133) | (1 098) | (35) |
| Reduction in compensation receivable from third party in respect of impairment of property, plant and equipment (note 2) | (89) | – | (89) |
| Operating profit/(loss) before net finance expenses | 1 002 | 1 002 | – |
| Net finance expenses | (1 586) | (1 586) | – |
| Finance expenses Interest expense | (1 704) | (1 704) | – |
| Realised and unrealised gains/(losses) on derivative financial instruments | 50 | 50 | – |
| Finance income Interest income | 68 | 68 | – |
| Share of profit/(loss) of equity accounted investee (net of tax) | 4 | 4 | – |
| Loss before tax | (580) | (580) | – |
| Income tax expense | 30 | 30 | – |
| Loss for the year | (610) | (610) | – |
| Other comprehensive loss | |||
| Items that are or may be reclassified subsequently to profit or loss | |||
| Foreign currency translation differences | (1 239) | (1 239) | – |
| Total comprehensive loss for the year | (1 849) | (1 849) | – |
| Total comprehensive loss for the year attributable to: | |||
| Equity holders of the company | (983) | (983) | – |
| Non-controlling interests | (866) | (866) | – |
| (1 849) | (1 849) | – | |
| Loss for the year attributable to: | |||
| Equity holders of the company | (321) | (321) | – |
| Non-controlling interests | (289) | (289) | – |
| (610) | (610) | – | |
| Basic loss per share (cents) | (181,5) | (181,5) | – |
| Diluted loss per share (cents) | (181,5) | (181,5) | – |
|
Note 1 Impairment of property, plant and equipment |
|||
| Impairment as a result of impairment testing | 1 209 | 1 209 | – |
| Impairment loss/(recovery) in respect of containers on lease to defaulting customers | 33 | (111) | 144 |
| Recovery of prior year impairment losses in respect of containers on lease to defaulting customers | (109) | – | (109) |
| Impairment of property, plant and equipment | 1 133 | 1 098 | 35 |
|
Note 2 Reduction in compensation receivable from third party in respect of impairment of property, plant and equipment |
89 |
– | 89 |
Note 3
| Headline earnings | |||
| Headline earnings reconciliation | |||
| Loss attributable to equity holders of the company | (321) |
(321) |
– |
| Impairment of property, plant and equipment | 1 133 | 1 098 | 35 |
| Reduction in compensation receivable from third party in respect of impairment of property, plant and equipment | 89 | – | 89 |
| Total tax effects of adjustments | (19) | (17) | (2) |
| Total non-controlling interests’ share of adjustments | (617) | (554) | (63) |
| Headline earnings attributable to equity holders of the company | 265 | 206 | 59 |
| Headline earnings per share (cents) | 149,4 | 116,5 | 32,9 |
|
The change to headline earnings results from (i) the incorrect allocation of amounts in respect of previously impaired containers which were disposed of during the financial year and (ii) the incorrect allocation of an amount previously impaired, now no longer required as a result of the improved recovery rate of the containers related to the Hanjin bankruptcy referred to in note 20.2 of the annual financial statements. |
The above changes have had no effect on the consolidated statement of financial position as presented in the reviewed provisional results.
NOTICE OF ANNUAL GENERAL MEETING
The annual general meeting of the Company will be held on Tuesday, 14 August 2018 at Trencor, 13th Floor, The Towers South, Heerengracht, Cape Town, commencing at 15:00 to transact the business as stated in the notice of the annual general meeting forming part of the integrated annual report. The salient dates pertaining to the annual general meeting are as follows:
| 2018 | |
| Record date to determine which shareholders are entitled to receive the notice of the annual general meeting |
Friday, 29 June |
| Last day to trade in order to be eligible to attend and vote | Tuesday, 31 July |
| Record date to determine which shareholders are entitled to attend and vote |
Friday, 3 August |
| Forms of proxy to be lodged, for administrative purposes, by 15:00* on | Monday, 13 August |
* proxies not lodged by this time may be handed to the scrutineers of the annual general meeting immediately prior to the meeting.
BROAD-BASED BLACK ECONOMIC EMPOWERMENT (“B-BBEE”) COMPLIANCE REPORT
Trencor’s B-BBEE annual compliance report in terms of Section 13G(2) of the B-BBEE Act is available on the Company’s website:
https://trencor.net/images/B-BBEE_Certificate/B-BBEE_Certificate.pdf
LISTINGS REQUIREMENTS
Shareholders are advised that, in light of the progression of the simplification of Trencor’s interest in Textainer Group Holdings Limited (NYSE: TGH) (refer to the SENS announcement of 15 May 2018), the JSE Limited has deferred any decision regarding Trencor’s compliance with the applicable Listings Requirements (refer to the SENS announcement of 2 January 2018) and has to this end requested that Trencor makes representations after a period of twelve months on further progress made in respect of the simplification during that period.
Trencor Services (Pty) Ltd
Secretaries
6 July 2018
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)