Trencor earnings muddled by Textainer deconsolidation


Trencor earnings muddled by Textainer deconsolidation

Published Date: 2019-09-05 | Source: Stephen Gunnion | Author: Stephen Gunnion

Trencor earnings muddled by Textainer deconsolidation

The group says last year's earnings included a big gain after it deconsolidated the container group from its accounts.

Trencor says it may report a first-half loss due to a change in the way it accounts for its stake in Textainer.

In a trading statement, the group said it expected earnings for the period to be between a loss of 15c per share and earnings of 10c, down from the 2,478c it reported last year. Its headline loss would reduce to between 5c per share and 25c from the 724c headline loss per share reported a year ago.

Basic earnings last year included a once-off gain of 3,260c on the deconsolidation of Textainer, the US-listed shipping container business it owns a 47.5% stake in. It didn't provide any detail of its operational performance for the six-month period.

It deconsolidated Textainer at the start of last year due to the onerous requirement of converting its US GAAP results into International Financial Reporting Standards, as required by the JSE. It didn't pay a final dividend last year so it could preserve cash ahead of the possible inward listing of Textainer. When it released its annual results in April, it said listing Textainer on the JSE and unbundling its stake to shareholders would simplify its interests.

Meanwhile, Textainer said it board of directors had authorised a share repurchase programme under which it could buy back up to $25 million of its own stock on the open market and through privately-negotiated transactions. It said the programme reflected its confidence in the strength of its business and the long-term outlook.

Trencor expects to release its results on 30 September. Its shares closed 0.2% higher at R23.05 yesterday.

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