|
|
|
|
|
|
In November 2000, we entered into a 3-year facility with our South African banks to meet the changes in our needs following the cessation of the formation of new container export partnerships and closure of our dry freight container factories. In December 2001 we effectively refinanced these facilities by way of a letter of credit issued by two of our foreign banks. This change led to improved terms and flexibility and it marked the end of the difficult period caused by the closure of our factories. More importantly, our offshore bankers operate in the international business areas where we are active and are thus better acquainted with the international asset-based type financing that our operations and future plans require. Subsequent to the approval of the annual financial statements, we procured a draw down under the US dollar denominated letter of credit and repaid our South African banks in full, as more fully detailed in the subsequent events section. Shareholders will appreciate the significant changes Trencor has undergone in the past few years in implementing our stated strategy of 'enabling the controlled movement of goods by providing and integrating the use of equipment, services, knowledge and information'. We have disposed of several businesses that were important parts of the group. This includes merging our Trailer Division with the businesses of SA Truck Bodies Group in exchange for a 40% holding in the merged entity. The net result is that our businesses are now more focussed and hold better promise for the future. Textainer has become a leader in its field and is performing strongly. We look forward to improved returns in the leasing industry - especially if the worldwide oversupply of new containers, which has prevailed in recent years, is reduced. Our business of supply chain management has achieved in a relatively short period a good base in an international market that has considerable potential and we look forward, in time, to a satisfactory contribution. The board has decided not to declare a dividend because a large proportion of earnings (relating to the revaluation of the long-term receivables) is unrealised. The full cash benefit from this source is only due over some years. Furthermore, in the present difficult times being experienced in the container leasing industry, we believe it is in the group's interest to conserve cash and reduce borrowings. Alex Brown joined the group in 1969 and after more than 30 years of service as an executive, assumed a less active non-executive role from 1 October 2001. During his tenure he played a major role in all spheres of our manufacturing and overseas container operations and his long and dedicated service as a group executive will be missed, although we are very pleased to retain his services in a non-executive capacity. Gavan Ryan, who joined the board in November 1996 when Coronation Holdings Ltd acquired a strategic shareholding in Mobile (which was subsequently distributed in specie to Coronation shareholders), resigned from the board on 6 March 2002. We extend our appreciation to him for his clear and objective advice over the years. I express my appreciation to our committed and dedicated employees, both locally and internationally, for their sterling efforts in a difficult period. Also to my co-directors for their guidance in a very demanding time. N I JOWELL 10 MAY 2002
|
|
|
The use of this site and all the information on it and on any links is subject to a full disclaimer and exclusion of liability for any negligence, misrepresentation, misstatement or otherwise of Trencor Limited in relation thereto. Please click to view and read the terms of the disclaimer. |
