NOTES TO THE CONDENSED FINANCIAL STATEMENTS

 

1.	These consolidated condensed financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) for the first time. Other than for the treatment of goodwill and share options granted to employees, the accounting policies used in the preparation of the interim financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2004. In terms of IFRS 3: Business combinations, goodwill is not permitted to be amortised. Share options granted to employees have been accounted for in terms of IFRS 2: Share based payment.
			UNAUDITED		AUDITED
			6 MONTHS		YEAR ENDED
			ENDED 30 JUNE		31 DECEMBER
			RESTATED		RESTATED
	R MILLION		2005	2004	2004
2.	Revenue
	Invoiced sales – goods and services		34,5	20,2	60,1
	Leasing income		747,0	555,3	1 210,3
	Management fees		54,7	103,0	193,2
	Finance income		20,3	38,6	6,9
			856,5	717,1	1 470,5
	Discontinued operations – container manufacturing		–	42,7	43,1
			856,5	759,8	1 513,6
	Realised and unrealised exchange differences		388,0	(145,9)	(393,7)
			1 244,5	613,9	1 119,9
3.	Discontinued operations – container manufacturing
	Operating profit		7,1	2,1	7,2
	Interest expense		–	–	0,4
	Profit before taxation		7,1	2,1	6,8
	Income tax		2,1	5,2	7,0
	Net profit/(loss) after taxation		5,0	(3,1)	(0,2)
4.	Net interest expense
	Interest expense		157,8	117,1	258,1
	– Textainer		103,6	72,5	148,9
	– TrenStar		43,8	32,2	85,4
	– Other		10,4	12,4	23,8
	Interest income		(7,5)	(3,8)	(9,4)
	– Textainer		(2,8)	(0,9)	(2,5)
	– Other		(4,7)	(2,9)	(6,9)
			150,3	113,3	248,7
5.	Exceptional items
	Loss on sale of investment properties		–	(1,0)	(2,2)
	Net gain on dilution of interest in subsidiaries		–	1,2	9,1
	Loss on sale of interest in associate		–	(38,1)	(38,1)
	Impairment of available-for-sale investment		–	–	(8,5)
			–	(37,9)	(39,7)
6.	Headline earnings
	Profit/(loss) attributable to ordinary equity holders of the parent entity		281,6	(23,7)	58,9
	Impairment of goodwill		–	–	1,9
	Profit on sale of property, plant and equipment		(16,3)	(2,0)	(9,0)
	Exceptional items (Note 5)		–	37,9	39,7
	Discontinued operations (Note 3)		(5,0)	3,1	0,2
	Minority share of exceptional items		–	–	1,6
	Headline earnings		260,3	15,3	93,3
	Weighted average number of shares in issue (million)		154,3	153,6	153,8
	Headline earnings per share (cents)		168,7	10,0	60,7
	Adjusted undiluted headline earnings
	Circular 07/02 issued by the South African Institute of Chartered Accountants requires that profits and losses on the sale of property, plant and equipment be excluded from the calculation of headline earnings. The directors consider that, given the nature of Textainer's business model, this treatment of profits and losses on sales of used containers from its leasing fleet is not appropriate for a proper understanding of the results of the group. Accordingly, adjusted undiluted headline earnings per share, which includes profits and losses on the sale of used containers, is also presented for information.
	Headline earnings (as above)		260,3	15,3	93,3
	Profit on sale of used containers		16,0	1,7	18,2
	Adjusted undiluted headline earnings		276,3	17,0	111,5
	Adjusted undiluted headline earnings per share (cents)		179,1	11,1	72,5
	6.1	The dilution arises as a result of the potential exercise of the outstanding share options and any future conversion of debentures. The directors are of the opinion that the debentures will not be converted in the foreseeable future and therefore no dilution is anticipated for the foreseeable future.
7.	Segmental reporting
	Revenue
	Continuing operations
	Containers – sales and finance (including exchange differences)		380,9	(108,1)	(387,3)
	Containers – owning, leasing and management		682,5	508,6	1 103,6
	Mobile asset management services		180,5	169,1	358,9
	Other		0,6	1,6	1,6
			1 244,5	571,2	1 076,8
	Discontinued operations		–	42,7	43,1
			1 244,5	613,9	1 119,9
	Profit from operations
	Continuing operations
	Containers – sales and finance		269,8	(51,1)	(82,6)
	Containers – owning, leasing and management		345,3	229,0	538,6
	Mobile asset management services		15,3	(13,1)	(13,7)
	Other		(26,4)	(3,2)	7,2
			604,0	161,6	449,5
	Discontinued operations		7,1	2,1	7,2
			611,1	163,7	456,7
8.	Current assets
	Inventories		11,4	23,0	9,3
	Trade and other receivables		618,5	447,9	546,6
	Cash and cash equivalents		519,8	382,6	439,7
	Restricted cash balances		189,7	141,3	156,8
	Unrestricted cash balances		330,1	241,3	282,9
			1 149,7	853,5	995,6
9.	Current liabilities
	Trade and other payables		662,2	453,2	834,7
	Provisions		57,4	43,0	42,4
	Taxation		37,7	39,8	37,9
	Current portion of interest-bearing borrowings		559,1	421,9	347,5
	Deferred income		26,8	27,2	23,1
			1 343,2	985,1	1 285,6
10.	Comparative information
	Comparative information has been restated for the effects of adopting IFRS.
	The aggregate effect of the restatements is as follows.
			Previously
			Stated	Adjustment	Restated
	As at 31 December 2003
	Retained earnings		1 293,6	(1,4)	1 292,2
	Non-distributable reserves		43,9	2,6	46,5
	Minority interest		522,1	(1,2)	520,9
	For the six months ended 30 June 2004
	Intangible assets and goodwill		39,6	0,7	40,3
	Retained earnings		1 268,8	(1,6)	1 267,2
	Non-distributable reserves		7,8	4,1	11,9
	Minority interest		557,5	(1,8)	555,7
	For the year ended 31 December 2004
	Intangible assets and goodwill		30,4	1,5	31,9
	Retained earnings		1 345,0	(1,6)	1 343,4
	Non-distributable reserves		(34,5)	5,5	(29,0)
	Minority interest		553,2	(2,4)	550,8
	Other changes to comparatives
	Comparative amounts in respect of long-term loans have been reclassified and the following balance sheet captions have been restated.
	For the six months ended 30 June 2004
	Other investments		31,2	(16,1)	15,1
	Long-term loans		13,4	16,1	29,5
	For the year ended 31 December 2004
	Other investments		38,4	(16,1)	22,3
	Long-term loans		8,3	16,1	24,4