Our opinion on the current state of TRENCOR(TRE)Trencor's (TRE) primary asset is 47,78% of Textainer, a US-listed renter of shipping containers (Twenty-foot units or TEUs).
It should be noted that Trencor spent R100m buying back its own shares between 4-10-18 and 6-12-18. Investors have been unhappy with the fact that Textainer has been underperforming its competitors. For example, Triton had a return on equity of 16% compared to Textainer's 1,7%.
Trencor has unbundled its holding of Textainer into the hands of its shareholders, which resulted in a tax of R17m.
In its results for the six months to 30th June 2024, the company reported headline earnings per share of 9,8c compared to 64,8c in the previous period. The company said, "Whether or not the company will be in a position to commence the winding up process following 31 December 2024, as currently intended, will depend on the satisfactory conclusion of all outstanding regulatory and other matters required in order to wind the company up."
In a trading statement for the year to 31st December 2024, the company estimated that HEPS would fall by between 55,2% and 65%. The company said, "The after-tax unrealised loss from the translation of the US dollar deposits into SA rand for the current period was R15,1 million (2023: profit of R83,9 million)."
Trencor paid out a special dividend of 730c to shareholders, which went ex-div on 19th February 2025, resulting in a sharp drop in the share's price.
