Troubled Trencor warns of hefty loss
Regulations and poor economic conditions hit one of the world’s largest container-leasing groups
Just 24 hours after a warning that it faces suspension from the JSE, container group Trencor has released a trading statement alerting shareholders to a hefty loss for the 12 months December 2016. The loss a share is expected to be as high as 992c. On Thursday, Trencor, one of the world’s largest container-leasing groups, said poor economic conditions in the global container industry during 2016 and the bankruptcy of Hanjin Shipping, a large client, had a materially detrimental effect on its results. This was exacerbated by International Financial Reporting Standard (IFRS) requirements. These forced Trencor to charge additional depreciation on its fleet of 2.5-million containers. The expected 992c loss a share in 2016 compares with a loss of 43c in financial 2015. On Wednesday, the JSE issued a statement advising investors that Trencor had failed to submit its provisional results within the three-months stipulated in the JSE’s listings requirements. If it failed to submit these by t...
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