MARC HASENFUSS: Trencor finds a remedy for its costly accounting headache
Its shares have enjoyed an encouraging spurt since the AGM, up more than 30% in less than six months, and 60% over the year
Trencor, which holds a 48% stake in New York Stock Exchange-listed container leasing firm Textainer, has dealt smartly with a pesky (and costly) accounting headache. Readers may remember that at Trencor’s AGM in August, directors bemoaned the fact that the company incurred serious costs and suffered inordinate delays in converting the US’s generally accepted accounting principles to international financial reporting standards (IFRS). It was at that sometimes stormy AGM that a livid independent analyst and hedge fund manager, Nick Krige, suggested not enough had been done at Trencor to expeditiously tackle the accounting challenges. "What do you guys do at Trencor? I’d like to send you my CV," he famously remarked.This might worry some shareholders, especially as Textainer has underperformed some of its container-industry peers. But the short-term sacrifice might be justified in ensuring that Trencor "will be regarded for purposes of IFRS as being neither in control of nor having sig...
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