Interim Results
Anglo-Eastern Plantations PLC
28 September 2000
ANGLO-EASTERN PLANTATIONS PLC
INTERIM ANNOUNCEMENT FOR THE HALF YEAR ENDED 30 JUNE 2000
* Anglo-Eastern Plantations, which operates and is developing
plantations in Indonesia and Malaysia amounting to some 40,000
ha, principally producing palm oil, announces results reflecting
significantly higher volumes but substantially reduced commodity
prices:
2000 1999
Turnover (£000) 5,762 5,757
Pre-tax profit (£000) 2,515 2,862
Earnings per share (p) 3.7 3.8
Net assets per share (p) 131 119
* Production of oil palm fresh fruit bunches (FFB) from Anglo-
Eastern's own estates increased by 23% to 110,208 tonnes and
sales of crude palm oil (CPO) were 25% higher at 23,800 tonnes.
* Average CPO prices at $340/mt were some 30% lower than in the
first half of 1999.
* Shareholders' funds increased to £51.5 million from £46.7
million, representing NAV per share of 131p (1999: 119p), very
substantially in excess of the current share price.
* At 30 June 2000, the group had no debt.
* As in previous years, no interim dividend is being declared.
* Discussions following an expression of interest in the making of
an offer for Anglo-Eastern at a substantial premium to the
current share price were terminated as the controlling
shareholder was unwilling to accept the proposal.
* Mr Chan Teik Huat, Chairman and Chief Executive, said 'Since June
crops have continued very strong, with all time records in July
and August, and the crop for 2000 is expected to be significantly
higher than for the previous year. Against this, the CPO price
has weakened still further to $275/mt and, unless prices improve,
the result for the year is likely to continue to remain below
that of 1999, when the full year profit was $9.2 million or £5.7
million.
The board remains confident in the long term prospects of the
company, based on increasing production from the existing
extensive immature and newly maturing areas.'
Enquiries:
Anglo-Eastern Plantations Plc +44 (0)20 7236 2838
Rollo Barnes (Finance Director) +60 (0)3 2693 2352
Bankside Consultants Limited +44 (0)20 7220 7477
Charles Ponsonby
CHAIRMAN'S STATEMENT
Overview
Profit before tax for the half year to 30 June 2000 was $3,924,000
or £2,515,000 compared to $4,579,000 or £2,862,000 in the first
half of 1999. Exceptional items were not significant. Turnover of
$9.0 million or £5.8 million for the period was almost the same as
for the first half of 1999.
Earnings per share were 5.7cts or 3.7p as against 6.1cts or 3.8p.
Oil palm crops were significantly higher than in the first half of
1999 but the weaker palm oil price throughout the period has more
than offset this improvement.
As in previous years no interim dividend is being declared.
Production and sales
2000 1999 1999
6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
Tonnes Tonnes Tonnes
Oil palm production
Fresh fruit bunches (FFB)
- own estates 110,208 89,523 206,725
- bought in or processed for 14,910 23,861 36,730
third parties
Saleable crude palm oil (CPO) 23,367 19,026 42,941
Oil palm sales
CPO 23,800 19,026 44,619
FFB 19,652 26,835 31,887
Other crops production
Rubber 628 784 1,595
Cocoa 61 41 175
FFB production from our own estates was 23% higher than in the same
period in 1999. This increase does not yet reflect new areas
coming into production. The quantity of fruit bought in from
outside had to be restricted because high internal crops left less
spare capacity in the group's oil mill.
The 20% fall in rubber production in part reflects the replanting
of some old rubber areas but, even then, production was below
expectations.
Prices
After four years at high levels, between $500 and $600/mt, palm oil
prices began to fall in May 1999, reaching $350/mt at the end of
1999. They remained near that level until May 2000, when they fell
further to around $320/mt.
Average CPO prices for the first six months of 2000, at $340/mt,
were therefore some 30% lower than in the first six months of 1999.
Similar percentage falls have affected FFB prices in both Indonesia
and Malaysia.
Although it has weakened recently, the Indonesian rupiah has also
been stronger during 2000, at an average of Rp 7,900:$ compared to
Rp 8,300:$ in the first half of 1999, which has further reduced
margins in local terms.
Rubber prices were about 12% higher and cocoa 30% lower than in
1999.
Development
We have now planted 8,200 ha on our Bengkulu estates in Indonesia.
Since the half year end, about 1,300 ha of this area have come into
bearing which, together with a further 820 ha maturing shortly,
will contribute a small but increasing oil palm crop in the second
half of this year. With current low CPO prices and the need to
upkeep the large immature areas, we have scaled back the planting
programmes in Indonesia and Malaysia until conditions improve.
Nevertheless at the end of the year total immature areas will
amount to some 8,500 ha or 40% of the total planted oil palm area
of 21,500 ha.
Financing
In my statement in the last annual report I mentioned that we had
received offers of long term loan finance of $2.1 million and $10
million for funding the further development of our Malaysian and
Indonesian operations, respectively. Draw down of the Malaysian
loan has commenced; legal documentation for the Indonesian loan is
complete and draw down will commence shortly. Construction of a 30
mt/hr mill (expandable to 60 mt/hr) on our Puding Mas estate in
Bengkulu will start immediately thereafter, with a view to
completion early in 2002. As at 30 June 2000 the group had no debt.
Corporate
Shareholders should be aware that the board received an approach in
the spring of this year from another company which expressed
interest in making an offer for Anglo-Eastern's share capital at a
substantial premium to the current share price. Discussions with
that company were terminated in due course, as Genton International
Limited, which holds 51.4 per cent of Anglo-Eastern's issued share
capital, was unwilling to accept the proposal on the terms
indicated.
Outlook
Since June crops have continued very strong, with all time records
in July and August, and the crop for 2000 is expected to be
significantly higher than for the previous year. Against this, the
CPO price has weakened still further to $275/mt and, unless prices
improve, the result for the year is likely to continue to remain
below that of 1999, when the full year profit was $9.2 million or
£5.7 million.
The board remains confident in the long term prospects of the
company, based on increasing production from the existing extensive
immature and newly maturing areas.
Chan Teik Huat
Chairman and Chief Executive 28 September 2000
PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 30 JUNE 2000
US DOLLARS STERLING
2000 1999 1999 2000 1999 1999
6 mnths 6 mnths year to 6 mnths 6 mnths year
to 30 to 30 31 Dec to 30 to 30 to
June June (audite June June 31 Dec
(unaudit (unaudi d) (unaudi (unaudi (audit
ed) ted) ted) ted) ed)
Note $000 $000 $000 £000 £000 £000
Turnover 8,988 9,211 19,636 5,762 5,757 12,196
===== ===== ====== ===== ===== =====
Operating profit 3,745 4,345 9,280 2,400 2,716 5,764
Interest - 74 187 326 47 117 202
receivable
- payable - (33) (49) - (21) (30)
------ ------ ------ ------ ------ ------
Profit before
exceptional 3,819 4,499 9,557 2,447 2,812 5,936
items
Write back in
provision on 68 131 209 44 82 130
current
investments
Expenses
relating to
application for
listing on - - (150) - - (93)
Singapore Stock
Exchange
Exchange profits/ 37 (51) (385) 24 (32) (239)
(losses)
------ ------ ------ ------ ------ -----
Profit before 3,924 4,579 9,231 2,515 2,862 5,734
taxation
Taxation
Foreign (1,295) (1,444) (3,179) (830) (902) (1,975)
corporation tax
Foreign (116) (210) (220) (74) (131) (136)
withholding tax
------ ------ ------ ------ ------- -----
Profit after 2,513 2,925 5,832 1,611 1,829 3,623
taxation
Minority (258) (510) (984) (165) (319) (611)
interests
------ ------ ------ ------ ------ -----
Profit
attributable to 2,255 2,415 4,848 1,446 1,510 3,012
shareholders
Dividends - - (1,569) - - (975)
------ ------ ------ ------ ------ -----
2,255 2,415 3,279 1,446 1,510 2,037
===== ===== ===== ===== ===== =====
Earnings per
share 2 5.7cts 6.1cts 12.3cts 3.7p 3.8p 7.6p
(basic and
diluted)
Dividend per 3 - - 4.0cts - - 2.56p
share
Av. shares in 39,227 39,385 39,304 39,227 39,385 39,304
issue ('000)
NOTES
1. The comparative figures for the year ended 31 December 1999
are an extract from the group's financial statements for the
year which have been filed with the Registrar of Companies and
on which the auditors gave an unqualified opinion.
2. Earnings per share are calculated on the average number of
shares in issue.
3. The final and only dividend in respect of 1999 was paid on 16
August 2000.
4. Copies of the interim statement of results are available from
the company's registered office at 6/7 Queen Street, London
EC4N 1SP.
5. Approved by the board of directors on 28 September 2000.
CONSOLIDATED BALANCE SHEET
US DOLLARS STERLING
2000 1999 1999 2000 1999 1999
6 mnths 6 mnths year to 6 mnths 6 mnths year to
to 30 to 30 31 Dec to 30 to 30 31 Dec
June June (audite June June (audite
(unaudit (unaudi d) (unaudi (unaudi d)
ed) ted) ted) ted)
$000 $000 $000 £000 £000 £000
Fixed Assets
Tangible assets 96,938 89,696 95,284 64,198 56,770 59,183
------ ------ ------ ------ ------ ------
Current Assets
Stocks 824 1,382 1,023 545 875 635
Debtors 3,185 4,077 2,175 2,109 2,580 1,351
Investments 366 584 662 242 370 411
Cash at bank and in 3,443 3,407 2,709 2,280 2,156 1,683
hand
------ ------ ------ ------ ------ ------
7,818 9,450 6,569 5,176 5,981 4,080
----- ------ ------ ------ ------ ------
Current Liabilities
Creditors: falling
due within one year
Borrowings - (461) - - (292) -
Other creditors (7,202) (5,479) (7,614) (4,770) (3,468) (4,729)
------ ------ ------ ------ ------ ------
(7,202) (5,940) (7,614) (4,770) (3,760) (4,729)
------ ------ ------ ------ ------ ------
Net current assets 616 3,510 (1,045) 406 2,221 (649)
/(liabilities)
------ ------ ------ ------ ------ ------
Total assets less 97,554 93,206 94,239 64,604 58,991 58,534
liabilities
Non-current
Liabilities
Creditors: falling
due after more than
one year
Deferred taxation (590) (590) (590) (390) (373) (366)
------ ------ ------ ------ ------- ------
Net assets 96,964 92,616 93,649 64,214 58,618 58,168
====== ====== ====== ====== ====== ======
Capital and
Reserves
Called-up share 15,171 15,171 15,171 9,808 9,808 9,808
capital
Share premium 23,570 23,570 23,570 15,329 15,329 15,329
account
Share capital 1,087 1,087 1,087 663 663 663
redemption reserve
Revaluation and
exchange reserve 9,527 7,371 8,575 6,886 4,074 4,264
Profit and loss 28,427 26,638 26,173 18,825 16,859 16,257
account
------ ------ ------ ------ ------ ------
Shareholders' funds
- all equity 77,782 73,837 74,576 51,511 46,733 46,321
interests
Minority interests
- all equity 19,182 18,779 19,073 12,703 11,885 11,847
interests
------ ------ ------ ------ ------ ------
Total capital 96,964 92,616 93,649 64,214 58,618 58,168
employed
====== ====== ====== ====== ====== ======
CONSOLIDATED CASH FLOW STATEMENT
US DOLLARS STERLING
2000 1999 1999 2000 1999 1999
6 mnths 6 mnths year to 6 mnths 6 mnths year to
to 30 to 30 31 Dec to 30 to 30 31 Dec
June June (audite June June (audited)
(unaudit (unaudi d) (unaudi (unaudi
ed) ted) $000 ted) ted) £000
$000 $000 £000 £000
Net cash flow from
operating 4,695 3,530 11,406 3,136 2,514 7,273
activities
------ ------ ------ ------ ------ ------
Returns on
investments and
servicing of
finance
Interest received 74 187 326 47 118 202
Interest paid - (33) (49) - (21) (30)
------ ------ ------ ------ ------ ------
74 154 277 47 97 172
------ ------ ------ ------ ------ ------
Taxation
Foreign tax paid (2,534) (2,980) (4,802) (1,624) (1,886) (2,983)
UK tax repaid 694 1,539 1,539 445 974 956
------ ------ ------ ------ ------ ------
(1,840) (1,441) (3,263) (1,179) (912) (2,027)
------ ------ ------ ------ ------ ------
Capital Expenditure
Payment to acquire
tangible fixed (2,626) (2,896) (9,276) (1,683) (1,833) (5,761)
assets
Payments to acquire - - (241) - - (150)
land
Proceeds from sale
of tangible fixed 67 82 70 43 52 43
assets
------ ------ ------ ------ ------ ------
(2,559) (2,814) (9,447) (1,640) (1,781) (5,868)
------ ------ ------ ------ ------ ------
Equity Dividends
Paid
Parent company - (2,746) (2,746) - (1,738) (1,706)
Minority - - - - - -
shareholders
------ ------ ------ ------ ------ ------
- (2,746) (2,746) - (1,738) (1,706)
------ ------ ------ ------ ------ ------
Cash
inflow/(outflow)
before management 370 (3,317) (3,773) 364 (1,820) (2,156)
of liquid resources
and financing
Management of
Liquid Resources
Proceeds from sale
of liquid resources 364 - - 233 - -
------ ------ ------ ------ ------ ------
Cash
inflow/(outflow) 734 (3,317) (3,773) 597 (1,820) (2,156)
before financing
------ ------ ------ ------ ------ ------
Financing
Purchase of own - (680) (680) - (430) (422)
shares
Repayment of long - (462) (923) - (292) (573)
term loan
Subscription by
minority - - 219 - - 136
shareholder
------ ------ ------ ------ ------ ------
- (1,142) (1,384) - (722) (859)
------ ------ ------ ------ ------ ------
Increase/(decrease)
in cash and cash 734 (4,459) (5,157) 597 (2,542) (3,015)
equivalents
====== ====== ====== ====== ====== ======
Cash in hand and at
bank
Opening 2,709 7,866 7,866 1,683 4,698 4,698
Closing 3,443 3,407 2,709 2,280 2,156 1,683
------ ------ ------ ------ ------ ------
Net 734 (4,459) (5,157) 597 (2,542) (3,015)
inflow/(outflow)
====== ====== ====== ====== ====== ======
RECONCILIATION OF OPERATNG PROFIT TO NET CASH INFLOW
FROM OPERATING ACTIVITIES
US DOLLARS
2000 1999 1999
6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$000 $000 $000
Operating profit 3,745 4,345 9,280
Exceptional items 105 80 (326)
Depreciation 954 848 1,897
(Profit) on sale of fixed assets - (3) (3)
Realised and unrealised (profits) on (68) (131) (209)
investments
Decrease/(increase) in stocks 199 (482) (123)
(Increase)/decrease in debtors (315) (997) (32)
Decrease in creditors (1,014) (1,435) (265)
Foreign exchange 1,089 1,305 1,187
------ ------ ------
Net cash flow from ordinary activities 4,695 3,530 11,406
====== ====== ======
STATEMENT OF RECOGNISED GAINS AND LOSSES
Consolidated
US DOLLARS
2000 1999 1999
6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$000 $000 $000
Profit for the financial year 2,255 2,415 4,848
Unrealised revaluation 10,381 (9,287) (6,795)
surplus/(deficit)
(Loss)/profit on exchange translation (9,430) 10,369 7,752
------ ------ ------
Total recognised gains 3,206 3,497 5,805
====== ====== ======
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
US DOLLARS
2000 1999 1999
6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$000 $000 $000
Total recognised gains 3,206 3,497 5,805
Dividends - - (1,569)
Transfers re purchase of own shares - (680) (680)
------ ------ ------
Net increase in shareholders' funds 3,206 2,817 3,556
Beginning of period 74,576 71,020 71,020
------ ------ ------
End of period 77,782 73,837 74,576
====== ====== ======
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