Interim Results
Anglo-Eastern Plantations PLC
16 September 2002
16 September 2002
ANGLO-EASTERN PLANTATIONS PLC - INTERIM ANNOUNCEMENT
Anglo-Eastern Plantations, which owns over 24,000 hectares of oil palm
plantations, primarily in Indonesia but also in Malaysia, announces more than
tripled profits.
2002 2001 Increase
Turnover (£000) 6,113 4,272 43%
Operating profit (£000) 2,267 658 245%
Pre-tax profit (£000) 2,181 642 240%
Earnings per share (p) 2.8 0.8 250%
Net assets per share (p) 139 142 (2%)
The average CPO (crude palm oil) price increased to $360/mt from $250/mt
Total FFB (fresh fruit bunch) production from AEP's owned estates was 16% up on
the same period last year
Mature planted hectares increased by 42% to 20,120 from 14,210, the increase
deriving primarily from Bengkulu (South Sumatra), whilst immature hectares
decreased to 3,979 from 8,960, giving total planted hectares of 24,099, up from
23,170 at 30 June 2001.
As in previous years, no interim dividend is being declared
Chan Teik Huat, Chairman and Chief Executive, stated 'Total crops for 2002 will
be higher than for 2001.
The CPO price is currently about $400/mt, after averaging $415 for July and
August. If this holds for the greater part of the second half, then, barring any
adverse factors, we can expect a substantial improvement in profits for 2002
over 2001.
The completion in May 2002 of the mill in Bengkulu represents a milestone in the
development of this project which, if prices remain favourable, should now begin
to contribute increasingly to group profits.'
Enquiries:
Anglo-Eastern Plantations plc 020-7236 2838
Rollo Barnes (Financial Director)
Bankside Consultants Limited
Charles Ponsonby 020-7444 4166
INTERIM STATEMENT
Financial overview
I am pleased to announce a substantial improvement in results. Profit before
tax for the half year to 30 June 2002 was US$3,162,000 (£2,181,000) compared to
$919,000 (£642,000) in the first half of 2001 on a turnover increased to
$10,784,000 (£6,113,000) from $6,109,000 (£4,272,000). The increase reflects,
first, the improvement in the CPO (crude palm oil) price which began in the last
quarter of 2001, after a period in the first half of 2001 when it fell to a 15
year low. Second, FFB (fresh fruit bunch) production and related sales from
our new project in Bengkulu, South Sumatra, at 24,300mt for the half year, was
almost double that in the same period in the previous year.
The improved profits mask increases in operating costs following substantial
industry-wide wage increases and the reduction of fuel subsidies in Indonesia,
both in January 2002.
Earnings per share for the first six months of 2002 were 4.1cts (2.8p) compared
to 1.1cts (0.8p) in the same period in 2001 and to 5.2cts (3.6p) for 2001 as a
whole. This stronger improvement, relative to the increase in pre-tax profits,
reflects a lower effective tax rate of 40% compared to an unusually high 63%
last half year and 48% for 2001 as a whole. This in turn results from our
policy, instituted in the second half of 2001, to take deferred tax credits to
profit and loss account against the start up losses on the Bengkulu project -
now that the project is well established.
As in previous years no interim dividend is being declared.
With favourable commodity prices we have been able to fund much of the new
investment in Indonesia in 2002 from self generated funds. Borrowings, net of
cash, at 30 June 2002 were $5.8 million compared to $4.36 million at the
beginning of the year.
Prices
After averaging $330/mt (cif Rotterdam) for the first quarter of 2002 there was
a strong improvement in the CPO price to average $380/mt in the next quarter.
The average of $360/mt for the first half compared with an average of $250/mt
for the same period of 2001.
Cocoa prices have been at 15 year highs and rubber prices were 20% higher for
the first six months of 2002 compared to 2001,both of which helped the overall
improvement in results.
Production and sales
2002 2001 2001
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
mt mt mt
Oil palm production
FFB
- own estates 126,823 108,797 252,632
- bought in or processed for third parties 36,994 35,115 74,789
Saleable CPO 24,363 23,759 52,073
Oil palm sales
CPO 21,550 22,626 52,072
FFB sold outside 50,277 34,481 61,458
Other crops production
Rubber 653 657 1,376
Cocoa 71 59 120
In May 2002 our new mill in Bengkulu commenced production. Extraction rates are
low because the production is from newly mature areas, but should improve with
time.
Total FFB production from our own estates was 16% up on the same period last
year. This includes the increase from Bengkulu mentioned above plus a 4%
increase from our established estates in North Sumatra and a 22% increase from
Malaysia.
In North Sumatra, after the doubling in bought in crop in 2001 as a whole, a dry
spell in the region together with increased competition caused a reduction of
10% in volume in the first half of 2002. The greater competition also reduced
profitability of bought in crops. However the shortfall has been entirely made
up by bought in crop at the Bengkulu mill, where supplies are proving reasonably
plentiful.
Development
The group's planted areas now comprise:
Mature Immature Total
ha ha ha
North Sumatra 9,710 645 10,355
Bengkulu 7,457 2,440 9,897
17,167 3,085 20,252
Malaysia 2,953 894 3,847
Total: 30 June 2002 20,120 3,979 24,099
Total: 31 December 2001 17,850 5,703 23,553
Total: 30 June 2001 14,210 8,960 23,170
For the moment we are holding to our policy of limiting new development to 500ha
per year in Indonesia while we consolidate the immature and newly mature areas
there. There is no further new planting on our Malaysian estates although there
remain almost 900ha of immature palms to maintain.
We have now received definitive land titles covering all the areas planted in
Bengkulu (and included in the table above) plus reserve land of 8,360ha.
Outlook
Rainfall on our North Sumatran and Malaysian estates has been lower than normal.
While production on the former has held up well so far it is likely their
production for the year will not exceed that for 2001. Our Malaysian estate has
been worse affected and production there will be below expectations but, being
new estates, there will still be a good increase for the year as will also be
the case in Bengkulu; so total crops for 2002 will be higher than for 2001.
The CPO price is currently about $400/mt after averaging $415 for July and
August. If this holds for the greater part of the second half, then, barring
any adverse factors, we can expect a substantial improvement in profits for 2002
over 2001.
The completion of the mill in Bengkulu represents a milestone in the development
of this project which, if prices remain favourable, should now begin to
contribute increasingly to group profits.
Chan Teik Huat
Chairman and Chief Executive 16 September 2002
CONSOLIDATED PROFIT AND LOSS ACCOUNT
US DOLLARS STERLING
2002 2001 2001 2002 2001 2001
6 mnths 6 mnths year to 6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
Note $'000 $'000 $'000 £'000 £'000 £'000
Turnover 10,784 6,109 16,992 6,113 4,272 11,800
Profit before, exchange
and revaluation provisions 3,302 970 5,110 2,277 678 3,549
Exchange (losses) 1 (15) (27) (188) (10) (20) (131)
Provision for reduction in
value of Malaysian estates - - (1,553) - - (1,078)
Operating profit 3,287 943 3,369 2,267 658 2,340
Interest - receivable 16 25 48 11 17 33
- payable (303) (159) (368) (209) (111) (254)
- capitalised 162 110 310 112 78 214
Profit before taxation 3,162 919 3,359 2,181 642 2,333
Taxation
Foreign corporation tax (1,122) (545) (2,443) (774) (381) (1,697)
Foreign withholding tax (145) (39) (97) (100) (27) (67)
Deferred tax adjustment 48 - 472 33 - 328
- current year
- prior years - - 430 - - 298
Profit after taxation 1,943 335 1,721 1,340 234 1,195
Minority interests (all
equity interests) (327) 96 320 (226) 67 222
Profit attributable to
shareholders 1,616 431 2,041 1,114 301 1,417
Dividends - - (785) - - (545)
1,616 431 1,256 1,114 301 872
Earnings per share
(basic and diluted) 4.1cts 1.1cts 5.2cts 2.8p 0.8p 3.6p
Dividend per share 4 - - 2.0cts - - 1.4p
Av. shares in issue ('000) 39,227 39,227 39,227 39,227 39,227 39,227
NOTES
1. At 30 June 2002 there was an exchange transaction surplus of
$900,000 arising on third party US dollar borrowings by two Indonesian
subsidiaries; in view of the unpredictability of the rupiah/dollar exchange rate
this has been held in exchange reserves at 30 June 2002 pending determination of
the final profit or loss at 31 December 2002.
2. The unaudited accounts for the six months ended 30 June 2002 were
approved by the board of directors on 16 September 2002 and have been prepared
in accordance with applicable Accounting Standards in the United Kingdom. The
accounting principles applied, including the valuation of fixed assets, are
those set out in the annual report for the year ended 31 December 2001 together
with any subsequent requirements thereafter.
3. The results for the year ended 31 December 2001 are extracted from
the group's full statutory accounts for that year.
4. The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 240 of the Companies Act
1985. Full statutory accounts for the year ended 31 December 2001 incorporating
an unqualified auditors' report have been delivered to the Registrar of
Companies.
5. The final and only dividend in respect of 2001 was paid on 26 June 2002.
6. Copies of the interim statement of results are available from the
company's registered office at 6/7 Queen Street, London EC4N 1SP.
CONSOLIDATED BALANCE SHEET
US DOLLARS STERLING
2002 2001 2001 2002 2001 2001
6 months 6 months year to 6 months 6 months year to
to 30 June to 30 June 31 Dec to 30 June to 30 June 31 Dec
Notes (unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
$'000 $'000 $'000 £'000 £'000 £'000
Fixed assets
Tangible assets 107,797 100,342 104,333 70,719 71,164 71,461
Current assets
Stocks 1,296 797 600 850 565 411
Debtors 3,408 2,658 1,916 2,236 1,885 1,312
Investments 293 209 266 192 148 182
Cash at bank and in hand 1,793 1,367 2,248 1,176 970 1,540
6,790 5,031 5,030 4,454 3,568 3,445
Current liabilities
Creditors: falling due within
one year
Borrowings 7 (1,378) (374) (99) (904) (265) (68)
Other creditors (6,136) (4,395) (5,266) (4,025) (3,117) (3,607)
(7,514) (4,769) (5,365) (4,929) (3,382) (3,675)
Net current (liabilities)/assets (724) 262 (335) (475) 186 (230)
Total assets less current
liabilities 107,073 100,604 103,998 70,244 71,350 71,231
Non-current liabilities
Creditors: falling due after
more than one year
Borrowings (6,196) (3,528) (6,460) (4,065) (2,502) (4,425)
Deferred taxation 1,115 (590) 890 731 (418) 610
Net assets 101,992 96,486 98,428 66,910 68,430 67,416
Capital and reserves
Called-up share capital 15,171 15,171 15,171 9,808 9,808 9,808
Share premium account 23,570 23,570 23,570 15,329 15,329 15,329
Share capital redemption reserve 1,087 1,087 1,087 663 663 663
Revaluation and exchange reserve 11,990 9,851 10,986 8,194 9,434 9,004
Profit and loss account 31,431 28,990 29,815 20,620 20,560 20,421
Shareholders' funds - all equity
interests 83,249 78,669 80,629 54,614 55,794 55,225
Minority interests - all equity
interests 18,743 17,817 17,799 12,296 12,636 12,191
Total capital employed 101,992 96,486 98,428 66,910 68,430 67,416
Notes
7. Element of borrowings
falling due within one year
which relate to repayment of
long term loan (1,180) - - (774) - -
CONSOLIDATED CASH FLOW STATEMENT
US DOLLARS STERLING
2002 2001 2001 2002 2001 2001
6 months 6 months year to 6 months 6 months year to
to 30 June to 30 June 31 Dec to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
$'000 $'000 $'000 £'000 £'000 £'000
Net cash flow from operating
activities 5,183 1,456 6,666 3,529 1,074 4,646
Returns on investments and
servicing of finance
Interest received 16 25 48 11 17 33
Interest paid (303) (157) (362) (209) (110) (251)
Interest element of finance
lease payments - (2) (6) - (1) (4)
(287) (134) (320) (198) (94) (222)
Taxation
Foreign tax paid (1,856) (558) (2,511) (1,280) (390) (1,744)
UK tax repaid (6) (6) (2) (4) (4) (1)
(1,862) (564) (2,513) (1,284) (394) (1,745)
Capital expenditure
Payment to acquire tangible
fixed assets (3,735) (3,096) (7,605) (2,575) (2,165) (5,281)
Payments to acquire land - - (270) - - (188)
Proceeds from sale of tangible
fixed assets 16 143 71) 11 100 49
(3,719) (2,953) (7,804) (2,564) (2,065) (5,420)
Equity dividends paid
Parent company (785) (588) (588) (541) (411) (408)
Cash (outflow) before management
of liquid resources and
financing (1,470) (2,783) (4,559) (1,058) (1,890) (3,140)
Management of liquid resources
Proceeds from sale of
investments - - - - - -
Cash (outflow) before financing (1,470) (2,783) (4.559) (1,058) (1,890) (3,149)
Financing
Drawdown of long term loans 916 2,116 5,048 632 1,480 3,506
(Decrease)/increase in cash and
cash equivalents (554) (667) 489 (426) (410) 357
Cash in hand and at bank less
short term borrowings
Opening 2,149 1,660 1,660 1,472 1,115 1,115
Closing 1,595 993 2,149 1,046 705 1,472
Net (outflow)/inflow (554) (667) 489 (426) (410) 357
RECONCILIATION OF OPERATING PROFIT
TO NET CASH INFLOW FROM OPERATING ACTIVITIES
US DOLLARS
2002 2001 2001
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Operating profit 3,287 943 3,369
Depreciation and amortisation 1,311 1,033 2,115
Provision for reduction in value of Malaysian estates - - 1,553
(Profit) on sale of fixed assets (9) (36) (4)
Realised and unrealised (profits)/losses on investments (27) 10 (47)
(Increase)/decrease in stocks (696) (13) 184
(Increase) in debtors (267) (966) (314)
Increase/(decrease) in creditors 1,025 (50) 130
Foreign exchange 559 535 (320)
Net cash flow from operating activities 5,183 1,456 6,666
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
US DOLLARS
2002 2001 2001
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Profit for the period 1,616 431 2,041
Unrealised (deficit)/surplus on revaluation of the estates (11,845) 11,210 7,292
Gain/(loss) on exchange translation 12,849 (9,873) (4,820)
Total recognised gains 2,620 1,768 4,513
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
US DOLLARS
2002 2001 2001
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Total recognised gains 2,620 1,768 4,513
Dividends - - (785)
Net increase in shareholders' funds 2,620 1,768 3,728
Beginning of period 80,629 76,901 76,901
End of period 83,249 78,669 80,629
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 17th May 2024
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