Interim Results

RNS Number : 7869O
Anglo-Eastern Plantations PLC
23 August 2017
 

Anglo-Eastern Plantations Plc

("AEP", "Group" or "Company")

 

Announcement of interim results for six months ended 30 June 2017

 

Anglo-Eastern Plantations Plc, and its subsidiaries are a major producer of palm oil and rubber with plantations across Indonesia and Malaysia amounting to some 128,400 hectares, has today released its results for the six months ended 30 June 2017.

 

Financial Highlights

 


2017
6 months
to 30 June
$m

(unaudited)


2016
6 months
to 30 June
$m

(unaudited & restated)


2016
12 months
to 31 December
$m

(audited)

Revenue

146.9


86.0


246.2

Profit before tax






 - before biological assets ("BA") movement

31.8


14.0


57.5

 - after biological assets movement

31.6


17.3


60.8

Earnings per share before BA movement

46.24cts


14.99cts


82.16cts

Earnings per share after BA movement

45.97cts


20.29cts


87.58cts

Total net assets

470.6


420.0


445.3

 

 

Enquiries:

 

Anglo-Eastern Plantations Plc


Dato' John Lim Ewe Chuan 

 +44 (0)20 7216 4621



Panmure Gordon


Andrew Godber

+44 (0)20 7886 2500

 

 

 

Chairman's Interim Statement

 

I am pleased to present the interim results for the Group for the six months to 30 June 2017.

 

The revenue for the six months to 30 June was $146.9 million, 71% higher than $86.0 million for the first six months of 2016. In the same period the Group gross profit rose to $34.9 million from $18.5 million. Overall the profit before tax for the first half of 2017 improved by 83% to $31.6 million from $17.3 million for the corresponding period. Higher crop production and purchase of external crops as well as higher Crude Palm Oil ("CPO") prices lifted the profit of the Group.

 

Fresh Fruit Bunches ("FFB") production for the first half of 2017 was 15% higher at 436,900mt compared to 378,400mt in the same period last year. The increase in production was due to the strong recovery of FFB production especially in Riau and Kalimantan regions post El-Nino weather disruption. The Group continued to buy more external crops to maximise the utilization of its mills. Bought-in crops increased by 84% to 486,300mt from 264,500mt.

 

Operational and financial performance

 

For the six months ended 30 June 2017, the gross profit margin increased to 24% from 22% as the Group benefited from higher CPO prices and a higher contribution from the purchase of external crop.

 

CPO price ex-Rotterdam averaged $740/mt for the first six months of 2017, 11% higher than $668/mt over the same period in 2016.

 

The amendments to IAS 16 and the amendments to IAS 41, which came into effect on 1 January 2016, require Biological Assets that meet the definition of bearer plants to be accounted for as Property, Plant and Equipment in accordance with IAS 16. This was adopted in the prior year interim and annual financial statements for the first time and required retrospective application. The prior year interim financial statements have been restated to reflect the changes made in the annual financial statements which were subject to audit. The details of the changes are disclosed in Note 2 - Prior period's restatement.

 

Profit after tax for the six months ended 30 June 2017 was $23.3 million, 112% higher than $11.0 million for the first six months of 2016.

 

The resulting earnings per share for the period improved by 127% to 45.97cts (1H 2016: 20.29cts).

 

The Group's balance sheet remains reasonably strong and cash flow remains healthy. Net assets at 30 June 2017 were $470.6 million compared to $445.3 million at 31 December 2016. The increase in net assets was attributed to increase in profit for the first half of 2017.

 

As at 30 June 2017 the Group's total cash balance was $123.0 million (1H 2016: $93.0 million) with total borrowings of $31.2 million (1H 2016: $35.6 million), giving a net cash position of $91.8 million, compared to $57.4 million as at 30 June 2016.

 

Operating costs

 

The operating costs per hectare for the Indonesian operations were higher in the first half of 2017 compared to the same period in 2016 mainly due to an increase in wages, fuel, transportation costs and depreciation. Higher operating costs were also partly attributed to a 1% increase in matured areas for the corresponding period.

 

Production and Sales


2017

2016

2016


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


mt

mt

mt

Oil palm production




FFB




- all estates

436,900

378,400

897,700

- bought-in or processed for third parties

486,300

264,500

813,700

Saleable CPO

187,400

134,100

353,100

Saleable palm kernels

44,900

30,500

81,500





Oil palm sales




CPO

192,900

130,400

345,000

Palm kernels

45,600

29,300

79,900

FFB sold outside

11,000

12,100

24,300





Rubber production

397

371

868

 

 

The Group's six mills processed a total of 912,200mt in FFB for the first half of 2017, a 45% increase compared to 630,800mt for the same period last year. The higher throughput was due to both higher internal crops production and external purchases.

 

Overall CPO produced for the first half of 2017 was higher by 40% at 187,400mt from 134,100mt.

 

The Group continues to reduce its overall carbon footprint as the two biogas plants in Bengkulu and Kalimantan are in full operation. The biogas plant in Bengkulu with a capacity to generate 2 megawatts of electrical power will sell the surplus power to the regional grid from the beginning of third quarter of 2017. While the biogas plant in North Sumatera with a capacity of 1 megawatt has sold over 3,000 MWh of surplus electricity to the National Grid since January this year.

 

Commodity prices

 

Although the CPO price for first half of 2017 averaged $740/mt, 11% higher than last year (1H 2016: $668/mt), the price has gradually trended downwards from the start of the year at $795/mt to close at $645/mt on 30 June 2017. A higher CPO production for the second half of the year amid strong competition from bumper soybean production will likely hurt and depress the CPO price for the remainder of the year.

 

Rubber price averaged $1,849/mt, 56% higher than 2016 (1H 2016: $1,188/mt).

 

Development

 

The Group's planted areas at 30 June 2017 comprised:

 


Total

Mature

Immature


ha

ha

Ha

North Sumatera

19,049

14,884

4,165

Bengkulu

16,943

16,943

-

Riau

4,873

4,873

-

South Sumatera

5,778

5,037

741

Kalimantan

13,844

9,679

4,165

Bangka

703

236

467

Plasma

2,706

1,417

1,289

Indonesia

63,896

53,069

10,827

Malaysia

3,696

3,460

236

Total: 30 June 2017

67,592

56,529

11,063

Total: 31 December 2016

66,674

54,217

12,457

Total: 30 June 2016

65,561

55,842

9,719

 

 

The Group's new planting for the first six months of 2017 totalled 781ha compared to 518ha for the same corresponding period last year. The slower than anticipated rate of new planting is due to protracted land compensation negotiations and also the dry condition which was not conducive for planting.

 

The Group remains optimistic that planting will pick up in the second half of 2017. The Group's total landholding comprises some 128,400ha, of which the planted area stands around 67,592ha (1H 2016: 65,561ha).

 

Significant capital expenditure is expected in the replanting of over 1,700ha of old palms in North Sumatera which started in June 2017.

 

Dividend

 

As in previous years no interim dividend has been declared. The Board is mindful that given the anticipated further capital commitments the level of dividend needs to be balanced against the planned expenditure. A final dividend of 3.0 pence per share in respect of the year to 31 December 2016 was paid on 14 July 2017.

 

Outlook

 

The upside of the CPO price is limited as the industry heads into its peak production cycle in the third quarter of 2017. The demand of CPO from price-sensitive markets may however pick-up as CPO price discount to soybean oil has widened. 

 

The Board looks forward to reporting further progress in its next trading update.

 

Others

 

I am pleased to advise that after an absence of one year, AEP with effect from 1 June 2017, has been included in the FTSE Small Cap and FTSE All Share-Index. This may potentially lead to greater liquidity as index related funds re-weight their holding.

 

Principal risks and uncertainties

 

The directors believe the potential impact of Britain's vote to leave the European Union, better known as Brexit, on the Group is limited. Other than maintaining its corporate presence and listing in United Kingdom ("UK"), all plantation and mill operations together with marketing are primarily based in Indonesia. Unless Brexit causes a worldwide recession which significantly reduces the consumption of CPO, the principal risks and uncertainties have broadly remained the same since the publication of the annual report for the year ended 31 December 2016.

 

A more detailed explanation of the risks relevant to the Group is on pages 18 to 22 and from pages 87 to 91 of the 2016 annual report which is available at www.angloeastern.co.uk.

 

The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014.

 

 

 

 

Madam Lim Siew Kim

Chairman

23 August 2017

 

 

 

Responsibility Statements

 

We confirm that to the best of our knowledge:

 

a)       The unaudited interim financial statements have been prepared in accordance with IAS34: Interim Financial Reporting as adopted by the European Union;

 

b)       The Chairman's statement includes a fair review of the information required by DTR 4.2.7R (an indication of important events during the first six months and a description of the principal risks and uncertainties for the remaining six months of the year); and

 

c)       The interim financial statements include a fair review of the information required by DTR 4.2.8R (material related party transactions in the six months ended 30 June 2017 and any material changes in the related party transactions described in the last Annual Report) of the Disclosure and Transparency Rules of the United Kingdom Financial Services Authority.

 

 

 

 

By order of the Board

Dato' John Lim Ewe Chuan

Executive Director, Corporate Finance and Corporate Affairs

23 August 2017

 

 



 


Condensed Consolidated Income Statement



2017

6 months to 30 June

(unaudited)

 

2016

6 months to 30 June

(unaudited & restated)

 

2016

Year to 31 December

(audited)

 

Continuing operations

 

Notes

 

Result before BA movement
$000

BA movement
$000

Total
$000

Result

before BA movement
$000

BA movement
$000

Total
$000

Result

before BA movement
$000

BA movement
$000

Total
$000

Revenue


146,870

-

146,870

86,044

-

86,044

246,210

-

246,210

Cost of sales


(111,826)

(181)

(112,007)

(70,815)

3,288

(67,527)

(184,337)

3,383

(180,954)

Gross profit


35,044

(181)

34,863

15,229

3,288

18,517

61,873

3,383

65,256

Administration expenses


(3,269)

-

(3,269)

(3,355)

-

(3,355)

(6,653)

-

(6,653)

Impairment losses


(1,596)

-

(1,596)

(1,722)

-

(1,722)

(2,740)

-

(2,740)

Operating profit


30,179

(181)

29,998

10,152

3,288

13,440

52,480

3,383

55,863

Exchange gains


156

-

156

1,244

-

1,244

845

-

845

Finance income


2,390

-

2,390

3,406

-

3,406

5,881

-

5,881

Finance expense

4

(913)

-

(913)

(835)

-

(835)

(1,743)

-

(1,743)

Profit before tax


31,812

(181)

31,631

13,967

3,288

17,255

57,463

3,383

60,846

Tax expense

6

(8,394)

45

(8,349)

(5,472)

(820)

(6,292)

(16,021)

(844)

(16,865)

Profit for the period


23,418

(136)

23,282

8,495

2,468

10,963

41,442

2,539

43,981

Attributable to:











-  Owners of the parent


18,328

(109)

18,219

5,940

2,104

8,044

32,563

2,150

34,713

-  Non-controlling interests


5,090

(27)

5,063

2,555

364

2,919

8,879

389

9,268



23,418

(136)

23,282

8,495

2,468

10,963

41,442

2,539

43,981

Earnings per share for profit attributable to the owners of the parent during the period








 

 

 

 

 

 

-  basic

8



45.97cts



20.29cts



87.58cts

-  diluted

8



45.93cts



20.29cts



87.58cts

 



 

Condensed Consolidated Statement of Comprehensive Income



2017

 

2016

2016



6 months

6 months

Year



to 30 June

to 30 June

to 31 December



(unaudited)

(unaudited & restated)

(audited)



$000

$000

$000

Profit for the period


23,282

10,963

43,981

Other comprehensive income





Items may be reclassified to profit or loss:





Gain on exchange translation of foreign operations


4,606

18,950

8,860

Net other comprehensive income may be reclassified to profit or loss


4,606

18,950

8,860

Items not to be reclassified to profit or loss:





Unrealised (loss) / gain on revaluation of leasehold land, net of tax


(795)

(1,126)

1,752

Remeasurement of retirement benefits plan, net of tax


-

-

(567)

Net other comprehensive (expense) / income not being reclassified to profit or loss


(795)

(1,126)

1,185

Total other comprehensive income for the period, net of tax


3,811

17,824

10,045

Total comprehensive income for the period


27,093

28,787

54,026

Attributable to:





-  Owners of the parent


21,049

22,155

43,099

-  Non-controlling interests


6,044

6,632

10,927



27,093

28,787

54,026

 



 

Condensed Consolidated Statement of Financial Position

 



2017

 

2016

 

2016



as at 30 June

as at 30 June

as at 31 December

 



(unaudited)

(unaudited & restated)

(audited)

 



$000

$000

$000

 

Non-current assets




 

Property, plant and equipment


361,270

355,030

356,790

 

Receivables


5,248

3,565

3,891

 

Deferred tax assets


15,883

11,235

13,451

 



382,401

369,830

374,132

 

Current assets





 

Inventories


8,257

8,147

9,219

 

Tax receivables


33,664

22,856

26,695

 

Biological assets


6,995

7,195

7,107

 

Trade and other receivables


8,903

8,460

5,767

 

Cash and cash equivalents


123,041

92,994

118,176

 



180,860

139,652

166,964

 

Current liabilities





 

Loans and borrowings


(7,234)

(4,391)

(6,203)

 

Trade and other payables


(15,459)

(14,508)

(16,054)

 

Tax liabilities


(7,500)

(3,690)

(8,974)

 

Dividend payables


(1,515)

(1,003)

-

 



(31,708)

(23,592)

(31,231)

 

Net current assets


149,152

116,060

135,733

 

Non-current liabilities





 

Loans and borrowings


(24,000)

(31,234)

(27,875)

 

Deferred tax liabilities


(29,688)

(29,393)

(30,063)

 

Retirement benefits - net liabilities


(7,257)

(5,241)

(6,666)

 



(60,945)

(65,868)

(64,604)

 

Net assets


470,608

420,022

445,261

 






 

Issued capital and reserves attributable to owners of the parent





 

Share capital


15,504

15,504

15,504

 

Treasury shares


(1,171)

(1,171)

(1,171)

 

Share premium


23,935

23,935

23,935

 

Capital redemption reserve


1,087

1,087

1,087

 

Revaluation reserves


60,322

58,583

61,038

 

Exchange reserves


(216,024)

(211,874)

(219,570)

 

Retained earnings


498,992

456,103

482,288

 



382,645

342,167

363,111

 

Non-controlling interests


87,963

77,855

82,150

 

Total equity


470,608

420,022

445,261

 

 



 

Condensed Consolidated Statement of Changes in Equity

 


Attributable to owners of the parent



 



 

Share

capital

 

Treasury

shares

 

Share

premium

Capital

redemption

reserve

 

Revaluation

reserves

Foreign

exchange

reserves

 

Retained

earnings

 

 

Total

Non-controlling

interests

 

Total

equity

 


$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

 












 

Balance at 31 December 2015

15,504

(1,171)

23,935

1,087

59,594

(234,490)

504,892

369,351

82,607

451,958

Restatement (note 2)

-

-

-

-

(22)

7,516

(55,830)

(48,336)

(9,009)

(57,345)

Balance at 31 December 2015 after restatement

15,504

(1,171)

23,935

1,087

59,572

(226,974)

449,062

321,015

73,598

394,613

Items of other comprehensive income:











-Unrealised gain on revaluation of leasehold land, net of tax

-

-

-

-

1,466

-

-

1,466

286

1,752

-Remeasurement of retirement benefits plan, net of tax

-

-

-

-

-

-

(484)

(484)

(83)

(567)

-Gain on exchange translation of foreign operations

-

-

-

-

-

7,404

-

7,404

1,456

8,860

Total other comprehensive income / (expense)

-

-

-

-

1,466

7,404

(484)

8,386

1,659

10,045

Profit for the year

-

-

-

-

-

-

34,713

34,713

9,268

43,981

Total comprehensive income for the year

-

-

-

-

1,466

7,404

34,229

43,099

10,927

54,026

Dividends paid

-

-

-

-

-

-

(1,003)

(1,003)

(2,375)

(3,378)

Balance at 31 December 2016

15,504

(1,171)

23,935

1,087

61,038

(219,570)

482,288

363,111

82,150

445,261

Items of other comprehensive income:











-Unrealised loss on revaluation of leasehold land, net of tax

-

-

-

-

(716)

-

-

(716)

(79)

(795)

-Gain on exchange translation of foreign operations

-

-

-

-

-

3,546

-

3,546

1,060

4,606

Total other comprehensive (expense) / income

-

-

-

-

(716)

3,546

-

2,830

981

3,811

Profit for the period

-

-

-

-

-

-

18,219

18,219

5,063

23,282

Total comprehensive (expense) / income for the period

-

-

-

-

(716)

3,546

18,219

21,049

6,044

27,093

Dividend payable

-

-

-

-

-

-

(1,515)

(1,515)

(231)

(1,746)

Balance at 30 June 2017

15,504

(1,171)

23,935

1,087

60,322

(216,024)

498,992

382,645

87,963

470,608

 

 


Attributable to owners of the parent



 



 

Share

capital

 

Treasury

shares

 

Share

premium

Capital

redemption

reserve

 

Revaluation

reserves

Foreign

exchange

reserves

 

Retained

earnings

 

 

Total

Non-controlling

interests

 

Total

Equity

 


$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

 

Balance at 31 December 2015

15,504

(1,171)

23,935

1,087

59,594

(234,490)

504,892

369,351

82,607

451,958

Restatement (note 2)

-

-

-

-

(22)

7,516

(55,830)

(48,336)

(9,009)

(57,345)

Balance at 31 December 2015 after restatement

15,504

(1,171)

23,935

1,087

59,572

(226,974)

449,062

321,015

73,598

394,613

Items of other comprehensive income:











-Unrealised loss on revaluation of leasehold land, net of tax

-

-

-

-

(989)

-

-

(989)

(137)

(1,126)

-Gain on exchange translation of foreign operations

-

-

-

-

-

15,100

-

15,100

3,850

18,950

Total other comprehensive (expense) / income

-

-

-

-

(989)

15,100

-

14,111

3,713

17,824

Profit for the period

-

-

-

-

-

-

8,044

8,044

2,919

10,963

Total comprehensive (expense) / income for the period

-

-

-

-

(989)

15,100

8,044

22,155

6,632

28,787

Dividends payable

-

-

-

-

-

-

(1,003)

(1,003)

(2,375)

(3,378)

Balance at 30 June 2016 after restatement

15,504

(1,171)

23,935

1,087

58,583

(211,874)

456,103

342,167

77,855

420,022


 

Condensed Consolidated Statement of Cash Flows


2017

 

2016

2016


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


(unaudited)

(unaudited & restated)

(audited)


$000

$000

$000

Cash flows from operating activities




Profit before tax

31,631

17,255

60,846

Adjustments for:




Biological assets movement

181

(3,288)

(3,383)

Gain on disposal of property, plant and equipment

(7)

(2)

(13)

Depreciation

8,050

7,516

15,677

Retirement benefits provisions

680

502

1,700

Net finance income

(1,477)

(2,571)

(4,138)

Unrealised gain in foreign exchange

(156)

(1,244)

(845)

Property, plant and equipment written off

88

54

731

Impairment losses

1,596

1,722

2,740

Operating cash flow before changes in working capital

40,586

19,944

73,315

Decrease / (Increase) in inventories

1,044

(1,140)

(2,353)

Increase in non-current, trade and other receivables

(4,597)

(3,888)

(1,460)

Decrease in trade and other payables

(734)

(3,630)

(1,749)

Cash inflow from operations

36,299

11,286

67,753

Interest paid

(913)

(835)

(1,743)

Retirement benefits paid

(148)

-

(250)

Overseas tax paid

(19,350)

(15,689)

(27,133)

Net cash from / (used in) operations

15,888

(5,238)

38,627





Investing activities




Property, plant and equipment




-  purchases

(11,628)

(13,366)

(30,484)

-  sales

81

58

931

Interest received

2,390

3,406

5,881

Net cash used in investing activities

(9,157)

(9,902)

 

 Financing activities




Dividends paid by Company

-

(1,003)

(1,003)

Dividends paid to non-controlling interests

(202)

(1,372)

 

(2,375)

Drawdown of long term loans

-

1,250

1,250

Repayment of existing long term loans

(2,844)

(250)

(1,797)

Net cash used in financing activities

(3,046)

(1,375)

Increase / (Decrease) in cash and cash equivalents

3,685

(16,515)

11,030





Cash and cash equivalents




At beginning of period

118,176

104,614

104,614

Foreign exchange

1,180

4,895

2,532

At end of period

123,041

92,994

118,176

 

Comprising:




Cash at end of period

123,041

92,994

118,176

 

 

Notes to the interim statements

 

1.         Basis of preparation of interim financial statements

 

These interim consolidated financial statements have been prepared in accordance with IAS 34, "Interim Financial Reporting", as adopted by the European Union. They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2016 Annual Report. The financial information for the half years ended 30 June 2017 and 30 June 2016 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and has been neither audited nor reviewed pursuant to guidance issued by the Auditing Practices Board.

 

Basis of preparation

The annual financial statements of Anglo-Eastern Plantations Plc are prepared in accordance with IFRSs as adopted by the European Union. The comparative financial information for the year ended 31 December 2016 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2016 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2016 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

Changes in accounting standards

            The same accounting policies, presentation and methods of computation are followed in these condensed consolidated financial statements as were applied in the Group's latest annual audited financial statements.

 

After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue operations for the foreseeable future.  For this reason, they continue to adopt the going concern basis in preparing the financial statements.

 

2.         Prior period's restatement

             

The amendments to IAS 16 and the amendments to IAS 41, which came into effect on 1 January 2016, require Biological Assets that meet the definition of bearer plants to be accounted for as Property, Plant and Equipment in accordance with IAS 16. This was adopted in the prior year interim and annual financial statements for the first time and required retrospective application. The prior year interim financial statements have been restated to reflect the changes made in the annual financial statements which were subject to audit. 

The effects of the restatements are summarised as follows:

 


2016

2015


6 months to 30 June

Year to 31 December


(unaudited & restated)

(audited & restated)


$000

$000

Impact on condensed consolidated income statement



Profit / (Loss) for the period before restatement

14,002

(13,429)

Effect of change in restatement:



Cost of sales

(480)

(6,787)

Biological assets movement

-

63,389

Administration expenses

(17)

196

Impairment losses

(1,722)

(12,470)

Tax expense

(820)

(15,847)


(3,039)

28,481

Profit for the period after restatement

10,963

15,052

                       

                                   

2016

2015


6 months to 30 June

Year to 31 December


(unaudited & restated)

(audited & restated)

Impact on earnings per share



Basic EPS before BA movement

(4.09)cts

(43.50)cts

Basic EPS after BA movement

(7.09)cts

62.24cts

Diluted EPS before BA movement

(4.09)cts

(43.52)cts

Diluted EPS after BA movement

(7.09)cts

62.22cts

 

                                   

2016

2015


6 months to 30 June

Year to 31 December


(unaudited & restated)

(audited & restated)


$000

$000

Impact on condensed consolidated statement of comprehensive income



Other comprehensive income / (expense) for the period before restatement

16,696

(50,585)

Effect of change in restatement:



Unrealised gain on revaluation of leasehold land

390

-

Loss on exchange translation of foreign operations

1,136

8,858

Deferred tax on revaluation

(398)

(40)


1,128

8,818

Other comprehensive income / (expense) for the period after restatement

17,824

(41,767)

 


Balance as reported

30 June 2016

$000

Effect of restatement

$000

Restated balance at

30 June 2016

$000

Impact on condensed consolidated statement of financial position




Property, plant and equipment

329,788

25,242

355,030

Deferred tax

(16,506)

(1,652)

(18,158)

Revaluation reserves

(58,587)

4

(58,583)

Exchange reserves

211,615

259

211,874

Retained earnings

(433,069)

(23,034)

(456,103)

Non-controlling interests

(77,036)

(819)

(77,855)

 


Balance as reported

31 December 2015

$000

Effect of restatement

$000

Restated balance at

31 December 2015

$000

Impact on condensed consolidated statement of financial position




Non-current assets - Biological assets

179,010

(179,010)

-

Property, plant and equipment

219,990

116,454

336,444

Deferred tax

(20,911)

1,538

(19,373)

Current assets - Biological assets

-

3,673

3,673

Revaluation reserves

(59,594)

22

(59,572)

Exchange reserves

234,490

(7,516)

226,974

Retained earnings

(504,892)

55,830

(449,062)

Non-controlling interests

(82,607)

9,009

(73,598)

 

3.         Foreign exchange



2017

2016

2016



6 months

6 months

Year



to 30 June

to 30 June

to 31 December



(unaudited)

(unaudited)

(audited)






            Average exchange rates





            Rp : $


13,331

13,420

13,307

            $ : £


1.26

1.43

1.35

            RM : $


4.39

4.10

4.14






            Closing exchange rates





            Rp : $


13,319

13,180

13,436

            $ : £


1.30

1.34

1.23

            RM : $


4.29

4.03

4.49

 

4.         Finance expense



2017

2016

2016



6 months

6 months

Year



to 30 June

to 30 June

to 31 December



(unaudited)

(unaudited)

(audited)



$000

$000

$000






            Payable


913

835

1,743

 


 

5.         Segment information


North

Sumatera

Bengkulu

South Sumatera

Riau

Bangka

Kalimantan

Total Indonesia

Malaysia

UK

Total


$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

6 months to 30 June 2017 (unaudited)










Total sales revenue (all external)











-     CPO, palm kernel and FFB

46,827

51,956

-

25,930

51

18,083

142,847

1,588

-

144,435

-     Rubber

745

-

-

-

-

-

745

-

-

745

-     Shell nuts

373

365

2

434

-

8

1,182

-

-

1,182

-     Biomass products

451

57

-

-

-

-

508

-

-

508

     Total revenue

48,396

52,378

2

26,364

51

18,091

145,282

1,588

-

146,870












     Profit / (loss) before tax

10,414

13,319

(1,921)

7,351

(293)

3,237

32,107

288

(583)

31,812

     BA movement

131

(17)

(41)

(167)

(1)

(62)

(157)

(24)

-

(181)

     Profit / (loss) for the period before tax per consolidated income statement

10,545

13,302

(1,962)

7,184

(294)

3,175

31,950

264

(583)

31,631












     Depreciation

(1,959)

(2,026)

(1,356)

(461)

(79)

(1,875)

(7,756)

(294)

-

(8,050)

     Impairment losses

-

-

446

-

(110)

(1,932)

(1,596)

-

-

(1,596)

     Inter-segment transactions

2,559

(1,058)

(402)

(304)

(40)

(831)

(76)

46

30

-

     Income tax

(4,448)

(2,918)

1,906

(2,517)

86

(214)

(8,105)

(102)

(142)

(8,349)












     Total assets

182,406

140,227

57,161

36,290

11,913

107,376

535,373

22,334

5,554

563,261

     Non-current assets

104,221

75,796

55,473

20,108

11,699

97,809

365,106

16,717

578

382,401

     Non-current assets - additions

3,353

1,171

997

368

222

5,495

11,606

22

-

11,628












 

 


North

Sumatera

Bengkulu

South Sumatera

Riau

Bangka

Kalimantan

Total Indonesia

Malaysia

UK

Total


$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

6 months to 30 June 2016 (unaudited & restated)










Total sales revenue (all external)











-     CPO, palm kernel and FFB

33,302

30,876

1

11,771

5

7,526

83,481

1,637

-

85,118

-     Rubber

441

-

-

-

-

-

441

-

-

441

-     Shell nuts

90

252

-

27

-

9

378

-

-

378

-     Biomass products

107

-

-

-

-

-

107

-

-

107

     Total revenue

33,940

31,128

1

11,798

5

7,535

84,407

1,637

-

86,044












     Profit / (loss) before tax

8,205

6,434

(2,730)

2,974

(281)

(1,315)

13,287

65

615

13,967

     BA movement

1,142

1,533

50

441

-

40

3,206

82

-

3,288

     Profit / (loss) for the period before tax per consolidated income statement

9,347

7,967

(2,680)

3,415

(281)

(1,275)

16,493

147

615

17,255












     Depreciation

(1,951)

(1,939)

(1,228)

(439)

(32)

(1,597)

(7,166)

(330)

-

(7,516)

     Impairment losses

-

-

201

-

(165)

(1,758)

(1,722)

-

-

(1,722)

     Inter-segment transactions

1,683

(1,060)

(384)

(305)

-

(637)

(703)

673

30

-

     Income tax

(4,101)

(1,692)

1,622

(1,397)

25

663

(4,880)

(135)

(1,277)

(6,292)












     Total assets

163,970

112,878

52,434

38,341

11,720

102,167

481,510

23,277

4,695

509,482

     Non-current assets

100,264

73,974

50,706

20,138

11,499

94,255

350,836

18,416

578

369,830

     Non-current assets - additions

3,353

1,576

1,228

525

254

6,399

13,335

31

-

13,366












 

 


North

Sumatera

Bengkulu

South Sumatera

Riau

Bangka

Kalimantan

Total Indonesia

Malaysia

UK

Total


$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

Year to 31 December 2016 (audited)










Total sales revenue (all external)











-     CPO, palm kernel and FFB

88,465

86,564

3

40,169

27

24,342

239,570

3,450

-

243,020

-     Rubber

1,149

-

-

-

-

-

1,149

-

-

1,149

-     Shell nuts

628

736

1

205

-

147

1,717

-

-

1,717

-     Biomass products

324

-

-

-

-

-

324

-

-

324

     Total revenue

90,566

87,300

4

40,374

27

24,489

242,760

3,450

-

246,210












     Profit / (loss) before tax

23,219

24,785

(4,695)

12,861

(602)

1,623

57,191

296

(24)

57,463

     BA movement

628

1,421

144

653

2

431

3,279

104

-

3,383

     Profit / (loss) for the period before tax per consolidated income statement

23,847

26,206

(4,551)

13,514

(600)

2,054

60,470

400

(24)

60,846












     Depreciation

(4,029)

(4,096)

(2,505)

(898)

(85)

(3,414)

(15,027)

(650)

-

(15,677)

     Impairment losses

-

-

693

-

(335)

(3,098)

(2,740)

-

-

(2,740)

     Inter-segment transactions

3,828

(2,117)

(767)

(609)

-

(1,334)

(999)

604

395

-

     Income tax

(9,275)

(5,744)

3,410

(4,531)

90

644

(15,406)

(81)

(1,378)

(16,865)












     Total assets

175,332

129,428

54,280

41,887

11,732

103,906

516,565

20,944

3,587

541,096

     Non-current assets

101,843

76,048

52,862

20,044

11,520

94,974

357,291

16,263

578

374,132

     Non-current assets - additions

7,956

5,544

2,638

857

657

12,771

30,423

61

-

30,484












 

 

In the 6 months to 30 June 2017, revenues from 4 customers of the Indonesian segment represent approximately $78.5m (1H 2016: $47.6m) of the Group's total revenues. In the year of 2016, revenues from 4 customers of the Indonesian segment represent approximately $114.1m of the Group's total revenues. An analysis of these revenues is provided below. Although Customer 1 to 2 are over 10% of the Group's total revenue, there is no over reliance on these Customers as tenders are performed on a monthly basis. Two of the top four customers are the same as in the year to 31 December 2016.

 


2017

2016

2016


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


(unaudited)

(unaudited)

(audited)


$m

%

$m

%

$m

%

Major Customers







Customer 1

28.2

19.2

16.9

19.6

39.1

15.9

Customer 2

23.3

15.9

13.6

15.8

27.0

11.0

Customer 3

14.6

9.9

10.7

12.4

24.2

9.9

Customer 4

12.4

8.4

6.4

7.5

23.8

9.7

Total

78.5

53.4

47.6

55.3

114.1

46.5

 

 


6.         Tax expense


2017

2016

2016


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


(unaudited)

(unaudited & restated)

(audited)


$000

$000

$000





Foreign corporation tax - current year

11,049

7,963

20,438

Foreign corporation tax - prior year

-

-

(30)

Deferred tax adjustment - current year

(2,700)

(1,671)

(3,543)


8,349

6,292

16,865

 

7.         Dividend

           

The final and only dividend in respect of 2016, amounting to 3.0p per share, or $1,515,140 was paid on 14 July 2017 (2015: 1.75p per share, or $1,002,785, paid on 11 July 2016). As in previous years no interim dividend has been declared.

 

8.         Earnings per ordinary share (EPS)


2017

2016

2016


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


(unaudited)

(unaudited & restated)

(audited)


$000

$000

$000





Profit for the year attributable to owners of the Company before BA movement

18,328

5,940

32,563

BA movement

(109)

2,104

2,150

Earnings used in basic and diluted EPS

18,219

8,044

34,713






Number

Number

Number


'000

'000

'000

Weighted average number of shares in issue in period




  -  used in basic EPS

39,636

39,636

39,636

  -  dilutive effect of outstanding share options

33

-

 

-

  -  used in diluted EPS

39,669

39,636

39,636





Basic EPS before BA movement

46.24cts

14.99cts

82.16cts

Basic EPS after BA movement

45.97cts

20.29cts

87.58cts





Dilutive EPS before BA movement

46.20cts

14.99cts

82.16cts

Dilutive EPS after BA movement

45.93cts

20.29cts

87.58cts

 

9.         Fair value measurement of financial instruments

           

The carrying amounts and fair values of the financial instruments which are not recognised at fair value in the Statement of Financial Position are exhibited below:  

 


2017

2016

2016

 


6 months

6 months

Year

 


to 30 June

to 30 June

to 31 December

 


(unaudited)

(unaudited)

(audited)

 


Carrying amount

Fair value

Carrying amount

Fair value

Carrying amount

Fair value

 


$000

$000

$000

$000

$000

$000

 

Non-current receivables







 

Due from non-controlling interests

578

424

578

424

578

424

 

Due from cooperatives under Plasma scheme

4,670

4,394

2,987

2,843

3,313

2,973

 


5,248

4,818

3,565

3,267

3,891

3,397

 








 

Borrowings due after one year







 

Long term loan

24,000

23,349

31,234

31,387

27,875

27,208

 








Financial instruments not measured at fair value includes cash and cash equivalents, trade and other receivables, trade and other payables, and borrowings due within one year.

 

Due to their short-term nature, the carrying value of cash and cash equivalents, trade and other receivables, trade and other payables and borrowings due within one year approximates their fair value.

 

All non-current receivables and long term loan are classified as Level 3 in the fair value hierarchy.

 

The valuation techniques and significant unobservable inputs used in determining the fair value measurement of non-current receivables and borrowings due after one year, as well as the inter-relationship between key unobservable inputs and fair value, are set out in the table below:

 

Item

Valuation approach

Inputs used

Inter-relationship between key unobservable inputs and fair value

 

 

Non-current receivables

Due from non-controlling interests

Based on cash flows discounted using current lending rate of 6% (1H 2016 and 2016: 6%)

 

Discount rate

The higher the discount rate, the lower the fair value

 

Due from cooperatives under Plasma scheme

Based on cash flows discounted using an estimated current lending rate of 5.56% (1H 2016: 5.57%, 2016: 5.56%)

 

Discount rate

The higher the discount rate, the lower the fair value

 

Borrowings due after one year

Long term loan

Based on cash flows discounted using an estimated current lending rate of 5.56% (1H 2016: 5.57%, 2016: 5.56%)

 

Discount rate

The higher the discount rate, the lower the fair value

 

10.       Report and financial information

 

Copies of the interim report for the Group for the period ended 30 June 2017 are available on the AEP website at www.angloeastern.co.uk.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR LLFLITVIVFID
UK 100

Latest directors dealings