Final Results

R.E.A.Hldgs PLC
22 April 2008



Preliminary results for the year ended 31 December 2007
=======================================================

Highlights

• Profit attributable to ordinary shareholders of US$29,453,000
  (2006 US$11,546,000), an increase of 155 per cent
• Palm oil prices at higher levels during the year with a further increase 
  in prices in 2008
• Further significant strengthening of the group's financial position during 
  the year
• Fresh fruit bunch crops of 393,217 tonnes (2006 334,076 tonnes), an increase
  of 17.7 per cent
• Development of an additional 1,500 hectares during the year against a target 
  of 6,500 hectares, following delays in the availability of land
• Some 26,400 hectares now developed, of which just under half was in 
  commercial production during 2007
• Substantial additions to land allocations during the year
• With the additional land bank, large scale development should be resumed upon 
  completion of compensation settlements with local villages.

Presentation of annual report

Following a trend set by several other European plantation companies, the group 
has decided to adopt the US dollar as its presentational currency. The directors
believe that presentation of the group's results in US dollars will reduce 
distortions caused by exchange movements and thereby make it easier for 
shareholders to follow the evolution of the group's financial affairs. 

Accordingly, while the group continues to report in accordance with 
International Financial Reporting Standards, the accompanying consolidated 
financial statements for the year ended 31 December 2007 are presented in 
US dollars and the comparative figures, which were originally presented in 
sterling, have been restated in US dollars.  The company continues to prepare 
its individual financial statements in sterling in accordance with UK Generally
Accepted Accounting Practice and, as was the case in the annual report for 2006,
those statements are presented separately from the consolidated financial 
statements.

Results

Profit before tax for 2007, as shown in the accompanying consolidated income 
statement, amounted to $47.0 million representing a 137 per cent increase over 
the profit before tax of the preceding year (as restated in US dollars) of 
$19.8 million. The increase reflected a combination of increased production and
better selling prices, more than offsetting cost increases resulting from 
inflationary pressures in Indonesia. The net gain from changes in the fair value
of biological assets at $8.0 million was much in line with the gain reported in 
2006 of $8.7 million.    In both years, the gains principally reflected 
projected increases in future production arising from the continuing extension 
planting programme and the increasing maturity of existing planted areas. At the
after tax level, profit for the year at $32.0 million was 130 per cent ahead of 
the $13.9 million achieved in 2006 while profit attributable to ordinary 
shareholders was 155 per cent ahead of the preceding year. Fully diluted 
earnings per share amounted to US 89.6 cents (2006 - US 37.8 cents).

Accounting reference date

The company's current accounting reference date is 31 December. This is not 
ideal in terms of internal staff availability for the preparation of year end 
accounts. Moreover, the end of the calendar year is a popular reporting date and
the group finds itself competing with other groups (many of them much larger 
than the group) to obtain from its auditors allocations of audit staff for the 
time needed to audit the financial statements of the company and its 
subsidiaries.

The directors are therefore contemplating a change in the company's accounting 
reference date to 28 February. Such a change would require the consent of the 
holders of the 9.5 per cent guaranteed sterling notes 2015/17 ('sterling notes')
issued by REA Finance B.V. ('REA Finance'), a wholly owned subsidiary of the 
company. If the directors decide to proceed with the change and the necessary 
noteholder consent can be obtained during the course of 2008, the current 
reporting period of the company would be extended to 28 February 2009.

Operations

The crop out-turn for 2007 amounted to 393,217 tonnes of oil palm fresh fruit 
bunches ('FFB'), 3.5  per cent ahead of the budgeted crop of 380,000 tonnes and
an increase of 17.7 per cent on the FFB crop for 2006 of 334,076 tonnes. 
Climatic conditions during 2007 were satisfactory with good rainfall of 4,413 mm
(2006 - 2,967 mm) generally well distributed through the year.

The crude palm oil ('CPO') and palm kernel extraction rates for 2007 were, 
respectively, 23.7 per cent and 4.0 per cent as compared with the rates of 
23.2 per cent and 3.8 per cent achieved in 2006.  4.0 per cent remains the 
group's target rate for kernel extraction, but recent adjustments to kernel 
processing machinery in the group's newer oil mill may permit upward revision 
of this target rate in future years.

The palm kernel crushing plant incorporated in the newer oil mill was brought 
into full scale production at the start of 2007 and now processes all kernel 
output from both of the group's oil mills. The plant is economic to run because
it operates on power generated from the combustion of waste products from the 
CPO and palm kernel extraction processes and such power is surplus to the power
requirement for those processes.  Moreover, by further processing kernels and 
extracting the crude palm kernel oil ('CPKO') that they contain, the plant 
relieves the group of the material logistical difficulties and cost associated
with the transport and sale of kernels. The CPKO extraction rate for 2007 was 
41.4 per cent.

Land allocations and development

Efforts to ensure the availability to the group of land for expansion during
2007 and the early months of 2008 have resulted in the group acquiring two 
further Indonesian companies,  PT Cipta Davia Mandiri ('CDM') and PT Kutai Mitra
Sejahtera ('KMS') and conditionally agreeing to acquire (subject to confirmation
 of necessary land development permits) a third Indonesian company, PT Putra 
Bongan Jaya ('PBJ'). Each of these three Indonesian companies is, or will be, 
owned as to 95 per cent by group companies and 5 per cent by East Kalimantan 
investors. Following these transactions and assuming completion of the 
conditional acquisition of PBJ, the group will hold land allocations totalling 
slightly in excess of 120,000 hectares but the various allocations are at 
different stages of titling and a large proportion of the land allocated is not
yet available to the group for development. 

The extent of the new development achieved by the group in 2007 was a 
significant disappointment with an increase during the year of only some 
1,500 hectares in the total area planted or in course of development. This 
increase fell very materially short of the target of 6,500 hectares set at the
beginning of the year. In setting that target, the directors did recognise that 
its achievement would depend upon the titling of land allocations held by the 
group proceeding as planned so that land would become available for development
in time, and to an extent sufficient, to meet the requirements of the 
development programme. Titling problems in relation to untitled land allocations
held meant that this did not happen and the shortfall was the result.

Looking to 2008 and beyond, the directors continue to regard the availability of
land for development as the key constraint on expansion. The serious and 
unexpected delays suffered in 2007 have made it clear that any predictions as to
land availability may prove inaccurate. Nevertheless, the directors do believe 
that significant areas within the 37,000 hectares of land allocations held by 
CDM and KMS will be available for development by the group during 2008 and that
a further area held by PBJ will also become available during the year. This will
permit the group to split its development programme between three separate areas
and, if setbacks occur in one area, hopefully to compensate for these by 
accelerating development in the other areas. Although the delays experienced in
2007 have continued into 2008, the recent acquisitions of CDM and KMS should 
permit large scale development to be resumed upon completion of land 
compensation settlements with local villages. These are currently under 
negotiation.

Subject to the caveats just mentioned, the targeted development programme for 
2008 and 2009 will be 6,500 hectares per annum and, in addition, the group will
aim to catch up the uncompleted balance of the 2007 programme of some 5,000 
hectares. Whilst development of new areas requires a one year lead time in which
to procure seed and to develop seedlings for planting out, the group's nurseries
are already well stocked and the availability of planting material should be 
more than sufficient to meet the targeted programme. If achieved, this programme
would result by the end of 2009 in a total area under oil palm or in course of 
development of slightly under 45,000 hectares.

Finance

2007 saw further consolidation of the group's financial position. In January 
2007, the balance of £7,000,000 nominal of the proposed total issue of 
£22,000,000 nominal of sterling notes was issued for cash at a subscription 
price of 99.6574 per cent of par by REA Finance. This was followed in April and 
September 2007 by issues of, respectively, 1,500,000 new ordinary shares and 
1,064,581 new preference shares for cash to raise some £7.6 million, net of
expenses. A further 1,085,795 new preference shares were issued in October 2007
by way of capitalisation of share premium account pursuant to the capitalisation
issue to ordinary shareholders referred to under 'Dividends' below.

The combined effect of the foregoing transactions was to increase the group's 
liquidity and to reduce its dependence on short term bank borrowings. As a 
result, group indebtedness at 31 December 2007 amounted to $86.2 million, made 
up of US dollar denominated bank indebtedness under an Indonesian consortium 
loan facility of $15.4 million, £22 million nominal of sterling notes (carrying
value: $40.7 million), $30 million nominal of 7.5 per cent dollar notes 2012/14 
('dollar notes') (carrying value: $29.4 million) and other short term 
indebtedness (including finance leases) of $0.7 million. Against this 
indebtedness, at 31 December 2007 the group held cash and cash equivalents of 
$34.2 million.

The group has entered into a long term sterling US dollar debt swap to hedge 
against US dollars the sterling liability for principal and interest payable in 
respect of the entire issue of the sterling notes (but, in the case of interest,
only as respects interest payments falling due up to and including 31 December 
2015).

On the basis of present CPO prices, the directors expect that operating cash 
flows for the remainder of 2008, together with the group's existing cash 
resources, will be sufficient to fund both the planned development programme for
the year and near term debt repayments.  Looking beyond 2008 and allowing for 
the fact that CPO prices may not be sustained at present levels, the group is 
likely to require some further funding if, as the directors hope will be the 
case, high levels of extension planting are achieved.  The directors intend to 
meet this further funding requirement with additional borrowings which they will
seek to raise from development and other banks and, if market conditions permit,
from further issues of listed debt securities. The directors are confident that
the group's equity base is now sufficient comfortably to support the additional
debt envisaged.

Dividends

The fixed semi-annual dividends on the 9 per cent cumulative preference shares
that fell due on 30 June and 31 December 2007 were duly paid. Dividends 
totalling 2p per ordinary share have been paid in respect of 2007 (2006 - 1p per
ordinary share). These comprised a first interim dividend of 1p per ordinary 
share paid on 5 October 2007 and a second interim dividend in lieu of final of
1p per ordinary share paid on 25 January 2008. In addition, the company made a 
capitalisation issue to ordinary shareholders of 1,085,795 new preference shares
on the basis of one new preference share for every 30 ordinary shares held on 
1 October 2007.

The group's plans for continued extension planting of oil palms will require 
substantial investment by the group and the need to fund this investment will 
inevitably constrain the rate at which the directors feel that they can 
prudently declare, or recommend the payment of, future ordinary dividends. The
directors do appreciate that many shareholders invest not only for capital 
growth but also for income and that the payment of dividends is important. With
the prospect of increasing crops for several years to come, the directors 
believe that, notwithstanding the constraints of the development programme, the
group should be able to support progressive increases in ordinary dividends from
the modest levels established in respect of 2006 and 2007 but they believe that
the rate of progression should be steady rather than dramatic. The directors 
intend that any new level of ordinary dividend set in respect of any given year
should be sustainable in subsequent years. 

If the group's results would appear to justify some additional return to 
ordinary shareholders beyond the level of ordinary dividends that the directors
believe that the company can prudently afford having regard to the need to 
conserve cash resources, the directors may consider a further capitalisation 
issue to ordinary shareholders of new preference shares.

Staff

The directors extend their thanks to all of the group's staff for their 
continued loyalty and hard work.

Future direction

In seeking to meet the challenges brought by the group's continuing growth, the
directors have seen as their highest priority the consolidation of the human 
resource component of the group's Indonesian operations. To this end, steps have
been taken to provide greater structure to the management of the operations by 
adding senior staff (both by internal promotion and external recruitment) and by
enhancing training programmes. The group has also sought to entrench its local 
capacities by building on existing relationships with local stakeholders, by 
procuring minority local investors in its operations and by appointing persons 
of standing as local advisers to, and directors of, Indonesian group companies.
Whilst this process is not yet complete, the directors believe that the measures
already taken have significantly improved the resilience of existing management
and the availability to the group of local independent non-executive advice.
Moreover, the group now has an expanding cadre of younger staff who, suitably 
nurtured, should in the future be capable of running the Indonesian operations.

The directors have also started to address the question of how best to develop 
the structure of the group for the future. The present structure, in which the 
group is headed by a UK listed company, has served the group well in recent 
years in permitting the group to raise the capital that it has needed but 
integral to this structure is a requirement to maintain a London base. That 
represents a significant overhead. If, as the directors hope will be the case, 
the group can in future rely, to a greater extent than hitherto, on internally 
generated equity, and if the markets for listed securities in Indonesian and 
other Asian financial markets continue to mature, it might be that a 
reconstitution of the group as an entirely Asian based entity would better serve
investors in the group than continuation of the present group structure. Having
considered the matter, the directors have concluded that they should defer any 
far reaching decisions on group structure until it becomes clearer whether the 
group's aspirations on further expansion can be converted to realities.

The directors have previously stated, and it remains the case, that they do not 
regard diversification as a strategic imperative and that a decision to 
diversify would be taken only if the prospective returns from capital invested 
in diversification are comparable with those achievable from investment of 
equivalent capital in continued expansion of the oil palm operations in the 
existing operational areas.

In recent months, the directors have been tentatively considering the 
possibility of a modest diversification into coal mining. It is well established
that East Kalimantan has vast coal deposits, many of which comprise coal of a 
high quality. Certain of the local investors in Indonesian subsidiaries of the 
company have interests in, or access to, coal concessions and have suggested 
that the group might join them in exploiting such concessions. The directors 
have concluded that this suggestion should be explored although there is no 
current certainty that the apparent opportunity offered can provide an 
economically viable project or that, if it does, the group would decide to take
on such a project.

As they have previously indicated, the directors do not agree with the view of
some institutional investors that long service automatically negates the 
independence of a non-executive director and that therefore the present 
constitution of various board committees should be considered non-compliant with
the principles of the Combined Code on Corporate Governance. However, the 
directors do accept that it is important to retain shareholder confidence in the
board and, in particular, in the audit committee's contribution to the integrity
of the audit process. With the progress that has been made in developing 
resilience in the group's management in Indonesia, the directors have concluded
that appointing one further non-executive director would not now pose a material
distraction from the continuing efforts to address other important strategic 
issues.

Accordingly, the directors have invited the nomination committee to make 
recommendations for appointment of an additional non-executive director with the
expectation that such director would have a relevant financial background. The 
directors hope that an appointment can be completed within a few months. This 
will facilitate further revisions to the composition of board committees with a
view to putting beyond question the compliance of such committees with the 
principles of the Combined Code.

In the view of the directors, the business environment in Indonesia is fraught 
with risks and it is essential to the management of that risk to build and 
maintain relationships based on mutual trust and understanding. The directors 
will expect any new director to support this view.

Prospects

The FFB crop for 2008 has been budgeted at 421,000 tonnes with the expected 
increase over 2007 reflecting a budgetary assumption of average rainfall (both
as to quantum and distribution) and increased cropping from the 3,150 hectares
of oil palms classified as mature from the start of 2008. Crops to end March 
2008 were 9,000 tonnes above budget but, as the monthly phasing of each year's 
crop varies from year to year, this should not be taken as indicating a 
likelihood that the FFB crop for 2008 as a whole will be above budget.

During 2007, the CPO price, spot CIF Rotterdam, rose progressively from an 
opening level of some $600 per tonne to a closing level of $950 per tonne. 
Further strong price rises were recorded going into 2008 and CPO has, during 
2008, traded at levels in excess of $1,300 per tonne although recent weeks have 
seen prices fall back from the highest levels. Reports suggest that the peak 
prices of vegetable oils were accompanied by heavy speculative buying as well as
increased commercial activity and that the recent fall from peak levels reflects
closing of speculative positions. Certainly, demand for all vegetable oils 
appears to remain strong at a time when stocks are at historically very low 
levels and competition for hectarage from corn and grain crops is limiting the
ability of the annual oilseeds to increase production and reduce the demand 
pressure on world vegetable oil stocks.

The directors retain their previously expressed view that the prices of all 
commodities are inherently cyclical and that it would be foolish to assume that
the present high price levels for CPO will continue indefinitely. Ultimately, 
they believe that high prices for vegetable oils will lead to greater production
not only of CPO but also of other competing crops and that that, in turn, will 
result in lower prices. However, they acknowledge that the increasing interest 
in bio-fuels represents a new factor in vegetable oil markets. With the 
continuing growth in world population, economic growth in China, India and 
other parts of the developing world and the prospect of declining availability
of fossil fuels (upon which it must be remembered that intensive farming methods
are critically dependent), it may be that the average level of vegetable oil 
prices over future price cycles will be higher than in the past.

During the six months to June 2008, the group will deliver 12,000 tonnes of CPO
under forward sale contracts at the equivalent of a CIF Rotterdam price of $620 
per tonne. Thereafter the group has forward sales in respect of 2,000 tonnes per
month for the six month period to December 2008 and the twelve month period to 
December 2009 at prices equivalent to CIF Rotterdam prices of respectively $870
and $860 per tonne.

Inflationary pressures in Indonesia continue to have an adverse effect on the 
group's cost base and this is being exacerbated by the need to provide loyalty 
incentives to the group's employees in the face of competition for experienced 
estate managers and workers from other plantation groups and new entrants to the
Indonesian plantation industry. Against this, the group now has a substantial 
pipeline of recently developed areas and can look forward to several years of 
increasing crops. These should serve to moderate any contraction of margins that
the group might otherwise suffer. Moreover, successful implementation of the 
planned extension planting programme should add materially to the group's longer
term revenue generating capacity. The directors therefore remain optimistic 
about the group's future. If CPO prices continue at or near current levels, the 
immediate outlook speaks for itself.


Consolidated income statement
for the year ended 31 December 2007                        2007     2006
===================================                       $'000    $'000
                                                      Unaudited  Audited
Revenue                                                  57,600   33,095
Net gain/(loss) arising from changes in fair value
 of agricultural produce inventory                        5,578      (54)
Cost of sales                                           (14,875) (14,938)
                                                         ------   ------
Gross profit                                             48,303   18,103
Net gain arising from changes in fair
 value of biological assets                               8,030    8,700
Other operating income                                        6        9
Distribution costs                                       (1,028)    (450)
Administrative expenses                                  (5,925)  (5,590)
                                                         ------   ------
Operating profit                                         49,386   20,772
Investment revenues                                       1,641      640
Finance costs                                            (4,017)  (1,650)
                                                         ------   ------
Profit before tax                                        47,010   19,762
Tax                                                     (15,013)  (5,898)
                                                         ------   ------
Profit for the year                                      31,997   13,864
                                                         ======   ======
Attributable to:
Ordinary shareholders                                    29,453   11,546
Preference shareholders                                   2,266    1,795
Minority interests                                          278      523
                                                         ------   ------
                                                         31,997   13,864
                                                         ======   ======
Earnings per 25p ordinary share (in cents)
Basic                                                      91.9     40.0
Diluted                                                    89.6     37.8

All operations in both years are continuing.


Consolidated balance sheet at 31 December 2007             2007     2006
==============================================            $'000    $'000
                                                      Unaudited  Audited
Non-current assets:
Goodwill                                                 12,578   12,578
Biological assets                                       166,347  143,496
Property, plant and equipment                            41,772   28,645
Prepaid operating lease rentals                           8,823    5,180
Deferred tax assets                                       5,817   10,672
Non-current receivables                                   1,376    2,236
                                                        -------  -------
Total non-current assets                                236,713  202,807
                                                        -------  -------
Current assets
Inventories                                              13,040    5,096
Trade and other receivables                               3,301    3,963
Cash and cash equivalents                                34,216   37,266
                                                        -------  -------
Total current assets                                     50,557   46,325
                                                        -------  -------
Total assets                                            287,270  249,132
                                                        -------  -------
Current liabilities
Trade and other payables                                 (7,070)  (8,438)
Current tax liabilities                                  (2,935)    (220)
Obligations under finance leases                           (111)    (301)
Bank loans                                               (3,000) (21,500)
Other loans and payables                                   (414)    (396)
                                                        -------  -------
Total current liabilities                               (13,530) (30,855)
                                                        -------  -------
Non-current liabilities
Bank loans                                              (12,917) (19,250)
Sterling notes                                          (40,713) (27,409)
US dollar notes                                         (29,389) (29,307)
Deferred tax liabilities                                (37,166) (33,244)
Obligations under finance leases                           (127)     (32)
Other loans and payables                                 (4,795)  (3,514)
                                                        -------  -------
Total non-current liabilities                          (125,107)(112,756)
                                                        -------  -------
Total liabilities                                      (138,637)(143,611)
                                                        -------  -------
Net assets                                              148,633  105,521
                                                        =======  =======
Equity
Share capital                                            38,299   33,372
Share premium account                                    29,787   19,506
Translation reserve                                      (9,822)  (8,890)
Special reserve (non-distributable)                           -    3,254
Retained earnings                                        89,492   57,679
                                                        -------  -------
                                                        147,756  104,921
Minority interests                                          877      600
                                                        -------  -------
Total equity                                            148,633  105,521
                                                        =======  =======


Consolidated statement of recognised income and
expense for the year ended 31 December 2007                2007     2006
===============================================           $'000    $'000
                                                      Unaudited  Audited
Exchange translation differences                         (1,460)     769
Tax on items taken directly to equity                       528      417
                                                         ------   ------
Net (loss)/gain recognised directly in equity              (932)   1,186
Profit for the year                                      31,997   13,864
Share based payment - deferred tax credit                   385    1,798
                                                         ------   ------
Total recognised income and expense for the year         31,450   16,848
                                                         ======   ======
Attributable to:
Ordinary shareholders                                    28,907   14,528
Preference shareholders                                   2,266    1,795
Minority interests                                          277      525
                                                         ------   ------
                                                         31,450   16,848
                                                         ======   ======


Reconciliation of movements in equity
for the year ended 31 December 2007                        2007     2006
=====================================                     $'000    $'000
                                                      Unaudited  Audited
Total recognised income and expense for the year         31,450   16,848
Issue of new ordinary shares by way of
 placings and open offer (net of costs)                  13,027   18,391
Issue of new preference shares by way of
 placings (net of costs)                                  2,180    5,493
Issue of new ordinary shares on exercise of
 share options                                                -      150
Issue of new ordinary shares on exercise of warrants          -    1,639
Subscription of new shares by minority
 interest in subsidiaries                                     -      215
Dividends to preference shareholders                     (2,266)  (1,795)
Dividends to ordinary shareholders                       (1,279)       -
Liquidation distribution to preference
 shareholders in a subsidiary                                 -   (4,239)
Acquisition of minority interest in a subsidiary              -   (7,090)
                                                        -------  -------
                                                         43,112   29,612
Equity at beginning of year                             105,521   75,909
                                                        -------  -------
Equity at end of year                                   148,633  105,521
                                                        =======  =======


Consolidated cash flow statement
for the year ended 31 December 2007                        2007     2006
===================================                       $'000    $'000
                                                      Unaudited  Audited
Operating profit                                         49,386   20,772
Depreciation of property, plant and equipment             1,846    1,569
Amortisation of prepaid operating lease rentals             144       92
Amortisation of sterling and US dollar
 note issue expenses                                        242       57
Biological gain                                          (8,030)  (8,700)
Loss on disposal of property, plant and equipment             6        -
                                                         ------   ------
Operating cash flows before movements in working capital 43,594   13,790
Increase in inventories                                  (8,133)  (1,415)
Decrease in receivables                                   1,283    1,008
Decrease in payables                                       (583)  (2,707)
Exchange translation differences                         (1,330)    (590)
                                                         ------   ------
Cash generated by operations                             34,831   10,086
Taxes paid                                               (3,165)    (222)
Interest paid                                            (3,490)  (2,756)
                                                         ------   ------
Net cash from operating activities                       28,176    7,108
                                                         ------   ------

Investing activities
Interest received                                         1,641      640
Proceeds on disposal of property, plant and equipment       200        -
Purchases of property, plant and equipment              (15,010) (12,036)
Expenditure on biological assets                        (14,820) (18,775)
Expenditure on prepaid operating lease rentals           (3,787)  (2,862)
Costs incurred in acquisition of minority
 interest in subsidiary                                       -     (370)
                                                         ------   ------
Net cash used in investing activities                   (31,776) (33,403)
                                                         ------   ------

Financing activities
Preference dividends paid                                (2,266)  (1,795)
Ordinary dividends paid                                  (1,279)       -
Repayment of borrowings                                 (25,833)  (3,750)
Repayment of obligations under finance leases              (268)    (680)
Proceeds of issue of new share capital in
 subsidiaries to minority shareholders                        -      215
Proceeds of issue of preference share capital
 less expenses                                            2,180    5,493
Proceeds of issue of ordinary share capital
 less expenses                                           13,027   18,406
Proceeds of issue of ordinary share capital on
 exercise of warrants                                         -    1,639
Liquidation distribution to preference shareholders
 in a subsidiary                                              -   (5,692)
Issue of US dollar notes, net of expenses                     -    5,394
Issue of sterling notes, net of expenses                 13,438   27,804
New bank borrowings drawn                                 1,000    6,500
                                                         ------   ------
Net cash from financing activities                           (1)  53,534
                                                         ------   ------

Cash and cash equivalents
Net (decrease)/increase in cash and cash equivalents     (3,601)  27,239
Cash and cash equivalents at beginning of year           37,266    8,612
Effect of exchange rate changes                             551    1,415
                                                         ------   ------
Cash and cash equivalents at end of year                 34,216   37,266
                                                         ======   ======


Notes
=====

Revenue                                                    2007     2006
-------                                                   $'000    $'000
Sales of goods                                           57,581   32,891
Revenue from services                                        19      204
                                                         ------   ------
                                                         57,600   33,095
Other operating income                                        6        9
Investment income                                         1,641      640
                                                         ------   ------
Total revenue                                            59,247   33,744
                                                         ======   ======

The crop of oil palm fresh fruit bunches for 2007 amounted to 393,217 tonnes 
(2006 - 334,076 tonnes). The fair value of the crop of fresh fruit bunches was 
$39,269,000 (2006: $18,916,000), based on the price formula determined by the 
Indonesian government for purchases of fresh fruit bunches from smallholders.

As a general rule, all palm products produced by the group are sold for 
immediate delivery but on occasions, when market conditions appear favourable, 
the group makes forward sales. When making such sales, the group would not 
normally commit more than 60 per cent of its projected production for a 
forthcoming period of twelve months.

Segment information
-------------------
In the table below, the group's sales are analysed by geographical destination
and the carrying amount of segment net assets and additions to property, plant 
and equipment by geographical area of location. No analyses are provided by 
business segment as the group has only one business segment.

                                                           2007     2006
                                                            $'m      $'m
Sales by geographical destination:
United Kingdom and Continental Europe                         -      0.2
Indonesia                                                  28.1     25.3
Rest of Asia                                               29.5      7.6
                                                         ------   ------
                                                           57.6     33.1
                                                         ======   ======
Carrying amount of segment net assets by
geographical area of asset location:
United Kingdom and Continental Europe                      38.2     26.5
Indonesia                                                 110.4     79.0
                                                         ------   ------
                                                          148.6    105.5
                                                         ======   ======
Additions to property, plant and equipment by
geographical area of asset location:
United Kingdom and Continental Europe                       0.4        -
Indonesia                                                  14.8     12.0
                                                         ------   ------
                                                           15.2     12.0
                                                         ======   ======

Biological assets                                          2007     2006
-----------------                                         $'000    $'000
Beginning of year                                       143,496  117,289
Reclassification of expenditure in prior years
 between land, plantations and other
 non-current assets                                           -   (1,303)
Additions to planted area and costs to maturity          14,821   18,810
Net biological gain                                       8,030    8,700
                                                        -------  -------
End of year                                             166,347  143,496
                                                        =======  =======

Finance costs                                              2007     2006
-------------                                             $'000    $'000
Interest on bank loans and overdrafts                     1,916    3,799
Interest on US dollar notes                               2,360    2,011
Interest on sterling notes                                4,443      194
Interest on other loans                                       -       64
Interest on obligations under finance leases                 23       62
                                                         ------   ------
                                                          8,742    6,130
Amount included as additions to biological assets        (5,164)  (3,644)
Amount capitalised on acquisition                             -     (107)
                                                         ------   ------
                                                          3,578    2,379
Other finance charges                                       439      377
Exchange gain on repayment of preference shares
 held by minority shareholders in a subsidiary                -   (1,106)
                                                         ------   ------
                                                          4,017    1,650
                                                         ======   ======
Amount included as additions to biological assets arose on the general pool 
of borrowings applicable to the Indonesian operations and reflected a 
capitalisation rate of 43.7 per cent (2006 - 44.7 per cent).

Tax                                                        2007     2006
---                                                       $'000    $'000
Current tax:
UK corporation tax                                            -        -
Foreign tax                                               5,318      222
                                                         ------   ------
Total current tax                                         5,318      222
                                                         ------   ------
Deferred tax:
Current year                                              9,695    5,676
Attributable to an increase in the rate of tax                -        -
                                                         ------   ------
Total deferred tax                                        9,695    5,676
                                                         ------   ------

Total tax                                                15,013    5,898
                                                         ======   ======

Dividends                                                  2007     2006
---------                                                 $'000    $'000
Amounts recognised as distributions to equity holders:
Preference dividends of 9p per share                      2,266    1,795
Ordinary dividends                                        1,279        -
                                                         ------   ------
                                                          3,545    1,795
                                                         ======   ======

Earnings per share                                         2007     2006
------------------                                        $'000    $'000
Earnings for the purpose of basic and diluted earnings
 per share being net profit attributable to
 ordinary shareholders                                   29,453   11,546
                                                         ======   ======

                                                           '000     '000
Weighted average number of ordinary shares
 for the purpose of basic earnings per share             32,044   28,857
Effect of dilutive potential ordinary shares                837    1,666
                                                         ------   ------
Weighted average number of ordinary shares for
 the purpose of diluted earnings per share               32,881   30,523
                                                         ======   ======

Events after the balance sheet date
-----------------------------------
An interim dividend of 1p per ordinary share in lieu of final in respect of the
year ended 31 December 2007 was paid on 25 January 2008. In accordance with 
IAS 10 'Events after the Balance Sheet Date' this dividend has not been included 
in these financial statements.

Financial information and publication of annual report
------------------------------------------------------
Whilst the financial information included in this preliminary announcement (the
'preliminary financial information') has been computed in accordance with IFRS, 
this announcement does not itself contain sufficient information to comply with
IFRS. The company expects to publish its 2007 annual report, incorporating its 
consolidated financial statements, by the end of April 2008.

The preliminary financial information does not constitute statutory accounts of 
the company for the years ended 31 December 2006 or 2007, but is derived from 
those accounts. Statutory accounts for 2006 have been delivered to the Registrar
of Companies. The auditors have reported on those accounts; their reports were 
unqualified and did not contain statements under sections 237(2) or (3) of the 
Companies Act 1985. The audit of the statutory accounts for the year ended 31 
December 2007 is not yet complete. These accounts will be finalised on the basis
of financial information presented by the directors in this preliminary 
announcement and will be delivered to the Registrar of Companies following the 
company's annual general meeting.

This announcement was approved by the board of the company on 22 April 2008. The
2007 annual general meeting is being convened for 6 June 2008.




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