Anglo-Eastern Plant

Interim Results

RNS Number : 9920Y
Anglo-Eastern Plantations PLC
28 August 2018
 

Anglo-Eastern Plantations Plc

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

 

Announcement of interim results for six months ended 30 June 2018

 

The group comprising Anglo-Eastern Plantations Plc and its subsidiaries (the "Group"), is a major producer of palm oil and rubber with plantations across Indonesia and Malaysia, amounting to some 128,200 hectares, and has today released its results for the six months ended 30 June 2018.

 

Financial Highlights

 


2018
6 months
to 30 June
$m

(unaudited)


2017
6 months
to 30 June
$m

(unaudited)


2017
12 months
to 31 December
$m

(audited)

Revenue

133.3


146.9


291.9

Profit before tax






 - before biological assets ("BA") movement

21.7


31.8


70.0

 - after BA movement

22.0


31.6


69.7

 

Basic Earnings per ordinary share ("EPS")






 - before BA movement

30.37cts


46.24cts


91.80cts

 - after BA movement

30.90cts


45.97cts


91.37cts

Total net assets

463.8


470.6


476.9

 

 

Enquiries:

 

Anglo-Eastern Plantations Plc


Dato' John Lim Ewe Chuan 

 +44 (0)20 7216 4621



Panmure Gordon (UK) Limited


Dominic Morley

+44 (0)20 7886 2954

 

 

 

Chairman's Interim Statement

 

The interim results for the Group for the six months to 30 June 2018 are as follows:

 

Revenue for the six months to 30 June was $133.3 million, 9% lower than $146.9 million reported for the first six months of 2017. In the same period the Group gross profit decreased to $25.2 million from $34.9 million. Overall the profit before tax for the first half of 2018 decreased by 30% to $22.0 million from $31.6 million for the corresponding period. This was due to the lower Crude Palm Oil ("CPO") and rubber prices.

 

Fresh Fruit Bunches ("FFB") production for the first half of 2018 was 9% higher at 477,400mt compared to 436,900mt in the same period last year. The increase in production was due to the better performance of plantations in Riau, Bengkulu and Kalimantan. The harvest in Riau was higher by 26% due to good weather conditions. The improvement in the evacuation of crops in Bengkulu together with a 20% increase in matured planted area in Kalimantan contributed to a 9% and 31% increase in regional production respectively. Bought-in crops, however, decreased by 3% to 473,100mt from 486,300mt due to intense competition from old and new mills.

 

Operational and financial performance

 

For the six months ended 30 June 2018, the gross profit margin decreased to 19% from 24% as the Group experienced lower palm and rubber prices, higher operational costs due to the increase in matured area mainly from Kalimantan and a decrease in the purchase of external crop.

 

CPO price ex-Rotterdam averaged $661/mt for the first six months of 2018, 11% lower than $740/mt over the same period in 2017.

 

Profit after tax for the six months ended 30 June 2018 was $16.2 million, 30% lower than $23.3 million for the first six months of 2017.

 

The resulting earnings per share for the period decreased by 33% to 30.90cts (1H 2017: 45.97cts).

 

The Group's balance sheet remains reasonably strong and cash flow remains healthy. Net assets at 30 June 2018 were $463.8 million compared to $476.9 million at 31 December 2017. The decrease in net assets was attributed to a $27.1 million exchange translation loss due to a weaker Indonesian Rupiah which has depreciated by 6% against the US dollar in the first half of 2018.

 

As at 30 June 2018, the Group's total cash balance was $130.1 million (1H 2017: $123.0 million) with total borrowings of $25.6 million (1H 2017: $31.2 million), giving a net cash position of $104.5 million, compared to $91.8 million as at 30 June 2017.

 

Operating costs

 

The operating costs per hectare for the Indonesian operations were higher in the first half of 2018 compared to the same period in 2017 mainly due to the increase in wages, fuel, transportation costs and depreciation. Higher operating costs were also partly attributed to a 3% increase in matured areas.

 

Production and Sales


2018

2017

2017


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


mt

mt

mt

Oil palm production




FFB




- all estates

477,400

436,900

929,600

- bought-in or processed for third parties

473,100

486,300

998,400

Saleable CPO

193,800

187,400

390,600

Saleable palm kernels

46,700

44,900

94,600





Oil palm sales




CPO

195,500

192,900

388,900

Palm kernels

45,000

45,600

96,000

FFB sold outside

14,000

11,000

23,200





Rubber production

291

397

812

 

 

The Group's six mills processed a total of 936,500mt in FFB for the first half of 2018, a 3% increase compared to 912,200mt for the same period last year. The higher throughput was due to higher internal crops production.

 

Overall CPO produced for the first half of 2018 was higher by 3% at 193,800mt from 187,400mt. The oil extraction rate for the first half of 2018 improved marginally to 20.7% from 20.5% in same period last year.

 

The Group continues to reduce its greenhouse gas ("GHG") emissions by capturing the methane gas released from its effluent treatment plants to produce electricity. The two biogas plants in the Group produced over 7,060 MWh of electricity compared to 2,910 MWh in the same period last year. The third biogas plant located in Kalimantan will likely begin commercial operation by the start of the fourth quarter of 2018 after the installation of about 6.7km of 20kv transmission lines to the national grid is completed.   

 

Commodity prices

 

The CPO price for first half of 2018 averaged $661/mt, 11% lower than last year (1H 2017: $740/mt). The CPO price has gradually trended downwards from the start of the year at $678/mt to close at $655/mt on 29 June 2018 and has further declined to $542.50/mt as at 22 August 2018. Subdued demand with production projected to rise at a higher pace amid a relatively high inventory will likely depress the CPO price for the remainder of the year.

 

Rubber price averaged $1,329/mt, 28% lower than 2017 (1H 2017: $1,849/mt).

 

Development

 

The Group's planted areas at 30 June 2018 comprised:

 


Total

Mature

Immature


ha

ha

Ha

North Sumatera

19,072

14,093

4,979

Bengkulu

16,996

16,996

-

Riau

4,873

4,873

-

South Sumatera

5,977

5,180

797

Kalimantan

14,440

11,606

2,834

Bangka

884

449

435

Plasma

2,951

1,609

1,342

Indonesia

65,193

54,806

10,387

Malaysia

3,510

3,460

50

Total: 30 June 2018

68,703

58,266

10,437

Total: 31 December 2017

68,310

54,900

13,410

Total: 30 June 2017

67,592

56,529

11,063

 

The Group's new planting for the first six months of 2018 totalled 427ha compared to 781ha for the same period last year. The slower than anticipated rate of new planting is due to protracted land compensation negotiations. New planting was also slower in Kalimantan as the Group awaits results of the high carbon stock sustainability study which will determine which areas cannot be planted with oil palm due to high conservation and high carbon stock values.

 

The Group remains optimistic that planting will pick up in the second half of 2018. The Group's total landholding comprises some 128,200ha, of which the planted area stands around 68,703ha (1H 2017: 67,592ha) with the balance of estimated plantable land at 22,700ha.

 

Significant capital expenditure is expected in the replanting of over 471ha covering old palms and rubber trees in North Sumatera which started in May 2018.

 

The earthwork for the fourth biogas plant, expected to cost an estimated $3.8 million, in North Sumatera has started and is expected to be completed by the end of first half of 2019. The earthworks for the seventh mill in North Sumatera, expected to cost an estimated $19 million, have been hampered by high rainfall. The mill is scheduled for completion by the end of the third quarter of 2020.

 

Dividend

 

As in previous years, no interim dividend has been declared. A final dividend of 4.0 cents per share in respect of the year ended 31 December 2017 was paid on 13 July 2018.

 

Outlook

 

The demand for palm oil in India may rebound in the second half of 2018 as India has reportedly raised the import taxes on soft oils from July 2018 making palm oil more competitive again. Also, the higher tariff on the import of soybean from United States into China could lead to an increase in demand for palm oil, being the closest substitute to soybean. This higher tariff would make palm oil more attractive as the price difference between CPO and soybean oil would be widened further. 

 

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

 

Principal risks and uncertainties

 

It is believed that the potential impact on the Group of Britain's vote to leave the European Union is limited, unless Brexit causes a worldwide recession. 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. The principal risks and uncertainties have broadly remained the same since the publication of the annual report for the year ended 31 December 2017.

 

A more detailed explanation of the risks relevant to the Group is on pages 19 to 23 and from pages 88 to 92 of the 2017 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

28 August 2018

 

 

 

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 2018 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

28 August 2018

 

 



 


Condensed Consolidated Income Statement



2018

6 months to 30 June

(unaudited)

 

2017

6 months to 30 June

(unaudited)

 

2017

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

4

133,331

-

133,331

146,870

-

146,870

291,907

-

291,907

Cost of sales


(108,458)

332

(108,126)

(111,826)

(181)

(112,007)

(217,543)

(297)

(217,840)

Gross profit


24,873

332

25,205

35,044

(181)

34,863

74,364

(297)

74,067

Administration expenses


(3,544)

-

(3,544)

(3,269)

-

(3,269)

(8,611)

-

(8,611)

(Impairment losses) / Reversal of impairment


-

-

-

(1,596)

-

(1,596)

923

-

923

Operating profit


21,329

332

21,661

30,179

(181)

29,998

66,676

(297)

66,379

Exchange (losses) / gains


(1,222)

-

(1,222)

156

-

156

(272)

-

(272)

Finance income


2,374

-

2,374

2,390

-

2,390

5,337

-

5,337

Finance expense

3

(793)

-

(793)

(913)

-

(913)

(1,753)

-

(1,753)

Profit before tax


21,688

332

22,020

31,812

(181)

31,631

69,988

(297)

69,691

Tax expense

5

(5,739)

(83)

(5,822)

(8,394)

45

(8,349)

(23,451)

73

(23,378)

Profit for the period


15,949

249

16,198

23,418

(136)

23,282

46,537

(224)

46,313

Attributable to:











-  Owners of the parent


12,037

209

12,246

18,328

(109)

18,219

36,386

(172)

36,214

-  Non-controlling interests


3,912

40

3,952

5,090

(27)

5,063

10,151

(52)

10,099



15,949

249

16,198

23,418

(136)

23,282

46,537

(224)

46,313

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








 

 

 

 

 

 

-  basic

7



30.90cts



45.97cts



91.37cts

-  diluted

7



30.87cts



45.93cts



91.29cts

 



 

Condensed Consolidated Statement of Comprehensive Income



2018

 

2017

2017



6 months

6 months

Year



to 30 June

to 30 June

to 31 December



(unaudited)

(unaudited)

(audited)



$000

$000

$000

Profit for the period


16,198

23,282

46,313

Other comprehensive (expenses) / income:





Items may be reclassified to profit or loss:





(Loss) / Gain on exchange translation of foreign operations


(27,093)

4,606

(1,718)

Net other comprehensive (expenses) / income may be reclassified to profit or loss


(27,093)

4,606

(1,718)

Items not to be reclassified to profit or loss:





Unrealised loss on revaluation of leasehold land, net of tax


(531)

(795)

(9,948)

Remeasurement of retirement benefits plan, net of tax


-

-

(1,271)

Net other comprehensive expenses not being reclassified to profit or loss


(531)

(795)

(11,219)

Total other comprehensive (expenses) / income for the period, net of tax


(27,624)

3,811

(12,937)

Total comprehensive (expenses) / income for the period


(11,426)

33,376

Attributable to:





-  Owners of the parent


(10,906)

21,049

23,496

-  Non-controlling interests


(520)

6,044

9,880



(11,426)

27,093

33,376

 



 

Condensed Consolidated Statement of Financial Position

 



2018

 

2017

 

2017

 



as at 30 June

as at 30 June

as at 31 December

 



(unaudited)

(unaudited)

(audited)

 



$000

$000

$000

 

Non-current assets





Property, plant and equipment


337,719

361,270

353,680

Receivables


8,746

5,248

8,358

Deferred tax assets


10,857

15,883

9,309



357,322

382,401

371,347

Current assets





Inventories


10,718

8,257

9,398

Tax receivables


34,327

33,664

29,430

Biological assets


6,695

6,995

6,772

Trade and other receivables


6,308

8,903

5,184

Cash and cash equivalents


130,127

123,041

139,489



188,175

180,860

190,273

Current liabilities





Loans and borrowings


(11,844)

(7,234)

(8,594)

Trade and other payables


(20,553)

(15,459)

(16,805)

Tax liabilities


(4,688)

(7,500)

(8,637)

Dividend payables


(1,617)

(1,515)

-



(38,702)

(31,708)

(34,036)

Net current assets


149,473

149,152

156,237

Non-current liabilities





Loans and borrowings


(13,719)

(24,000)

(19,281)

Deferred tax liabilities


(20,023)

(29,688)

(22,390)

Retirement benefits - net liabilities


(9,246)

(7,257)

(9,022)



(42,988)

(60,945)

(50,693)

Net assets


463,807

470,608

476,891






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


50,789

60,322

51,288

Exchange reserves


(244,088)

(216,024)

(221,435)

Retained earnings


526,545

498,992

515,884



372,601

382,645

385,092

Non-controlling interests


91,206

87,963

91,799

Total equity


463,807

470,608

476,891

 



 

Condensed Consolidated Statement of Changes in Equity

 


Attributable to owners of the parent



 



 

Share

capital

 

Treasury

shares

 

Share

premium

Capital

redemption

reserve

 

Revaluation

reserves

 

Exchange

reserves

 

Retained

earnings

 

 

Total

Non-controlling

interests

 

Total

equity

 


$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

 












 

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

-

-

-

-

(9,750)

-

-

(9,750)

(198)

(9,948)

-Remeasurement of retirement benefits plan, net of tax

-

-

-

-

-

-

(1,103)

(1,103)

(168)

(1,271)

-(Loss) / Gain on exchange translation of foreign operations

-

-

-

-

-

(1,865)

-

(1,865)

147

(1,718)

Total other comprehensive expenses

-

-

-

-

(9,750)

(1,865)

(1,103)

(12,718)

(219)

(12,937)

Profit for the year

-

-

-

-

-

-

36,214

36,214

10,099

46,313

Total comprehensive (expenses) / income for the year

-

-

-

-

(9,750)

(1,865)

35,111

23,496

9,880

33,376

Dividends paid

-

-

-

-

-

-

(1,515)

(1,515)

(231)

(1,746)

Balance at 31 December 2017

15,504

(1,171)

23,935

1,087

51,288

(221,435)

515,884

385,092

91,799

476,891

Items of other comprehensive income:











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

-

-

-

-

(499)

-

-

(499)

(32)

(531)

-Loss on exchange translation of foreign operations

-

-

-

-

-

(22,653)

-

(22,653)

(4,440)

(27,093)

Total other comprehensive expenses

-

-

-

-

(499)

(22,653)

-

(23,152)

(4,472)

(27,624)

Profit for the period

-

-

-

-

-

-

12,246

12,246

3,952

16,198

Total comprehensive (expenses) / income for the period

-

-

-

-

(499)

(22,653)

12,246

(10,906)

(520)

(11,426)

Dividend payable

-

-

-

-

-

-

(1,585)

(1,585)

(73)

(1,658)

Balance at 30 June 2018

15,504

(1,171)

23,935

1,087

50,789

(244,088)

526,545

372,601

91,206

463,807

 

 


Attributable to owners of the parent



 



 

Share

capital

 

Treasury

shares

 

Share

premium

Capital

redemption

reserve

 

Revaluation

reserves

 

Exchange

reserves

 

Retained

earnings

 

 

Total

Non-controlling

interests

 

Total

Equity

 


$000

$000

$000

$000

$000

$000

$000

$000

$000

$000

 

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 (expenses) / income

-

-

-

-

(716)

3,546

-

2,830

981

3,811

Profit for the period

-

-

-

-

-

-

18,219

18,219

5,063

23,282

Total comprehensive (expenses) / income for the period

-

-

-

-

(716)

3,546

18,219

21,049

6,044

27,093

Dividends 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


 

Condensed Consolidated Statement of Cash Flows


2018

 

2017

2017


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


(unaudited)

(unaudited)

(audited)


$000

$000

$000

Cash flows from operating activities




Profit before tax

22,020

31,631

69,691

Adjustments for:




Biological assets movement

(332)

181

297

Gain on disposal of property, plant and equipment

(8)

(7)

(18)

Depreciation

8,375

8,050

16,284

Retirement benefits provisions

878

680

1,520

Net finance income

(1,581)

(1,477)

(3,584)

Unrealised loss / (gain) in foreign exchange

1,222

(156)

272

Property, plant and equipment written off

17

 88

585

Impairment losses / (reversal of impairment)

-

1,596

(923)

Operating cash flow before changes in working capital

30,591

40,586

84,124

(Increase) / Decrease in inventories

(1,877)

1,044

(252)

Increase in non-current, trade and other receivables

(1,062)

(4,597)

(4,413)

Decrease / (Increase) in trade and other payables

4,629

(734)

837

Cash inflow from operations

32,281

36,299

80,296

Interest paid

(793)

(913)

(1,753)

Retirement benefits paid

(83)

(148)

(774)

Overseas tax paid

(19,636)

(19,350)

(26,412)

Net cash from operations

11,769

15,888

51,357





Investing activities




Property, plant and equipment




-  purchases

(13,279)

(11,628)

(27,192)

-  sales

41

81

267

Interest received

2,374

2,390

5,337

Net cash used in investing activities

(10,864)

(9,157)

(21,588)

 

 Financing activities




Dividends paid by Company

-

-

(1,515)

Dividends paid to non-controlling interests

(73)

(202)

 

(231)

Repayment of existing long term loans

(2,313)

(2,844)

(6,197)

Net cash used in financing activities

(2,386)

(3,046)

(7,943)

(Decrease) / Increase in cash and cash equivalents

(1,481)

3,685

21,826





Cash and cash equivalents




At beginning of period

139,489

118,176

118,176

Foreign exchange

(7,881)

1,180

(513)

At end of period

130,127

123,041

139,489

 

Comprising:




Cash at end of period

130,127

123,041

139,489

 

 

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 2017 Annual Report. The financial information for the half years ended 30 June 2018 and 30 June 2017 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 2017 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2017 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2017 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, except for those that relate to new standards and interpretations effective for the first time for periods beginning on 1 January 2018 and will be adopted in the 2018 annual financial statements. The new standard impacting the Group that will be adopted in the annual financial statements for the year ended 31 December 2018, and which has given rise to changes in the Group's accounting policies is IFRS 9 Financial Instruments.

 

Details of the impact for this standard are given below. Other new and amended standards and Interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to impact the Group as they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies.

 

IFRS 9 Financial Instruments

IFRS 9 has replaced IAS 39 Financial Instruments: Recognition and Measurement and introduces some new requirements in relation to impairment based on the expected credit loss model. The Group has chosen not to restate comparatives on adoption of IFRS 9 as the impact to the Group is immaterial and, therefore, these changes have been charged into the condensed consolidated income statement for the period of 30 June 2018.

 

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.         Foreign exchange



2018

2017

2017



6 months

6 months

Year



to 30 June

to 30 June

to 31 December



(unaudited)

(unaudited)

(audited)






            Average exchange rates





            Rp : $


13,753

13,331

13,383

            $ : £


1.38

1.26

1.29

            RM : $


3.94

4.39

4.30






            Closing exchange rates





            Rp : $


14,404

13,319

13,548

            $ : £


1.32

1.30

1.35

            RM : $


4.04

4.29

4.05

 

3.         Finance expense



2018

2017

2017



6 months

6 months

Year



to 30 June

to 30 June

to 31 December



(unaudited)

(unaudited)

(audited)



$000

$000

$000






            Payable


793

913

1,753

 


 

4.         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 2018 (unaudited)










Total sales revenue (all external)











-     CPO, palm kernel and FFB

43,054

44,177

-

22,318

143

19,597

129,289

1,234

-

130,523

-     Rubber

393

-

-

-

-

-

393

-

-

393

-     Shell nut

289

281

-

421

-

12

1,003

-

-

1,003

-     Biomass products

310

-

-

-

-

-

310

-

-

310

 -    Biogas products

226

266

-

-

-

-

492

-

-

492

 -    Others

531

-

10

18

-

51

610

-

-

610

     Total revenue

44,803

44,724

10

22,757

143

19,660

132,097

1,234

-

133,331












     Profit / (loss) before tax

5,191

10,303

(2,694)

7,208

(226)

3,121

22,903

(57)

(1,158)

21,688

     BA movement

583

80

(56)

(28)

(2)

(241)

336

(4)

-

332

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

5,774

10,383

(2,750)

7,180

(228)

2,880

23,239

(61)

(1,158)

22,020












     Depreciation

(2,008)

(2,033)

(1,276)

(463)

(119)

(2,215)

(8,114)

(261)

-

(8,375)

     Reversal of impairment / (impairment losses)

-

-

-

-

-

-

-

-

-

-

     Inter-segment transactions

2,569

(1,051)

(364)

(301)

(49)

(880)

(76)

46

30

-

     Inter-segment revenue

11,867

568

1,959

-

-

194

14,588

-

-

14,588

     Tax expense

(3,613)

(2,177)

2,077

(2,802)

133

641

(5,741)

(52)

(29)

(5,822)












     Total assets

168,247

147,978

40,952

34,332

11,305

111,967

514,781

24,261

6,455

545,497

     Non-current assets

100,619

69,203

39,232

17,973

11,038

98,390

336,455

17,869

2,998

357,322

     Non-current assets - additions

3,786

1,597

1,382

315

677

5,417

13,174

105

-

13,279












 

 


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 nut

316

343

-

418

-

8

1,085

-

-

1,085

-     Biomass products

209

-

-

-

-

-

209

-

-

209

 -    Biogas products

242

57

-

-

-

-

299

-

-

299

 -    Others

57

22

2

16

-

-

97

-

-

97

     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)

     Reversal of impairment / (impairment losses)

-

-

446

-

(110)

(1,932)

(1,596)

-

-

(1,596)

     Inter-segment transactions

2,559

(1,058)

(402)

(304)

(40)

(831)

(76)

46

30

-

     Inter-segment revenue

14,851

533

1,894

-

-

143

17,421

-

-

17,421

     Tax expense

(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

Year to 31 December 2017 (audited)










Total sales revenue (all external)











-     CPO, palm kernel and FFB

98,290

98,666

-

54,074

147

31,828

283,005

3,159

-

286,164

-     Rubber

1,305

-

-

-

-

-

1,305

-

-

1,305

-     Shell nut

729

559

-

897

-

29

2,214

-

-

2,214

-     Biomass products

644

-

-

-

-

-

644

-

-

644

 -    Biogas products

527

338

-

-

-

-

865

-

-

865

 -    Others

632

63

4

-

-

-

699

-

16

715

     Total revenue

102,127

99,626

4

54,971

147

31,857

288,732

3,159

16

291,907












     Profit / (loss) before tax

24,778

28,952

(4,284)

15,795

(317)

6,552

71,476

103

(1,591)

69,988

     BA movement

(478)

(114)

(14)

(91)

12

472

(213)

(84)

-

(297)

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

24,300

28,838

(4,298)

15,704

(305)

7,024

71,263

19

(1,591)

69,691












     Depreciation

(3,955)

(4,114)

(2,730)

(940)

(159)

(3,825)

(15,723)

(561)

-

(16,284)

     Reversal of impairment / (impairment losses)

-

-

1,112

-

-

(189)

923

-

-

923

     Inter-segment transactions

5,083

(2,123)

(806)

(610)

(80)

(1,845)

(381)

112

269

-

     Inter-segment revenue

31,496

1,469

3,643

-

-

721

37,329

-

-

37,329

     Tax expense

(11,210)

(6,124)

(69)

(5,564)

89

(203)

(23,081)

(155)

(142)

(23,378)












     Total assets

178,841

146,741

40,479

41,544

11,814

110,692

530,111

24,464

7,045

561,620

     Non-current assets

105,243

73,888

39,222

19,258

11,587

100,990

350,188

17,986

3,173

371,347

     Non-current assets - additions

8,609

2,959

2,383

554

1,030

11,779

27,314

58

13

27,385












 

 

In the 6 months to 30 June 2018, revenues from 4 customers of the Indonesian segment represent approximately $60.1m (1H 2017: $78.5m) of the Group's total revenues. In year 2017, revenues from 4 customers of the Indonesian segment represent approximately $131.0m of the Group's total revenues. An analysis of this revenue is provided below. Although Customer 1 to 3 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. Three of the top four customers are the same as in the year to 31 December 2017.

 


2018

2017

2017


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


(unaudited)

(unaudited)

(audited)


$m

%

$m

%

$m

%

Major Customers







Customer 1

18.6

14.0

28.2

19.2

44.9

15.4

Customer 2

15.3

11.5

23.3

15.9

30.5

10.5

Customer 3

14.7

11.0

14.6

9.9

28.6

9.8

Customer 4

11.5

8.6

12.4

8.4

27.0

9.2

Total

60.1

45.1

78.5

53.4

131.0

44.9

 

 


5.         Tax expense


2018

2017

2017


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


(unaudited)

(unaudited)

(audited)


$000

$000

$000





Foreign corporation tax - current year

9,043

11,049

22,796

Foreign corporation tax - prior year

6

-

365

Deferred tax adjustment - origination and reversal of temporary differences

(3,227)

(2,700)

 

 

217


5,822

8,349

23,378

 

6.         Dividend

           

The final and only dividend in respect of 2017, amounting to 4.0 cents per share, or $1,585,455 was paid on 13 July 2018 (2016: 3.0p per share, or $1,515,140, paid on 14 July 2017). As in previous years, no interim dividend has been declared.

 

7.         Earnings per ordinary share ("EPS")


2018

2017

2017


6 months

6 months

Year


to 30 June

to 30 June

to 31 December


(unaudited)

(unaudited)

(audited)


$000

$000

$000





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

12,037

18,328

36,386

BA movement

209

(109)

(172)

Earnings used in basic and diluted EPS

12,246

18,219

36,214






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

33

 

33

  -  used in diluted EPS

39,669

39,669

39,669





Basic EPS before BA movement

30.37cts

46.24cts

91.80cts

Basic EPS after BA movement

30.90cts

45.97cts

91.37cts





Dilutive EPS before BA movement

30.34cts

46.20cts

91.72cts

Dilutive EPS after BA movement

30.87cts

45.93cts

91.29cts

 

8.         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:  

 


2018

2017

2017

 


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

2,977

1,837

578

424

3,161

1,882

 

Due from cooperatives under Plasma scheme

5,769

5,495

4,670

4,394

5,197

4,621

 


8,746

7,332

5,248

4,818

8,358

6,503

 








 

Borrowings due after one year







 

Long term loan

13,719

13,403

24,000

23,349

19,281

18,661

 








Financial instruments not measured at fair value include 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 2017 and 2017: 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 6.05% (1H 2017: 5.56%, 2017: 6.05%)

 

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 6.05% (1H 2017: 5.56%, 2017: 6.05%)

 

Discount rate

The higher the discount rate, the lower the fair value

 

9.         Report and financial information

 

Copies of the interim report for the Group for the period ended 30 June 2018 are available on the AEP website at www.angloeastern.co.uk.

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
IR LIFIATTITFIT