Information  X 
Enter a valid email address

Anglo-Eastern Plant (AEP)

  Print   

Wednesday 26 August, 2020

Anglo-Eastern Plant

Results for the six months ended 30 June 2020

RNS Number : 2158X
Anglo-Eastern Plantations PLC
26 August 2020
 

Anglo-Eastern Plantations Plc

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

 

Announcement of interim results for the six months ended 30 June 2020

 

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, has today released its results for the six months ended 30 June 2020.

 

Financial Highlights

 

 

2020
6 months
to 30 June
$m

(unaudited)

 

2019
6 months
to 30 June
$m

(unaudited)

 

2019
12 months
to 31 December
$m

(audited)

Revenue

123.1

 

97.9

 

219.1

Profit / (Loss) before tax

 

 

 

 

 

 - before biological assets ("BA") movement

17.1

 

(0.2)

 

15.6

 - after BA movement

16.8

 

1.6

 

18.9

 

Basic Earnings per ordinary share ("EPS")

 

 

 

 

 

 - before BA movement

26.83cts

 

(6.72)cts

 

35.37cts

 - after BA movement

26.35cts

 

(3.74)cts

 

40.61cts

Total net assets

493.2

 

472.7

 

495.8

 

 

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

 

There is cautious reprieve from the Coronavirus pandemic as many countries are easing their lockdowns and encouraging their population to return to economic activities but to remain safe. There are expectations of a second wave and in fact some countries are experiencing it. We have gone through more than three months of the COVID-19 outbreak without significant impact to our productions as our plantations and mills have been able to operate close to normal levels. Likewise, the demand for Crude Palm Oil ("CPO") during the pandemic has not been affected, as reflected in the six months results to 30 June 2020.

 

While the total lockdown in Malaysia and Indonesia due to COVID-19 has been progressively lifted, local movement is still restricted and most international flights have not been restored. The Group continues to practise safety protocols like encouraging employees to wear masks, keep their distance, practise personal hygiene and avoid crowded places to minimize the spread of the virus. The pandemic is far from over as Indonesia reported more confirmed cases of COVID-19 compared to China.

 

As we are still facing a period of uncertainty, the Board and the management have carried out stress tests to ensure that the Group has adequate financial resources in a reasonable worse case scenario to remain as a going concern for at least twelve months from the date of this report. By the same token we have also carried out assessments of our significant assets to determine whether such assets need to be impaired as a result of the pandemic.

 

The interim results for the Group for the six months to 30 June 2020 are as follows:

 

Revenue for the six months to 30 June was $123.1 million, 26% higher than $97.9 million reported for the same period of 2019. The Group's gross profit was $21.8 million compared to $5.3 million for the first six months of 2019. Overall profit before tax for the first half of 2020 increased more than ten fold to $16.8 million (after biological assets movement) against $1.6 million for the corresponding period in 2019. This was attributed mainly to higher CPO prices and production.

 

Fresh Fruit Bunches ("FFB") production for the first half of 2020 was 9% higher at 511,700mt compared to 470,300mt in the same period last year due to better weather and increased matured area. Bengkulu plantations reported a 20% increase in crop production as the region recovered from the moisture stress. Young matured oil palms in North Sumatera are growing well and reported an 11% better harvest in the same period.   Bought-in crops for the first half of 2020 also increased by 6% to 425,400mt from 402,900mt due to an abundance of crops in the Bengkulu region.

 

Operational and financial performance

 

For the six months ended 30 June 2020, gross profit margin increased to 17.7% from 5.4% as the Group experienced higher CPO and palm kernel prices.

 

CPO price ex-Rotterdam averaged $648/mt for the first six months to 30 June 2020, 23% higher than $527/mt over the same period in 2019. Our Group's average ex-mill price for CPO was higher at $551/mt for the same period (1H 2019: $466/mt).

 

Profit after tax for the six months ended 30 June 2020 was $12.5 million, compared to a profit of $0.3 million for the first six months of 2019, as a result of the increased gross profit margin.

 

The resulting basic earnings per share for the period was 26.35cts (1H 2019: loss of 3.74cts).

 

The Group's balance sheet remains strong. Net assets as at 30 June 2020 were $493.2 million compared to $472.7 million as at 30 June 2019 and $495.8 million as at 31 December 2019. The increase in net assets from the last interim report was attributed to higher profit and lower capital expenditure. The Indonesian Rupiah has depreciated by 3% against the US dollar in the first half of 2020.

 

As at 30 June 2020, the Group had cash and cash equivalents of $91.4 million (1H 2019: $100.1 million) and borrowings of $2.7 million (1H 2019: $16.1 million), giving it a net cash position of $88.7 million, compared to $84.0 million as at 30 June 2019 and $76.6 million as at 31 December 2019.

 

Operating costs

 

Operating costs for the Indonesian operations were higher in the first half of 2020 compared to the same period in 2019 mainly due to an increase in bought-in crops from third parties, higher wages due to the annual increase in minimum wage rates and a 5% increase in newly matured areas where the yield remains relatively low.

 

Production and Sales

 

2020

2019

2019

 

6 months

6 months

Year

 

to 30 June

to 30 June

to 31 December

 

mt

mt

mt

Oil palm production

 

 

 

FFB

 

 

 

- all estates

511,700

470,300

1,025,100

- bought-in from third parties

425,400

402,900

907,100

Saleable CPO

189,900

177,500

394,700

Saleable palm kernels

45,300

42,300

93,100

 

 

 

 

Oil palm sales

 

 

 

CPO

195,900

182,600

397,300

Palm kernels

45,200

41,200

92,900

FFB sold outside

19,000

23,300

62,100

 

 

 

 

Rubber production

215

202

514

 

The Group's six mills processed a total of 918,100mt in FFB for the first half of 2020, an 8% increase compared to 849,900mt for the same period last year. T he higher throughput was due to the higher FFB supplied from both own estate s and bought-in from third parties due to reasons explained earlier .

 

Overall CPO produced for the first half of 2020 was 7% higher at 189,900mt from 177,500mt. The oil extraction rate for the first half of 2020 decreased to 20.7% from 20.9% in the same period last year. External crops, which made up 46% of the crop processed compared to 47% in the first half of 2020, were mainly made up of dura variety which has a thinner mesocarp resulting in lower oil content. The withdrawal of fertiliser for older trees due for replanting may also have contributed to an overall decline in oil extraction rate. 

 

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 three biogas plants in the Group produced over 10,510 MWh of electricity compared to 7,470 MWh in the same period last year. However with the COVID-19 pandemic in Indonesia, many industries remain shut reducing the demand for power. The national grid temporarily suspended the uptake of electricity from one of our biogas plants in June 2020 until the economy recovers. There is a high risk that the authorities may reduce power purchases from biogas plants in North Sumatera despite the lower cost and cleaner energy as other power producers intensified their lobby for their energy to be prioritised for purchase. 

 

Commodity prices

 

The CPO price ex-Rotterdam for the first half of 2020 averaged $648/mt, 23% higher than last year (1H 2019: $527/mt). The price has gradually trended downwards from the start of the year at $878/mt to close at $576/mt on 30 June 2020 but has since increased to $702/mt as at 19 August 2020. CPO prices are expected to remain volatile and under pressure for the second half of 2020.

 

Rubber price averaged $1,174/mt, 11% lower than 2019 (1H 2019: $1,315/mt).

 

Development

 

The Group's planted areas at 30 June 2020 comprised:

 

 

Total

Mature

Immature

 

Ha

ha

Ha

North Sumatera

19,069

16,704

2,365

Bengkulu

16,844

16,844

-

Riau

4,873

4,873

-

South Sumatera

6,355

5,466

889

Kalimantan

15,900

13,441

2,459

Bangka

2,06 2

647

1,415

Plasma

3,885

2,61 2

1,27 3

Indonesia

68,988

60,58 7

8,40 1

Malaysia

3,453

3,453

-

Total: 30 June 2020

72,44 1

64,040

8,40 1

Total: 31 December 2019

71,481

61,151

10,330

Total: 30 June 2019

70,503

61,183

9,320

 

 

 

 

The Group's new planting and replanting for the first six months of 2020 totalled 971ha compared to 481ha for the same period last year . In addition, Plasma planting for the period was 216ha (1H 2019: 242ha).

 

The Group remains optimistic that it will meet substantially its total planting target of 3,100ha in 2020. The Group's total landholding comprises some 128,200ha, of which the planted area stands at around 72,441ha (1H 2019: 70,503ha) with the balance of estimated plantable land at 18,300ha.

 

The fourth biogas plant has been completed and work to connect its electricity supply to the national grid is in progress. The progress has however been slow due to the lockdown caused by the COVID-19 pandemic in Indonesia. The state electricity board is also evaluating the need to purchase as power demand has dropped drastically due to the economic lockdown.

 

Due to the virus pandemic in Indonesia, the Group is evaluating the tenders received for the civil and structural works for the seventh mill in North Sumatera to further reduce the cost of construction. The mill completion is likely to be delayed and is now scheduled for completion by 2022.

 

Dividend

 

As in previous years, no interim dividend has been declared. A final dividend of 0.5 cents per share in respect of the year ended 31 December 2019 was paid on 17 July 2020.

 

Outlook

 

There are rising concerns of a second wave of the virus pandemic in key importing countries in the second half of 2020 which may cloud market demand. The prolonged uncertainties together with low crude oil prices and higher seasonal crop production may put some downward pressure on CPO prices. Furthermore, it was reported that China may potentially import and crush more soybeans to feed and rebuild its hog population decimated by the swine flu resulting in more supply of rival soy oil in the China market. Palm oil used for biodiesel blending is also likely to suffer as a result of economic lockdown dampening demand and prices.

 

Principal risks and uncertainties

 

We believe that the potential impact on the Group, of the United Kingdom ("UK") leaving the European Union is limited, unless Brexit causes a worldwide recession. Other than maintaining its corporate presence and listing in the UK, all plantation and mill operations together with marketing are primarily based in Indonesia. I have previously mentioned in our last Annual Report that the prolonged lockdown arising from the Coronavirus pandemic could lead to a worldwide recession which could in turn have an adverse impact on the consumption and usage of palm oil. In this context, the UK has been reported to be in recession. The principal risks and uncertainties, including the risks due to the Coronavirus pandemic, have broadly remained the same since the publication of the annual report for the year ended 31 December 2019.

 

A more detailed explanation of the risks relevant to the Group is on pages 23 to 27 and from pages 101 to 106 of the 2019 annual report which is available at https:// 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

26 August 2020

 

 

 

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 interim 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 2020 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

26 August 2020

 

 

 

 

 

Condensed Consolidated Income Statement

 

 

2020

6 months to 30 June

(unaudited)

 

2019

6 months to 30 June

(unaudited)

 

2019

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

3

123,098

-

123,098

97,863

-

97,863

219,136

-

219,136

Cost of sales

 

(100,989)

(298)

(101,287)

(94,432)

1,845

(92,587)

(199,515)

3,255

(196,260)

Gross profit

 

22,109

(298)

21,811

3,431

1,845

5,276

19,621

3,255

22,876

Administration expenses

 

(3,336)

-

(3,336)

(3,143)

-

(3,143)

(8,068)

-

(8,068)

(Impairment losses) / Reversal of impairment

 

(2,491)

-

(2,491)

(2,337)

-

(2,337)

6,590

-

6,590

Provision for expected credit loss

 

(313)

-

(313)

(47)

-

(47)

(5,965)

-

(5,965)

Operating profit / (loss)

 

15,969

(298)

15,671

(2,096)

1,845

(251)

12,178

3,255

15,433

Exchange (losses) / gains

 

(11)

-

(11)

163

-

163

251

-

251

Finance income

 

1,376

-

1,376

2,257

-

2,257

4,169

-

4,169

Finance expense

4

(236)

-

(236)

(569)

-

(569)

(980)

-

(980)

Profit / (Loss) before tax

5

17,098

(298)

16,800

(245)

1,845

1,600

15,618

3,255

18,873

Tax expense

6

(4,415)

75

(4,340)

(804)

(461)

(1,265)

(1,885)

(814)

(2,699)

Profit / (Loss) for the period

 

12,683

(223)

12,460

(1,049)

1,384

335

13,733

2,441

16,174

Attributable to:

 

 

 

 

 

 

 

 

 

 

-  Owners of the parent

 

10,633

(190)

10,443

(2,664)

1,181

(1,483)

14,019

2,077

16,096

-  Non-controlling interests

 

2,050

(33)

2,017

1,615

203

1,818

(286)

364

78

 

 

12,683

(223)

12,460

(1,049)

1,384

335

13,733

2,441

16,174

Earnings per share for profit / (loss) attributable to the owners of the parent during the period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-  basic

8

 

 

26.35cts

 

 

(3.74)cts

 

 

40.61cts

 

-  diluted

8

 

 

26.35cts

 

 

(3.74)cts

 

 

40.61cts

 

                           

 

 

 

Condensed Consolidated Statement of Comprehensive Income

 

 

2020

2019

2019

 

6 months

6 months

Year

 

to 30 June

to 30 June

to 31 December

 

(unaudited)

(unaudited)

(audited)

 

$000

$000

$000

Profit for the period

12,460

335

16,174

Other comprehensive expenses:

 

 

 

Items may be reclassified to profit or loss:

 

 

 

(Loss) / gain on exchange translation of foreign operations

(13,973)

10,523

18,680

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

(13,973)

10,523

18,680

Items not to be reclassified to profit or loss:

 

 

 

Unrealised loss on revaluation of leasehold land, net of tax

(932)

(1,521)

(1,715)

Remeasurement of retirement benefits plan, net of tax

-

-

(768)

Net other comprehensive expenses not being reclassified to profit or loss

(932)

(1,521)

(2,483)

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

(14,905)

9,002

16,197

Total comprehensive (expenses) / income for the period

(2,445)

9,337

32,371

Attributable to:

 

 

 

-  Owners of the parent

(1,560)

5,475

28,550

-  Non-controlling interests

(885)

3,862

3,821

 

(2,445)

9,337

32,371

 

 

 

Condensed Consolidated Statement of Financial Position

 

 

 

 

 

 

 

2020

2019

2019

 

 

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

 

355,006

350,914

367,891

Receivables

 

17,895

13,343

16,500

Deferred tax assets

 

12,470

15,318

11,251

 

 

385,371

379,575

395,642

Current assets

 

 

 

 

Inventories

 

6,297

10,015

8,752

Tax receivables

 

50,028

38,521

49,527

Biological assets

 

7,054

6,041

7,574

Trade and other receivables

 

6,108

6,159

5,774

Cash and cash equivalents

 

91,442

100,123

84,846

 

 

160,929

160,859

156,473

Current liabilities

 

 

 

 

Loans and borrowings

 

(2,734)

(13,328)

(8,203)

Trade and other payables

 

(17,178)

(17,452)

(16,110)

Dividend payables

 

(221)

(1,262)

(23)

Lease liabilities

 

(221)

-

(222)

 

 

(25,021)

(36,889)

(27,456)

Net current assets

 

135,908

123,970

129,017

Non-current liabilities

 

 

 

 

Loans and borrowings

 

-

(2,734)

-

Deferred tax liabilities

 

(15,984)

(19,032)

(17,047)

Retirement benefits - net liabilities

 

(11,792)

(9,107)

(11,338)

Lease liabilities

 

(328)

-

(456)

 

 

(28,104)

(30,873)

(28,841)

Net assets

 

493,175

472,672

495,818

 

 

 

 

 

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

 

47,530

49,864

48,413

Exchange reserves

 

(240,146)

(236,768)

(229,026)

Retained earnings

 

552,660

523,815

542,415

 

 

399,399

376,266

401,157

Non-controlling interests

 

93,776

96,406

94,661

Total equity

 

493,175

472,672

495,818

 

 

 

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 2018

15,504

(1,171)

23,935

1,087

51,308

(245,170)

526,487

371,980

92,601

464,581

Items of other comprehensive income:

 

 

 

 

 

 

 

 

 

 

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

-

-

-

-

(3,040)

1,211

-

(1,829)

114

(1,715)

-Remeasurement of retirement benefits plan, net of tax

-

-

-

-

-

-

(650)

(650)

(118)

(768)

-Gain on exchange translation of foreign operations

-

-

-

-

-

14,933

-

14,933

3,747

18,680

Total other comprehensive (expenses) / income

-

-

-

-

(3,040)

16,144

(650)

12,454

3,743

16,197

Profit for the year

-

-

-

-

-

-

16,096

16,096

78

16,174

Total comprehensive (expenses) / income for the year

-

-

-

-

(3,040)

16,144

15,446

28,550

3,821

32,371

Issue of subsidiaries shares to non-controlling interests

-

-

-

-

-

-

-

-

512

512

Accretion from change in stake

-

-

-

-

145

-

1,671

1,816

(1,816)

-

Dividends paid

-

-

-

-

-

-

(1,189)

(1,189)

(457)

(1,646)

Balance at 31 December 2019

15,504

(1,171)

23,935

1,087

48,413

(229,026)

542,415

401,157

94,661

495,818

Items of other comprehensive income:

 

 

 

 

 

 

 

 

 

 

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

-

-

-

-

(883)

-

-

(883)

(49)

(932)

-Loss on exchange translation of foreign operations

-

-

-

-

-

(11,120)

-

(11,120)

(2,853)

(13,973)

Total other comprehensive expenses

-

-

-

-

(883)

(11,120)

-

(12,003)

(2,902)

(14,905)

Profit for the period

-

-

-

-

-

-

10,443

10,443

2,017

12,460

Total comprehensive (expenses) / income for the period

-

-

-

-

(883)

(11,120)

10,443

(1,560)

(885)

(2,445)

Dividends payable

-

-

-

-

-

-

(198)

(198)

-

(198)

Balance at 30 June 2020

15,504

(1,171)

23,935

1,087

47,530

(240,146)

552,660

399,399

93,776

493,175

 

 

 

 

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 2018

15,504

(1,171)

23,935

1,087

51,308

(245,170)

526,487

371,980

92,601

464,581

Items of other comprehensive income:

 

 

 

 

 

 

 

 

 

 

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

-

-

-

-

(1,444)

-

-

(1,444)

(77)

(1,521)

-Gain on exchange translation of foreign operations

-

-

-

-

-

8,402

-

8,402

2,121

10,523

Total other comprehensive (expenses) / income

-

-

-

-

(1,444)

8,402

-

6,958

2,044

9,002

(Loss) / Profit for the period

-

-

-

-

-

-

(1,483)

(1,483)

1,818

335

Total comprehensive (expenses) / income for the period

-

-

-

-

(1,444)

8,402

(1,483)

5,475

3,862

9,337

Dividends payable

-

-

-

-

-

-

(1,189)

(1,189)

(57)

(1,246)

Balance at 30 June 2019

15,504

(1,171)

23,935

1,087

49,864

(236,768)

523,815

376,266

96,406

472,672

                                       

 

 

 

 

Condensed Consolidated Statement of Cash Flows

 

2020

 

2019

2019

 

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

16,800

1,600

18,873

Adjustments for:

 

 

 

Biological assets movement

298

(1,845)

(3,255)

Gain / (Loss) on disposal of property, plant and equipment

26

(21)

(83)

Depreciation

8,993

8,511

18,590

Retirement benefit provisions

932

764

2,152

Net finance income

(1,140)

(1,688)

(3,189)

Unrealised loss / (gain) in foreign exchange

11

(163)

(251)

Property, plant and equipment written off

263

46

261

Impairment losses / (Reversal of impairment)

2,491

2,337

(6,590)

Provision for expected credit loss

313

47

5,965

Operating cash flows before changes in working capital

28,987

9,588

32,473

(Increase) / Decrease in inventories

2,209

(246)

1,185

Increase in non-current, trade and other receivables

(372)

(1,160)

(1,586)

Increase / (Decrease) in trade and other payables

1,786

(2,778)

(4,629)

Cash inflows from operations

32,610

5,404

27,443

Interest paid

(217)

(569)

(939)

Retirement benefits paid

(175)

(103)

(475)

Overseas tax paid

(6,147)

(162)

(11,438)

Net cash flows from operating activities

26,071

4,570

14,591

 

 

 

 

Investing activities

 

 

 

Property, plant and equipment

 

 

 

-  purchases

(11,141)

(15,992)

(33,169)

-  sales

50

52

135

Interest received

1,376

2,257

4,169

Increase in receivables from cooperatives under plasma scheme

(1,792)

(2,266)

(5,116)

Net cash used in investing activities

(11,507)

(15,949)

(33,981)

 

Financing activities

 

 

 

 

Dividends paid to the holders of the parent

-

-

(1,240)

Dividends paid to non-controlling interests

-

(57)

(457)

 

Issue of subsidiaries shares to non-controlling interests

-

-

512

 

Repayment of existing long-term loans

(5,425)

(3,219)

(11,078)

 

Repayment of lease liabilities - principal

(106)

-

(169)

 

Repayment of lease liabilities - interest

-

(41)

 

Net cash used in financing activities

(5,550)

(3,276)

(12,473)

 

Net increase / (decrease) in cash and cash equivalents

9,014

(14,655)

(31,863)

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

At beginning of period

84,846

112,212

112,212

 

Exchange (losses) / gains

(2,418)

2,566

4,497

 

At end of period

91,442

100,123

84,846

 

 

Comprising:

 

 

 

 

Cash at end of period

91,442

100,123

84,846

 

             

 

 

 

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 2019 Annual Report. The financial information for the half years ended 30 June 2020 and 30 June 2019 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 2019 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2019 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2019 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.

 

The Directors have a reasonable expectation, having made the appropriate enquiries, that the Group has control of the monthly cashflows and that the Group has sufficient cash resources to cover the fixed cashflows for a period of at least 12 months from the date of approval of these interim report, including having to make full repayment of the bank loan. For these reasons, the Directors adopted a going concern basis in the preparation of the interim report. The Directors have made this assessment after consideration of the Group's budgeted cash flows and related assumptions including appropriate stress testing of identified uncertainties, specifically on the potential shut down of the entire operations if all the plantations are infected with Coronavirus as well as the impact on the demand for palm oil due to the Coronavirus pandemic. Stress testing of other identified uncertainties was undertaken on primarily commodity prices and currency exchange rates.

 

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.

 

2.  Foreign exchange

 

 

2020

2019

2019

 

 

6 months

6 months

Year

 

 

to 30 June

to 30 June

to 31 December

 

 

(unaudited)

(unaudited)

(audited)

 

 

 

 

 

  Closing exchange rates

 

 

 

 

  Rp : $

 

14,302

14,141

13,901

  $ : £

 

1.24

1.27

1.32

  RM : $

 

4.28

4.13

4.09

 

 

 

 

 

  Average exchange rates

 

 

 

 

  Rp : $

 

14,600

14,197

14,146

  $ : £

 

1.26

1.29

1.28

  RM : $

 

4.25

4.12

4.14

 

3.  Revenue

 

Disaggregation of Revenue

The Group has disaggregated revenue into various categories in the following table which is intended to:

Depict how the nature, amount and uncertainty of revenue and cash flows are affected by timing of revenue recognition; and

Enable users to understand the relationship with revenue segment information provided in note 5.

 

There is no right of return and warranty provided to the customers on the sale of products and services rendered.

 

 

 

6 months to 30 June 2020

CPO, palm kernel and FFB

 

 

Rubber

Shell nut

Biomass products

Biogas products

 

 

Others

Total

 

$000

$000

$000

$000

$000

$000

$000

 

 

 

 

 

 

 

 

Contract counterparties

 

 

 

 

 

 

 

Government

-

-

-

-

551

-

551

Non-government

 - Wholesalers

 

120,002

 

252

 

1,649

 

213

 

-

 

431

 

122,547

 

120,002

252

1,649

213

551

431

123,098

 

 

 

 

 

 

 

 

Timing of transfer of goods

 

 

 

 

 

 

 

Delivery to customer premises

 

2,073

 

252

 

-

 

-

 

-

 

-

 

2,325

Delivery to port of departure

-

-

-

213

-

-

213

Customer collect from our mills / estates

 

117,929

 

-

 

1,649

 

-

 

-

 

-

 

119,578

Upon generation / others

-

-

-

-

551

431

982

 

120,002

252

1,649

213

551

431

123,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 months to 30 June 2019

CPO, palm kernel and FFB

 

 

Rubber

Shell nut

Biomass products

Biogas products

 

 

Others

Total

 

$000

$000

$000

$000

$000

$000

$000

 

 

 

 

 

 

 

 

Contract counterparties

 

 

 

 

 

 

 

Government

-

-

-

-

384

-

384

Non-government

- Wholesalers

 

95,999

 

266

 

737

 

303

 

-

 

174

 

97,479

 

95,999

266

737

303

384

174

97,863

 

 

 

 

 

 

 

 

Timing of transfer of goods

 

 

 

 

 

 

 

Delivery to customer premises

2,147

266

-

-

-

-

2,413

Delivery to port of departure

-

-

-

303

-

-

303

Customer collect from our mills / estates

 

93,852

 

-

 

737

 

-

 

-

 

-

 

94,589

Upon generation / others

-

-

-

-

384

174

558

 

95,999

266

737

303

384

174

97,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to 31 December 2019

CPO, palm kernel and FFB

 

 

Rubber

Shell nut

Biomass products

Biogas products

 

 

Others

Total

 

$000

$000

$000

$000

$000

$000

$000

 

 

 

 

 

 

 

 

Contract counterparties

 

 

 

 

 

 

 

Government

-

-

-

-

908

-

908

Non-government

 - Wholesalers

 

214,416

 

653

 

2,224

 

733

 

-

 

202

 

218,228

 

214,416

653

2,224

733

908

202

219,136

 

 

 

 

 

 

 

 

Timing of transfer of goods

 

 

 

 

 

 

 

Delivery to customer premises

5,624

653

-

-

-

-

6,277

Delivery to port of departure

-

-

-

733

-

-

733

Customer collect from our mills / estates

 

208,792

 

-

 

2,224

 

-

 

-

 

-

 

211,016

Upon generation / others

-

-

-

-

908

202

1,110

 

214,416

653

2,224

733

908

202

219,136

 

4.  Finance expense

 

 

2020

2019

2019

 

 

6 months

6 months

Year

 

 

to 30 June

to 30 June

to 31 December

 

 

(unaudited)

(unaudited)

(audited)

 

 

$000

$000

$000

 

 

 

 

 

  Interest payable on:

 

 

 

 

  Development loans

 

217

569

939

  Interest expense on lease liabilities

 

19

-

41

 

 

236

569

980

 

 

 

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 2020 (unaudited)

 

 

 

 

 

 

 

 

 

Total sales revenue (all external)

 

 

 

 

 

 

 

 

 

 

CPO, palm kernel and FFB

36,438

42,582

53

20,307

466

19,014

118,860

1,142

-

120,002

Rubber

252

-

-

-

-

-

252

-

-

252

Shell nut

513

335

-

692

-

109

1,649

-

-

1,649

Biomass products

213

-

-

-

-

-

213

-

-

213

Biogas products

151

218

-

-

-

181

550

-

-

550

Others

46

62

92

21

7

204

432

-

-

432

  Total revenue

37,613

43,197

145

21,020

473

19,508

121,956

1,142

-

123,098

 

 

 

 

 

 

 

 

 

 

 

  Profit / (loss) before tax

6,244

9,000

(3,592)

5,466

(113)

1,098

18,103

(155)

(850)

17,098

  BA movement

302

(123)

(64)

(144)

12

(337)

(354)

56

-

(298)

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

6,546

8,877

(3,656)

5,322

(101)

761

17,749

(99)

(850)

16,800

 

 

 

 

 

 

 

 

 

 

 

  Interest income

1,028

300

2

14

-

16

1,360

15

1

1,376

  Interest expense

(13)

-

-

-

-

(217)

(230)

(6)

-

(236)

  Depreciation

(2,279)

(2,102)

(1,048)

(436)

(180)

(2,679)

(8,724)

(269)

-

(8,993)

  Impairment losses

-

-

(23)

-

-

(2,468)

(2,491)

-

-

(2,491)

  (Provision) / Reversal of expected credit loss

(58)

-

(255)

-

-

(1)

(314)

-

1

(313)

  Inter-segment transactions

2,546

(981)

(370)

(282)

(97)

(975)

(159)

71

88

-

  Inter-segmental revenue

12,402

653

1,661

-

-

1,394

16,110

-

-

16,110

  Tax expense

(2,501)

(1,887)

1,105

(1,257)

43

184

(4,313)

(29)

2

(4,340)

 

 

 

 

 

 

 

 

 

 

 

  Total assets

208,010

104,609

38,880

30,438

15,069

123,131

520,137

20,077

6,086

546,300

  Non-current assets

118,109

69,567

37,384

17,481

14,463

108,873

365,877

15,995

3,499

385,371

  Non-current assets - additions

2,610

621

1,173

267

2,048

4,025

10,744

85

-

10,829

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2019 (unaudited)

 

 

 

 

 

 

 

 

 

Total sales revenue (all external)

 

 

 

 

 

 

 

 

 

 

CPO, palm kernel and FFB

34,900

28,837

813

15,902

217

14,474

95,143

854

-

95,997

Rubber

266

-

-

-

-

-

266

-

-

266

Shell nut

189

242

-

290

-

17

738

-

-

738

Biomass products

303

-

-

-

-

-

303

-

-

303

Biogas products

33

229

-

-

-

123

385

-

-

385

Others

34

29

25

-

-

28

116

58

-

174

  Total revenue

35,725

29,337

838

16,192

217

14,642

96,951

912

-

97,863

 

 

 

 

 

 

 

 

 

 

 

  Profit / (loss) before tax

701

1,509

(3,533)

3,941

(242)

(1,451)

925

(401)

(769)

(245)

  BA movement

805

651

50

(42)

13

348

1,825

20

-

1,845

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

 

1,506

2,160

(3,483)

3,899

(229)

(1,103)

2,750

(381)

(769)

1,600

 

 

 

 

 

 

 

 

 

 

 

  Interest income

1,012

962

2

180

-

16

2,172

83

2

2,257

  Interest expense

(33)

-

-

-

-

(536)

(569)

-

-

(569)

  Depreciation

(2,026)

(2,142)

(1,205)

(447)

(135)

(2,306)

(8,261)

(250)

-

(8,511)

  Impairment losses

-

-

(115)

-

-

(2,222)

(2,337)

-

-

(2,337)

  Provision for expected credit loss

(3)

(1)

(7)

-

(2)

(19)

(32)

(7)

(8)

(47)

  Inter-segment transactions

2,514

(1,010)

(367)

(290)

(61)

(972)

(186)

58

128

-

  Inter-segmental revenue

10,314

560

622

-

-

624

12,120

-

-

12,120

  Tax expense

(2,730)

(59)

2,155

(2,216)

154

1,593

(1,103)

(117)

(45)

(1,265)

 

 

 

 

 

 

 

 

 

 

 

  Total assets

176,332

120,118

45,785

33,772

12,600

124,385

512,992

21,553

5,889

540,434

  Non-current assets

108,550

71,925

43,493

17,975

12,238

105,731

359,912

16,630

3,033

379,575

  Non-current assets - additions

4,377

2,127

1,521

111

1,935

5,540

15,611

95

-

15,706

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2019 (audited)

 

 

 

 

 

 

 

 

Total sales revenue (all external)

 

 

 

 

 

 

 

 

 

 

CPO, palm kernel and FFB

75,933

65,102

2,487

36,060

513

32,679

212,774

1,642

-

214,416

Rubber

653

-

-

-

-

-

653

-

-

653

Shell nut

674

582

-

929

-

39

2,224

-

-

2,224

Biomass products

733

-

-

-

-

-

733

-

-

733

Biogas products

141

442

-

-

-

325

908

-

-

908

Others

25

57

32

-

-

88

202

-

-

202

  Total revenue

78,159

66,183

2,519

36,989

513

33,131

217,494

1,642

-

219,136

 

 

 

 

 

 

 

 

 

 

 

  Profit / (loss) before tax

6,174

7,727

(8,933)

8,514

244

4,868

18,594

(1,264)

(1,712)

15,618

  BA movement

927

1,086

108

307

23

806

3,257

(2)

-

3,255

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

7,101

8,813

(8,825)

8,821

267

5,674

21,851

(1,266)

(1,712)

18,873

 

 

 

 

 

 

 

 

 

 

 

  Interest income

1,921

1,789

3

299

-

29

4,041

124

4

4,169

  Interest expense

(73)

-

-

-

-

(901)

(974)

(6)

-

(980)

  Depreciation

(4,791)

(4,470)

(2,465)

(916)

(281)

(5,146)

(18,069)

(521)

-

(18,590)

  Reversal of impairment

-

-

5,151

-

600

3,117

8,868

-

-

8,868

  Impairment losses

-

-

(1,595)

-

-

(431)

(2,026)

(252)

-

(2,278)

  (Provision) / Reversal for expected credit loss

(124)

4

(5,998)

-

4

163

(5,951)

-

(14)

(5,965)

  Inter-segment transactions

(40,471)

(2,027)

25,745

(581)

1,198

15,760

(376)

153

223

-

  Inter-segmental revenue

23,395

1,981

1,847

-

-

1,274

28,497

-

-

28,497

  Tax expense

8,851

(995)

(3,418)

(2,009)

(234)

(4,884)

(2,689)

186

(196)

(2,699)

 

 

 

 

 

 

 

 

 

 

 

  Total assets

206,764

104,756

39,151

31,083

14,667

127,746

524,167

21,678

6,270

552,115

  Non-current assets

121,161

73,106

37,553

18,166

13,970

111,159

375,115

16,944

3,583

395,642

  Non-current assets - additions

10,342

3,950

2,919

333

4,265

11,881

33,690

351

-

34,041

 

In the 6 months to 30 June 2020, revenues from 4 customers of the Indonesian segment represent approximately $63.5m (1H 2019: $57.2m) of the Group's total revenues. In year 2019, revenues from 4 customers of the Indonesian segment represent approximately $113.6m of the Group's total revenues. An analysis of this revenue is provided below. Although Customer 1 to 4 each contribute over 10% of the Group's total revenue, there was no over reliance on these Customers as tenders were performed on a weekly basis. Three of the top four customers were the same as in the year to 31 December 2019.

 

 

2020

2019

2019

 

6 months

6 months

Year

 

to 30 June

to 30 June

to 31 December

 

(unaudited)

(unaudited)

(audited)

 

$m

%

$m

%

$m

%

Major Customers

 

 

 

 

 

 

Customer 1

19.5

15.8

21.8

22.3

42.8

19.5

Customer 2

16.0

13.0

16.9

17.2

27.8

12.7

Customer 3

15.1

12.2

10.4

10.6

23.0

10.5

Customer 4

12.9

10.4

8.1

8.3

20.0

9.1

Total

63.5

51.4

57.2

58.4

113.6

51.8

 

 

 

6.  Tax expense

 

2020

2019

2019

 

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

6,036

6,087

5,222

Foreign corporation tax - prior year

50

-

12

Deferred tax adjustment - origination and reversal of temporary differences

(1,746)

(4,822)

 

 

(2,535)

 

4,340

1,265

2,699

 

7.  Dividend

 

The final and only dividend in respect of 2019, amounting to 0.5 cents per share, or $198,182 was paid on 17 July 2020 (2018: 3.0 cents per share, or $1,189,091, paid on 12 July 2019). As in previous years, no interim dividend has been declared.

 

8.  Earnings per ordinary share ("EPS")

 

2020

2019

2019

 

6 months

6 months

Year

 

to 30 June

to 30 June

to 31 December

 

(unaudited)

(unaudited)

(audited)

 

$000

$000

$000

 

 

 

 

Profit / (Loss) for the period attributable to owners of the Company before BA movement

10,633

(2,664)

14,019

BA movement

(190)

1,181

2,077

Earnings used in basic and diluted EPS

10,443

(1,483)

16,096

 

 

 

 

 

Number

Number

Number

 

'000

'000

'000

Weighted average number of shares in issue in the period

 

 

 

  -  used in basic EPS

39,636

39,636

39,636

  -  dilutive effect of outstanding share options

-

-

 

-

  -  used in diluted EPS

39,636

39,636

39,636

 

 

 

 

Basic and diluted EPS before BA movement

26.83cts

(6.72)cts

35.37cts

Basic and diluted EPS after BA movement

26.35cts

(3.74)cts

40.61cts

 

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:  

 

 

2020

2019

2019

 

 

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

3,487

1,974

3,022

1,850

3,571

1,994

 

Due from cooperatives under Plasma scheme

14,408

13,626

10,321

7,407

12,929

11,924

 

 

17,895

15,600

13,343

9,257

16,500

13,918

 

 

 

 

 

 

 

 

 

Borrowings due after one year

 

 

 

 

 

 

 

Long-term loan

-

-

2,734

2,473

-

-

 

 

 

 

 

 

 

 

                 

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

 

Reconciliation - Level 3 recurring fair value measurements:

 

 

2020

2019

 

6 months

6 months

 

to 30 June

to 30 June

 

(unaudited)

(unaudited)

 

$000

$000

Non-current assets - Land

 

 

Opening balance

137,936

131,597

Addition

2,581

2,488

Net unrealized loss recognized during the period

(1,243)

(2,028)

Impairment loss

(1,338)

(460)

Exchange difference

(4,131)

2,810

Closing balance

133,805

134,407

 

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 2019 and 2019: 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 6.78% (1H 2019: 6.58%, 2019: 6.78%).

 

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 6.78% (1H 2019: 6.58%, 2019: 6.78%).

 

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 2020 are available on the AEP website at https://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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR FIFVATRIRFII

a d v e r t i s e m e n t