Final Results

Anglo-Eastern Plantations PLC
04 April 2007


Wednesday 4 April 2007

              ANGLO-EASTERN PLANTATIONS - PRELIMINARY ANNOUNCEMENT

             Record profit, material improvement expected for 2007

Anglo-Eastern Plantations Plc, which operates approximately 34,000 hectares (ha)
of developed plantations, primarily oil palm in Indonesia, announces a record
profit for the year to 31 December 2006, 18% higher than 2005 and 6% higher than
the previous record in 2004. The increase is attributable to higher commodity
prices and crops and is in spite of the weakness of the US dollar and higher
operating costs in Indonesia.

FINANCIAL HIGHLIGHTS

   •Revenue increased by 23.0% to $79.1m.
   •Operating profit increased by 18% to $26.3m, before biological asset (BA)
    adjustment, and by 29% to $28.6m, after BA adjustment.
   •Pre-tax profit increased by 25% to $26.7m, before BA adjustment, and by
    36% to $29.0m, after BA adjustment.
   •Basic and diluted EPS increased by 24% to 38.3cts, before BA adjustment,
    and by 35% to 41.7cts, after BA adjustment.
   •On the strength of the improved outlook for palm oil and mindful of the
    effect of the weaker dollar on sterling-based shareholders, the board is
    proposing to increase the annual dividend by 23% to 10.8cts per share (2005:
    8.8cts).
   •Cash balances net of all borrowings increased to $9.6m from $5.1m,
    despite capital expenditure of $15.4m (2005: $7.6m), and no net interest was
    paid.

COMMERCIAL HIGHLIGHTS

   •The average crude palm oil (CPO) price for 2006 was $479/mt, 14% up on
    the $422/mt in 2005, and the year end price was $570/mt.
   •Fresh fruit bunch (FFB) crops were 12% ahead of 2005, although 3% below
    expectations, following exceptionally dry weather in the second half.
   •In the year, 1,709ha were planted, 1,360ha in Bengkulu and 349ha at
    Labuhan Bilik.
   •Bengkulu planted area likely to be completed at 15,850ha in 2007 and
    Labuhan Bilik at 4,000ha in 2008/09.
   •The search for new land continues but, with current high CPO prices,
    suitable opportunities are hard to come by.

Mr Chan Teik Huat, Chairman and Chief Executive, stated 'With the exception of
North Sumatra, crops so far in 2007 appear to suffer from the effects of the
earlier drought and have been a little disappointing. Against this, the CPO
price is now around $640/mt and most vegetable oil analysts are positive about
the outlook for all vegetable oils, driven by strong consumption in traditional
markets as well as prospective demand from the biodiesel industry. If current
prices are maintained and unless there is a significant decline in crops, we can
expect a material improvement in profits and operating cash flows for 2007.'

Enquiries:
Anglo-Eastern Plantations Plc
Rollo Barnes (Financial Director) 020-7236 2838

Bankside Consultants Limited
Charles Ponsonby 020-7367 8851


                              Chairman's statement

Results
It is pleasing to report a record profit for 2006 which is 18% higher than 2005
and 6% higher than the previous record in 2004. The good results are
attributable to record crops and favourable commodity prices.

Operating profit before biological asset (BA) adjustment was $26.3 million in
2006 compared to $22.2 million in 2005. If not for the exceptionally dry weather
in Sumatra in the second half of the year, the 12% increase in FFB crops for the
year over 2005 would have been higher. Average dollar crude palm oil (CPO)
prices were 14% higher but, because of the weakness of the dollar, were only 8%
higher in Indonesian rupiah. Also, there were sharp increases in local costs at
the end of 2005 following the withdrawal of fuel price subsidies by the
Indonesian government. For examples, wages in North Sumatra rose by some 25% and
diesel by some 160%.

Profit before tax, and after a BA credit adjustment of $2.3 million, was also a
record $29.0 million. However, as I have said in earlier statements on the
subject, this adjustment has no bearing on the operating performance or cash
generation for the group.

Earnings per share were 38.3 cts in 2006, an increase of 24% over the 31.0cts of
2005.

Financing
During 2006, we repaid $1.6 million of long term loans and drew down a new five
year loan of $3.2 million to fund part of the cost of the mill being built at
Bina Pitri. As a result, group long term loans increased from $5.5 million at
the beginning of the year to $7.1 million at year end. Total capital expenditure
amounted to $15.4 million (2005 - $7.6 million) comprising mainly $4.4 million
on the Bina Pitri mill, $3.7 million on the new development at Labuhan Bilik and
$5.8 million for new plantings at Bengkulu. Notwithstanding these, group cash
balances increased from $10.8 million at beginning of the year to $16.8 million
at year end.

Valuations
Given the price trends in recent years, the outlook for the entire palm oil
industry and the operating environment in Indonesia, it is thought that the
parameters used to ascertain the value of the group's Indonesian estates need to
be revised. This is also a reflection of the general uptrend in agricultural
property prices in Indonesia in recent years. We have revised our CPO price
assumption to be $440/mt (previously $400/mt), cif Rotterdam, and the discount
rate to 12% (previously 15%). The result is that our Indonesian estates are
valued at an average of $4,450/ha compared to $3,790/ha in our 2005 balance
sheet. This valuation is a 'value in use' to the company and we feel it is a
reasonably prudent figure in relation to current market values. The positive BA
adjustment in the income statement reflects this increase in value.



Prices
After 18 months' trading in a relatively narrow range of $410/mt to $450/mt, the
CPO price began to rise strongly from July 2006 and ended the year at $570/mt.
The average for 2006 was $479/mt compared to $422/mt in 2005.

By contrast, palm kernel prices, which were relatively strong in 2004 and 2005,
fell 15% during 2006. Palm kernels accounted for about 9% of the group's oil
palm revenue in 2006.

Rubber prices reached an all-time high of $2,750/mt in June 2006, largely on
what is regarded as speculative demand, and ended 2006 at $1,950/mt. Prices
averaged $2,080/mt in 2006 compared to $1,490/mt in 2005.

Indonesia
Starting in July, we experienced a severe and prolonged drought both at Tasik
and at Bengkulu. While crops at these estates were 10% and 19%, respectively,
ahead of expectations in the first half of the year, they were only 4% ahead and
3% below expectations, respectively, for the full year.

FFB production from Tasik and Anak Tasik was 167,290 mt, about 1.7% lower than
in 2005. Tasik continues to perform well for the age of its plantings. With its
satisfactory yield, we might defer the start of replanting beyond 2008.
Bought-in crop rose to 130,000 mt in 2006 as compared to 111,330 mt in 2005.
However, margins reduced as a result of increasing competition from surrounding
mills.

FFB production from the three smaller estates around Medan was a record at
66,010 mt, up 4% on the record of 63,450 mt harvested in the previous year.
Sungei Musam performed exceptionally well, with yield rising to 28 mt/ha. The
mill at Blankahan, which processes crop from all three estates, completed its
second full year of operations. Bought-in crop rose to 44,950 mt from 26,420 mt
in 2005. In spite of this large increase, extraction rates remained satisfactory
at 22.6%. All the remaining 258 ha of cocoa at Rambung has now been replaced by
rubber. The mature rubber area of 434 ha made a contribution of $1.7 million to
group profits.

Production at Bengkulu, at 189,940 mt, was 19% higher than the previous year but
below our budget, due mainly to a severe prolonged drought. We spent
considerable sums on improving road surfaces to address the difficulties of FFB
transport during the monsoon season. With some 4,000 ha of immature palms to be
brought into production in the next few years, Bengkulu will be the group's main
profit generator. With keen competition from surrounding mills, bought-in crop
at Bengkulu fell 19% to 119,690 mt. However, the extraction rate improved from
21.0% in 2005 to 21.9% in 2006, reflecting in part the increasing proportion of
better planting material used in later years.

Bina Pitri performed well and to our expectation, with crop up 70% on 2005 at
46,760 mt. The new 40 mt/hr mill expects to commence production shortly.

Malaysia
Production was up 14% over 2005 at 43,900 mt, a significant improvement on
earlier performance. With better FFB prices, our Malaysian properties recorded a
much reduced loss of $100,000 from $607,000 in 2005. At current prices, I expect
the Malaysian operation to repay all its borrowings during the current year,
after which, at reasonable CPO prices, it will be in a position to deliver a
cash return to the group.

Development
New planting at Bengkulu accelerated to 1,360 ha in 2006 from 980 ha in 2005,
leaving about 1,100 ha to be completed in 2007. This will bring the Bengkulu
estates to a planted area of 15,850 ha.

At Labuhan Bilik, 1,400 ha were cleared and drained in early 2006 ready for
planting. However, work was held up while we waited for necessary permits
resulting in only 349 ha being planted by year end. The planted area has
increased to 1,250 ha at the end of March 2007. We have acquired a further 880
ha of land nearby, bringing the plantable area of this estate to 4,000 ha. We
are optimistic on yield from this fertile property.

Our management continues to search for new land or estates to acquire. With
current high CPO prices, suitable opportunities are difficult to come by.

Outlook
With the exception of North Sumatra, crops so far in 2007 appear to suffer from
the effects of the earlier drought and have been a little disappointing. Against
this, the CPO price is now around $640/mt and most vegetable oil analysts are
positive about the outlook for all vegetable oils, driven by strong consumption
in traditional markets as well as prospective demand from the biodiesel
industry. If current prices are maintained and unless there is a significant
decline in crops, we can expect a material improvement in profits and operating
cash flows for 2007.

Dividend
On the strength of the improved outlook for palm oil and mindful of the effect
of the weaker dollar on our sterling-based shareholders, the board is proposing
to increase the annual dividend by 23% to 10.8 cts per share from 8.8 cts in the
previous year.

In future the sterling equivalent dividend will be paid at the rate of exchange
ruling at the date the register closes. If the current exchange rate of $1.96:£
remained unchanged, our sterling shareholders would receive a dividend of 5.51p
per share, or an increase of 9.8% over the previous year.



CHAN TEIK HUAT
Chairman 3 April 2007



                          Consolidated income statement

                               2006                           2005

                          Result        BA            Result         BA     
                       before BA    adjust         before BA    adjust-
                         adjust-     -ment           adjust-       ment
                            ment                        ment  
                                             Total                          Total
Continuing operations      $'000     $'000   $'000     $'000      $'000     $'000

Revenue                   79,094         -  79,094    64,321          -    64,321
Cost of sales            (50,089)        - (50,089)  (39,514)         -   (39,514)
Gross profit              29,005         -  29,005    24,807          -    24,807
Biological asset                             -           (35)       (35)
revaluation movement
(BA adjustment)                -     2,312   2,312 
Other income                  13         -      13       115          -       115
Administration            (2,748)        -  (2,748)  ( 2,721)         -    (2,721)
expenses
Operating profit          26,270     2,312  28,582    22,201      (  35)   22,166
Exchange profits/                                           
(losses)                     368         -     368      (550)         -      (550)
Finance income               538         -     538       302          -       302
Finance costs               (448)        -    (448)     (498)         -      (498)
Profit before tax         26,728     2,312  29,040    21,455        (35)   21,420
Tax                       (8,595)     (694) (9,289)   (7,107)        10    (7,097)
Profit for year           18,133     1,618  19,751    14,348        (25)   14,323

Attributable to:
- Equity holders of       
the parent                15,153     1,321  16,474    12,235        (52)   12,183
- Minority interest        2,980       297   3,277     2,113         27     2,140
                          18,133     1,618  19,751    14,348        (25)   14,323

Earnings per share
- basic                                   41.7 cts                       30.9 cts
- diluted                                 41.7 cts                       30.9 cts
Earnings per share before BA adjustment are shown in note 5





          Consolidated statement of recognised income and expenses

                                                            2006       2005
                                                         US$'000    US$'000

Profit for the year                                       19,751     14,323
Unrealised surplus on revaluation of the estates           6,016      3,112
Profit/(loss) on exchange translation                     11,718     (5,703)
Deferred tax on revaluation                               (3,327)      (176)
Total recognised income and expense for the year          34,158     11,556

Attributable to:
- Equity holders of the parent                            28,002      9,736
- Minority interest                                        6,156      1,820
                                                          34,158     11,556



                         Consolidated balance sheet
                                                         2006      2005
                                                         US$'000   US$'000

Non-current assets
Biological assets                                         33,255    26,975
Property, plant and equipment                            127,568   102,543
Receivables                                                1,071     1,071
                                                         161,894   130,589
Current assets
Inventories                                                1,785     2,499
Investments                                                    -       259
Tax receivables                                            2,684     1,106
Trade and other receivables                                1,918     2,003
Cash and cash equivalents                                 17,246    11,194
                                                          23,633    17,061
Current liabilities
Bank loans and other financial liabilities                (2,167)   (2,103)
Trade and other payables                                  (5,308)   (3,487)
Tax liabilities                                           (3,235)   (2,594)
                                                         (10,710)   (8,184)
Net current assets                                        12,923     8,877

Non-current liabilities
Bank loans and other financial liabilities                (5,454)   (3,940)
Deferred tax liabilities                                 (21,152)  (16,941)
Retirement benefit net liabilities                          (834)     (602)
Net assets                                               147,377   117,983

Equity
Share capital                                             15,495    15,481
Treasury shares                                           (1,387)   (1,387)
Share premium reserve                                     23,904    23,868
Share capital redemption reserve                           1,087     1,087
Revaluation and exchange reserve                           2,407    (9,121)
Retained earnings                                         80,450    67,536
Equity attributable to equity holders of the parent      121,956    97,464
Minority interests                                        25,421    20,519
Total equity                                             147,377   117,983



                      Consolidated cash flow statement
                                                          2006      2005

                                                          US$000    US$000

Operating profit                                          28,582    22,166
Adjustments for:
BA adjustment                                             (2,312)       35
Net loss/(profit) on disposal of current and fixed asset     158       (77)
investments
Depreciation                                               3,551     3,243
Share-based remuneration expense                              20        14
Retirement benefit provisions                                232      (491)
Foreign exchange                                             715      (994)
Operating cash flow before changes in working capital     30,946    23,896
Decrease/(increase) in inventories                           714      (964)
Decrease/(increase) in trade and other receivables            85      (258)
Increase in trade and other payables                        1007       542
Cash inflow from operations                               32,752    23,216
Interest paid                                               (541)     (600)
Overseas tax paid                                         (9,321)   (9,809)
Net cash flow from operations                             22,890    12,807

Investing activities
Property, plant and equipment
- purchase                                               (15,370)   (7,596)
- sale                                                       119       116
Interest received                                            538       302
Net cash used in investing activities                    (14,713)   (7,178)

Financing activities
Dividends paid by parent company                          (3,560)   (3,158)
Share options exercised                                       50       100
Repayment of existing long term loans                     (1,645)   (5,531)
Drawdown of new long term loan                             3,200         -
Finance lease (repayment)/drawdown                           (11)       74
Dividends paid to minority shareholders                     (460)   (2,587)
Repayment by minority shareholders                             -       693
Subscriptions to subsidiary share capital by minority          -       448
shareholders
Receipt from sale of portfolio investment                    267       227
Net cash used in financing activities                     (2,159)   (9,734)
Increase/(decrease) in cash and cash equivalents           6,018    (4,105)

Cash and cash equivalents less overdrafts
At beginning of year                                      10,805    14,910
At end of year                                            16,823    10,805
Comprising:
Cash at end of year                                       17,246    11,194
Overdraft at end of year                                    (423)     (389)
                                                          16,823    10,805

                       Notes to the financial statements

1 Basis of accounts preparation
The financial statements for the years ended 31 December 2005 and 2006 have been
prepared in accordance with International Financial Reporting Standards
including International Accounting Standards and Interpretations (collectively
'IFRS') issued by the International Accounting Standards Board ('IASB') and
endorsed for use by companies in the EU, and with those parts of the UK
Companies Act 1985 applicable to companies reporting under IFRS. Accounting
policies have been applied consistently to both years presented.

2 Status of financial information
The financial information contained in this preliminary announcement does not
constitute the company's consolidated statutory financial statements for the
years ended 31 December 2006 or 2005, but is derived from those financial
statements. The financial statements for the year ended 31 December 2005 have
been delivered to the Registrar of Companies and those for 31 December 2006 will
be delivered at the same time as their despatch to shareholders. The auditors
have reported on those financial statements which were unqualified and did not
contain statements under section 237 (2) or (3) of the Companies Act 1985.

3 Exchange rates
                                                              2006     2005

Year end    Rp : $                                           9,020    9,830
            $ : £                                             1.96     1.72
            RM : $                                            3.53     3.78
Average     Rp : $                                           9,141    9,751                
            $ : £                                             1.86     1.81
            RM : $                                            3.66     3.79

4 Tax
                                                           2006      2005

                                                         US$000    US$000

Foreign corporation tax - current year                    7,794     6,509
Foreign withholding tax on remittances                      590       539
Deferred tax adjustment - current year                      905        49
                                                          9,289     7,097

5 Earnings per ordinary share (EPS)
                                                             2006       2005
                                                        Number of  Number of
                                                           shares     shares
                                                             '000       '000
Weighted average number of shares in issue in year
- used in basic EPS                                        39,478     39,411
- dilutive effect of outstanding employee share options        55         50
- used in diluted EPS                                      39,533     39,461

                                                         2006        2005

                                                          US$         US$

Basic earnings per share before BA adjustment:       38.3 cts    31.0 cts

Basic earnings per share                             41.7 cts    30.9 cts

There is no significant difference between basic and diluted EPS.


6 Dividend
                                    2006        2005        2006       2005

                                                         US$'000    US$'000
Paid during the year             8.8 cts     8.0 cts       3,560      3,158
Proposed final dividend in
respect of the year ended 31    10.8 cts     8.8 cts       4,265      3,473
December

The proposed dividend for 2006 is subject to shareholder approval at the
forthcoming annual general meeting and has not been included as a liability.
Assuming shareholder approval, the proposed dividend will be paid on 9 July 2007
to shareholders on the register on 8 June 2007.

7 Crops
                                                               2006      2005
                                                             Tonnes    Tonnes
Oil palm fresh fruit bunches
- all estates                                               513,902   459,080
- bought-in or processed for third parties                  294,647   284,705
- mill throughput                                           717,888   677,845
Saleable CPO                                                156,285   145,820
Saleable palm kernels                                        36,596    35,049
Rubber                                                        1,088       946
Cocoa                                                            46       157

8 Areas
                                                   Total    Mature  Immature
Planted                                               Ha        Ha        Ha
Oil palm                                          33,395    27,390     6,005
Rubber                                               534       434       100
Cocoa (replanted to rubber in 2006)                    -         -         -
                                                  33,929    27,824     6,105
Plantable reserves                                 7,264
Total                                             41,193




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