Interim Results
Anglo-Eastern Plantations PLC
18 September 2001
18 September 2001
ANGLO-EASTERN PLANTATIONS PLC
INTERIM ANNOUNCEMENT FOR THE HALF YEAR ENDED 30 JUNE 2001
* Anglo-Eastern Plantations, which operates and is developing
plantations in Indonesia and Malaysia amounting to some 40,000 ha, principally
producing palm oil, announces results for the half year to 30 June 2001.
Half year ended 30 June 2001 2000
Turnover (£000) 4,272 5,762
Pre-tax profit (£000) 642 2,515
Earnings per share (p) 0.8 3.7
Net assets per share (p) 142 131
* Fall in profit reflects exceptionally low palm oil prices - 26% below
average for first half of 2000.
* Following 30% improvement in prices since 30 June 2001 outlook for
the year much more encouraging.
* High tax charge and low EPS reflect $430,000 loss in Malaysian
operation for which there is no tax relief elsewhere in the group. Effect
will be mitigated as crude palm oil prices improve.
* Production from new projects beginning to increase strongly and on
target. Immature areas comprise 38% of total present planted area of
23,000ha.
* Political situation in Indonesia presently clearer.
* Mr Chan Teik Huat, Chairman and CEO, stated:
'Production for 2001 as a whole will be close to the previous year's total.
Group profit for July was close to that for the first six months as a whole
and if the current CPO price is maintained we can expect a very substantial
profit improvement in the second half of the year. The board remains
confident in the underlying prospects for the company's operations, having
regard to the competitive advantage which Indonesia affords to the plantation
industry, and as production from the substantial newly maturing areas
increases.'
Enquiries:
Anglo-Eastern Plantations Plc +44 (0)20 7236 2838
Rollo Barnes (Finance Director) +60 (0)3 2693 2352
Bankside Consultants Limited
Charles Ponsonby +44 (0)20 7444 4166
CHAIRMAN'S STATEMENT
Overview
Profit before tax for the half year to 30 June 2001 was $919,000 (£642,000)
compared to $3,924,000 (£2,515,000) in the first half of 2000 on a turnover
reduced to $6,109,000 (£4,272,000) from $8,988,000 (£5,762,000). The fall
reflects the exceptionally low CPO (crude palm oil) price prevailing during
the period. Following a 30% improvement in the price in July and August the
present outlook for the year as a whole is much more encouraging.
Profit attributable to shareholders was only $431,000 (£301,000) after an
effective tax rate of 64% which primarily reflects the loss from the Malaysian
estate for which there is no tax relief elsewhere in the group. As a result,
earnings per share for the first six months of 2001 were 1.1cts (0.8p) as
against 5.7cts (3.7p).
As in previous years no interim dividend is being declared.
Production and sales
2001 2000 2000
6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
mt mt mt
Oil palm production
FFB (fresh fruit bunches)
- own estates 108,797 110,208 253,094
- bought in or processed for third parties 35,115 14,910 38,125
Saleable CPO 23,759 23,367 52,297
Oil palm sales
CPO 22,626 23,800 53,169
FFB sold outside 33,576 19,652 54,114
Other crops production
Rubber 657 628 1,253
Cocoa 59 61 131
Total FFB production from our own estates was down 1.3% on the same period in
the previous year. This includes a fall of 15% on our North Sumatra estates,
which was to be expected from these mature areas after the all-time record in
2000; against that, production from Malaysia increased by over 60% to 10,600mt
and from the newly maturing areas in Bengkulu, in South Sumatra, to 12,300mt
from 2,000mt in the same period in 2000.
Our management in Indonesia have been successful in doubling the crop bought
in for processing at the Tasik mill in North Sumatra. This is now making a
useful contribution to our operations.
Rubber production increased thanks to better management and improving yields
from newly mature areas.
Prices
The CPO price averaged about $250/mt (c.i.f. Rotterdam) in the first half
year, compared to $340/mt for the first half of 2000 and $314/mt for the full
year 2000. FFB prices were similarly affected.
These low prices were mitigated by the depreciation of the Indonesian rupiah
over the period from Rp9,525:$ to Rp11,400:$ which increased our local income
in rupiah.
Rubber prices were static and cocoa prices fell about 10% over the period.
Development
The group's planted areas now comprise:
Mature Immature Total
ha ha ha
North Sumatra 9,830 510 10,340
Bengkulu 2,300 6,610 8,910
12,130 7,120 19,250
Malaysia 2,080 1,840 3,920
14,210 8,960 23,170
We are continuing to develop new areas in Bengkulu but at about 500ha per
annum. Of the immature area of 6,610ha, limited harvesting will commence on
3,600ha in the second half of 2001.
Production from these new areas is increasing strongly and on target although
there are the inevitable operational difficulties in consolidating the
infrastructure on new projects such as this. Construction of the new mill in
Bengkulu is progressing satisfactorily and the plant should be commissioned by
June 2002.
47% of the Malaysian estate is immature and a further 15% is only in its
second year of harvesting. Yields are still low and the loss on this estate,
where operating costs are higher than in Indonesia, was $430,000 for the
period. No further development is planned after planting of 200ha this year.
Funding of developments in Bengkulu and Malaysia continues to come from medium
and long-term loan facilities totalling $12million. Total borrowings at 30
June 2001 were $3.9million, an increase of $1.1million over the level at the
end of 2000.
Outlook
While crops from our established North Sumatra estates will remain below last
year's levels the shortfall will continue to be made up from the new areas in
Bengkulu and Malaysia. Production for 2001 as a whole will be close to the
previous year's record total.
The CPO price, $275/mt at the end of June, improved sharply in July reaching
$390/mt before falling back to current levels of around $310/mt. If the
current, albeit lower, price is maintained we can expect a substantial profit
improvement in the second half of the year.
The rupiah has strengthened to about Rp9,000:$ reflecting the present clearer
political situation in Indonesia. Recent legislation introducing greater
regional autonomy in Indonesia will affect the administration of the company.
The board remains confident in the underlying prospects for the company's
operations, having regard to the competitive advantage which Indonesia affords
to the plantation industry, and as production from the substantial newly
maturing areas increases.
Chan Teik Huat
Chairman and Chief Executive 18 September 2001
CONSOLIDATED PROFIT AND LOSS ACCOUNT
US DOLLARS STERLING
2001 2000 2000 2001 2000 2000
6 mnths 6 mnths year 6 mnths 6 mnths year
to 30 to 30 to to 30 to 30 to
June June 31 June June 31 Dec
(unaudited)(unaudited) Dec(unaudited)(unaudited) (audited)
(audited)
Note $'000 $'000 $'000 £'000 £'000 £'000
Turnover 6,109 8,988 17,562 4,272 5,762 11,630
Operating profit 980 3,745 7,071 685 2,400 4,682
Interest
- receivable 25 74 112 17 47 74
- payable (159) - (85) (111) - (56)
- capitalised 110 - 56 78 - 37
Profit before 956 3,819 7,154 669 2,447 4,737
exceptional items
Loss on sale of - - (108) - - (71)
current asset
investment
Revaluation of (10) 68 29 (7) 44 19
current asset
investments
Exchange (27) 37 (432) (20) 24 (286)
(losses)/profits
Profit before 919 3,924 6,643 642 2,515 4,399
taxation
Taxation
Foreign corporation (545) (1,295)(3,013) (381) (830) (1,995)
tax
Foreign withholding (39) (116) (134) (27) (74) (89)
tax
Profit after taxation 335 2,513 3,496 234 1,611 2,315
Minority interests 96 (258) (522) 67 (165) (346)
(all equity
interests)
Profit attributable 431 2,255 2,974 301 1,446 1,969
to shareholders
Dividends - - (588) - - (389)
431 2,255 2,386 301 1,446 1,580
Earnings per share
(basic and diluted) 1.1cts 5.7cts 7.6cts 0.8p 3.7p 5.0p
Dividend per share 4 - - 1.5cts - - 1.0p
Av. shares in issue 39,227 39,227 39,227 39,227 39,227 39,227
('000)
NOTES
1. The unaudited accounts for the six months ended 30 June 2001 were
approved by the board of directors on 18 September 2001 and have been prepared
in accordance with applicable Accounting Standards in the United Kingdom. The
accounting principles applied, including the valuation of fixed assets, are
those set out in the annual report for the year ended 31 December 2000
together with any subsequent requirements thereafter.
2. The results for the year ended 31 December 2000 are extracted
from the group's full statutory accounts for that year.
3. The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 240 of the Companies Act
1985. Full statutory accounts for the year ended 31 December 2000
incorporating an unqualified auditors' report have been delivered to the
Registrar of Companies.
4. The final and only dividend in respect of 2000 was paid on 20
June 2001.
5. Copies of the interim statement of results are available from the
company's registered office at 6/7 Queen Street, London EC4N 1SP.
CONSOLIDATED BALANCE SHEET
US DOLLARS STERLING
2001 2000 2000 2001 2000 2000
6 mnths 6 mnths year 6 mnths 6 mnths year to
to 30 to 30 to to 30 to 30 31 Dec
June June 31 Dec June June (audited)
(unaudited)(unaudited)(audited)(unaudited)(unaudited)
$'000 $'000 $'000 £'000 £'000 £'000
Fixed Assets
Tangible assets 100,342 96,938 97,556 71,164 64,198 65,473
Current Assets
Stocks 797 824 784 565 545 526
Debtors 2,658 3,185 1,452 1,885 2,109 974
Investments 209 366 219 148 242 147
Cash at bank and 1,367 3,443 2,096 970 2,280 1,407
in hand
5,031 7,818 4,551 3,568 5,176 3,054
Current
Liabilities
Creditors:
falling due
within one year
Borrowings (374) - (436) (265) - (292)
Other creditors (4,395) (7,202) (4,775) (3,117) (4,770) (3,204)
(4,769) (7,202) (5,211) (3,382) (4,770) (3,496)
Net current 262 616 (660) 186 406 (442)
assets/(liabilities)
Total assets 100,604 97,554 96,896 71,350 64,604 65,031
less current
liabilities
Non-current
Liabilities
Creditors:
falling due
after more than
one year
Borrowings (3,528) - (1,412) (2,502) - (948)
Deferred taxation (590) (590) (590) (418) (390) (395)
Net assets 96,486 96,964 94,894 68,430 64,214 63,688
Capital and
Reserves
Called-up share 15,171 15,171 15,171 9,808 9,808 9,808
capital
Share premium 23,570 23,570 23,570 15,329 15,329 15,329
account
Share capital 1,087 1,087 1,087 663 663 663
redemption
reserve
Revaluation and 9,851 9,527 8,514 9,434 6,886 6,645
exchange reserve
Profit and loss 28,990 28,427 28,559 20,560 18,825 19,167
account
Shareholders' 78,669 77,782 76,901 55,794 51,511 51,612
funds - all
equity interests
Minority 17,817 19,182 17,993 12,636 12,703 12,076
interests - all
equity interests
Total capital 96,486 96,964 94,894 68,430 64,214 63,688
employed
CONSOLIDATED CASH FLOW STATEMENT
US DOLLARS STERLING
2001 2000 2000 2001 2000 2000
6 mnths 6 mnths year to 6 mnths 6 mnths year to
to 30 to 30 31 Dec to 30 to 30 31 Dec
June June (audited) June June (audited)
(unaudited)(unaudited) (unaudited) (unaudited)
$'000 $'000 $'000 £'000 £'000 £'000
Net cash flow 1,456 4,695 9,133 1,074 3,136 6,176
from operating
activities
Returns on
investments and
servicing of
finance
Interest 25 74 112 17 47 74
received
Interest paid (157) - (80) (110) - (53)
Interest (2) - (5) (1) - (3)
element of
finance lease
payments
(134) 74 27 (94) 47 18
Taxation
Foreign tax paid (558) (2,534) (4,072) (390) (1,624) (2,697)
UK tax repaid (6) 694 718 (4) 445 475
(564) (1,840) (3,354) (394) (1,179) (2,222)
Capital
Expenditure
Payment to (3,096) (2,626) (7,435) (2,165) (1,683) (4,924)
acquire
tangible fixed
assets
Proceeds from 143 67 293 100 43 194
sale of
tangible fixed
assets
(2,953) (2,559) (7,142) (2,065) (1,640) (4,730)
Equity
Dividends Paid
Parent company (588) - (1,569) (411) - (1,039)
Cash (2,783) 370 (2,905) (1,890) 364 (1,797)
(outflow)/inflow
before
management of
liquid
resources and
financing
Management of
Liquid Resources
Proceeds from - 364 364 - 233 241
sale of
investments
Cash (2,783) 734 (2,541) (1,890) 597 (1,556)
(outflow)/inflow
before financing
Financing
Drawdown of 2,116 - 1,412 1,480 - 935
long term loans
Finance - - 80 - - 53
repayment by
minority
shareholder
2,116 - 1,492 1,480 - 988
(Decrease)/ (667) 734 (1,049) (410) 597 (568)
increase in cash and
cash equivalents
Cash in hand
and at bank
less short term
borrowings
Opening 1,660 2,709 2,709 1,115 1,683 1,683
Closing 993 3,443 1,660 705 2,280 1,115
Net (667) 734 (1,049) (410) 597 (568)
(outflow)/inflow
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING
ACTIVITIES
US DOLLARS
2001 2000 2000
6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Operating profit 980 3,745 7,071
Other non operating items (37) 105 (511)
Depreciation and amortisation 1,033 954 2,222
(Profit) on sale of fixed assets (36) - (14)
Realised and unrealised losses/(profits) on 10 (68) 79
investments
(Increase)/decrease in stocks (13) 199 239
(Increase)/decrease in debtors (966) (315) 291
Decrease in creditors (50) (1,014) (1,436)
Foreign exchange 535 1,089 1,192
Net cash flow from ordinary activities 1,456 4,695 9,133
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
US DOLLARS
2001 2000 2000
6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Profit for the period 431 2,255 2,974
Unrealised revaluation surplus 11,210 10,381 15,525
(Loss) on exchange translation (9,873) (9,430) (15,586)
Total recognised gains 1,768 3,206 2,913
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
US DOLLARS
2001 2000 2000
6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Total recognised gains 1,768 3,206 2,913
Dividends - - (588)
Net increase in shareholders' funds 1,768 3,206 2,325
Beginning of period 76,901 74,576 74,576
End of period 78,669 77,782 76,901
Wednesday, 18th December 2024
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