Interim Results
Anglo-Eastern Plantations PLC
13 September 2004
ANGLO-EASTERN PLANTATIONS - INTERIM ANNOUNCEMENT
A record result expected
Anglo-Eastern Plantations, which owns approximately 30,000 ha of plantations,
primarily of oil palm in Indonesia, announces that the record performance of
2003 continued into the first half of 2004, thanks to higher CPO (crude palm
oil) prices and improved production.
2004 2003 Increase
Turnover ($'000) 33,296 20,390 63.3%
Operating profit ($'000) 12,125 7,408 63.7%
Pre-tax profit ($'000) 12,031 7,150 68.3%
Basic earnings per share (cts) 17.4 10.0 74.0%
• In sterling terms, the pre-tax profit was a record £6,610,000, up
48.9% on 2003's £4,441,000, whilst basic EPS was 54.8% higher at 9.6p (2003:
6.2p).
• The average CPO price for 2004 H1 of $502 was 20% higher than the $420
for 2003 H1 and 14% higher than the $441 for 2003 FY.
• Production of oil palm FFB (fresh fruit bunches) from the group's own
estates totalled 184,260 mt, an increase of 7% on 2003's 171,491 mt.
• Bought-in FFB, for processing at the group's mills at Puding Mas
(Bengkulu, southern Sumatra) and Tasik (North Sumatra), increased by 80% to
120,763 mt, and further capacity is being brought into production at Puding Mas
and Blankahan (North Sumatra).
• Rehabilitation of the Bina Pitri estate, in Riau province in central
Sumatra, which the group purchased for $10m in March 2004, is proceeding
satisfactorily and the group is pleased with this acquisition.
Mr T H Chan, Chairman and Chief Executive, stated 'The CPO price is currently at
around $430/mt. Average CPO prices in the second half are not expected to be as
high as the average price of $502/mt recorded in the first half. However, we
expect FFB crops in the second half to show a moderate increase over the first
half. The amount of bought in crops is also expected to be steady. Provided the
CPO price stays at around current levels and in the absence of unforeseen
adverse circumstances, the group can expect to report a record turnover and
profit for the full year.'
Enquiries:
Anglo-Eastern Plantations plc 020-7236 2838
Rollo Barnes (Financial Director)
Bankside Consultants Limited
Charles Ponsonby 020-7444 4166
INTERIM STATEMENT
I am happy to report that the group recorded a profit before tax of $12.0
million for the six months to 30 June 2004, an improvement of 68% over the same
period in 2003. Turnover for the period under review amounted to $33.3 million
compared to $20.4 million in the corresponding period in 2003. This improved
performance was a result of favourable CPO (crude palm oil) prices and higher
FFB (fresh fruit bunch) production at our Indonesian estates. Higher bought in
crops at our mills, both at Tasik in North Sumatra and at Puding Mas in
Bengkulu, southern Sumatra, as well as favourable rubber prices, also
contributed significantly to the excellent performance.
Earnings per share for the six months were 17.4cts compared to 10.0cts for the
same period in 2003. As in previous years, no interim dividend is being
declared.
Rehabilitation of the Bina Pitri estate, in Riau province in central Sumatra,
which we purchased for $10 million in March 2004, is proceeding satisfactorily
and we are pleased with this acquisition.
Notwithstanding that purchase, plus capital expenditure on the development of
our Bengkulu estates, the expansion of the Puding Mas mill, and the construction
of the new mill at Blankahan in North Sumatra, together amounting to a further
$4.5 million, the group had only $1 million borrowings net of cash at the end of
June 2004 compared to net cash balances of $7.0 million at the end of 2003. With
favourable commodity prices and higher crop production, the group is in the
position to generate sufficient cash flows for its immediate capital expenditure
programme.
Production and Sales
2004 2003 2003
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
mt mt mt
Oil palm production
FFB
- own estates 184,260 171,491 372,290
- bought in or processed for third
parties 120,763 66,978 170,948
Saleable CPO 54,258 40,147 94,523
Saleable kernel 13,025 9,207 22,306
Oil palm sales
CPO 55,953 37,923 91,238
Kernel 12,545 9,125 22,302
FFB sold outside 43,406 44,606 52,574
Other crops production
Rubber 729 737 1,800
Cocoa 80 80 141
Overall, the group's FFB production showed an increase of 7% over the same
period in the previous year. Production in the first half of 2003 included an
unusually early peak which we expect to see in the more normal second half of
2004. Our North Sumatra estates recorded a decrease in FFB production of 3,794
mt as compared to the previous year. The Malaysian estates at Cenderung
continued to disappoint, recording a FFB production decrease of 3,966 mt for the
first six months. These shortfalls were more than made up by the increase in
production of 16,629 mt at our Bengkulu estates together with the addition of
Bina Pitri, which produced 3,900 mt for three months to June.
CPO sales in the first six months of 2004 showed a larger increase of 47% which
was mainly the result of an increase in the volume of bought in crops at both
our mills, which are currently operating at full capacity.
Produce Prices
The favourable CPO prices of the second half of 2003 continued through to April
2004, reaching a peak of $550/mt (cif Rotterdam). However, the prices retracted
sharply in May and June to around $430/mt. Nonetheless, the average CPO price
for the first half was $502/mt compared to $420/mt for the same period of 2003
and $441/mt for 2003 as a whole.
Rubber prices remained high for the first half of the year and cocoa prices fell
some 20% during the first half of 2004.
Development
The group's planted areas are as follows:
Mature Immature Total
Ha ha Ha
North Sumatra 9,877 279 10,156
Bengkulu 8,888 2,969 11,857
Riau 3,862 - 3,862
--------- -------- -------
22,627 3,248 25,875
Malaysia 3,230 549 3,779
--------- -------- -------
Total: 30 June 2004 25,857 3,797 29,654
--------- -------- -------
Total: 31 December 2003 20,907 4,572 25,479
--------- -------- -------
Total: 30 June 2003 21,897 2,096 23,993
--------- -------- -------
We plan to plant about 1,700 ha at Bengkulu for the current year, leaving a
reserve of 2,600 ha which we hope to complete planting by the end of 2006.
The total plantable area at Bina Pitri amounts to 4,188 ha of which 326 ha will
require replanting. Therefore, we show a planted area of 3,862 ha in the above
table. We are negotiating to acquire rights to a further 800 ha of land
adjoining the estate.
Construction of the new 20 mt/hr oil mill at Blankahan is facing some delay but
we are hopeful of commissioning it by the end of 2004. The extension of the
Puding Mas mill from 40mt/hr to 60mt/hr is expected to be completed on time in
October/November 2004; this increase in capacity is needed to process our own
increasing FFB production as well as bought in crops.
International Accounting Standards
Under EU regulations, all listed companies will be required to apply
International Accounting Standards (IAS) to their consolidated financial
statements for accounting periods commencing on or after 1 January 2005.
Comparative figures for 2004 will have to be amended accordingly. Therefore, the
results included in this interim report will change when shown as comparatives
in the 2005 interim report.
A review of the main effects of applying IAS to the group has been undertaken.
The principal impact relates to the requirement to:
(1) value our estates at market value and charge or credit the changes in an
accounting period to profit and loss account (IAS 41); and
(2) provide deferred taxation on all property valuation surpluses even if
there is no intention to dispose of those properties. This will reduce the
reported net asset value of the group.
Outlook
The CPO price is currently at around $430/mt. Average CPO prices in the second
half are not expected to be as high as the average price of $502/mt recorded in
the first half. However, we expect FFB crops in the second half to show a
moderate increase over the first half. The amount of bought in crops is also
expected to be steady. Provided the CPO price stays at current levels and in the
absence of unforeseen adverse circumstances, the group can expect to report a
record turnover and profit for the full year.
Chan Teik Huat
Chairman and Chief Executive 10 September 2004
CONSOLIDATED PROFIT AND LOSS ACCOUNT
US DOLLARS STERLING
2004 2003 2003 2004 2003 2003
6 months 6 months year to 6 months 6 months year to
to 30 June to 30 June 31 Dec to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
Note $'000 $'000 $'000 £'000 £'000 £'000
Turnover 33,296 20,390 48,519 18,294 12,665 29,495
======== ======== ======== ========= ========= ========
Profit before exchange
and revaluation provisions 12,110 7,423 19,732 6,654 4,610 11,995
Exchange
profits/(losses) 1 15 (15) 262 8 (9) 159
-------- -------- -------- --------- --------- --------
Operating profit 12,125 7,408 19,994 6,662 4,601 12,154
Interest - receivable 108 60 156 59 37 95
- payable (243) (385) (693) (134) (239) (421)
- capitalised 41 67 130 23 42 79
--------- -------- -------- --------- --------- --------
Profit before taxation 12,031 7,150 19,587 6,610 4,441 11,907
Taxation
Foreign corporation tax (3,040) (2,389) (5,552) (1,670) (1,484) (3,375)
Foreign withholding tax (171) (144) (321) (94) (89) (195)
Deferred tax adjustment (636) 127 (268) (349) 79 (163)
-------- -------- -------- --------- --------- --------
Profit after taxation 8,184 4,744 13,446 4,497 2,947 8,174
Minority interests (all
equity interests) (1,306) (825) (2,201) (718) (513) (1,338)
-------- -------- -------- --------- --------- --------
Profit attributable
to shareholders 6,878 3,919 11,245 3,779 2,434 6,836
Dividend - - (2,375) - - (1,444)
-------- -------- -------- --------- --------- --------
6,878 3,919 8,870 3,779 2,434 5,392
Earnings per share 17.4cts 10.0cts 28.6cts 9.6p 6.2p 17.4p
- basic
- diluted 17.3cts 9.9cts 28.4cts 9.5p 6.1p 17.3p
Dividend per share 5 - - 6.0cts - - 3.27p
Av. shares in
issue ('000) 39,581 39,347 39,379 39,581 39,347 39,379
NOTES
1. At 30 June 2004, there was an exchange translation (deficit) of $(130,000)
(30 June 2003: surplus $199,000) arising on net third party US dollar borrowings
by two Indonesian subsidiaries; in view of the unpredictability of the rupiah/
dollar exchange rate, this has been held in exchange reserves at 30 June 2004
pending determination of the final profit or loss at 31 December 2004.
2. The unaudited accounts for the six months ended 30 June 2004 were approved by
the board of directors on
10 September 2004 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 2003 together with any subsequent requirements
thereafter.
3. The results for the year ended 31 December 2003 are extracted from the
group's full statutory accounts for that year.
4. 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 2003 incorporating an
unqualified auditors' report have been delivered to the Registrar of Companies.
5. The final and only dividend in respect of 2003 was paid on 8 June 2004.
6. Copies of the interim statement of results are available from the company's
registered office at 6/7 Queen Street, London EC4N 1SP and from the company's
website: www.angloeastern.co.uk.
CONSOLIDATED BALANCE SHEET
US DOLLARS STERLING
Notes 2004 2003 2003 2004 2003 2003
6 months 6 months year to 6 months 6 months year to
to 30 June to 30 June 31 Dec to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
$'000 $'000 $'000 £'000 £'000 £'000
Fixed
assets
Tangible
assets 117,275 105,917 105,096 64,793 64,192 58,712
-------- --------- -------- --------- --------- --------
Current
assets
Stocks 2,230 1,526 1,713 1,232 925 958
Debtors 4,171 3,965 2,736 2,303 2,403 1,528
Investments 355 290 313 196 176 175
Cash at bank
and in hand 6,127 9,268 15,127 3,385 5,617 8,450
-------- --------- -------- --------- --------- --------
12,883 15,049 19,889 7,116 9,121 11,111
-------- --------- -------- --------- --------- --------
Current
liabilities
Creditors:
falling due
within one
year
Borrowings 7 (3,641) (2,041) (2,060) (2,012) (1,237) (1,150)
Other
creditors (7,813) (8,592) (9,439) (4,316) (5,207) (5,273)
-------- --------- -------- --------- --------- --------
(11,454) (10,633) (11,499) (6,328) (6,444) (6,423)
-------- --------- -------- --------- --------- --------
Net current
assets 1,429 4,416 8,390 788 2,677 4,688
-------- --------- -------- --------- --------- --------
Total assets
less current
liabilities 118,704 110,333 113,486 65,581 66,869 63,400
Non-current
assets/
liabilities
Creditors:
falling due
after more
than one
year
Borrowings (3,450) (7,073) (6,108) (1,906) (4,286) (3,412)
Deferred
taxation 316 1,442 1,013 175 873 566
-------- --------- -------- --------- --------- --------
Net assets 115,570 104,702 108,391 63,850 63,456 60,554
======== ========= ======== ========= ========= ========
Capital and
reserves
Called-up
share capital 15,319 15,249 15,319 9,895 9,856 9,895
Share premium
account 23,679 23,610 23,679 15,395 15,353 15,395
Share capital
redemption
reserve 1,087 1,087 1,087 663 663 663
Revaluation
and exchange
reserve 5,003 7,381 5,375 (1,043) 2,811 (556)
Profit and
loss account 50,580 38,638 43,702 27,944 23,417 24,415
-------- --------- -------- --------- --------- --------
Shareholders'
funds - all
equity
interests 95,668 85,965 89,162 52,854 52,100 49,812
Minority
interests -
all equity
interests 19,902 18,737 19,229 10,996 11,356 10,742
-------- --------- -------- --------- --------- --------
Total capital
employed 115,570 104,702 108,391 63,850 63,456 60,554
======== ========= ======== ========= ========= ========
Notes
7. Element of
borrowings
falling due
within one
year which
relate to
repayment of
long term (3,621) (2,020) (2,023) (2,000) (1,224) (1,130)
loan ======== ========= ======== ========= ========= ========
CONSOLIDATED CASH FLOW STATEMENT
US DOLLARS STERLING
2004 2003 2003 2004 2003 2003
6 months 6 months year to 6 months 6 months year to
to 30 June to 30 June 31 Dec to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
$'000 $'000 $'000 £'000 £'000 £'000
Net cash
inflow from
operating
activities 13,582 9,299 22,142 7,333 5,637 12,604
-------- --------- -------- --------- --------- --------
Returns on
investments
and servicing
of finance
Interest
received 108 60 156 59 37 95
Interest (243) (385) (693) (134) (239) (421)
paid
Dividends
paid
to minority (637) - (620) (350) - (377)
shareholders -------- --------- -------- --------- --------- --------
(772) (325) (1,157) (425) (202) (703)
-------- --------- -------- --------- --------- --------
Taxation
Foreign tax
paid (4,350) (3,173) (5,364) (2,390) (1,971) (3,261)
UK tax paid (23) (7) - (13) (4) -
-------- --------- -------- --------- --------- --------
(4,373) (3,180) (5,364) (2,403) (1,975) (3,261)
-------- --------- -------- --------- --------- --------
Capital
expenditure
Payment to
acquire
tangible
fixed (4,475) (2,496) (5,715) (2,459) (1,550) (3,474)
assets
Payments to
acquire land - - (40) - - (24)
Proceeds from
sale of
tangible
fixed 7 18 116 4 11 70
assets -------- --------- -------- --------- --------- --------
(4,468) (2,478) (5,639) (2,455) (1,539) (3,428)
-------- --------- -------- --------- --------- --------
Acquistions
Purchase of
subsidiary (9,575) - - (5,261) - -
Equity
dividends
paid
Parent (2,375) (1,571) (1,571) (1,305) (976) (955)
company -------- --------- -------- --- --------- --------- --------
Cash
(outflow)/
inflow
before (7,981) 1,745 8,411 (4,516) 945 4,257
financing -------- --------- -------- --------- --------- --------
Financing
Employee
share
option - 118 257 - 73 156
subscription
(Repayment)
of
long term (1,011) (1,011) (2,023) (555) (628) (1,230)
loans
Finance lease
repayments (9) (14) 47 5 (9) 29
-------- --------- -------- --------- --------- --------
(1,020) (907) (1,719) (550) (564) (1,045)
-------- --------- -------- --------- --------- --------
(Decrease)/
increase in
cash
and cash (9,001) 838 6,692 (5,066) 381 3,212
equivalents ======== ========= ======== ========= ========= ========
Cash in hand
and at bank
less short
term
borrowings
Opening 15,108 8,416 8,416 8,439 5,227 5,227
Closing 6,107 9,254 15,108 3,373 5,608 8,439
-------- --------- -------- --------- --------- --------
Net
(outflow)/
inflow (9,001) 838 6,692 (5,066) 381 3,212
======== ========= ======== ========= ========= ========
RECONCILIATION OF OPERATING PROFIT
TO NET CASH INFLOW FROM OPERATING ACTIVITIES
US DOLLARS
2004 2003 2003
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Operating profit 12,125 7,408 19,994
Depreciation and amortisation 1,475 1,293 2,493
(Profit) on sale of fixed assets (6) (12) (25)
Movement in market value of
investments (41) (56) (79)
(Increase) in stocks (517) (599) (785)
(Increase) in debtors (1,610) (287) (268)
Increase in creditors 2,664 1,417 378
Foreign exchange (508) 135 434
-------- --------- --------
Net cash flow from operating
activities 13,582 9,299 22,142
======== ========= ========
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
US DOLLARS
2004 2003 2003
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Profit for the period 6,878 3,919 11,245
Surplus on deemed disposal of
interest in subsidiary - - 113
Unrealised surplus/(deficit) on
revaluation of the estates 7,547 (4,568) (5,126)
(Loss)/profit on exchange
translation (7,919) 5,363 3,915
--------- --------- --------
Total recognised gains 6,506 4,714 10,147
========= ========= ========
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
US DOLLARS
2004 2003 2003
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Total recognised gains 6,506 4,714 10,147
Dividend - - (2,375)
Issue of shares on exercise of
employee options - 118 257
--------- --------- --------
Net increase in shareholders' funds 6,506 4,832 8,029
Shareholders' funds at beginning of
period 89,162 81,133 81,133
--------- --------- --------
Shareholders' funds at end of period 95,668 85,965 89,162
========= ========= ========
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Wednesday, 18th December 2024
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