Final Results
M.P. EVANS GROUP PLC
M.P. Evans Group PLC ("MP Evans" or "the Group"), a producer of Indonesian
palm oil and Australian beef cattle, announces unaudited preliminary
results for the year ended 31 December 2007.
Highlights
Financial
* Record profit for the year US$46,630,000 (2006 US$26,102,000)
* Final dividend for the year increased to 5.00p (2006 - 4.50p) per
share - 2.00p (2006 - 2.00p) interim already paid
* First year of results being reported in US Dollars and under
International Financial Reporting Standards ("IFRS")
Indonesian palm oil
* Plantation profits 62% higher at US$11,127,000 (2006 US$6,883,000)
* Plantation associates' profits also sharply higher
* Strategy of developing and planting new Indonesian areas continues
apace, although delays experienced on the Bangka project
* Palm-oil prices surged strongly during 2007 and continued this upward
trend through 2008
* Crops of oil palm fresh fruit bunches ("f.f.b.") lower than in 2006
due to flooding on one estate and strike action (since resolved)
affecting others
* Value of biological assets increased markedly, by US$11,536,000, as a
result of firmer palm-oil prices and development of new projects
Australian beef cattle
* Similar cattle-trading results to 2006 and improved grain cropping on
Woodlands resulted in a reduced loss of US$580,000 (2006 US$731,000)
* Higher cattle valuations, an expanded herd and a property disposal
led to increased profits from the associate NAPCo, of which the
Group's share was US$2,840,000 (2006 loss of US$414,000)
* Australian beef-cattle prices have generally been robust, though
drought has continued in some areas
* Australian cereal prices remain very strong in line with world
markets
* Australian rural property values have continued to increase
Malaysian property and asset disposals
* Significant profits earned by the associate, Bertam Properties, from
land disposals, of which the Group's share was US$12,872,000 (2006
US$7,955,000)
* Strategy of disposing of Malaysian plantations and real estate
continues successfully
Commenting on the results, Richard Robinow, chairman of MP Evans, said:
"Despite some of the operational challenges which we have encountered, I
am delighted to report another record result for 2007. Good progress
continues to be achieved in the implementation of the Group's strategy of
expanding into Indonesian palm oil and Australian beef cattle, whilst
divesting from Malaysian plantations and real estate. If palm-oil prices
and the Group's crops continue at the levels achieved so far this year,
2008 should prove another excellent year."
Enquiries:
M.P. Evans Group PLC Telephone: 020 7796 4133 on 1 May only.
Thereafter - Telephone: 01892 516333
Peter Hadsley-Chaplin Joint managing director
Philip Fletcher Joint managing and finance director
Tristan Price Group finance controller
Hudson Sandler Telephone: 020 7796 4133
James White
Hugo Jenkins
Panmure Gordon & Co Telephone: 020 7614 8384
Edward Farmer
An analysts' meeting will be held today at 9:30 a.m. at the offices of
Hudson Sandler, 29 Cloth Fair, London EC1A 7NN.
Overview of results
A record result was achieved for a second consecutive year. Profit for the
year rose to US$46,630,000, compared with US$26,102,000 in 2006 with
earnings per share (continuing and discontinued operations) increasing to
82.32 cents from 49.75 cents. The increase was largely attributable to the
following four factors:
i) a strongly performing palm-oil price;
ii) increases in associated-company profits;
iii) exceptional gains related to property disposals; and
iv) an increase in value of the biological assets in line with IFRS
Offsetting these gains were a decline in the Group's f.f.b. crop, a small
loss recorded on the Group's Australian property, Woodlands, and net
exchange losses arising from the holding of monetary assets and
liabilities other than in US Dollars.
The accounts are, this year, being drawn up in a different way from
previous years, with the comparative figures for 2006 re-stated
accordingly. IFRS has been adopted and, in addition, the accounts are now
presented in US Dollars, the currency in which the majority of the Group's
earnings and a significant proportion of costs are denominated.
DIVIDEND
The board recommends a final dividend of 5.00p per share, which, together
with the interim dividend of 2.00p paid in November 2007, makes 7.00p for
the year, compared with 6.50p in respect of 2006. The dividend will
continue to be paid in Sterling.
STRATEGIC PROGRESS
The board's target is to achieve a total mature area under oil palms in
Indonesia of some 70,000 hectares and to continue to expand the Australian
beef-cattle portfolio. In order to fund these expansionary objectives, the
Group will continue to raise cash by disposing of its remaining Malaysian
plantation and property investments, as well as by securing additional
bank finance.
In Indonesia, the Group now owns some 10,000 hectares of mature oil-palm
plantations, together with a minority holding in 25,000 hectares in
Sumatra. In addition, a land bank of 12,000 hectares on Bangka Island and
24,000 hectares in East Kalimantan has been secured. Despite some delays
in the programme, owing chiefly, on Bangka Island, to protracted
negotiations in relation to land compensation, over 2,000 hectares on
Bangka and 2,500 hectares in East Kalimantan have been planted to date.
The new projects are being cleared and planted in an environmentally and
socially responsible manner.
In Australia, the acquisition of Springmount was completed in March 2007.
Springmount adjoins the Group's Woodlands aggregation. The addition of
Springmount has increased the size of the aggregation to 31,000 hectares
and has enabled further economies of scale to be achieved both in the
fattening of cattle and in the cultivation of grain crops for commercial
sale. Increasing emphasis is being placed on this latter option in view of
the sharp escalation in the price of grain. There was a significant
increase in Australian rural property values which has impacted favourably
on NAPCo's net asset value. This has increased to US$15.10 per share from
US$10.47 per share at the end of 2006.
In Malaysia, two important sales were agreed during the year. First, the
balance of Perhentian Tinggi Estate (745 hectares) was sold for US$21.00
million. Completion has recently occurred and the whole transaction will
therefore be accounted for in 2008. Second, the sale of Sungei Kruit
Estate (828 hectares) was agreed for a total of US$22.90 million.
Completion is expected to occur in mid-2008 and should, consequently, be
brought into the 2008 accounts.
PALM-OIL ACTIVITIES AND MARKET
The palm-oil price strengthened from around US$600 per tonne (Rotterdam
cif) at the beginning of the year to around US$1,000 at the end. This was
in response to strong global demand for palm oil, together with other
vegetable oils, both as a food source and for use as a bio-fuel.
MAJORITY-OWNED MATURE ESTATES
CROPS AND PRODUCTION
2007 2006
Tonnes Tonnes
Crops - f.f.b. 129,900 155,100
======= =======
Production - crude palm oil 19,500 24,000
- palm kernels 5,400 6,200
======= =======
Extraction rate - crude palm oil 20.40 20.90
- palm kernels 5.70 5.40
======= =======
The fall in the crop arose primarily from two factors. First, a severe
flood occurred on Simpang Kiri Estate at the end of 2006 causing
considerable damage to infrastructure and to some of the immature
plantings. Second, the strike by some of the workers on the three estates
in the Labuhan Batu area, Pangkatan, Bilah and Sennah, continued
throughout the year. The matter has recently been resolved on all three
estates. Pressure on costs was experienced during the year arising from
the increased cost of mineral oil and other commodities.
The gross profit arising from the Indonesian plantation activities, before
biological bearer asset adjustment, amounted to US$11,127,000 in 2007,
compared with US$6,883,000 in 2006.
ASSOCIATED-COMPANY ESTATES
Crops and production from the estates owned by PT Agro Muko (31.53%) and
PT Kerasaan Indonesia (38.00%) were as follows:-
2007 2006
Tonnes Tonnes
F.f.b. crops - PT Agro Muko - own 293,900 294,600
- outgrowers 5,100 33,800
- PT Kerasaan Indonesia 53,300 56,200
------- -------
352,300 384,600
======= =======
Production (PT Agro Muko) - crude palm oil 65,500 72,500
- palm kernels 14,600 16,400
======= =======
% %
Extraction rate - crude palm oil 21.90 22.10
- palm kernels 4.90 5.00
======= =======
Tonnes Tonnes
Rubber crops (PT Agro Muko) - own 2,070 1,852
- outgrowers 360 1,172
======= =======
Agro Muko's f.f.b. crop was similar to that of 2006 and the company
continued its policy of not pursuing unprofitable outgrowers' crop in the
light of intense competition for fruit in the area. The rubber crop was
higher than the previous year but, as with f.f.b., there was keen
competition in the area for outgrowers' crops, resulting in a lower
offtake in 2007.
Kerasaan Estate's f.f.b. crop was some 5% below that for 2006, having
reduced more quickly than expected in the second half of the year.
AUSTRALIAN BEEF-CATTLE ACTIVITIES AND MARKET
As in recent years, the beef-cattle market in 2007 was predominantly
influenced by seasonal conditions, the fluctuations of the Australian
Dollar versus the US Dollar and Asian currencies and market-access issues
affecting US beef supply. In view of the volatility of both the season and
the currency markets, the cattle and beef markets were similarly volatile,
albeit trading within a historically-high range.
MAJORITY-OWNED OPERATIONS - WOODLANDS
A gross loss of US$580,000 was recorded on Woodlands, compared with a loss
of US$731,000 in 2006. The dry conditions which affected the property in
2006 considerably restricted the number of cattle that could be purchased
and fattened during the first half of 2007. However, further to the
beneficial rainfall received during 2007, both the existing and new
pastures grew well and forage crops were planted. This enabled more cattle
to be acquired during the year and will permit the further expansion of
the herd in 2008. Unlike last year, a wheat crop was able to be grown in
2007 as a result of the better rainfall.
ASSOCIATED COMPANY - NAPCo (29.64% OWNED)
During the year, the Group marginally increased its holding in NAPCo to
29.64% from 29.29%. The Group's share of NAPCo's profit after tax rose
sharply to US$2,840,000, compared with a loss in 2006 of US$414,000. The
improvement was largely attributable to a significant gain in the value,
and size, of the herd and to the results of the beneficial rainfall
enjoyed by the company's principal breeding properties.
MALAYSIAN PROPERTY DISPOSALS
LAND DISPOSALS
Further progress was achieved during 2007 in implementing the Group's
strategy of selling its portfolio of Malaysian plantation and property
assets. This can be summarised as follows:-
Perhentian Tinggi
Agreements were signed in 2006 regarding the sale of two small pieces of
the estate, 101 hectares (approximately US$2.90 million) and 81 hectares
(approximately US$2.50 million). The 101-hectare sale was completed in
2007 and the 81-hectare sale in 2008. The profits were, or will be,
recognised in these respective years. A conditional sale agreement was
signed in 2007 in respect of the balance of the land, 745 hectares, at a
price of approximately US$21.00 million. The sale was completed in 2008
and the profit will be recognised in that year.
Sungei Kruit
A conditional sale agreement was signed in 2007 in respect of this 828-
hectare estate at a price of approximately US$22.90 million. The sale is
expected to be completed, and the profit will then be recognised, during
2008.
Straits Beach Properties Sdn. Bhd.
Agreement was reached during 2007 to sell the company. The proceeds of the
sale of the Group's 78% shareholding and shareholder-loan repayments
amounted to some US$1.46 million. The transaction was completed in early
2008 and a modest profit of some US$0.13 million will be recorded in that
year.
GROSS PROFIT
As a result of all of the above, the Group gross profit from continuing
operations before biological-asset adjustment for the year amounted to
US$10,632,000, compared with US$6,345,000 in 2006, an increase of some
68%.
BIOLOGICAL-ASSET ADJUSTMENT
The value of the biological assets increased markedly (by US$11,536,000
after tax), partly as a result of the increase in the price of palm oil
and kernels and partly reflecting the new plantings that got under way on
the new projects during 2007, particularly in Kalimantan. These benefits
were partially offset by the increase in the cost base of the Indonesian
operations. Increases (or decreases) in the value of biological assets
from one year to the next are reflected in the consolidated income
statement.
OTHER ADMINISTRATIVE EXPENSES
Other administrative expenses increased in 2007. This arose primarily from
the inclusion of the costs of the expanding Jakarta head office and those
administrative (largely management) costs on the new projects which are
not able to be included in the cost of development. In addition, the
increase in the Company's share price from 303p at the end of 2006 to 394p
at the end of 2007 gave rise to the necessity to increase the provision
for potential national insurance on the remaining unexercised share
options.
EXCEPTIONAL CREDITS
As in previous years, Group profits (US$3.86 million) which had been
deferred when land was originally sold by Group companies to an associated
company, Bertam Properties, have been recognised when Bertam Properties
sold that land to third parties.
DISCONTINUED OPERATIONS
The profit after tax of US$5.70 million relates primarily to the earnings
from the two Malaysian estates which were contracted to be sold in 2007,
but have been or will be completed in 2008, referred to above under
"Malaysian property disposals".
ASSOCIATED COMPANIES
The Group's share of its associated companies' post-tax profits/(losses)
for the year compared with last year were as follows:-
% held 2007 2006
US$'000 US$'000
PT Agro Muko 31.53 12,456 1,529
PT Kerasaan Indonesia 38.00 2,444 818
NAPCo 29.64 2,840 (414)
Bertam Properties Sdn. Bhd. 40.00 12,872 7,955
Kennedy, Burkill & Co. Bhd. 20.01 - 203
Asia Green Environmental Sdn. Bhd. 30.00 - (138)
------ ------
30,612 9,953
====== ======
PROFIT FOR THE YEAR
As a result of all of the above, the Group profit for the year amounted to
US$46,630,000 compared with US$26,102,000 in 2006.
SENNAH ESTATE LAWSUIT
As announced on 14 August 2007, DR H. Rahmat Shah's appeal to the Supreme
Court of Indonesia seeking to overturn the ruling, in the Group's favour,
of the Medan High Court was unsuccessful. Under the Indonesian legal
system, there is one further avenue of appeal which is, on the production
of new evidence not submitted at any earlier court hearings, to request a
judicial review by the Supreme Court. Against expectations, DR H. Rahmat
Shah has filed such an application. The Group will, through its Indonesian
lawyers, robustly confront any issues raised in the Supreme Court but,
given the high volume of unheard cases in this court, it may be some time
before this issue is resolved.
CURRENT TRADING AND PROSPECTS
Palm-oil prices continued to strengthen into 2008 reaching a high of
around US$1,395 per tonne in March before retreating to the current level
of around US$1,200. A progressive export-tax has been imposed by the
Indonesian Government. The fundamentals in the palm-oil market remain
strong, helped by the recent abolition of the previously high import tax
imposed by India.
F.f.b. crops on the majority-owned estates have started the year strongly
and are ahead of the same period last year and in line with budget. Crops
on the associated-company estates have been ahead of both the same period
last year and of budget. It is hoped that the full year's crop will be in
excess of that for 2007.
Conditions on Woodlands have continued favourably following beneficial
rainfall. NAPCo's backgrounding properties, in central Queensland, have
been enjoying a similarly good season to Woodlands. However, NAPCo's
breeding and growing-out properties in the Northern Territory and more
northerly parts of Queensland have been suffering from a severe drought
which means that a significant number of young cattle will have to be sold
before time. Cattle prices have on average continued to trade at
historically-high levels.
The board is of the view that, in the light of the ever-growing global
demand for vegetable oils, bio-fuels, food and protein, the prospects for
both the palm-oil and beef-cattle markets remain favourable and that 2008
will prove to be another very successful year.
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2007
Result before Year
biological Biological ended
bearer-asset bearer-asset 31 December
adjustment adjustment 2007
US$'000 US$'000 US$'000
Continuing operations
Revenue 23,597 - 23,597
Cost of sales (12,965) (8,550) (21,515)
------ ------ ------
Gross profit 10,632 (8,550) 2,082
Gain on biological assets - 18,747 18,747
Foreign-exchange losses (1,434) - (1,434)
Other administrative expenses (5,152) - (5,152)
------ ------ ------
Group operating profit 4,046 10,197 14,243
Exceptional credit (note 3) 3,641 - 3,641
------ ------ ------
Profit on ordinary activities
before interest 7,687 10,197 17,884
Investment revenue 1,306 - 1,306
Finance costs (1,763) - (1,763)
------ ------ ------
Group-controlled profit
before taxation 7,230 10,197 17,427
Tax charge on profit on
ordinary activities (note 2) (3,928) (3,185) (7,113)
------ ------ ------
Group-controlled profit
after taxation 3,302 7,012 10,314
Share of associated companies'
profit after tax 23,525 7,087 30,612
------ ------ ------
Profit after tax and before
discontinued operations 26,827 14,099 40,926
Discontinued operations 5,317 387 5,704
------ ------ ------
Profit for the year 32,144 14,486 46,630
------ ------ ------
Attributable to:
Equity holders of
M.P. Evans Group PLC 30,328 11,936 42,264
Minority interests 1,816 2,550 4,366
------ ------ ------
32,144 14,486 46,630
------ ------ ------
Basic earnings per 10p share (US cents)
Continuing operations 71.21
Discontinued operations 11.11
------
Continuing and discontinued operations (note 4) 82.32
------
Diluted earnings per 10p share (US cents)
Continuing operations 68.83
Discontinued operations 10.74
------
Continuing and discontinued operations (note 4) 79.57
------
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2006
Result before Year
biological Biological ended
bearer-asset bearer-asset 31 December
adjustment adjustment 2006
US$'000 US$'000 US$'000
Continuing operations
Revenue 20,425 - 20,425
Cost of sales (14,080) (5,264) (19,344)
------ ------ ------
Gross profit 6,345 (5,264) 1,081
Gain on biological assets - 3,410 3,410
Foreign-exchange gains 6,363 - 6,363
Other administrative expenses (4,324) - (4,324)
------ ------ ------
Group operating profit 8,384 (1,854) 6,530
Exceptional credit (note 3) 1,558 - 1,558
------ ------ ------
Profit on ordinary activities
before interest 9,942 (1,854) 8,088
Investment revenue 887 - 887
Finance costs (764) - (764)
------ ------ ------
Group-controlled profit
before taxation 10,065 (1,854) 8,211
Tax charge on profit on
ordinary activities (note 2) (1,442) 713 (729)
------ ------ ------
Group-controlled profit
after taxation 8,623 (1,141) 7,482
Share of associated companies'
profit after tax 11,039 (1,086) 9,953
------ ------ ------
Profit after tax and before
discontinued operations 19,662 (2,227) 17,435
Discontinued operations 16,883 (8,216) 8,667
------ ------ ------
Profit for the year 36,545 (10,443) 26,102
------ ------ ------
Attributable to:
Equity holders of
M.P. Evans Group PLC 35,546 (10,245) 25,301
Minority interests 999 (198) 801
------ ------ ------
36,545 (10,443) 26,102
------ ------ ------
Basic earnings per 10p share (US cents)
Continuing operations 32.71
Discontinued operations 17.04
------
Continuing and discontinued operations (note 4) 49.75
------
Diluted earnings per 10p share (US cents)
Continuing operations 31.42
Discontinued operations 16.38
------
Continuing and discontinued operations (note 4) 47.80
------
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the year ended 31 December 2007
2007 2006
US$'000 US$'000
Unrealised share of movements in
associated undertakings' reserves (1,780) 4,000
Previously unrealised profit on sale
of land to associated undertaking
released through income statement
on sale of land by associate (3,855) (2,513)
Exchange differences on foreign-currency
net investments 8,637 (2,457)
------ ------
Net income/(expense) recognised directly in equity 3,002 (970)
Profit for the year 46,630 26,102
------ ------
Total recognised income and expense
for the year 49,632 25,132
------ ------
Attributable to:
Equity holders of M.P. Evans Group PLC 45,266 24,331
Minority interest 4,366 801
------ ------
49,632 25,132
------ ------
CONSOLIDATED BALANCE SHEET
at 31 December 2007
Before
biological Biological
bearer-asset bearer-asset 31 December
adjustment adjustment 2007
US$'000 US$'000 US$'000
Non-current assets
Goodwill 1,008 - 1,008
Biological assets - 54,553 54,553
Property, plant and equipment 70,086 (17,443) 52,643
Investments 90,363 19,782 110,145
Deferred tax asset 1,010 - 1,010
------ ------ ------
162,467 56,892 219,359
------ ------ ------
Current assets
Assets held for sale 15,922 7,694 23,616
Biological assets 2,893 - 2,893
Inventories 9,522 - 9,522
Trade and other receivables 5,256 - 5,256
Current tax asset 1,130 - 1,130
Cash and cash equivalents 31,765 - 31,765
------- ------- -------
66,488 7,694 74,182
------- ------- -------
Total assets 228,955 64,586 293,541
------- ------- -------
Current liabilities
Liabilities related to
assets held for sale - 2,308 2,308
Bank loans and overdrafts 24,391 - 24,391
Trade and other payables 13,339 - 13,339
Current tax liability 1,724 - 1,724
------- ------- -------
39,454 2,308 41,762
------ ------ ------
Net current assets 27,034 5,386 32,420
------- ------- -------
Non-current liabilities
Borrowings 2,003 - 2,003
Deferred tax liability 1,909 11,133 13,042
Long-term provisions 1,375 - 1,375
------- ------- -------
5,287 11,133 16,420
------- ------- -------
Total liabilities 44,741 13,441 58,182
------- ------- -------
Net assets 184,214 51,145 235,359
------- ------- -------
Equity
Share capital 8,728 - 8,728
Other reserves 78,276 19,782 98,058
Retained earnings 91,903 24,723 116,626
------- ------- -------
Equity attributable to members
of M.P. Evans Group PLC 178,907 44,505 223,412
Minority interest 5,307 6,640 11,947
------- ------- -------
Total equity 184,214 51,145 235,359
------- ------- -------
CONSOLIDATED BALANCE SHEET
at 31 December 2006
Before
biological Biological
bearer-asset bearer-asset 31 December
adjustment adjustment 2006
US$'000 US$'000 US$'000
Non-current assets
Goodwill 902 - 902
Biological assets - 43,017 43,017
Property, plant and equipment 64,527 (9,312) 55,215
Investments 70,347 14,050 84,397
Deferred tax asset 332 - 332
------- ------- -------
136,108 47,755 183,863
------- ------- -------
Current assets
Biological assets 868 - 868
Inventories 3,233 - 3,233
Trade and other receivables 7,693 - 7,693
Current tax asset 745 - 745
Cash and cash equivalents 33,114 - 33,114
------- ------- -------
45,653 - 45,653
------- ------- -------
Total assets 181,761 47,755 229,516
------- ------- -------
Current liabilities
Bank loans and overdrafts 15,605 - 15,605
Trade and other payables 6,888 - 6,888
Current tax liability 334 - 334
------- ------- -------
22,827 - 22,827
------- ------- -------
Net current assets 22,826 - 22,826
------- ------- -------
Non-current liabilities
Deferred tax liability 2,730 10,113 12,843
Long-term provisions 1,542 - 1,542
------- ------- -------
4,272 10,113 14,385
------- ------- -------
Total liabilities 27,099 10,113 37,212
------- ------- -------
Net assets 154,662 37,642 192,304
------- ------- -------
Equity
Share capital 8,582 - 8,582
Other reserves 51,615 15,130 66,745
Retained earnings 89,947 18,421 108,368
------- ------- -------
Equity attributable to members
of M.P. Evans Group PLC 150,144 33,551 183,695
Minority interest 4,518 4,091 8,609
------- ------- -------
Total equity 154,662 37,642 192,304
------- ------- -------
CONSOLIDATED CASH-FLOW STATEMENT
for the year ended 31 December 2007
Year ended Year ended
31 December 31 December
2007 2006
US$'000 US$'000
Net cash outflow from operating activities (4,850) (9,234)
------ ------
Investing activities
Interest received 1,244 632
Dividends from associated undertakings 11,396 7,638
Dividends from trading investments 206 144
Proceeds on disposal of property, plant
and equipment 4,091 31,544
Purchase of property, plant and equipment (14,955) (13,781)
Re-organisation expenses - (50)
Investment in subsidiary undertaking (106) -
Investment in associated undertaking (1,414) (1,651)
Disposal of subsidiary - 3,771
------ ------
Net cash from investing activities 462 28,247
------ ------
Financing activities
Dividends paid (6,655) (5,845)
Repayment of borrowings (1,004) (997)
Proceeds on issue of shares 1,095 279
New bank loans raised 10,130 10,687
Dividend paid to minorities (498) (10)
------ ------
Net cash from financing activities 3,068 4,114
------ ------
Net (decrease)/increase in cash
and cash equivalents (1,320) 23,127
Cash and cash equivalents at beginning
of the year 33,114 9,972
Effect of foreign exchange rates (29) 15
------ ------
Cash and cash equivalents at end of the year 31,765 33,114
------ ------
NOTES
1. Dividends paid and proposed
2007 2006
US$'000 US$'000
2007 interim dividend - 2.00p per 10p share
(2006 interim dividend - 2.00p) 2,067 1,982
2006 final dividend - 4.50p per 10p share
(2005 final dividend - 4.25p) 4,588 3,863
------ ------
6,655 5,845
------ ------
The interim dividend for 2007 of 2.00p (2006 - 2.00p) per share was paid
on 2 November 2007.
Following the year end the board has proposed a final dividend for 2007 of
5.00p per 10p share. If confirmed at the annual general meeting it will be
paid as follows:
2007 2006
Payable on or after 18-06-2008 20-06-2007
Record date 16-05-2008 11-05-2007
Ex-dividend date 14-05-2008 09-05-2007
2. Tax charge on profit on ordinary activities
2007 2006
US$'000 US$'000
United Kingdom corporation tax charge
for the year 4,868 755
Relief for overseas taxation (4,868) (755)
------ ------
- -
Overseas taxation 5,187 2,111
Adjustments in respect of prior periods (20) (4)
------ ------
Total current tax 5,167 2,107
Deferred taxation - origination and reversal
of timing differences 1,946 (1,378)
------ ------
7,113 729
------ ------
Unrelieved losses of US$20,455,000 (2006 US$14,535,000) remain available
to offset future taxable profits of Group companies.
3. Exceptional credit 2007 2006
US$'000 US$'000
Group profit/loss) on sale of tangible
fixed assets 33 (911)
Sale of fixed-asset investments - 5
Previously unrealised profit on sale of land
to associated undertaking released through
the income statement on sale of that land
to a third party 3,855 2,514
Restructuring (247) (50)
------ ------
Total net exceptional credit 3,641 1,558
------ ------
There was no material impact on the tax charge resulting from the
exceptional charge in either year.
4. Basic and diluted earnings per share
The calculation of earnings per 10p share is based on:-
2007 2007 2006 2006
US$'000 Number of US$'000 Number of
shares shares
Profit for the year
Continuing operations 36,560 16,634
Discontinued operations 5,704 8,667
Continuing and
discontinued operations 42,264 25,301
Average number of shares
in issue 51,341,761 50,852,202
Diluted average number of
shares in issue 53,118,232 52,925,754
------- ---------- ------- ----------
The difference between the number of shares in issue and the diluted
number of shares is due solely to the presence of unexercised share
options held by directors and key employees of the Group.
5. Financial information
The financial information set out in this announcement does not constitute
the Company's statutory accounts for the years ended 31 December 2007 or
2006. The financial information for the year ended 31 December 2006, which
has been delivered to the Registrar of Companies, is derived from the
statutory accounts for that year as amended for the changes referred to in
note 6. The auditors reported on those accounts; their report was
unmodified and did not contain a statement under section 237(2) or (3) of
the Companies Act 1985. The statutory accounts for the year ended 31
December 2007 will be finalised on the basis of the financial information
presented by the directors in this preliminary announcement and will be
delivered to the Registrar of Companies.
6. International Financial Reporting Standards
This announcement is based on the Group's financial statements which are
being prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted for use in the EU. The group has implemented
IFRS for the first time in 2007, resulting in a number of changes in
accounting policies, and comparative information has been restated
accordingly.
While the financial information included in this preliminary announcement
has been prepared in accordance with the recognition and measurement
criteria of IFRS, this announcement does not itself contain sufficient
information to comply with IFRS. The Group expects to publish full
financial statements that comply with IFRS in May 2008.
7. Timetable
The report and financial statements will be despatched to shareholders on
7 May 2008 and the annual general meeting will be held on 4 June 2008.
8. Distribution
Copies of the full report and financial statements for the year ended 31
December 2007 will be available from the Company, 3 Clanricarde Gardens,
Tunbridge Wells, Kent TN1 1HQ on and after 7 May 2008.
By order of the board
J F Elliott
Secretary
1 May 2008
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