Final Results

Singapore Para Rubber Estates PLC 30 April 2001 THE SINGAPORE PARA RUBBER ESTATES, PLC Owner and operator of an oil palm and rubber plantation in Malaysia Highlights from the chairman's statement for the year ended 31 December 2000 * profit before taxation £324,409 (1999 £476,332) * dividend 2.25p per share (1999 - 3.25p) * profit decline largely attributable to weaker palm oil market but partly offset by increase in both oil palm f.f.b. crop and quarry rental income * since year end palm oil market has recovered slightly * board supports proposals for the Company's amalgamation with Bertam Holdings PLC ('Bertam'), Beradin Holdings PLC and Padang Senang Holdings PLC * introductory dividend of 3p per share proposed by Bertam, equivalent to 2.32p per share of The Singapore Para Rubber Estates, PLC Extract from the chairman's statement The profit before tax of £324,409 compares with £476,332 last year. This reduction is chiefly attributable to the weaker palm oil market, albeit offset by a higher crop of oil palm fresh fruit bunches ('f.f.b.') on Perhentian Tinggi Estate. In the light of this result, your board recommends a dividend of 2.25p per share, compared with 3.25p last year. REVIEW OF THE YEAR The palm oil price reached a high point of RM1,300 per tonne, itself a fairly modest level, in the early part of the year before steadily declining to a seven-year low of RM700. This was in response to a stronger-than-expected yield improvement in the second half of the year in Malaysia and a resultant stock build up. In line with this trend, Perhentian Tinggi's f.f.b. crop improved markedly in the second half and the crop for the year, at 15,823 tonnes, compares well with last year's 14,568 tonnes. The quarry rental income, at RM495,000, was pleasingly ahead of last year and reflects an increase in demand for building aggregates, particularly in the development area around the new Sepang airport, some 40 kilometers north west of the estate. Interest receivable was lower as a result of both a slight softening in Malaysian interest rates and a reduction in the level of funds on deposit resulting from the purchase of shares in Bertam Holdings PLC and Sungkai Holdings Limited, as announced on 28 February 2000. CURRENT TRADING Since the year end, palm oil prices declined a little further to RM650 per tonne before recovering to fluctuate around the RM750 level. The crop to date is ahead of the level at the same time last year and the estimate for the whole of 2001 is 15,200 tonnes. MERGER PROPOSALS AND BERTAM HOLDINGS PLC ('BERTAM') INTRODUCTORY DIVIDEND A summary of the proposed merger of the Company with Bertam, Beradin Holdings PLC and Padang Senang Holdings PLC is set out in an announcement that is being made simultaneously with this one. I have no doubt that, for the various reasons cited in the announcement - but most predominantly the Company's poor market liquidity, its small size, together with increasing regulatory demands and associated costs - it makes sound commercial sense for the merger of companies, with like interests, to be effected and the board strongly recommends that shareholders vote in favour of it. One of the terms of the merger proposals is that, further to the successful completion of the scheme, a special interim dividend of 3p per share will be payable, before the end of 2001, to all new and existing Bertam shareholders. This is equivalent to approximately 2.32p per share of The Singapore Para Rubber Estates, PLC. ESTATE VALUATION As described more fully in the merger documentation, the Malaysian valuers, Khong & Jaafar Sdn Bhd, were commissioned in April 2001 to carry out a valuation of all the plantation and property assets of each of the companies participating in the proposed merger. Those valuations have been used as the basis for the merger terms. Perhentian Tinggi Estate was valued at RM91.6 million (equivalent to some RM98,800 per hectare) with potential taxation associated with that valuation amounting to approximately RM15.8 million. The board believes that this is a fair valuation, including longer-term development value. THE BOARD In the event that the merger scheme becomes effective, it is planned that the non-executive directors of the Company, Neville Orchard and Angus Fraser, will step down from the board. It is envisaged that Angus Fraser will join the board of Bertam Holdings PLC as its deputy chairman. PRELIMINARY RESULTS (UNAUDITED) The board announces the following unaudited results and dividend for the year ended 31 December 2000:- Profit and loss account Restated 2000 1999 £ £ Turnover 515,714 667,539 Cost of sales (439,991) (432,798) ----------- ----------- Estate profit 75,723 234,741 Income from fixed-asset investments and other income 344,457 310,396 Administrative expenses (116,516) (108,222) ----------- ----------- Operating profit 303,664 436,915 Interest receivable 20,745 39,417 ----------- ----------- Profit on ordinary activities before taxation 324,409 476,332 Tax on profit on ordinary activities (note 2) (22,510) (40,702) ----------- ----------- Profit on ordinary activities after taxation 301,899 435,630 Equity dividend proposed (note 1) (234,885) (339,279) ----------- ----------- Profit retained £67,014 £96,351 ----------- ----------- Earnings per share - pence (note 3) 2.89 4.17 ----------- ----------- Exchange rate £1 = Malaysian Ringgits Average rate 5.76 6.14 Period-end rate 5.67 6.14 ----------- ----------- All operations are classed as continuing Balance sheet At 31 December 2000 2000 1999 FIXED ASSETS £ £ £ £ Tangible assets 4,539,379 4,203,112 Investments 1,954,891 1,606,596 --------- --------- 6,494,270 5,809,708 CURRENT ASSETS Stocks 14,052 10,954 Debtors 141,571 95,631 Cash at bank and in hand 509,072 931,082 --------- --------- 664,695 1,037,667 --------- --------- CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors including 85,205 107,317 taxation Equity dividend proposed 234,885 339,279 --------- --------- 320,090 446,596 --------- --------- NET CURRENT ASSETS 344,605 591,071 --------- --------- TOTAL ASSETS LESS CURRENT LIABILITIES £ £ 6,838,875 6,400,779 --------- --------- CAPITAL AND RESERVES Called-up share capital 521,967 521,967 Revaluation reserve 4,147,895 3,804,985 Profit and loss account 2,169,013 2,073,827 --------- --------- EQUITY SHAREHOLDERS' FUNDS £ £ 6,838,875 6,400,779 --------- --------- Cash-flow statement For the year ended 31 December 2000 RECONCILIATION OF OPERATING Restated PROFIT TO NET CASH INFLOW 2000 1999 FROM OPERATING ACTIVITIES £ £ Operating profit 303,664 436,915 Income from fixed-asset investments (257,604) (253,691) Depreciation charges 12,402 12,188 Increase in stocks (3,098) (2,351) Decrease/(increase) in debtors 4,619 (15,533) Decrease in creditors (2,160) (7,334) ---------- ------------ Net cash inflow from operating activities £57,823 £170,194 ---------- ------------ CASH-FLOW STATEMENT 2000 1999 £ £ £ £ Net cash inflow from operating activities 57,823 170,194 Return on investments and servicing of finance Income from fixed-asset investments 256,809 252,999 Interest received 23,005 38,052 ----------- --------- 279,814 291,051 Taxation UK corporation tax (paid)/recovered (including ACT) (43,034) 39,128 Overseas tax paid (70,575) (79,345) Consortium relief (2,517) - ----------- --------- (116,126) (40,217) Capital expenditure and financial investment Purchase of tangible fixed assets (948) (23,329) Sale of fixed-asset investments 4,280 - Purchase of fixed-asset investments (344,479) (12,037) ----------- --------- Net cash outflow for capital expenditure and financial investment (341,147) (35,366) Equity dividends paid (339,279) (375,817) Management of liquid resources Decrease/(increase) in short-term deposits 429,712 (10,825) ---------- ------ Decrease in cash in the period (£29,203) (£980) ---------- ------ STATUTORY INFORMATION The 2000 profit and loss account is an abridged version of the Group's full financial statements which have not been filed with the Registrar of Companies and which have not yet been reported on by the Group's auditors. The 1999 figures are an extract from the Group's statutory accounts for the year ended 31 December 1999, restated to take account of a revised accounting policy concerning investment income, which have been filed with the Registrar of Companies. The auditors' report thereon was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. STATEMENT OF RECOGNISED GAINS AND LOSSES 2000 1999 £ £ Profit attributable to the members of the Company 301,899 435,630 Exchange differences on foreign-currency net investments 371,082 115,966 --------- ---------- £672,981 £551,596 --------- ---------- NOTES 1) Equity dividend proposed The board recommends a dividend of 2.25p per 5p share (1999 - 3.25p) 2000 1999 Amount per 5p share 2.25p 3.25p Cost £234,885 £339,279 Payable on or after 11-06-01 14-04-00 Record date 11-05-01 24-03-00 Ex-dividend date 09-05-01 20-03-00 --------- ---------- Tax on profit on ordinary activities 2) 2000 1999 £ £ United Kingdom corporation tax at 30% (1999 - 30.25%) based on the profit for the year 20,738 56,184 Double taxation relief (20,458) - ---------- ---------- 280 56,184 Malaysian taxation 20,366 - Advance corporation tax - (13,302) ---------- ---------- 20,646 42,882 Adjustments in respect of prior years: United Kingdom corporation tax 1,864 (2,646) Malaysian taxation - 466 ---------- ---------- £22,510 £40,702 ---------- ---------- A corporation tax charge of £10,490 (1999 nil) arising on foreign exchange differences has been transferred to reserves to match the accounting treatment of the differences to which the charges relate. No charge to Malaysian taxation arose on the branch trading profit in 1999 owing to a change from a 'preceding-year' basis of assessment to a 'current-year' basis. 3) Earnings per share The calculation of earnings per share is based on profits of £301,899 (1999 £435,630) and on 10,439,352 shares of 5p each in issue throughout the year (1999 -10,439,352). 4) Timetable The report and financial statements will be despatched to members on Wednesday, 9 May 2001 and the annual general meeting will be held on Friday, 8 June 2001. 5) Annual report Copies of the annual report for the year ended 31 December 2000 will be available from M.P.Evans (UK) Limited, 3 Clanricarde Gardens, Tunbridge Wells, Kent TN1 1HQ on and after 9 May 2001. By order of the board M.P. Evans (UK) Limited Secretaries 30 April 2001 Enquires: Peter Hadsley-Chaplin Telephone: 01892 516333 Fax: 01892 518639 e-mail Peterhc@mpevans.co.uk

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