Information  X 
Enter a valid email address

Inch Kenneth Kajang (IKK)

  Print      Mail a friend

Thursday 28 August, 2014

Inch Kenneth Kajang

Half Yearly Report

RNS Number : 2269Q
Inch Kenneth Kajang Rubber
28 August 2014
 



INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

UNAUDITED CONDENSED CONSOLIDATED

INCOME STATEMENT FOR THE PERIOD ENDED 30 JUNE 2014

 

 


Current Year Quarter


Preceding Year Corresponding Quarter

Current Year

 To date

Preceding Year Corresponding Period


30.06.2014


30.06.2013

30.06.2014

30.06.2013


RM'000

RM'000

RM'000

RM'000






Group revenue

11,768


3,852


16,660


6,645











Operating expenses

(14,019)


(5,025)


(21,997)


(10,299)











Other operating income and expenses

211


221


436


429









Operating loss

(2,040)


(952)


(4,901)


     (3,225)











Finance income

 

1,333


1,246


2,578


2,719


Finance costs

-


(1)


-


(1)











Gain on disposal of investment

7


-


7


-











Gain on disposal of assets

-


-


-


97











Impairment of investment in associate

(2,500)


-


(2,500)


-











Share of results of associate

430


579


292

 


2,506

 




















(Loss)/profit before tax

(2,770)


872


(4,524)


2,096











Taxation (note 13)

        (102)  


(113)


(102)


(109)











Net (Loss)/profit

(2,872)


759


(4,626)


1,987











 

(Loss)/Earnings Per Share:









Basic and diluted (sen)

(0.71)


0.19


(1.15)


0.49

 

 










 

Exchange Rate as at 30 June 2014: 

£1      = RM5.4674

1RM  = £ 0.1829

 

(The condensed consolidated income statement should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2013 and the accompanying explanatory notes attached to the interim financial statements)

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

UNAUDITED CONDENSED CONSOLIDATED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2014

 

 

 

 


Current Year Quarter


Preceding Year Corresponding Quarter

Current Year

 To date

Preceding Year Corresponding Period

 

 


30.06.2014


30.06.2013

30.06.2014

30.06.2013

 

 


RM'000

RM'000

RM'000

RM'000

 

 






 

 

Net (loss)/profit for the period

(2,872)


759


(4,626)


1,987

 

 









 

 

Other comprehensive (loss)/income :








 

 

Revaluation of available-for-sale investments

     and short term investments

 

(7)


 

199


 

(505)


 

113

 

 

Revaluation of freehold lands

-


-


-


-

 

 

Exchange differences on translating foreign operations

 

(1,092)


 

(1,448)


 

(761)


 

692

 

 









 

 

Total comprehensive (loss)/income for the period

 

(3,971)


 

(490)


 

(5,892)


 

2,792

 

 









 

 









 

 








 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(The condensed consolidated statement of comprehensive income should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2013 and the accompanying explanatory notes attached to the interim financial statements)

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

                UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2014

 



30.06.2014

31.12.2013


Notes

RM'000

RM'000



(Unaudited)

(Audited)

ASSETS




Non-current assets




  Property, plant & equipment

16

468,646


469,158


 

  Intangible assets  

17

15


19


 

  Investment in associated undertaking

19

23,604


25,812


 

  Goodwill on consolidation

20

71


71


 

  Available-for-sale investments

21

62


           61


 



492,398


495,121


 

Current assets






 

  Inventories


6,399


17,976


 

  Trade and other receivables


36,601


30,533


 

  Short term investments

22

130,273


146,609


 

  Cash and cash equivalents

23

42,096


28,593


 



215,369


223,711


 







 

TOTAL ASSETS


707,767


718,832


 







 

EQUITY AND LIABILITIES






 

Equity attributable to shareholders of the Company






 

  Share capital


287,343


287,343


 

  Share premium


8


8


 

  Property revaluation reserve


286,371


286,371


 

  Investment revaluation reserve


11,902


12,709


 

  Foreign currency translation reserve


(2,006)


(1,245)


 

  Retained earnings


135,846


144,601


 



719,464


729,787


 







 

Less : Treasury shares

24

(15,980)


(15,980)


 







 

TOTAL EQUITY


703,484


713,807


 







 

Current liabilities






 

  Trade and other payables


4,161


4,892


 

  Taxation payable


107


118


 



4,268


5,010


 

Non-current liabilities






 

  Employee entitlements


15


15


 



15


15


 







 

TOTAL LIABILITIES


4,283


5,025


 







 

TOTAL EQUITY AND LIABILITIES


707,767


718,832


 







 

Net assets per share

 


1.74


1.78


 

(The condensed consolidated statement of financial position should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2013 and the accompanying explanatory notes attached to the interim financial statements)

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2014

 


Share

Share

Property

Investment

Foreign

Retained

Treasury

Total


Capital

Premium

Revaluation

Revaluation

Exchange

Earnings 

Shares

Equity




Reserve

Reserve

Reserve





RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000










6 Months ended 30 June 2014

















At 1 January 2014

287,343

8

286,371

12,709

(1,245)

144,601

(15,980)

713,807










Loss for the period

-

-

-

-

-

(4,626)

-

(4,626)










Other comprehensive

(loss)/income:









Revaluation of freehold lands

-

-

-

-

-

-

-

-

Realised gain on redemption   of short term investments

-

-

-

(302)

-

302

 

-

-

Revaluation of investments

-

-

-

(505)

-

-

-

(505)

Foreign currency translation

-

-

-

-

(761)

-

-

(761)

Total comprehensive

(loss)/income

-

-

-

(807)

(761)

(4,324)

 

-

(5,892)










Other movements:









Dividends paid

-

-

-

-

-

(4,431)

-

(4,431)










At 30 June 2014

287,343

8

286,371

11,902

(2,006)

135,846

(15,980)

703,484










6 Months ended 30 June 2013

















At 1 January 2013

287,343

8

261,571

13,911

(1,234)

178,983

(2,727)

737,855










Profit for the period

-

-

-

-

-

1,987

-

1,987










Other comprehensive

income/(loss):









Property revaluation

-

-

-

-

-

-

-

-

Revaluation of investments

-

-

-

113

-

-

-

113

Foreign currency translation

-

-

-

-

692

-

-

692

Total comprehensive

income/(loss)

-

-

-

113

692

1,987

 

-

2,792










Other movements:









Purchase of treasury shares

-

-

-

-

-

-

(12,897)

(12,897)

Dividends paid

-

-

-

-

-

(5,885)

-

(5,885)

Share of other comprehensive losses of subsidiary company

-

-

-

-

-

(62)

 

-

(62)










At 30 June 2013

287,343

8

261,571

14,024

(542)

175,023

(15,624)

721,803

 

 (The condensed consolidated statement of changes in equity should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2013 and the accompanying explanatory notes attached to the interim financial statements)

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

UNAUDITED CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2014

 


6 months ended


30.06.2014

30.06.2013

 


RM'000

RM'000

 

Cash flows from operating activities



 

Group operating loss   

(4,901)


(3,225)


 






 

Adjustments for :





 

Write-back of provision of diminution value in investment

-


111


 

Dividend income

(1)


(3)


 

Unrealised loss from foreign exchange

-


677


 

Depreciation and amortisation

1,018


1,081


 

Operating loss before changes in working capital

(3,884)


(1,359)


 






 

Changes in working capital:





 

Decrease/(increase) in current assets

4,772


(3,605)


 

Decrease in current liabilities

 

(731)


(279)


 

Taxation refund

-


3


 

Tax paid

(136)


(137)


 

Net cash generated from/(used in) operating activities

21


         (5,377)


 






 

Investing activities





 

  Proceeds from disposal of assets

-


98


 

  Proceeds from disposal of investment

25


-


 

  Interest and dividends received

2,579


2,722


 

  Acquisition of subsidiary

-


(3)


 

  Short term investments

15,813


17,094


 

  Payment to acquire property, plant and equipment

(504)


(145)


 

Net cash generated from investing activities

17,913


19,766


 






 

Financing activities





 

  Interest paid

-


(1)


 

  Dividend paid

(4,431)


(5,885)


 

  Shares repurchased at cost

-


(12,897)


 

  Repayment of finance leases

-


(24)


 

Net cash used in financing activities

(4,431)


(18,807)


 






 

Increase/(decrease) in cash and cash equivalents

13,503


(4,418)


 






 

Cash and cash equivalents at 1 January

28,593


34,152


 






 

Cash and cash equivalents at 30 June

42,096


29,734


 

 

Cash and cash equivalents comprise of :

Cash and bank balances                                                                                     14,949                        3,075   

Short term deposits                                                                                           27,147                          26,659

                                                                                                                              42,096                          29,734

 

(The condensed consolidated cash flow statements should be read in conjunction with the Audited Financial Statements for the year ended 31 December 2013 and the accompanying explanatory notes attached to the interim financial statements)

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

FOR THE PERIOD ENDED 30 JUNE 2014

 

1.             Basis of preparation and accounting policies

 

1.1           Reporting entity

 

Inch Kenneth Kajang Rubber Public Limited Company ("the Company") is a company incorporated in Scotland with its registered office at 7 Castle Street, Edinburgh EH2 3AP, Scotland. The principal operating office is at 22nd Floor Menara Promet (KH), Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia. All of the operations of the Company and its subsidiaries are located in Malaysia and Thailand.

 

The consolidated unaudited financial information of the Company as at 30 June 2014 includes the Company, its subsidiaries and its interest in an associated undertaking (together referred to as the "Group").

 

1.2           Basis of preparation

 

The unaudited financial information has been prepared on a going concern basis and in accordance with IAS34 Interim Financial Reporting. The financial information has been prepared under the historical cost convention except for the fair value measurement of available-for-sale investments and freehold estate lands. The financial information is also presented to comply in all material respects of the requirement of the Malaysian FRS 134 Interim Financial Reporting and Chapter 9 of the Bursa Malaysia Listing Requirements.

 

The unaudited quarterly consolidated financial information to 30 June 2014 included in this Announcement has been prepared by applying accounting policies consistent with those used in the preparation of the most recent audited financial statements of the Group, being for the year ended 31 December 2013. The consolidated financial statements of the Group for the year ended 31 December 2013 are available at Bursa Malaysia website, the Company's registered office in Scotland and its operating office in Malaysia.

 

1.3          Changes in accounting policies

 

On 7 August 2013, MASB has decided to allow agriculture and real estate companies (Transitioning Entities) to defer the adoption of the MFRS Framework for another year. MFRS will therefore be mandated for all companies for annual periods beginning on or after 1 January 2015. The deferral of the mandatory application date for these entities responds to the expected timing of the IASB's projects on revenue recognition and bearer plants.

 

The subsidiaries within the Group fall within the scope definition of Transitioning Entities and have opted to defer adoption of the new MFRS Framework. However the Group financial statements will continue to be prepared using the IFRS Framework for the financial statements for the year ending 31 December 2015. The subsidiaries expect to be in a position to fully comply with these requirements for the financial year ending 31 December 2015.

 

The Group foresees that there will be no material impact on the financial statements as the real estate business would only be operational after 2014 and the current oil palm plantation has already exceeded its normal economic lifespan.

 

 

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

FOR THE PERIOD ENDED 30 JUNE 2014

 

1.             Basis of preparation and accounting policies (continued)

 

1.4          Non-statutory accounts

 

The financial information contained in this report does not constitute full statutory accounts within the meaning of Section 434 of the United Kingdom's Companies Act 2006.

 

1.5          Independent auditors' report of preceding financial year ended 31 December 2013

 

There was no qualification made on the preceding audited financial statements for the year ended 31 December 2013, further it did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006 and did not include reference to any matters to which the auditor drew attention by way of emphasis.

 

1.6          Approval by Board of Directors

 

This consolidated interim financial information was approved by the Board of Directors on 27 August2014.

 

2.             Review of performance

 

The Group's turnover was RM16.660 million for the cumulative quarter ended 30 June 2014 as compared to RM6.645 million for the corresponding cumulative quarter in the preceding year. The increase in Group's turnover by RM10.015 million is mainly due to the aggressive sales on CV (constant viscosity) rubber blocks produced by the subsidiary in Thailand and aggressive internet marketing effort implemented from the tourism division during the financial period under review. We expect that the manufacturing division will be at break-even level by year end and the tourism division to record a profit.

 

The revenue of the associate company, Concrete Engineering Products Berhad ("CEPCO") for the  quarter ended 30 June 2014 decreased to RM78.159 million (IKKR's share: RM17.508 million) compared to RM101.875 million (IKKR's share: RM22.820 million) in the preceding year, a decrease of RM5.312 million in respect of IKKR's share. The decreased sales volume is due to a comparative decrease in actual deliveries due to the customer's current site requirements.   

 

The Group's loss before tax for the cumulative quarter ended 30 June 2014 was RM4.524 million as compared to a profit of RM2.096 million for the corresponding cumulative quarter ended 30 June 2013. These are partly due to the reduction in revenue derived from the plantation and lower share of profit from the associate. The decrease was also due to the provision for impairment of the investment in the associate of RM2.500 million.

 

3.             Comparison with preceding quarter

 

The revenue from the tourism division has increased by RM3.305 million as compared to the first quarter ended 31 March 2014, principally due to the aggressive internet marketing effort implemented and in line with the resort resuming its operation on 30 January 2014. The Group recorded a pre-tax loss of RM2.770 million for the current quarter under review compared to a pre-tax loss of RM1.609 million in the last quarter, 31 March 2014. The losses incurred in the last quarter ended 31 March 2014 was mainly due to the long monsoon break of Perhentian Island Resort which ended in February 2014 and the share of losses from associate.

 

The operational loss was however higher for the current quarter under review as compared to last quarter. This is mainly due to the bigger loss in the manufacturing divisionand impairment of the investment in the associate of RM2.500 million.

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

FOR THE PERIOD ENDED 30 JUNE 2014

 

4.             Commentary on prospects 

 

Our review on offers of brown field estates in Sabah/Sarawak did not lead to an investment as the costs of entry are extremely high and as such do not add value to the Group. As for now, the Group will only focus on acquiring green field sites that meets our requirement.

 

Efforts at developing the land bank in Kajang and Bangi, totaling approximately 200 hectares are nearer to the approval stage. We strongly feel that with the right product, realistic pricing and backed by effective marketing, this strategic asset should contribute positively to the Group in the near future.  

 

Notwithstanding the above, the Board of Directors is conscious of the prevailinguncertainties of the global and domestic economic climate impacting on the Group's operation.

 

5.             Comparison with profit forecasts

               

                As the Group does not issue profit forecasts, no comparison can be made.

 

6.             Changes in composition of the Group

 

                There were no changes in the composition of the Group during the financial period under review.

 

7.             Status of corporate proposals

 

There are no corporate proposals that have been announced but not completed as at the date of this announcement.

 

8.             Realised and Unrealised Profits

 

The breakdown of retained profits of the Group as at 30 June 2014, pursuant to the format prescribed by Bursa, is as follows:


   As at


As at


30 June 2014


31 Dec 2013

 

 

   RM'000


RM'000

Total Retained Profits of the Company and its subsidiaries:

 - Realised

148,415


157,529

 - Unrealised

22


(46)

 

 

148,437


157,483

Total share of Retained Profits from associated company:

 - Realised

-


1,104

 - Unrealised

(5,285)


(6,680)


(5,285)


(5,576)

Less : Consolidation effects 

 

Total Group Retained Profit

(7,306)

 

135,846


(7,306)

 

144,601





9.             Seasonal or cyclical factors

 

The performance of the Group was not subject to any material seasonal or cyclical fluctuations, there is however some seasonality due to the tourism sector.

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

                                                       FOR THE PERIOD ENDED 30 JUNE 2014

 

10.           Material changes in estimates

 

There were no material changes in accounting estimates of amounts, reported in prior interim periods of the current financial year or in prior financial year, that have a material effect in the current quarter, apart from the RM2.500 million impairment charge recorded against the carrying value of the investment in the associate.

 

11.           Segmental reporting

 

Segmental reporting for the cumulative quarter ended 30 June 2014 is as follows:

 


Plantation

Tourism

Manufacturing

Others

Total


RM'000

RM'000

RM'000

RM'000

RM'000

Revenue






From external customers

437

4,459

11,683

81

16,660

 

Segment revenues

 

437

 

4,459

 

11,683

 

81

 

16,660







Finance income

-

69

-

2,509

2,578

Gain on disposal of investment

-

-

-

7

7

Share of profit of associate

-

-

-

292

292

Impairment of investment in associate

 

-

 

-

 

-

 

(2,500)

 

(2,500)

Depreciation and amortisation

(16)

(568)

(73)

(361)

(1,018)

Tax expenses

-

(102)

-

-

(102)

Other expenses

(243)

(3,709)

(13,500)

(3,091)

(20,543)

Segment profit/(loss)

178

149

(1,890)

(3,063)

(4,626)







Segment assets

115,622

25,674

19,137

547,334

707,767







Segment liabilities

588

2,244

65

1,386

4,283







Other disclosures

Investment in associate

-

-

-

23,604

23,604

Capital expenditure

     Tangible

    

 

10

 

 

419

 

 

30

 

 

45

 

504

(As at 30 June 2014, the revenue of our associate company, Cepco is RM78.159 million for the 6 months ended 30 June 2014 (IKKR's share: RM17.508 million)

 

 

12.           Impairment in value of subsidiaries and associate

 

There is no impairment to be incurred in investment in subsidiaries during the financial period ended 30 June 2014. However, impairment in respect of the investment in associate of RM2.500 million has been provided for the current quarter under review.

 

 

 

 

 

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

                                                       FOR THE PERIOD ENDED 30 JUNE 2014

 

 

13.           Taxation


Current


Cumulative


Quarter Ended


Year To-Date


30 June 2014


30 June 2014


RM'000


RM'000







Corporation taxation - charge

(102)



(102)


 

Other than the subsidiary in Thailand which is a tax resident there, the Company and the Group are tax resident in Malaysia. The Group is liable to corporation tax in Malaysia and Thailand but is not subject to United Kingdom corporation tax.

 

The effective tax rate on the Group's loss is higher than the statutory tax rate substantially due to the non-taxability of losses due to impairment in investments and stocks.

 

14.           Earnings per share

 

The basic and diluted earnings per share for the current quarter and cumulative year to-date have been computed based on Group's (loss)/profit for the financial current quarter/cumulative year to-date divided by the weighted average number of ordinary shares of £0.10 each in issue after adjusting for movements in treasury shares during the financial current quarter/cumulative year to-date. The Company does not have any outstanding share options or other potentially dilutive financial instruments currently in issue.

 





Current Quarter


Cumulative Year To-date






Ended




Ended






30 June 2014


30 June 2013


30 June 2014


30 June 2013












Net (loss)/profit attributable to the owners of the Company (RM'000)

(2,872)


759


(4,626)


1,987












Weighted average number of ordinary shares in issue after adjusting for movements in treasury shares (No. of Shares ('000))

403,209


403,604


403,209


403,604












Basic and diluted (loss)/earnings per share (Sen)

(0.71)


0.19


(1.15)


0.49

 

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

                                                       FOR THE PERIOD ENDED 30 JUNE 2014

 

15.           Dividends paid

 

            The following dividend was paid on 23rd May 2014:

           

            Interim dividend for financial year ended                                                        31 December 2013                                Approved and declared on                                                                                           23 April 2014

                Date paid                                                                                                               23 May 2014

Number of ordinary shares on which dividends were paid ('000)                403,209.2

Dividend per share (single-tier)                                                                         £0.002 (RM0.01099)

Net dividend paid (RM'000)                                                                               4,431.2

 

16.           Property, plant & equipment

 


Freehold

Prepaid Land and Land

Buildings

Total


Lands

Improvements




RM'000

RM'000

RM'000

RM'000

RM'000

Cost





At 1 January 2014

430,879

3,565

50,749

497,323

Additions

-

-

52

504

Revaluations

-

-

-

-

Disposal

-

-

-

-

Exchange differences

(2)

(3)

(16)

(24)

(45)

At 30 June 2014

430,877

3,562

50,785

12,558

497,782







Accumulated depreciation





At 1 January 2014

-

1,054

17,074

28,165

Charge for year

-

  26

671

317

1,014

Exchange differences

-

(3)

(15)

(25)

(43)

At 30 June 2014

-

1,077

17,730

10,329

29,136







Net book value





At 30 June 2014

430,877

2,485

33,055

2,229

468,646

 

At 31 December 2013

430,879

 

2,511

33,675

2,093

469,158

               

17.           Intangible assets

 

Computer software and corporate website creation






 

Group and Company




 

30 June 2014

 

31 Dec 2013





RM'000

RM'000

Cost






At 1 January




68

68

Additions




-

-

Total 




68

68

 

Accumulated depreciation






At 1 January




49

41

Charge for period




4

8

Total 




53

49

 

Net book value

Total

 

 



15

19

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

       FOR THE PERIOD ENDED 30 JUNE 2014

 

18.           Carrying amount of property, plant and equipment

 

In order to establish the 31 December 2013 valuation of the Group's freehold land, valuations were obtained on 3 February 2014 by Nilai Properties Consultants (V(3) 0061), independent valuer, using the open market basis method. The total valuation of the land in Kajang and Bangi at 31 December 2013 was RM431 million. The Group's lands are currently being used for the Group's plantation activities for growing and the sale of oil palm fresh fruit bunches. The Group has been given consent for the change of use of the lands. Further commentary on the Group's plans for its land is shown above in note 4.

 

19.           Investment in associated undertaking

 

The Group's investment in associated undertaking represents a 22.40% interest in Concrete Engineering Products Berhad ("CEPCO"), a public company incorporated in Malaysia. The principal activity of CEPCO is the manufacture and distribution of prestressed spun concrete piles and poles. The Group's investment in CEPCO is accounted for under the equity accounting method as follows:

 


30 June 2014

 


RM'000

 

Shares


 

At 1 January 2014 and 30 June 2014

40,914

 



 

Share of retained profits


 

At 1 January 2014

12,013

 

Share of profit for 2014

292

 

At 30 June 2014

12,305

 



 

Share of dividend


At 1 January 2014

(1,104)

Share of dividend 2014

-

At 30 June 2014

(1,104)

 

Impairment of goodwill


At 1 January 2014

(26,011)

Impairment 2014

(2,500)

At 30 June 2014

(28,511)



Net book value


At 30 June 2014

23,604

At 31 December 2013

25,812

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

                                       FOR THE PERIOD ENDED 30 JUNE 2014

 

19.           Investment in associated undertaking (continued)

 

The Group's share of the net assets of CEPCO as at 30 June 2014 comprised:



 30 June 2014


    RM'000

 

Share of assets


Share of non-current assets

22,075

Share of current assets

17,622


39,697

Share of liabilities


Share of non-current liabilities

(2,253)

Share of current liabilities

(14,333)


(16,586)



Share of net assets

23,111

Goodwill (net of impairment) arising on the acquisition of CEPCO

493



Carrying value of associate

23,604

 

 

The Group's share of the results of CEPCO for the financial period ended 30 June 2014 was as follows:


 

30 June 2014


   RM'000

 

Share of revenue

17,508



Share of operating profit

635

Share of finance costs

(343)

Share of taxation 

-

Share of dividend

-



 

Share of profit for the financial period - included in Group statement of comprehensive income

 

 

292

 

 

 

 

 

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

                                       FOR THE PERIOD ENDED 30 JUNE 2014

 

20.           Goodwill on consolidation


30 June 2014


31 Dec 2013


RM'000


RM'000

At cost

 

 




At 1 January

4,573


4,504

 

Arising from acquisition of new subsidiary

-


69

 





 

Total

4,573


4,573

 

 

  Accumulated impairment

 

At 1 January

(4,502)


-

Impairment losses

-


(4,502)





Total

(4,502)


(4,502)

 

Carrying amount at end of the financial period

71


71

 

21.           Available-for-sale investments


30 June 2014


31 Dec 2013

Quoted shares:

RM'000


RM'000





Balance at 1 January

61


58

Disposal of investment

(18)


-

Fair value adjustments

19


3





Balance at fair values

62


61

 

 

22.           Short term investments


30 June 2014


31 Dec 2013


RM'000


RM'000

Investments on unit trusts with:

 




Licensed investment banks

130,273


146,609

 

 

Unquoted unit trusts are measured at market value based on the net asset value at each reporting date. The time weighted rates of returns of these investments at the reporting date were between 2.50% and 3.29% (2013: 2.50% to 3.67%).

 

 

 

 

 

 

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

                                       FOR THE PERIOD ENDED 30 JUNE 2014

 

 

23.           Cash and cash equivalents


30 June 2014


31 Dec 2013


RM'000


RM'000





Cash at bank

14,716


1,818

Cash in hand

233


21





Total

14,949


1,839

 

 


30 June 2014


31 Dec 2013


RM'000


RM'000





Deposits with




Licensed banks

24,860


24,495





Total

24,860


24,495

 

The effective interest rates of deposits at the reporting date were between 1.5% and 2.80% (2013: 1.5% to 2.80%). Included in Group's 2013 deposits with licensed banks is the short term deposits totalling to RM22,369 which was pledged with commercial banks as collateral for issuing letters of guarantee.

 


30 June 2014


31 Dec 2013


RM'000


RM'000





Investments




Licensed banks

2,287


2,259





Total

2,287


2,259

 

The investments qualify as a cash equivalent as they are readily convertible to a known amount of cash with an insignificant risk of changes in value.

 

24.           Repurchases equity securities - Treasury Shares

               

                Share buyback by the Company

 

A total of 17,540,800 shares were bought back and retained as treasury shares as at 30 June 2014.  During the current quarter, there was no share buyback and no resale or cancellation of treasury shares.

 

Subsequent to the financial period ended 30 June 2014, the Company has not repurchased any of its issued ordinary shares. The issued and paid up share capital of the Company remains at 420,750,000 ordinary shares of £0.10 each.

 

 

 

 

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

       FOR THE PERIOD ENDED 30 JUNE 2014

 

25.           Notes to the statement of comprehensive income

 

Included in the statement of comprehensive income for the current quarter and financial year-to-date, are as follows:-

 

                                                                                                                    Current                   Current


Quarter


year-to-date


30 June 2014


30 June 2014


RM'000


RM'000





Interest income

1,333


2,578

Other income including investment income

161


344

Interest expense

Depreciation and amortisation

Provision for or write-off of receivables

Provision for or write-off of inventories

Gain/(loss) on disposal of quoted/unquoted investments

Gain on disposal of assets

Impairment losses on goodwill

Impairment of associate

Provision for contingent liability

Foreign exchange gain

Gain/(loss) on derivatives

Exceptional items - decrease in fair value

of quoted investment

 

-

(512)

-

-

7

-

-

(2,500)

-

50

-

 

(7)

 


-

(1,018)

-

-

7

-

-

(2,500)

64

92

-

 

(505)

 

 

26.           Profit on sale of unquoted investments and/or properties

               

There were sales of unquoted investments of RM25,500 for the current quarter under review. However, there were no sales of properties outside the ordinary course of business of the Group for the period under review.

 

27.           Off balance sheet financial instruments

 

During the period under review, the Group has not entered into any financial instruments contract involving off "statement of financial position".

 

28.           Changes in material contingent liabilities or contingent assets

 

There have been no changes in material contingent liabilities or contingent assets since the last annual statement of financial position date.    

 

 

 

 

 

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

 

NOTES TO THE UNAUDITED FINANCIAL INFORMATION

       FOR THE PERIOD ENDED 30 JUNE 2014

 

29.           Debt and equity securities

 

On 29 May 2014 the Company obtained approval from its shareholders for the renewal of the proposed purchase of up to ten percent (10%) of the issued and paid-up share capital of the Company.

 

During the second quarter of 2014, the Company has not repurchased any of its issued ordinary shares from the open market. The Company held a total of 17,540,800 treasury shares as at 30 June 2014.

 

Apart from the above, there were no other issues or repayments of debt securities or equity securities, share cancellations, shares held as treasury shares or re-sale of treasury shares for the current quarter.

 

30.           Material litigation

 

There was no material litigation against the Group for the period under review.

 

31.           Significant events during and after the period end

 

No significant events occurred during or after the period under review.

 

32.           Related party transactions

 

No related party transactions have taken place in the first six months of the current financial year which have materially affected the financial position or the performance of the group during that period. The nature and amounts of related party transactions in the first six months of the current financial year are consistent with those reported in the group's Annual Report and Accounts 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

HALF-YEARLY BOARD REPORT

Principal Risks and Uncertainties

A discussion of the group's risk assessment and control processes and the principal risks and uncertainties that could affect the business activities or financial results are detailed below.

i)             Exposure to the risks inherent to the oil palm and rubber industries

The Group is susceptible to certain business risks inherent to the oil palm and rubber industries as well as general business risks, which include but are not limited to:

(i)            constraints and rising costs of labour supply and raw materials;

(ii)           effects of poor weather;

(iii)          commodity price fluctuations;

(iv)          threat of substitute products; and

                (v)           change in the regulatory, economic and business conditions.

ii)         Exposure to the risks inherent in the property development industry

The Group is considering entering into property development. It will be exposed to the cyclical performance caused by the changes in the domestic and global economic conditions, which give rise to intense competition among the local players and new entrants in the property market. In addition, its profitability may also be affected by the changes in the economic and political environment such as changes in taxation, inflation, foreign exchange rates, government policies, population growth and accounting policies.

iii)          Exposure to the risks inherent to the tourism industry

The Group is subject to risks inherent to the hotel and tourism sector. These may include, amongst others, general economic downturns in the global and regional economies, rise of uncertainties from terrorism activities and war, socio-political instability, a decrease in demand and an oversupply of hotel and resort rooms, an increase in the operating costs due to inflation and other factors such as an increase in energy and labour costs, labour supply shortages, changes in credit conditions, changes in customers' tastes and preference and the collectability of debts that may have adverse effects on our resort business and operations.

 

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

HALF-YEARLY BOARD REPORT (continued)

Going Concern

The Directors are mindful of the principal risks and uncertainties detailed above. After making enquiries, including a review of forecasts detailing revenue and liabilities, the Directors have a reasonable expectation that the Company possesses adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Directors' Responsibility Statement

The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:

·      The condensed set of financial statements within the Half-Yearly Financial Report has been prepared in accordance with IAS34, Interim Financial Reporting as adopted by the European Union.

·      the Half-Yearly Board Report includes a fair review of the information required by rule 4.2.7R of the Disclosure and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year) and rule 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Group during that period; and any changes in the related party transactions described in the last annual report that could do so.)

The Half-Yearly Financial Report for the six months ended 30 June 2014 comprises the Half-Yearly Board Report, the Directors' Responsibility Statement and a condensed set of unaudited financial statements.

  

For and on behalf of the Board

 

Dato' Adnan bin Maaruf

Chairman

 

27 August 2014

 

 

 

 

 

INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)

(Incorporated in Scotland)

 

INDEPENDENT REVIEW REPORT TO INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY

Introduction

We have been engaged by the company to review the condensed set of financial statements in the interim financial report for the period ended 30 June 2014 which comprises the unaudited condensed consolidated income statement, the unaudited condensed consolidated statement of comprehensive income, the unaudited condensed consolidated statement of financial position, the unaudited condensed consolidated statement of changes in equity, the unaudited condensed consolidated cash flow statements and the related explanatory notes that have been reviewed. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' Responsibilities

The interim financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim financial report in accordance with the Listing Rules For Companies.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the interim financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the period ended 30 June 2014 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Listing Rules For Companies.

 

 

 

UHY Hacker Young LLP

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR GMGZRLRKGDZG

a d v e r t i s e m e n t