RNS Number : 1524J
Inch Kenneth Kajang Rubber
28 November 2008
INCH KENNETH KAJANG RUBBER PUBLIC LIMITED COMPANY (990261 M)
(Incorporated in Scotland)
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE FINANCIAL PERIOD ENDED 30 SEPTEMBER 2008
INDIVIDUAL QUARTER CUMULATIVE QUARTER
Current Year Quarter Ended Preceding Current Preceding
Year Quarter Year Period Ended Year Period Ended
Ended
30.09.2008 30.09.2007 30.09.2008 30.09.2007
RM'000 RM'000 RM'000 RM'000
(Restated) (Restated)
Group revenue 6,526 8,433 12,081 15,796
Operating expenses (5,820) (8,199) (10,680) (17,512)
Other operating income 84 714 220 1,279
Group operating profit / 790 948 1,621 (438)
(loss)
Finance costs (net) (304) (250) (1,138) (619)
Gain on disposal of - 51 71 31
investments
Impairment in value of - 5,452 - 6,509
associate
Share of results of associate 651 1,328 (445) 3,571
Profit before tax 1,137 7,529 109 9,055
Taxation (note 11) - (566) (6) (612)
Profit attributable to equity 1,137 6,963 103 8,443
shareholders
Profit attributable to - - - -
minority interests
Profit for period 1,137 6,963 103 8,443
Earnings per share (note 12)
Basic (sen) 0.27 1.65 0.02 2.01
Diluted (sen) 0.27 1.65 0.02 2.01
Exchange Rate as at 30 September 2008 :
£1 = RM6.2254
1RM = £ 0.1606
(The condensed consolidated income statement should be read in conjunction with the Audited Financial Statements for the year ended 31
December 2007 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 BALANCE SHEETS
AS AT 30 SEPTEMBER 2008
30.09.2008 31.12.2007
Notes RM'000 RM'000
(Unaudited) (Audited)
ASSETS
Non-current assets
Property, plant & equipment 14 449,659 450,244
Prepaid land lease payments 48 49
Intangible assets - software 12 12
Deposits for purchases of investments 16 58,556 58,556
Investment in associated undertaking 17 44,805 45,244
Available-for-sale investments 18 345 534
553,425 554,639
Current assets
Inventories 61 19
Trade and other receivables 9,687 12,723
Cash and cash equivalents 3,343 3,771
13,091 16,513
TOTAL ASSETS 566,516 571,152
EQUITY AND LIABILITIES
Equity attributable to shareholders of the
Company
Share capital 287,343 287,343
Share premium 8 8
Property revaluation reserve 248,660 248,660
Investment revaluation reserve 13,035 13,093
Retained losses (8,738) (8,841)
Total Equity 540,308 540,263
Current liabilities
Trade and other payables 5,932 6,940
Bank borrowings 20 20,244 23,708
Finance lease creditor 13 56
Taxation payable (76) 86
26,113 30,790
Non-current liabilities
Deferred tax provision 8 8
Finance lease creditor 76 76
Employee entitlements 11 15
95 99
Total liabilities 26,208 30,889
TOTAL EQUITY AND LIABILITIES 566,516 571,152
Net Assets per share 1.28 1.28
(The condensed consolidated balance sheets should be read in conjunction with the Audited Financial Statements for the year ended 31
December 2007 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 FINANCIAL PERIOD ENDED 30 SEPTEMBER 2008
Share Share Property Investment Retained Total
Capital Premium Revaluation Revaluation Losses Equity
Reserve Reserve
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
9 Months Quarter Ended
30 September 2008
At 1 January 2008 287,343 8 248,660 13,093 (8,841) 540,263
Surplus on revaluation of
investments:
- group's available-for-sale (58) (58)
investments (note 18)
- impairment of goodwill -
relating to associate (note
17)
Profit for the year 103 103
At 30 September 2008 287,343 8 248,660 13,035 (8,738) 540,308
9 Months Quarter Ended
30 September 2007 - as
restated
At 1 January 2007 287,343 8 61,161 - (9,538) 338,974
Surplus on revaluation of
investments:
- group's available-for-sale - - - - - -
investments
- impairment of goodwill - - - - - -
relating to associate
-
Profit for the year - - - - 8,442 8,442
At 30 September 2007 287,343 8 61,161 - (1,096) 347,416
(The condensed consolidated statement of changes in equity should be read in conjunction with the Audited Financial Statements for the
year ended 31 December 2007 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 FINANCIAL PERIOD ENDED 30 SEPTEMBER 2008
Current Quarter Ended Preceding Quarter Ended
30.09.2008 30.09.2007
RM'000 RM'000
Cash flows from operating
activities
Profit before tax 109 9,055
Adjustments for non-cash items
:
Non-cash items 1,577 1,432
Non-operating items 344 (6,540)
(investing/financing)
Share of results of associate 445 (3,571)
Operating profit/(loss) before 2,475 376
changes in working capital
Changes in working capital:
Net change in current assets 2,994 (5,601)
Net change in current (1,008) (1,677)
liabilities
Tax paid (168) (612)
Net cash used in operating 1,818 (7,890)
activities
Investing activities
Proceeds from disposal of (213) -
investment
Purchases of - (730)
available-for-sale investments
Proceeds from investments - -
Purchases of shares in (6) -
associated undertaking
Payments to acquire tangible (166) -
fixed assets
Interest received - -
Dividends received - -
Net cash (used in)/from (385) (730)
investing activities
Financing activities
Interest paid (715) (619)
Proceeds from bank - -
borrowings
Repayments of bank (3,621) 8,902
borrowings
Net cash from/(used in) (4,336) 8,283
financing activities
Increase/(decrease) in cash (428) 39
and cash equivalents
Cash and cash equivalents at 1 3,771 1,837
January
Cash and cash equivalents at 3,343 1,876
30 September
(The condensed consolidated cash flow statements should be read in conjunction with the Audited Financial Statements for the year ended
31 December 2007 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 SEPTEMBER 2008
* Basis of preparation and accounting policies
1.1 Reporting entity
Inch Kenneth Kajang Rubber plc ("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, Jalan Sultan Ismail, 50250 Kuala Lumpur,
Malaysia. All of the operations of the Company and its subsidiaries are located within Malaysia.
The consolidated unaudited financial information of the Company as at 30 September 2008 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 International Financial Reporting
Standards, as adopted by the European Union ("IFRS"), including IAS34 Interim Financial Reporting. The financial information has been
prepared under the historical cost convention using a 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 September 2008 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 2007. The consolidated financial statements of the Group for the year ended 31 December 2007 are
available at Bursa Malaysia website, the Company's registered office in Scotland and its operating office in Malaysia.
1.3 Non-statutory accounts
The financial information contained in this report does not constitute full statutory accounts within the meaning of Section 240 of the
United Kingdom's Companies Act 1985.
* Independent auditors' report of preceding financial year ended 31 December 2007
There was no qualification made on the preceding audited financial statements.
* Approval by Board of Directors
This consolidated interim financial information was approved by the board of Directors on 20 November 2008.
2. Review of performance
The Group's turnover was RM12.081 million for the cumulative quarter ended 30 September 2008 as compared to RM15.796 million for the
corresponding quarter in preceding year.
The Group's operating profit for the period ended 30 September 2008 was RM1.621 million as compared to a loss of RM0.438 million for the
corresponding period ended 30 September 2007.
3. Comparison with preceding quarter
For the quarter under review, the Group recorded a pre-tax profit of RM0.109 million compared to a pre-tax loss of RM1.028 million in 30
June 2008.
4. Commentary on prospects
As the prospects of the world economy remains uncertain in the wake of the global financial crisis, the Group expects its turnover to
slightly decrease due to the lower prices of crude palm oil and also the slower activity in the construction industry. However the Board
will endeavour to at least maintain the current performance.
The Company is in final discussions with a few parties to dispose of its 600 acres of land near Bangi, next to the Alam Sari property
development project by Island & Peninsular Berhad. The Group will partially used the sales proceeds to actively look for new plantations in
Indonesia, Sabah and Sarawak, both green field and brown field, to replace its current plantations in Kajang and Bangi. Our expansion in the
tourism sector has begun to show its results and we hope that this will continue in the next few years.
The proceeds will also be used to venture into property development at the land bank in Kajang of approximately 350 acres, with an
estimated gross development value of approximately RM1.2 billion to RM1.5 billion. This piece of land is ready for development as it is
linked to Seremban, to the South, Putrajaya, to the West as well as Cheras and Kuala Lumpur to the North. However the timing will largely
depend upon the stabilisation of the property market.
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. Seasonal or cyclical factors
The performance of the Group was not subject to any seasonal or cyclical fluctuations.
9. 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.
10. Segmental reporting
Segmental reporting for the period ended 30 September 2008 is as follows:-
Plantation Tourism Trading and Property Investment Total
RM'000 RM'000 RM'000 RM'000 RM'000
Revenue :
Sales to external customers 3,682 5,495 2,904 - 12,081
(Loss)/profit for year:
Operating (losses)/profits 280 1,389 (48) - 1,621
Net finance costs (1,131) (7) - - (1,138)
Gain/(loss) on investment 71 71
Share of results of associate - - - (445) (445)
Taxation - - (6) - (6)
(Loss)/profit for the year (851) 1,382 (54) (374) 103
11. Taxation
Current Cumulative
Quarter Ended Year To-Date
30/09/08 30/09/08
RM'000 RM'000
Corporation taxation - credit/(charge) - (6)
Deferred taxation - -
- (6)
The Group is liable to corporation tax in Malaysia and is not subject to United Kingdom corporation tax.
12. Earnings/(loss) per share
The basic and diluted earnings per share has been calculated using the profit for the financial year ended 30 September 2008 of RM0.103
million (profit for the period ended 30 September 2007: RM8.443 million) and the weighted average number of shares in issue of 420,750,000
(2007: 420,750,000). The Company does not have any outstanding share options or other potentially dilutive financial instruments currently
in issue.
13. Dividends proposed and paid
No dividends were proposed or paid during the current financial period under review.
14. Property, plant & equipment
Freehold Buildings Others Total
lands
RM'000 RM'000 RM'000 RM'000
Cost
At 1 January 2008 443,250 14,452 5,679 463,381
Additions - - 166 166
Revaluations - - - -
At 30 September 2008 443,250 14,452 5,845 463,547
Accumulated depreciation
At 1 January 2008 - 8,317 4,820 13,137
Charge for year - 173 578 751
At 30 September 2008 - 8,490 5,398 13,888
Net book value
At 30 September 2008 443,250 5,962 447 449,659
At 31 December 2007 443,250 6,135 859 450,244
15. Carrying amount of property, plant and equipment
The group's freehold lands have recently been valued by JB Jurunilai Bersekutu, International Asset Consultants. The total valuation of
the lands is RM443,250,000. The resulting increase in the carrying value of the lands of RM174,140,000 has been credited to the Group's
property revaluation reserve.
The Group's lands are currently being used for the Group's plantation activities for growing and the sales 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.
16. Deposits for purchases of investments
The deposits for purchases of investments of RM58.556 million (2007: RM58.556 million), which reflect the majority of the expected
entire consideration, represent amounts paid to vendors for deposits for the purchase of shares of two companies. The Group has options to
complete the acquisitions of those companies. The decision on whether to complete the acquisitions will depend on the outcome of due
diligence investigations on the companies to be acquired which are expected to be completed in the foreseeable future. These deposits are
refundable in full if the Group does not proceed with these acquisitions.
17. Investment in associated undertaking
The Group's investment in associated undertaking represents a 24.65% 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 the CEPCO is accounted for under the equity accounting method as follows:
30 September 2008
RM'000
Shares
At 1 January 2008 48,120
Reclassification -
Purchase of shares in CEPCO in year 6
At 30 September 2008 48,126
Share of retained profits/(losses)
At 1 January 2008 451
Share of profit / (loss) for 2008 (445)
At 30 September 2008 6
Impairment of goodwill
At 1 January 2008 (3,327)
Impairment reversal in year -
At 30 September 2008 (3,327)
Net book value
At 30 September 2008 44,805
At 31 December 2007 45,244
The Group's share of the net assets of CEPCO as at 30 September 2008 comprised:
Share of assets
Share of non-current assets 13,974
Share of current assets 21,310
35,284
Share of liabilities
Share of non-current liabilities (3,295)
Share of current liabilities (19,061)
(22,356)
Share of net assets 12,928
Goodwill (net of impairment) arising on the acquisition of CEPCO 31,877
Carrying value of associate 44,805
17. Investment in associated undertaking (Continued)
The group's share of the results of CEPCO for the year ended 30 September 2008 was as follows:
30 September 2008
RM'000
Share of revenue 39,641
Share of operating profits 1,703
Share of finance costs (640)
Share of taxation (1,508)
Share of profits for the year - included in Group income (445)
statement
18. Available-for-sale investments
30 September 2008 31 December 2007
Quoted shares: RM'000 RM'000
Balance b/f 534 3,188
Purchase of investments - 5
Write off of investments (131) (38)
Impairment of investments (58) -
Fair value adjustments - (2,621)
Balance c/f - fair values 345 534
19. Profit/(loss) on sale of unquoted investments and/or properties
There were no sales of unquoted investments and/or properties outside the ordinary course of business of the Group for the period under
review.
20. Group borrowings
30 September 2008 31 December 2007
RM'000 RM'000
Short term revolving bank borrowing - 20,244 23,708
secured
Borrowings in foreign currency - -
20,244 23,708
21. Off balance sheet financial instruments
During the period under review, the Group has not entered into any contract involving off balance sheet financial instruments.
22. Debt and equity securities
On 26 June 2008 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. However, there was no purchase of its own shares for this quarter or the financial
year.
There were no other issues or repayments of debt securities or equity securities, share cancellations, share held as treasury shares and
re-sales of treasury shares, since the last annual financial statements.
23. Changes in contingent liabilities or contingent assets
There have been no changes in contingent liabilities or contingent assets since the last annual balance sheet date.
24. Material litigation
There was no material litigation against the Group for the period under review.
25. Significant events during and after the year end
No significant events occurred during or after the period under review.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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