TIDMAEP
RNS Number : 3910W
Anglo-Eastern Plantations PLC
26 April 2016
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Preliminary announcement of results for year ended 31 December
2015
Anglo-Eastern Plantations Plc, and its subsidiaries are a major
producer of palm oil and rubber with plantations across Indonesia
and Malaysia amounting to some 128,600 hectares, has today released
its results for the year ended 31 December 2015.
Financial Highlights
2015 2014
$m $m
Revenue 196.5 251.3
Profit before tax
- before biological asset
("BA") adjustment 45.0 85.0
- after biological asset
adjustment (19.1) 51.2
EPS before BA adjustment 69.39cts 132.26cts
EPS after BA adjustment (37.58)cts 77.61cts
Dividend (pence) 1.75p 3.0p
Dividend (cents) 2.5*cts 4.5cts
Note: * Based on exchange rate at 22 April 2016 of
$1.4409/GBP
Enquiries:
Anglo-Eastern Plantations
Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon & Co.
Andrew Godber +44 (0)20 7886 2500
Chairman's Statement
The Group achieved record production of fresh fruit bunches
("FFB") in 2015. The crop production of 900,400mt, was 5% higher
than the previous year (2014: 857,400mt) broadly in line with 9%
increase in matured trees. The mills similarly recorded the highest
purchase of external FFB in recent years. FFB bought-in from
surrounding smallholders in 2015 was 678,200mt (2014: 626,200mt),
8% higher, as the Group offered competitive prices for the external
crops. The mills as a result processed 9% more FFB, and increased
crude palm oil ("CPO") production by 9% to 321,400mt (2014:
294,200mt).
FFB harvest in Kalimantan exceeded expectation and was higher
than last year's production by 65% as matured trees increased from
4,650ha to 7,790ha. This made up for the lower production in other
established regions in North Sumatera, Riau and Bengkulu which were
adversely affected by four months of drought caused by the El Nino
weather phenomenon. The dry spell compounded by the indiscriminate
open burning by villagers to clear their land for planting resulted
in an unprecedented haze that blanketed parts of Indonesia for
months. Sporadic fire from surrounding land encroached onto our
plantations resulting in damages of up to 175ha of palm oil in
South Sumatera and Kalimantan. The fire burned the ground weeds,
cover crops and scorched lower fronds but most of the affected
palms will survive and recover. The quick response from our fire
patrol teams equipped with proper fire-fighting gear helped to
quickly contain the spread of fire. In the aftermath of the forest
fires, it was reported that the Indonesian government investigated
more than 200 companies and sanctioned 23 companies with suspension
to permanent revocation of operating licenses. I am pleased to
report that the Group is not involved in open burning and that
normal rainfall has since returned.
Despite the increase in crop and CPO production, revenue and
profitability suffered as CPO prices fell to a 7-year low. The
average CPO Rotterdam price in 2015 was 25% lower at $613/mt,
compared to $815/mt in 2014. The Group's revenue was lower by 22%
at $196.5 million, compared to $251.3 million achieved in 2014. For
the year the Indonesian Rupiah depreciated by 13% against the US
dollar, the Group's reporting currency, which also partly explains
the lower revenue.
The Group operating profit for 2015, before the biological asset
("BA") adjustment was $42.7 million, 46% lower compared to $78.8
million achieved in 2014. Earnings per share, before BA adjustment
decreased to 69.39cts, from 132.26cts in 2014. The Group suffered
an operating loss for 2015 at $21.4 million after a downward BA
adjustment of $64.1 million as compared to 2014 operating profit of
$45.1 million after a downward BA adjustment of $33.7 million.
Profit was eroded by losses from five newly matured plantations in
Bengkulu, Bangka and Kalimantan. With the current low CPO prices,
it will take another three to four years for these plantations to
turn in a profit when the FFB yield reaches its optimum level.
At a recent 2015 Indonesian Palm Oil Conference in Bali,
vegetable oil analysts forecast that CPO will trade between a
moderate price band of $550/mt to $770/mt by middle of 2016. We
have seen a pick-up in CPO price in December 2015 to close at
$560/mt on concern of lower production arising from the effect of
El Nino. Despite this, challenging times are ahead for the Group
and the palm oil industry. Earlier this year, the Indian government
in its effort to reduce the import of vegetable oil had permitted
100% foreign direct investment in oil palm plantations in India
from mid-November 2015. This caused some flutter in the global
edible oils industry which is understandable as India is currently
the largest consumer of CPO. The slowdown in the Chinese economy
and weaker Chinese Yuan continue to hurt the export of CPO. There
are however signs that the world's second largest economy and
second largest consumer of CPO is stabilizing and clarity on the
timing of US interest rate hikes are bolstering speculation that
commodities will rebound from the worst year since 2008. China's
recent move from a one-child to two-child policy may also bode well
for the future of CPO as increased population will drive the demand
for vegetable oil.
The over production of crude oil remains a major concern as
crude oil prices had plunged to recent twelve year low which
undermines the competitiveness of CPO as a source of biodiesel.
In spite of the challenging market conditions the Board has
continued to invest in the development of new assets. The Group
planted 3,416ha of oil palms in 2015 of which 1,590ha comprised of
replanting. This was less than planned, due primarily to delays in
finalising agreements with villagers for land compensation payments
in Bengkulu, Bangka and Kalimantan.
The 45mt/hr mill in Central Kalimantan built at a cost of $11.2
million has started commercial operation in the third quarter of
2015. At the same time a biogas plant estimated to cost $2.5
million is also being constructed at this mill. Upon completion of
the biogas plant by the middle of 2016, it will help reduce the
mill reliance on fossil fuel and at the same time reduces the
Group's carbon foot print. This will be the second biogas plant
within the Group.
The Board is mindful that given the anticipated further capital
commitments the level of dividend needs to be balanced against the
planned expenditure. The Board is also mindful of shareholders'
sentiment and therefore declared a final dividend of 1.75p per
share in respect of the year to 31 December 2015 (2014: 3.0p).
Subject to the approval by shareholders at the Annual General
Meeting, the final dividend will be paid on 11 July 2016 to those
shareholders on the register on 10 June 2016.
Last year I highlighted the introduction of the new Law on
Plantation by the Indonesian Government in October 2014. The new
law inter-alia mandated the Government to prioritise domestic
investments in the plantation business development and restricts
foreign investments in the same sector based on types of plantation
crops, business scale and conditions of a particular region; and
possibly in the future, may set a cap on foreign investments.
Following the introduction of the new Law on Plantation by the
Indonesian Government in October 2014, the Indonesian Government
has recently announced plans to push through a moratorium on new
concessions for oil palm plantations in a bid to protect the
environment.
On behalf of the Board of Directors, I would like to convey our
sincere thanks to our management and all employees of the Group for
their dedication, loyalty, resourcefulness, commitment and
contribution to the success of the Group.
I would also like to take this opportunity to thank
shareholders, business associates, government authorities and all
other stakeholders for their continued confidence, understanding
and support for the Group.
Madam Lim Siew Kim
Chairman
26 April 2016
Strategic Report
Business Model
The Group will continue to focus on its strength and expertise
which is planting more oil palms which includes replanting old
palms with low yield, replace old rubber trees with palm trees and
building more mills to process the FFB. The Group has over the
years created value to shareholders through expansion in a
responsible way. We have in the last few years bought and invested
in new tracts of land and portions remain to be planted. Good land
at reasonable price has become more scarce. The Indonesian
government has in 2014 moved to introduce a law to cap the size of
new plantations owned by foreign companies. The Group remains
committed to use its available resources to develop the land bank
in Indonesia as regulatory constraints permit.
The Group's objectives are to provide appropriate returns to
investors in the long term from operation as well as expansion of
the Group's business, to foster economic progress in the localities
of the Group's activities and to develop the Group's operations in
accordance with the best corporate social responsibility and
sustainability standards.
We believe that sustainable success for the Group is best
achieved by acting in the long-term interests of our shareholders,
our partners and society.
Our Strategy
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The Group's objectives are to provide an appropriate level of
returns to the investors and to enhance shareholders' value.
Profitability however is very much dependent on the CPO price which
is volatile and determined by supply and demand. In the short term,
CPO price remains under pressure due to the abundance of vegetable
oil and the falling crude oil prices which undermine the potential
of CPO as a source for biodiesel. Nevertheless the Group believes
in the long-term viability of palm oil which remains a cheap and
the most productive source of vegetable oil in a growing
population.
The Group's strategies therefore focus on maximising yield per
hectare above 22mt/ha, mill production efficiency of 110%,
minimising production costs below $300/mt and streamlining estate
management. For the year under review, the Group achieved a yield
of 18.4mt/ha, 109% mill efficiency and production cost of $250/mt
on Indonesia operations. This compared to 2014 yield of 19.1mt/ha,
115% mill efficiency and production cost of $255/mt. Despite stiff
competition for external crops from surrounding millers, the Group
is committed to purchase more external crops from third parties at
competitive, yet fair prices, to maximise the production efficiency
of the mills. With higher throughput, the mills achieved economy of
scales in production. A mill achieves 100% mill efficiency when it
operates 16 hours a day for 300 days per annum.
In line with the commitment to reduce its carbon foot prints,
the Group plans to construct in stages biogas plants at all its
mills to trap the methane gas to generate electrical power and at
the same time reduces the consumption of fossil fuel. It plans to
reduce the greenhouse gas emissions per metric ton of CPO produced
in the next two to three years.
The Group will continue to follow-up and offer competitive and
fair compensation to villagers so that land can be cleared and
planted.
Financial Review
The financial statements have been prepared in accordance with
International Financial Reporting Standards and its interpretations
(IFRS and IFRIC interpretations) issued by the International
Accounting Standards Board ("IASB") as adopted by the European
Union ("EU") and with those parts of the Companies Act 2006
applicable to companies preparing their accounts under IFRS.
For the year ended 31 December 2015, revenue for the Group was
$196.5 million, 22% lower than $251.3 million reported in 2014 due
primarily to the lower CPO price and the weakened of Rupiah against
US Dollar. CPO price hit a 7-year low as palm oil inventory reaches
new all-time high. The average exchange rate of Rupiah against US
Dollar in 2015 was 13,392, 13% lower than 2014 of 11,861.
Group operating profit for 2015 before biological asset
adjustment was $42.7 million, 46% less than $78.8 million in 2014.
With the current low CPO prices, fives subsidiaries with
substantial newly matured oil palms incurred losses and are
expected to breakeven in about three to four years when the FFB
yield reaches the optimum production level.
FFB production for 2015 was 900,400mt, 5% higher than the
857,400mt produced in 2014. The yield remains below expectation due
to wide spread flooding in North Sumatera at the beginning of the
year, followed by 4 months of extreme dry weather between the third
and fourth quarters of the year across Indonesia and Malaysia and a
higher proportion of young palms. FFB bought-in from local
smallholders for 2015 was 678,200mt (2014: 626,200mt), 8% higher
compared to 2014. The supply of third party crops was lower in the
third and fourth quarters of 2015 due to dry weather. The drought
induced tree stress resulted in late ripening of the fruits. During
the year, FFB processed by the Group's mills was 1.51 million mt,
9% higher than last year of 1.38 million mt and CPO production was
9% higher at 321,400mt, compared to 294,200mt in 2014.
Loss before tax and after BA adjustment for the Group was $19.1
million, 137% lower compared to a profit of $51.2 million in 2014.
The BA adjustment was a debit of $64.1 million, compared to a debit
of $33.7 million in 2014. The CPO price for 2015 remained weak. It
ended the year at $560/mt far lower than the 10-year average CPO
price at $750/mt, which is normally used in the calculation of BA.
Therefore a benchmarking exercise was made to ensure the directors'
best estimate of the price sustainable over the longer term is
being used. The directors adopted the recommendation of the valuer
who has suggested applying a ratio of 70% of the current CPO price
and 30% of the historical price (10-year average) given the
assumption to calculate CPO price over the past 10 years is no
longer considered to be appropriate. As a result, the directors
adopted the CPO price of $625/mt which falls within the valuer's
recommended range of $600/mt to $650/mt and the World Bank forecast
of CPO price for 2016 at $600/mt. The lower biological value was
due to the weakening of Rupiah against US Dollar and also was due
to a higher discount rate applied in the determination of
biological assets from 16.4% to 16.8%. The higher discount rate is
a reflection of the increased sovereign risks in Indonesia.
However, this is the last year bearer plants will be fair valued
given the change to the IAS 41 which is effective on 1 January
2016.
The average CPO price for 2015 was $613/mt, 25% lower than 2014
of $815/mt.
Due to the material fluctuation of Rupiah and Malaysia Ringgit
against US Dollar, a simulation was conducted on the 2014 income
statement's major items by applying year 2015 average rate onto
these major items. The simulation enabled comparison on a like for
like basis eliminating the exchange element. The result is
exhibited in the table below:
2015 2014 Difference
$000 $000 $000
Revenue 196,451 222,322 (25,871)
Cost of sales (145,897) (145,697) (200)
Gross profit 50,554 76,625 (26,071)
BA adjustment (64,121) (29,759) (34,362)
Operating profit before
BA adjustment 42,728 69,663 (26,935)
Loss before tax after
BA adjustment (19,074) 45,443 (64,517)
With the elimination of the exchange element, the revenue for
2015 was lower as a result of the lower CPO price. Despite the
increase in production tonnage, the cost of sales for 2015 only
increased marginally. The difference of BA adjustment between 2015
and 2014 was greater after the elimination of exchange element.
Earnings per share before BA adjustment decreased by 48% to
69.39cts compared to 132.26cts in 2014. Earnings per share after BA
adjustment fell from 77.61cts to (37.58)cts.
Going Concern
The Group's balance sheet remains strong notwithstanding an
unrealised exchange loss on translation of foreign subsidiaries of
$54.6 million compensated by a land revaluation gain of $3.7
million net of deferred tax. As at 31 December 2015, the Group had
cash and cash equivalents of $104.6 million and borrowings of $34.6
million, giving it a net cash position of $70.0 million, compared
to $91.0 million in 2014. Net Group's borrowings in the year
reduced to $34.6 million (2014: $34.9 million). For these reasons,
the Group adopts a going concern basis of accounting and believe
the Group will continue operation and meet its liabilities for the
foreseeable future.
Business Review
Indonesia
FFB production in North Sumatera, which aggregates the estates
of Tasik, Anak Tasik, Labuhan Bilik, Blankahan, Rambung, Sg Musam
and Cahaya Pelita ("CPA"), produced 325,200mt in 2015 (2014:
342,900mt), 5% lower than 2014. In January 2015, CPA experienced
heavy rainfall that inundated over 2,000ha of the plantation. The
evacuation of FFB was not possible until the flood receded. A
larger budget will be allocated to build canals and water gates as
part of its flood mitigation program at CPA. In October 2015,
strong wind in Rambung estate damaged nearly 6,500 matured rubber
trees covering an area of 13ha. The area affected will be replanted
with oil palms. Dry weather for a period of four months in between
the third and fourth quarters of 2015 interrupted the ripening of
FFB in Tasik, Anak Tasik and Labuhan Bilik. Over 1,400ha of ageing
oil palm was replanted in Tasik in 2015. Replanting was necessary
due to declining yield as workers find it difficult to harvest the
palm trees which were about 30 years old as they have reached an
average height of 16 to 18 metres tall.
Ganoderma fungus and Upper Stem Rot which attacks the productive
palms in Anak Tasik, Blankahan and Rambung remains a threat. Water
management, good sanitation and high standards of agronomic
practices remain the main priority to avoid spreading of the
diseases. This includes proper disposal of severely diseased palms
after detection. Soil mounding on infected palms was carried out to
lengthen the economic life span of oil palms. Replanting is
scheduled in 2016 at Anak Tasik due to significant decline in yield
attributed to Ganoderma attack. There was no serious insect damage
by Oryctes beetle, other leaf eating pests, wild animals and
rats.
FFB production in Bengkulu and South Sumatera, which aggregates
the estates of Puding Mas, Alno, KKST, ELAP and RAA produced
317,400mt (2014: 304,200mt), 4% higher than 2014. With the dry
weather in Bengkulu, about 165km of roads were resurfaced with
gravel and laterite soil while another 550km of roads were graded
and compacted to improve transport of FFB. As most of the estates
are situated close to forest reserves, wild boars and herds of
elephants continued to damage palm trees. Deep trenches and fencing
provide temporary relief. The protracted negotiation with the
villagers over land compensation will have an effect on the future
planting in Bengkulu and South Sumatera. CPO production in Alno
increased significantly by 27% due to higher purchase of FFB from
smallholders and marginally higher own crop production.
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FFB production in the Riau region, comprising Bina Pitri
estates, produced 122,500mt in 2015 (2014: 116,700mt), 5% higher
than 2014. This was achieved despite the region experiencing severe
drought and haze resulting from indiscriminate open burning by
farmers from July to September 2015 when rainfall averaged below
100mm per month. CPO production improved by 10% due to the higher
purchase of FFB from smallholders, despite the competitiveness for
external crops from millers. Our mill offered higher prices for
external crops raising the mill utilization rate at the expense of
a lower operating margin.
FFB production in Kalimantan which comprises of the Sawit Graha
Manunggal estates produced 108,100mt in 2015 (2014: 65,700mt)
mainly from newly matured oil palm area of 7,792ha. FFB yield has
surpassed expectation, despite the sandy soil condition. FFB yield
from young trees averaged 14mt/ha. As in other regions in
Indonesia, the low rainfall over a four month period of 2015 is
likely to affect the FFB production in 2016. A comprehensive soil
and water conservation management including applying empty fruit
bunch ("EFB") mulching, fronds cut placement, proper drain
maintenance have been conducted in sandy soil to minimise early
decline in palm trees population due to soil erosion.
Overall bought-in crops for Indonesian operations were 8% higher
at 678,200mt for the year 2015 (2014: 626,200mt). The average oil
extraction rate from our mills was 21.2% in 2015 (2014: 21.3%).
Malaysia
FFB production in 2015 was 3% lower at 27,200mt, compared to
28,000mt in 2014. The Malaysian operations faced severe shortage in
workers due to difficulty in recruiting foreign workers hampering
harvesting and estate work. New incentives and increase in monthly
wages were also not sufficient to retain workers after their
initial two-year contract expired. In 2015, the Malaysian
plantations had $0.7 million pre-tax profit after BA adjustment
compared to a pre-tax loss of $0.9 million in 2014.
Commodity Prices
The CPO CIF Rotterdam price started the year at $700/mt (2014:
$890/mt) and reached a peak of $707/mt in March 2015 before
retreating to a 7-year low in August 2015. It staged a slight
recovery due to larger imports after price drop to record low and
on concern of lower production in 2016. It ended the year at
$560/mt (2014: $700/mt), averaging $613/mt for the year (2014:
$815/mt).
The soft demand for palm oil due to the abundance of soya oil is
likely to curb a quick recovery of the CPO price. The depressed
crude oil prices for much of 2015 did not help to boost the
competitiveness of CPO as a source of biodiesel. It is widely
reported that the El Nino weather phenomenon which brought severe
drought across Indonesia and Malaysia for four months in 2015 is
likely to cause moisture stress in palm trees. Furthermore, the
region was blanketed by haze reducing the sunlight required for
photosynthesis process in palms and will likely result in reduced
crop production in 2016. A lower production will most likely lead
to a gradual increase in CPO price. The successful efforts of
Indonesia and Malaysia to introduce higher mandatory blending of
biodiesel for industrial and commercial purposes likewise could
provide some price support.
Rubber prices averaged $1,269/mt for 2015 (2014: $1,616/mt). Our
small area of 502ha of mature rubber contributed a revenue of $1.1
million in 2015 (2014: $1.8 million).
Corporate Development
In 2015, the Group opened up new land and planted 1,826ha of oil
palm mainly in Kalimantan, boosting planted area including Plasma
by 3% to 65,100ha (2014: 63,500ha). This excludes the replanting of
1,423ha of oil palm in North Sumatera. Another 166ha of ageing
rubber trees were replanted with oil palm. New plantings remain
behind schedule due to delays in finalising settlement of land
compensation with villagers in Bengkulu, Bangka and Kalimantan. The
villagers seek compensation beyond what the Group considered fair
and reasonable resulting in protracted negotiations. The progress
of new planting in Kalimantan was interrupted by prolonged dry
weather during a four month period.
The mill construction in Central Kalimantan was completed in the
second quarter of 2015. It began commercial operation in the third
quarter with an initial capacity to process FFB at a rate of
45mt/hr. There is sufficient space to add a new processing line in
the mill to expand the processing capacity to 90mt/hr when the need
arises.
Negotiation to sell the surplus power estimated at 5.75 million
kwh per year to the Indonesian National Electricity Company from
its new biogas plant in North Sumatera is pending approval from
authority after completion of a feasibility study. Upon approval,
the Company will install electric cables, transformer and
switchgears estimated to cost $300,000 to link the biogas plant to
the national grid.
The Group has started construction of a second biogas plant in
Kalimantan which is expected to be completed by end of next year.
This project would contribute to the Group's reduction of carbon
footprint.
Corporate Social Responsibility
Corporate Social Responsibility ("CSR") is an integral part of
corporate self-regulation incorporated into our business model. Our
Group embraces responsibility for the impact of its activities on
the environment, consumers, employees, communities, stakeholders
and all other members of the public sphere. In engaging the social
dimension of CSR, the Group's business has taken cognizance of the
contribution and further enrichment of its employees while
continuing to make contributions to improve the well-being of the
surrounding community.
The majority of employees and their dependents in the
plantations and mills are housed in self-contained communities
built by the Group. The employees and their dependents are provided
with free housing, clean water and electricity. The Group also
builds, provides and repairs places of worship for workers of
different religious faiths as well as schools and sports facilities
in these communities. Over the years, the Group has built a total
of 71 mosques and 16 churches in all its estates. In 2015, the
Group spent $399,500 to build additional facilities and to maintain
these amenities. This includes construction of a new classroom in a
school in Bengkulu while a new elementary school in Labuhan Bilik
was built and handed over to the local government.
Staff and selected employees are given the opportunity to be
trained and to attend seminars to enhance their working skills and
capability. In 2015 the Group's Head Agronomist completed his PhD
in Soil Science with summa cum laude from the University of North
Sumatera. The Group provides free education for all employees'
children in the local plantations and communities where they work.
In 2015, scholarships amounting to $32,300 were provided to
children in surrounding villages and selected employees' children
to further their tertiary education in collaboration with
universities in Riau and Bengkulu. In total 95 scholarships were
given out. Selected under graduates were given opportunities for
industrial training during semester breaks. In addition the Group
provides funding to construct educational facilities including
laboratories, libraries, and computers. The salaries of teachers in
the estates and the cost of school buses to transport employees'
children to the schools are provided by the Group. Over the years a
total of 34 schools have been built with 121 teachers currently
employed within our Group estates. In 2015, the Group spent some
$552,500 on running the schools. The Group bought a new school bus
in Kalimantan taking the tally of school buses operated by the
Group in 2015 to 32 vehicles.
The Group continues to provide free comprehensive health care
for all its workers as we believe that every employee and their
dependents should have easy access to health services. We have
established 22 clinics operated by qualified doctors, nurses and
hospital assistants in the estates. In addition, the Group
organised fogging to prevent spread of dengue mosquitoes. In
isolated locations, the Group drill tube wells to provide clean
water. Related healthcare expenses for 2015 were $550,800.
A strong commitment to CSR has a positive impact on employees'
attitudes and boosts employee recruitment. The Group realizes that
employees are valuable assets in order to run an efficient,
effective, profitable and sustainable business and operations.
The Group also recognises its obligations to the wider farming
communities in which it operates. The Indonesian authorities have
established that not less than 20% of the new planted areas
acquired from 2007 onwards are to be reserved for the benefit of
smallholder cooperative scheme, known as Plasma, and the Group is
integrating such smallholder developments alongside its estates. In
order to aid the development of Plasma scheme, a subsidiary
provided a corporate guarantee to a local bank in excess of $16
million to cover loans raised by the cooperative. The plasma
development has commenced in stages for its estates in Sumatera and
Kalimantan.
The Board supported Kas Desa smallholder village development
programme to supplement the livelihood of the villages. The Group
has to-date financed, developed and managed 22 smallholder village
schemes across four companies.
In addition to education and healthcare which includes the
construction of schools, provision of scholarships, books, the
Group also develops infrastructure such as construction and repair
of 3 bridges and maintain 680km of external roads in 2015. The
Group also provides initial aid and seed capital to villagers such
as fruit seedlings, fish fries, cattle and ducks to start community
sustainable programs.
Indonesian Sustainable Palm Oil
The ISPO certification is legally mandatory for all plantations
in Indonesia. In March 2012, ISPO, which is fundamentally aligned
to RSPO (Roundtable on Sustainable Palm Oil) principles, has become
the mandatory standard for Indonesian planters.
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A Steering Committee was established to work out a roadmap to
support the ISPO implementation at mills and estates. Workshops and
training sessions on occupational safety and healthcare were
carried out to inculcate a safety culture in workplaces at the
estates and mills in North Sumatera, Riau, Bengkulu and Kalimantan.
During the year the Group continued to upgrade its agricultural
chemical stores and diesel fuel storage tanks in various
plantations and mills to meet safety and environmental standards.
Standard operating procedures were refined and documented based on
sustainable oil palm best practices. The Group also conducts
internal audits using an audit checklist adopted from the above
practices to determine the level of compliance. The Group worked
closely with appointed certification consultants in the
implementation of ISPO standard. In addition to three subsidiaries
which were ISPO certified, another subsidiary has been approved for
ISPO certification in December 2015. Six companies are at the
second stage of ISPO audit while one company is at first stage of
certification.
Care For The Environment and Sustainable Practices
As a Group, we highlight the importance of creating awareness
and implementation of good environmental management practices
throughout the organisation. The Group has been consistently
practising good agricultural practices such as zero burning,
integrated pest management, land terracing and recycling of
biomass. When it comes to replanting, old palms felled are chipped
and left to decompose at site. This mitigates the greenhouse gas
emissions commonly associated with open burning when land is
cleared through the traditional method of slash-and-burn. It also
enriches the organic matter in the soil. Where the land is
undulating, we build terraces for planting which helps to prevent
landslides, conserve the water and nutrients effectively and
provide better accessibility for employees. Legume cover crops are
planted to minimise soil erosion and preserve the soil moisture. In
mature areas, fronds and EFB are placed inter-rows to allow the
slow release of organic nutrients while minimising soil erosion and
degradation.
Effluent discharged from some mills is initially treated in
lagoons before being applied to trenches located between rows of
palm trees. Once the effluent dries up, it becomes organic
fertilizer for the oil palm and reduces the application and buying
of inorganic fertilizers. In some estates, EFB are applied to land
where it biodegrades to fertilizers. Through the application of a
combination of EFB, organic fertilisers from mill by-products and
inorganic fertilisers, the Group is able to raise the fertility of
sandy soil in Kalimantan plantations.
The Group's first biogas and biomass project in North Sumatera
completed last year will enhance the waste management treatment in
the mill and at the same time mitigate greenhouse biogas emissions.
The methane gas trapped will be used to generate and supply power
to its biomass plant without dependency on fossil fuel. Another
biogas plant is being constructed at the new mill in Kalimantan.
Further similar undertakings for the Group's mills are planned and
shall be implemented in stages. The Group intends to sell surplus
power generated to the National Grid.
The Group is committed to implementing good agricultural
practices as spelled out in its standard operating procedures for
the planting of oil palm. Integrated Pest Management has been
adopted to control pests and to improve biological balance.
Barn Owls were introduced to control rats. Beneficial plants of
Turnerasp, Cassia cobannesis and Antigononleptosus were planted to
attract natural predators for biological control of bagworms and
leaf-eating caterpillars. Weeds are controlled selectively by using
more environmental friendly herbicide such as Glyphosate.
The usage of Paraquat herbicide and chemicals has been reduced
and minimized to control weeds and vermins. The sprayers are also
trained in safety and spraying techniques. The chemicals are kept
in designated storage and examined at regular intervals. Employees
who handled the use of chemicals undergo medical examination.
Natural vegetation on uncultivable land such as deep peat, very
steep areas and riparian zones along watercourses are maintained to
preserve biodiversity and wildlife corridors.
Two mills in the Bengkulu region have been installed with
Extended Aeration to enhance the treatment of the mill effluent by
mechanical aeration.
All our mills utilize the waste mesocarp fibre from the oil palm
fruits as fuel to generate steam from boilers to eventually produce
power from steam turbines. The power generated drives all of the
processing equipment in mills and estate housing. This helps to
reduce reliance on fossil fuel such as diesel in our milling
operations.
The Group continues to comply and preserve the High Conservative
Value ("HCV") areas recognised by the Department of Forestry.
Principal risks and uncertainties
The Group's business involves risks and uncertainties of which
the Directors currently consider the following to be material.
There are or may be other risks and uncertainties faced by the
Group that the Directors currently deem immaterial, or of which
they are unaware, that may have a material adverse impact on the
Group. The Board carries out a robust assessment of the principal
risks facing the Group on an annual basis.
Nature of the The likelihood Mitigating or
risk and its origin and impact of other relevant
the risk and considerations
the circumstances
under which the
risk might be
most relevant
to the Company
----------------------------- -------------------------- -------------------------------
Country and regulatory
----------------------------- -------------------------- -------------------------------
The Group's operations Political upheaval The country has
are located substantially and deterioration recently benefited
in Indonesia and in security situation from a period
therefore significantly may cause disruption of relative political
rely on economic on operation stability, steady
and political and consequently economic growth
stability in Indonesia. financial loss. and stable financial
system. But during
the Asian financial
crisis in late
1990 there were
civil unrest
attributed to
ethnic tensions
in some parts
of Indonesia.
But the Group
operations were
not interrupted
by the regional
security problems.
----------------------------- -------------------------- -------------------------------
Introduction of Transfer of profit The Board is
measures to rein from Indonesia not aware of
in the country's to UK will be any attempt by
fiscal deficits. restricted affecting the government
This included servicing of to impose exchange
the exchange controls UK obligations controls that
and restriction and payment of would restrict
on repatriation dividends to the transfer
of profit through shareholders. of profits from
payment of dividend. Indonesia to
the UK. The Board
perceives that
the Group will
be able to continue
to extract profits
from its subsidiaries
in Indonesia
for the foreseeable
future.
----------------------------- -------------------------- -------------------------------
The Group acquires Any changes in There are several
the land exploitation law and regulations more years before
rights ("HGU") relating to land the first HGU
after paying land tenure could is due for renewal
acquisition and have negative in 2023. There
HGU processing impact on the are no reasons
costs. These costs Group's activities. for the Directors
are capitalized to believe that
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as land asset the HGU will
costs since the not be renewed
asset characteristics upon expiration
fulfill the recognition by complying
criteria. The with existing
Group holds its law and regulations.
land under 25
or 35 year renewable
leases.
----------------------------- -------------------------- -------------------------------
Changes in land Mandatory reduction The Group realize
legislation. Based of foreign ownership that there is
on National Land in Indonesian a possibility
Agency Law 2 / plantations. that foreign
1999, mandatory Forced divestment owners may be
restriction to of interests required over
land ownership in Indonesia time to partially
by non-state plantation at below market divest ownership
companies and values. of Indonesia
companies not oil palm operations
listed in Indonesia but has no reason
to 20,000ha per to believe that
province and a such divestment
total of 100,000ha would be anything
in Indonesia. other than at
market value.
----------------------------- -------------------------- -------------------------------
Group failure Reputational The Group continues
to meet the standards damage and criminal to maintain strong
expected in relation sanctions. controls in this
to bribery and area as Indonesia
corruption. has been classified
as relatively
high risk by
the International
Transparency
Corruption Perceptions
index.
----------------------------- -------------------------- -------------------------------
Exchange rates
----------------------------- -------------------------- -------------------------------
CPO is a US Dollar Adverse movements The Board has
denominated commodity of Rupiah against taken the view
and a significant US Dollar can that these risks
proportion of have a negative are inherent
revenue costs effect on the in the business
in Indonesia (such operating costs and feels that
as fertiliser and raise funding adopting hedging
and fuel) and cost. mechanisms to
development costs counter the negative
(such as heavy effects of foreign
machinery and exchange volatility
mills equipment) are both difficult
are imported and to achieve and
are US Dollar would not be
related. cost effective.
----------------------------- -------------------------- -------------------------------
Weather and natural
disasters
----------------------------- -------------------------- -------------------------------
Oil palms rely Dry periods, Where appropriate,
on regular sunshine in particular, bunding is built
and rainfall but will affect yields around flood
these weather in the short prone areas and
patterns can vary and medium terms. canals/drainage
and extremes such Drought induces constructed and
as unusual dry moisture stress adapted either
periods or, conversely, in palm trees. to evacuate surplus
heavy rainfall High levels of water or to maintain
leading to flooding rainfall can water levels
in some locations disrupt estate in areas quick
can occur. operations and to dry out. Where
result in harvesting practical, natural
delays with loss disasters are
of oil palm fruits covered by insurance
or deterioration policy. Certain
in fruit quality. risks (including
Any delay in the risk of crop
collection of loss through
harvested FFB fire, earthquake,
during the rainy flood and other
season could perils potentially
raise the level affecting the
of free fatty planted areas
acid ("FFA") on the Group's
in the CPO. CPO estates) if they
with higher level materialise could
of FFA will be dent the potential
sold at a discount revenues, for
to market prices. which insurance
Low level of cover is either
sunshine could not available
result in delay or would in the
in formation opinion of the
of FFB resulting Directors be
in potential disproportionately
loss of revenue. expensive, are
not insured.
These risks of
floods or haze
are mitigated
by the geographical
spread of the
plantations but
an occurrence
of an adverse
uninsured event
could result
in the Group
sustaining material
losses.
----------------------------- -------------------------- -------------------------------
Cultivation risks
----------------------------- -------------------------- -------------------------------
The Group's plantations Loss of crops Agricultural
may be affected or reduction best practice
by pests and diseases in the quality and husbandry
like ganoderma of harvest resulting can to some extent
fungus and white in loss of potential mitigate these
rot. Crop damages revenue. risks but they
by oryctes beetles, cannot be entirely
nettie caterpillar, eliminated. The
termites, vermins, spread of majority
elephants and of the plantations
wild boars are over Sumatera
common. and Kalimantan
mitigates the
risks affecting
the entire Group.
----------------------------- -------------------------- -------------------------------
Other operational
factors
----------------------------- -------------------------- -------------------------------
The Group's plantation With the removal Whilst the Directors
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productivity is of fuel subsidy have no reason
dependent upon by the Indonesian to anticipate
necessary inputs, government in shortages of
including, in January 2015, such inputs,
particular fertiliser, diesel will be the Group's investment
spare-parts, chemicals priced in accordance in biogas plants
and fuel. to global oil will reduce reliance
prices. When on fossil fuel
global oil prices for the mill
rise, it will operations.
put pressure
on production
inputs which
include cost
of electricity
to the mills
and the transportation
of FFB. Group's
operations could
be materially
disrupted should
such shortages
occur over an
extended period.
Increase in prices
would significantly
increase production
costs.
----------------------------- -------------------------- -------------------------------
The Group has This would likely The Group bulk
bulk storage facilities force a temporary storage facilities
located within halt in FFB processing have substantial
its mills which resulting in capacity. Furthermore
are adequate to loss of crop these facilities
meet the Group's and revenue. have always being
requirements for adequate for
CPO storage. Nevertheless, the mills production
delays in collection storage in the
of CPO sold could past.
result in CPO
production exceeding
the available
CPO storage capacity.
----------------------------- -------------------------- -------------------------------
Substantial increases Regional hikes The Group endeavours
in governmental in minimum wages to improve productivity
directed minimum for 2016 averaged of field workers
wage levels in 10.4%. The Group to justify the
Indonesia. pays no less increase in wages.
than the minimum Field workers
wage and the are employed
increase will on part-time
result in a significant basis.
rise in Group's
employment costs.
Higher wages
will erode the
profitability
as it forms a
substantial part
of the production
costs.
----------------------------- -------------------------- -------------------------------
Produce prices
----------------------------- -------------------------- -------------------------------
CPO is a primary This may lead Directors believe
commodity and to significant that such swings
is affected by price swings. should be moderated
the world economy, The profitability by continuous
levels of inflation, and cash flow demand in economies
availability of of the plantation like China, India
alternative soft operations depend and Indonesia.
oils such as soya upon world prices Larger export
oils. CPO price of CPO and upon would lead to
also moves in the Group's ability lower inventory
tandem with crude to sell CPO at of CPO which
oil prices which price levels augurs well for
determines the comparable with future produce
competitiveness world prices. price.
of CPO as a source
of biodiesel.
----------------------------- -------------------------- -------------------------------
Imposition of Reduced revenue The Indonesian
import controls and reduction government allows
or taxes in consuming in cash flow free export of
and exporting and profit. When CPO but applies
countries. The CPO price is a sliding scale
Indonesian government below $750/mt, of duties on
in July 2015 imposes the export tax exports which
a $50/mt export levy will impact allows producers
levy to fund biodiesel upon the Group's economic margins.
subsidies. It profit. When The export levy
also introduced CPO price recovers may be regarded
a simpler export to above $750/mt, as a measure
tax system expressed the effective to support CPO
in US dollar instead tax rate will producers through
of a percentage be lower providing increase in biodiesel
of CPO price. some relief to consumption.
planters.
----------------------------- -------------------------- -------------------------------
Environmental and governance practices
------------------------------------------------------------------------------------------
The ISPO which Environment pollutions The Directors
fundamentally and criticism take seriously
aligns with RSPO by environmental their environmental
principles became activists resulting and social responsibilities.
the mandatory in reputational Management follows
standard for all and financial industry best-practice
Indonesian planters damage. guidelines and
in March 2012. abides by Indonesian
law with regard
to such matters
as health and
safety. The Group
uses EFB for
mulching in the
estates which
is a form of
fertiliser and
reduces the consumption
of inorganic
fertilisers.
The liquid effluent
from the mills
after treatment
is applied to
trenches in the
estates as a
form of fertiliser.
The biogas plant
in North Sumatera
will mitigate
emissions of
biogas. Environmental
impact assessment
is undertaken
by an independent
consultant for
its new project.
----------------------------- -------------------------- -------------------------------
Expansion
----------------------------- -------------------------- -------------------------------
The Group is planning The Group compensates It is rather
to plant more the settlers difficult to
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April 26, 2016 11:00 ET (15:00 GMT)
oil palm. In areas and land owners foresee with
where the Group in a transparent reliable accuracy
holds the land and fair way. what area will
compensation rights The negotiation be available
(or Izin lokasi), for compensation for planting
the settlers and can, however out of the total
land owners are involve a considerable area covered
compensated before number of local by land rights.
land is cleared individuals with Much depends
for planting. similar ownership upon the success
claims and this of negotiations
can cause difficulties with settlers
in reaching agreement and land owners
with all affected and satisfactory
parties. Such resolution of
disruptions have land title issue.
in the past caused The Group has
delays to the to-date mixed
planting programmes success in managing
and consequently such periodic
financial loss. delays and disruptions
especially in
South Sumatera,
Bengkulu, Bangka
and Kalimantan.
----------------------------- -------------------------- -------------------------------
The Directors Should land or The Group has
believe that when cash availability fair amount of
the land becomes fall short of cash holding
available for expectations to fund planting
planting, the and the Group exercise. The
development programmes is unable to Group aims to
can be funded secure alternative manage its finances
from available land or funding, conservatively
Group cash resources the Group's continued to ensure that
and future operational growth may be it is able to
cash flows, supplemented delayed or curtailed. fund the planned
with external This may lead planting programme.
debt funding. to reduction
Profitability of reported profit
of new sizable and adverse market
plantations requires perceptions as
a period of between to the value
six and seven of the Company's
years before cash shares.
flow turns positive.
Because oil palms
do not begin yielding
significantly
until four years
after planting,
this development
period and the
cash requirement
is affected by
changes in commodity
prices.
----------------------------- -------------------------- -------------------------------
Hedging risk
------------------------------------------------------------------------------------------
The Group's subsidiaries The Group could Risk is partially
have borrowing face significant mitigated by
in US Dollar. exchange losses US Dollar denominated
in the event cash balances.
of depreciation It also considers
of their local the average interest
currency (i.e. rate on Rupiah
Strengthening deposits which
of US Dollar) is 7.47% higher
- and vice versa. than on US Dollar
deposits whereas
interest rate
for Rupiah borrowing
is about 6.65%
higher as compared
to US Dollar
borrowing.
----------------------------- -------------------------- -------------------------------
Social, community and human rights issues
------------------------------------------------------------------------------------------
Any material breakdown Communication The Group endeavours
in relations between breakdown would to mitigate this
the Group and cause disruption risk by liaising
the host population on operation regularly with
in the vicinity and consequently representatives
of the operations financial loss. of surrounding
could disrupt villages and
the Group's operations. by seeking to
The plantations improve local
hire large numbers living standards
of people and through mutually
have significant beneficial economic
economic importance and social interaction
for local communities with the local
in the areas of villages. In
the Group's operations. particular, the
Group, when possible,
gives priority
to applications
for employment
from members
of the local
population and
supports specific
initiatives to
encourage local
farmers and tradesmen
to act as suppliers
to the Group,
its employees
and their dependents.
The Group spends
considerable
sums of money
constructing
new roads and
bridges and maintaining
existing roads
used by villagers.
The Group also
provides technical
and management
expertise to
villagers to
develop oil palm
plots or Kebun
Kas Desa (village's
scheme) and plasma
schemes surrounding
the operating
estates. The
returns from
these plots are
used to improve
villages' community
welfare.
----------------------------- -------------------------- -------------------------------
Interest rate risk
------------------------------------------------------------------------------------------
The Group's surplus The Group had There is no policy
cash and its borrowings net cash throughout to hedge interest
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April 26, 2016 11:00 ET (15:00 GMT)
are subject to 2015, so the rates, partly
variable interest effect of variations because of the
rates. in borrowing net cash position
rates is more and because the
than offset. net interest
A 1% change in is relatively
the borrowing small proportion
or deposit interest of the Group
rate would not profits.
have a significant
impact on the
Group's reported
results.
----------------------------- -------------------------- -------------------------------
Gender diversity
The AEP Plc Board is composed of three men and one woman with
extensive knowledge in their respective fields of experience. The
Board has taken note of the recent legislative initiatives with
regard to the representation of women on the boards of Directors of
listed companies and will make every effort to conform to its
composition based on legislative requirement.
2015 average employed
during the year
Group Headcount Women Men Total
Board 2 14 16
Senior Management
(GM and Above) - 8 8
Managers & Executives 30 369 399
Full Time 314 5,095 5,409
Part-time Field Workers 4,745 6,235 10,980
Total 5,091 11,721 16,812
% 30% 70% 100%
2014 average employed
during the year
Group Headcount Women Men Total
Board 2 14 16
Senior Management
(GM and Above) - 8 8
Managers & Executives 23 363 386
Full Time 168 4,944 5,112
Part-time Field Workers 3,005 6,682 9,687
Total 3,198 12,011 15,209
% 21% 79% 100%
Although the Group provides equal opportunities for female
workers in the plantations, the male workers make up a majority of
the field workers due to the nature of work and the remote location
of plantations from the towns and cities. Nevertheless the
percentage of women workforce within the Group increased from 21%
in 2014 to 30% in 2015.
Employees
In 2015, the number of full time workforce averaged 5,832 (2014:
5,522) while the part-time labour averaged 10,980 (2014:
9,687).
The Group has formal processes for recruitment particularly key
managerial positions, where psychometric testing is conducted to
support the selection and hiring decisions. Exit interviews are
also conducted with departing employees to ensure that management
can address any significant issues.
The Group has a programme for recruiting graduates from
Indonesian universities to join existing employees selected on
regular basis to training programmes organised by the Group's
training centre that provides grounding and refresher courses in
technical aspects of oil palm estate and mill management. The
training centre also conducts regular programmes for all levels of
employees to raise the competency and quality of employees in
general. These programmes are often supplemented by external
management development courses including attending industry
conferences for technical updates. A wide variety of topics are
covered including work ethics, motivation, self-improvement,
company values, health and safety.
A large workforce and their families are housed in the Group's
housing across the Group's plantations. The Group further provides
at its own cost water and electricity and a host of other amenities
including places of worship, schools and clinics. On top of
competitive salaries and bonuses, extensive benefits and privileges
help the Group to retain and motivate its employees.
The Group promotes a policy for creation of equal and ethnically
diverse employment opportunities including with respect to
gender.
The Group has in place key performance linked indicators to
determine increment and bonus entitlements for its employees.
The Group promotes and encourages employee involvement in every
aspect wherever practical as it recognises employees as a valuable
asset and is one of the key contributions to the Group's success.
The employees contribute their ideas, feedback and voice out their
concerns through formal and informal meetings, discussions and
annual performance appraisal. In addition, various work related and
personal training programmes are carried out annually for employees
to promote employee engagement and interaction.
Although the Group does not have a specific policy on employment
of disabled persons, it however employs disabled persons as part of
its workforce. The Group welcomes disabled persons joining the
Group based on their suitability.
Outlook
FFB production for three months to March 2016 was 9% higher
against the same period in 2015 mainly due to the increase in
production from Kalimantan region. It is too early to forecast
whether the production will be better for the rest of the year.
The CPO CIF (Cost, Insurance, Freight) Rotterdam price opened
the year 2016 at $570/mt and prices are expected to be in the range
of $500/mt to $750/mt for the first half of 2016. CPO price is
likely to recover if a significant drop in crop production
materialises due to the effects of El Nino in 2015.
It was reported that the US Dollar appreciated by approximately
11% (2014: +2%) against the Indonesian Rupiah in 2015 in
anticipation of an interest rate hike in the United States and the
weak emerging economies. The Rupiah has since strengthened by 4% in
2016 which makes palm oil more expensive for importers.
The continuing rise in income levels and population growth in
China, India and Indonesia would expect to drive the consumption of
CPO and likely lead to a gradual recovery in CPO prices. The
Indonesian and Malaysian government efforts to rein in fiscal
deficits by introducing higher mandatory blending of biodiesel
could provide some price support.
The rising material costs and wages in Indonesia are expected to
increase the overall production cost in 2016. Indonesia's minimum
wage has increased at an average rate of between 8% and 15% per
annum over the last few years. The Indonesian government recently
announced regional hikes in 2016 minimum wage ranging from 7% in
Bengkulu to 12% in South Sumatera. These wage hikes will raise
overall estate costs and erode profit margins. A depreciating
Rupiah would also mean that imports of fertilisers and equipment
for the mills and estates will be more costly.
Nevertheless barring any unforeseen circumstances, the Group is
confident that CPO demand will be sustainable in the long term on
the backdrop of global economic recovery and we can expect a
satisfactory profit level and cash flow for 2016.
On behalf of the Board
Dato' John Lim Ewe Chuan
Executive Director, Corporate Finance and Corporate Affairs
26 April 2016
Consolidated Income Statement
For the year ended 31 December 2015
2015 2014
Result Result
Continuing before BA before BA
operations Note BA adjustment adjustment Total BA adjustment adjustment Total
$000 $000 $000 $000 $000 $000
------------------ ------- --------------- -------------- ----------- --------------- -------------- ----------
Revenue 2 196,451 - 196,451 251,258 - 251,258
Cost of sales (145,897) - (145,897) (164,666) - (164,666)
------------------ ------- --------------- -------------- ----------- --------------- -------------- ----------
Gross profit 50,554 - 50,554 86,592 - 86,592
Biological asset
revaluation
movement - (64,121) (64,121) - (33,718) (33,718)
Administration
expenses (7,826) - (7,826) (7,747) - (7,747)
------------------ ------- --------------- -------------- ----------- --------------- -------------- ----------
Operating profit
/ (loss) 42,728 (64,121) (21,393) 78,845 (33,718) 45,127
Exchange (losses)
/ gains (2,354) - (2,354) 852 - 852
Finance income 3 6,683 - 6,683 7,276 - 7,276
Finance expense 3 (2,010) - (2,010) (2,019) - (2,019)
------------------ ------- --------------- -------------- ----------- --------------- -------------- ----------
Profit / (Loss)
before tax 4 45,047 (64,121) (19,074) 84,954 (33,718) 51,236
Tax expense (10,385) 16,030 5,645 (20,967) 8,429 (12,538)
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------------------ ------- --------------- -------------- ----------- --------------- -------------- ----------
Profit / (Loss)
for the year 34,662 (48,091) (13,429) 63,987 (25,289) 38,698
------------------ ------- --------------- -------------- ----------- --------------- -------------- ----------
Attributable to:
- Owners of the
parent 27,505 (42,402) (14,897) 52,422 (21,660) 30,762
-
Non-controlling
interests 7,157 (5,689) 1,468 11,565 (3,629) 7,936
------------------ ------- --------------- -------------- ----------- --------------- -------------- ----------
34,662 (48,091) (13,429) 63,987 (25,289) 38,698
------------------ ------- --------------- -------------- ----------- --------------- -------------- ----------
Earnings per
share
for profit /
(loss)
attributable to
the owners of
the parent
during
the year
7 (37.58)cts 77.61cts
* basic
7 (37.58)cts 77.53cts
* diluted
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2015
2015 2014
$000 $000
-------------------------------------------- ------------ --- ------------
Profit / (Loss) for the year (13,429) 38,698
-------------------------------------------- ------------ --- ------------
Other comprehensive income / (expense):
Items may be reclassified to profit
or loss:
Loss on exchange translation
of foreign operations (54,595) (12,019)
Net other comprehensive expense
may be reclassified to profit
or loss (54,595) (12,019)
-------------------------------------------- ------------ --- ------------
Items not to be reclassified to
profit or loss:
Unrealised gain on revaluation
of leasehold land 4,902 386
Deferred tax on revaluation of
leasehold land (1,226) (96)
Remeasurement of retirement benefits
plan 445 (680)
Deferred tax on retirement benefits (111) 170
Net other comprehensive income
/ (expense) not being reclassified
to profit or loss 4,010 (220)
-------------------------------------------- ------------ --- ------------
Total other comprehensive expenses
for the year, net of tax (50,585) (12,239)
Total comprehensive (expense)
/ income for the year (64,014) 26,459
Attributable to:
- Owners of the parent (56,016) 21,188
- Non-controlling interests (7,998) 5,271
-------------------------------------------- ------------ --- ------------
(64,014) 26,459
-------------------------------------------- ------------ --- ------------
Consolidated Statement of Financial Position
As at 31 December 2015
2015 2014
Note $000 $000
-------------------------------- ------ ----------- -----------
Non-current assets
Biological assets 9 179,010 251,374
Property, plant and equipment 9 219,990 227,380
Receivables 3,655 3,007
Deferred tax assets 8,021 3,982
410,676 485,743
-------------------------------- ------ ----------- -----------
Current assets
Inventories 6,693 7,846
Tax receivables 16,679 9,231
Trade and other receivables 4,704 8,807
Cash and cash equivalents 104,614 125,937
132,690 151,821
-------------------------------- ------ ----------- -----------
Current liabilities
Loans and borrowings (1,750) (313)
Trade and other payables (17,406) (21,010)
Tax liabilities (5,917) (10,752)
Dividend payables - (20)
(25,073) (32,095)
-------------------------------- ------ ----------- -----------
Net current assets 107,617 119,726
-------------------------------- ------ ----------- -----------
Non- current liabilities
Loans and borrowings (32,875) (34,625)
Deferred tax liabilities (28,932) (48,350)
Retirement benefits - net
liabilities (4,528) (4,445)
-------------------------------- ------ ----------- -----------
(66,335) (87,420)
-------------------------------- ------ ----------- -----------
Net assets 451,958 518,049
-------------------------------- ------ ----------- -----------
Issued capital and reserves
attributable to owners of
the parent
Share capital 15,504 15,504
Treasury shares (1,171) (1,171)
Share premium 23,935 23,935
Capital redemption reserve 1,087 1,087
Revaluation reserves 59,594 57,029
Exchange reserves (234,490) (190,503)
Retained earnings 504,892 521,355
-------------------------------- ------ ----------- -----------
369,351 427,236
Non-controlling interests 82,607 90,813
-------------------------------- ------ ----------- -----------
Total equity 451,958 518,049
-------------------------------- ------ ----------- -----------
Consolidated Statement of Changes in Equity
For the year ended 31 December 2015
Capital Foreign
Share Treasury Share redemption Revaluation exchange Retained Non-controlling Total
capital shares premium reserve reserve reserve earnings Total interests equity
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 31 December
2013 15,504 (1,171) 23,935 1,087 56,767 (181,107) 493,031 408,046 85,964 494,010
Items of other comprehensive
income
-Unrealised gain on revaluation
of leasehold land, net
of tax - - - - 262 - - 262 28 290
-Remeasurement of retirement
benefit plan, net of tax - - - - - - (440) (440) (70) (510)
-Loss on exchange translation
of foreign operations - - - - - (9,396) - (9,396) (2,623) (12,019)
--------------------------------------------------------- -------- --------- -------- ----------- ------------ ---------- --------- --------- ---------------- ---------
Total other comprehensive
income / (expenses) - - - - 262 (9,396) (440) (9,574) (2,665) (12,239)
Profit for the year - - - - - - 30,762 30,762 7,936 38,698
--------------------------------------------------------- -------- --------- -------- ----------- ------------ ---------- --------- --------- ---------------- ---------
Total comprehensive income
and expenses for the year - - - - 262 (9,396) 30,322 21,188 5,271 26,459
Dividends paid - - - - - - (1,998) (1,998) (422) (2,420)
--------------------------------------------------------- -------- --------- -------- ----------- ------------ ---------- --------- --------- ---------------- ---------
Balance at 31 December
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2014 15,504 (1,171) 23,935 1,087 57,029 (190,503) 521,355 427,236 90,813 518,049
--------------------------------------------------------- -------- --------- -------- ----------- ------------ ---------- --------- --------- ---------------- ---------
Items of other comprehensive
income
* Unrealised gain on revaluation of leasehold land,
net
of tax - - - - 2,565 - - 2,565 1,111 3,676
-Remeasurement of retirement
benefit plan, net of tax - - - - - - 303 303 31 334
-Loss on exchange translation
of foreign operations - - - - - (43,987) - (43,987) (10,608) (54,595)
--------------------------------------------------------- -------- --------- -------- ----------- ------------ ---------- --------- --------- ---------------- ---------
Total other comprehensive
income / (expenses) - - - - 2,565 (43,987) 303 (41,119) (9,466) (50,585)
(Loss) / Profit for the
year - - - - - - (14,897) (14,897) 1,468 (13,429)
--------------------------------------------------------- -------- --------- -------- ----------- ------------ ---------- --------- --------- ---------------- ---------
Total comprehensive income
and expenses for the year - - - - 2,565 (43,987) (14,594) (56,016) (7,998) (64,014)
Dividends paid - - - - - - (1,869) (1,869) (208) (2,077)
--------------------------------------------------------- -------- --------- -------- ----------- ------------ ---------- --------- --------- ---------------- ---------
Balance at 31 December
2015 15,504 (1,171) 23,935 1,087 59,594 (234,490) 504,892 369,351 82,607 451,958
--------------------------------------------------------- -------- --------- -------- ----------- ------------ ---------- --------- --------- ---------------- ---------
Consolidated Statement of Cash Flows
For the year ended 31 December 2015
2015 2014
$000 $000
------------------------------------------- --------- ---------
Cash flows from operating activities
(Loss) / Profit before tax (19,074) 51,236
Adjustments for:
BA adjustment 64,121 33,718
(Profit) / Loss on disposal
of tangible fixed assets (111) 36
Depreciation 6,768 6,833
Retirement benefit provisions 973 951
Net finance income (4,673) (5,257)
Unrealised loss / (gain) in
foreign exchange 2,354 (852)
Property, plant and equipment
written off 1,708 135
Operating cash flow before changes
in working capital 52,066 86,800
Decrease in inventories 341 451
Decrease in non-current, trade
and other receivables 4,425 664
(Decrease) / Increase in trade
and other payables (1,623) 5,929
------------------------------------------- --------- ---------
Cash inflow from operations 55,209 93,844
Interest paid (2,010) (2,019)
Retirement benefit paid (103) (61)
Overseas tax paid (27,856) (17,756)
------------------------------------------- --------- ---------
Net cash flow from operations 25,240 74,008
------------------------------------------- --------- ---------
Investing activities
Property, plant and equipment
* purchase (38,555) (49,754)
* sale 979 156
Interest received 6,683 7,276
------------------------------------------- --------- ---------
Net cash used in investing activities (30,893) (42,322)
------------------------------------------- --------- ---------
Financing activities
Dividends paid by Company (1,869) (1,998)
Finance lease repayment - (20)
Dividends paid to minority shareholders (228) (402)
Repayment of existing long term
loans (313) (63)
------------------------------------------- --------- ---------
Net cash (used in) / from financing
activities (2,410) (2,483)
------------------------------------------- --------- ---------
(Decrease) / Increase in cash
and cash equivalents (8,063) 29,203
Cash and cash equivalents
At beginning of year 125,937 98,738
Foreign exchange (13,260) (2,004)
------------------------------------------- --------- ---------
At end of year 104,614 125,937
------------------------------------------- --------- ---------
Comprising:
Cash at end of year 104,614 125,937
------------------------------------------- --------- ---------
Notes
1 Accounting policies
Anglo-Eastern Plantations Plc ("AEP") is a company incorporated
in the United Kingdom under the Companies Act 2006 and is listed on
the London Stock Exchange. The registered office of AEP is located
at Quadrant House, 6(th) Floor, 4 Thomas More Square, London E1W
1YW, United Kingdom. The principal activity of the Group is
plantation agriculture.
The financial information set out below does not constitute the
company's statutory accounts for 2015 or 2014. Statutory accounts
for the years ended 31 December 2015 and 31 December 2014 have been
reported on by the Independent Auditors. The Independent Auditors'
Reports on the Annual Report and Financial Statements for the years
ended 31 December 2015 and 31 December 2014 were unqualified, did
not draw attention to any matters by way of emphasis, and did not
contain a statement under 498(2) or 498(3) of the Companies Act
2006.
Statutory accounts for the year ended 31 December 2014 have been
filed with the Registrar of Companies. The statutory accounts for
the year ended 31 December 2015 will be delivered to the Registrar
in due course.
The principal accounting policies applied in the preparation of
these consolidated financial statements are set out below. These
policies have been consistently applied to all years presented,
except as detailed in the following paragraph.
Basis of preparation
The financial statements have been prepared in accordance with
International Financial Reporting Standards and its interpretations
(IFRS and IFRIC interpretations) issued by the International
Accounting Standards Board ("IASB") as adopted by the European
Union ("EU") and with those parts of the Companies Act 2006
applicable to companies preparing their accounts under IFRS as
adopted by the EU.
Changes in accounting standards
a) The following amendment is effective for the first time in
these financial statements but does not have a material effect on
the Group's financial statements:
-- IAS 19 Amendments - Defined Benefit Plans: Employee
Contributions (effective for accounting periods beginning on or
after 1 July 2014)
b) New standards, interpretations and amendments not yet effective.
The following new standards, interpretations and amendments are
effective for periods beginning after 1 January 2016 and have not
been applied in these financial statements:
-- IFRS 9 Financial Instruments (effective for accounting
periods beginning on or after 1 January 2018)*
-- IFRS 15 Revenue from Contracts with Customers (effective for
accounting periods beginning on or after 1 January 2018)*
-- IFRS 16 Leases (effective for accounting periods beginning on or after 1 January 2019)*
-- IAS 16 Amendments - Property, Plant and Equipment (effective
for accounting periods beginning on or after 1 January 2016)*
-- IAS 41 Amendments - Agriculture (effective for accounting
periods beginning on or after 1 January 2016)*
*These standards and interpretations are not endorsed by the EU
at present.
None of the above new standards, interpretations and amendments
are expected to have a material effect on the Group's future
financial statements except for IAS 16 and IAS 41. The amendments
to IAS 16 and IAS 41 change the accounting requirements for
biological assets that meet the definition of bearer plants.
Biological assets that meet the definition of bearer plants are
required to account for as bearer plants in accordance with IAS 16
using either cost model or revaluation model. The produce growing
on bearer plants will remain within the scope of IAS 41 measured at
fair value less costs to sell.
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The biological assets of the Group fall within the definition of
bearer plants. With effect from 1 January 2016, immature
plantations will be recognised at cost and accumulated until
maturity whereas mature plantations will be recognised at
historical cost less accumulated depreciation. Immature plantations
are subject to impairment reviews. The FFB, which is agricultural
produce under the revised IAS 41, will be recognised at fair value
less cost to sell at the point of harvest, with changes recognised
in profit or loss. However, the Company has yet to reach a decision
as to the measurement of the unharvested produce at balance sheet
date.
The directors have quantified the financial impact that would
have on the Group with the adoption of the amended IAS 16 and IAS
41. The Group would have been reported a profit for the year ended
31 December 2015 of US$24.9 million rather than a loss for the year
of US$13.4 million. Included in the adjusted loss for the year was
an impairment loss on bearer plants of US$34.1 million. The Group's
reported net assets as at 31 December 2015 would have been US$324.5
million rather than US$369.4 million. The impacts on the financial
position of the Group are disclosed below:
Reported Financial
as at position
31 Dec 2015 Adjustments after
adjustments
$000 $000 $000
Non-current assets
Biological assets 179,010 (179,010) -
Property, plant
and equipment 219,990 124,644 344,634
Non-current liabilities
Deferred tax liabilities (28,932) 2,314 (26,618)
Issued capital
and reserves attributable
to owners of the
parent
Retained earnings (504,892) 44,847 (460,045)
Non-controlling
interests (82,607) 7,205 (75,402)
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) made up to 31 December each year. The Company
controls a subsidiary if all three of the following elements are
present; power over the subsidiary, exposure to variable returns
from the subsidiary, and the ability of the investor to use its
power to affect those variable returns. The financial statements of
subsidiaries are included in the consolidated financial statements
from the date that control commences until the date control
ceases.
Business combinations
The consolidated financial statements incorporate the results of
business combinations using the purchase method. In the
consolidated statement of financial position, the acquiree's
identifiable assets, liabilities and contingent liabilities are
initially recognised at their fair values at the acquisition date.
Acquisitions of entities that comprise principally land with no
active plantation business do not represent business combinations,
in such cases, the amount paid for each acquisition is allocated
between the identifiable assets/liabilities at the acquisition
date.
Foreign currency
The individual financial statements of each subsidiary are
presented in the currency of the country in which it operates (its
functional currency) with the exception of the Company and its UK
subsidiaries which are presented in US Dollar. The presentation
currency for the consolidated financial statements is also US
Dollar, chosen because, as internationally traded commodities, the
price of the bulk of the Group's products are ultimately link to
the US Dollar.
On consolidation, the results of overseas operations are
translated into US Dollar at average exchange rates for the year
unless exchange rates fluctuate significantly in which case the
actual rate is used. All assets and liabilities of overseas
operations are translated at the rate ruling at the balance sheet
date. Exchange differences arising on re-translating the opening
net assets at opening rate and the results of overseas operations
at actual rate are recognised directly in equity (the "foreign
exchange reserve"). Exchange differences recognised in the income
statement of Group entities' separate financial statements on the
translation of long-term monetary items forming part of the Group's
net investment in the overseas operation concerned are reclassified
to the foreign exchange reserve if the item is denominated in the
presentational currency of the Group or of the overseas operation
concerned.
On disposal of a foreign operation, the cumulative exchange
differences recognised in the foreign exchange reserve relating to
that operation up to date of disposal are transferred to the income
statement as part of the profit or loss on disposal.
All other exchange profits or losses are credited or charged to
the income statement.
Revenue recognition
Revenue includes
- amounts receivable for produce provided in the normal course
of business, net of sales related taxes and levies, including
export taxes;
- amounts received for sales of palm kernel shell, rubber wood,
biomass products and other income of an operating nature.
Sales of CPO, palm kernel, shell nut, biomass products and
rubber slab are recognised when goods are delivered or allocated to
a purchaser. Delivery or allocation does not take place until
contracts are paid for. Sales of latex are recognised on signing of
sales contract, this being the point at which the significant risks
and rewards of ownership are passed over to the buyer. Other income
mainly consists of amounts received from sales of nut shell, which
is recognised when the goods are delivered.
Share based payments
Share options are measured at fair value (excluding the effect
of non market-based vesting conditions) at the date of grant. This
fair value is expensed on a straight-line basis over the vesting
period, based on the Group's estimate of shares that will
eventually vest and adjusted for the effect of non market-based
vesting conditions.
Fair value is measured by use of a binomial model. The expected
life used in the model has been adjusted, based on management's
best estimate, for the effects of non-transferability, exercise
restrictions, and behavioural considerations.
Provided that all other vesting conditions are satisfied, a
charge is made irrespective of whether the market vesting
conditions are satisfied.
Capitalisation on development activities
Interest capitalisation
Interest on third party loans directly related to field
development is capitalised in the proportion that the opening
immature area bears to the total planted area of the relevant
estate. Interest on loans related to construction in progress (such
as an oil mill) is capitalised up to the commissioning of that
asset. These interest rates are booked at the rate prevailing at
the time.
Plantation development
Plantation development comprises cost of planting and
development on oil palm and other plantation crops. Costs of new
planting and development of plantation crops are capitalised from
the stage of land clearing up to the stage of maturity or subject
to certificate of Land Exploitation Rights (HGU) being obtained,
whichever is earlier. The costs of immature plantations consist
mainly of the accumulated cost of land clearing, planting,
fertilising and maintaining the plantation, borrowing costs and
other indirect overhead costs up to the time the trees are
harvestable and to the extent appropriate.
Tax
UK and foreign corporation tax is provided at amounts expected
to be paid or recovered using the tax rates and laws that have been
enacted or substantively enacted by the balance sheet date.
The directors consider that the carrying amount of tax
receivables approximates its fair value.
Dividends
Equity dividends are recognised when they become legally
payable. The Company pays only one dividend each year as a final
dividend which becomes legally payable when approved by the
shareholders at the next following annual general meeting.
Fair value measurement
A number of assets and liabilities included in the Group's
financial statements require measurement at, and/or disclosure of,
fair value. The fair value measurement of the Group's financial and
non-financial assets and liabilities utilises market observable
inputs and data as far as possible. Inputs used in determining fair
value measurements are categorised into different levels based on
how observable the inputs used in the valuation technique utilised
are (the 'fair value hierarchy'):
-- Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
-- Level 2 - inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either
directly or indirectly;
-- Level 3 - unobservable inputs for the asset or liability.
The classification of an item into the above levels is based on
the lowest level of the inputs used that has a significant effect
on the fair value measurement of the item. Transfers of items
between levels are recognised in the period they occur.
The Group measures the following assets at fair value:
-- Biological assets (note 9)
-- Revalued land - Property, plant and equipment (note 9)
For more detailed information in relation to the fair value
measurement of the items above, please refer to the applicable
notes.
Property, plant and equipment
All items of property, plant and equipment are initially
measured at cost. Cost includes expenditure that is directly
attributable to the acquisition of the items. After initial
recognition, all items of property, plant and equipment except land
and construction in progress, are stated at cost less accumulated
depreciation and any accumulated impairment losses.
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The Indonesian authorities have granted certain land
exploitation rights and operating permits for the estates. The land
rights are usually renewed without significant cost subject to
compliance with the laws and regulations of Indonesia. Therefore,
the Group has classified the land rights as leasehold land and
accounted for as an indefinite finance lease. The leasehold land is
recognised at cost initially and is not depreciated. The land is
subsequently carried at fair value, based on periodic valuations on
an open market basis by a professionally qualified valuer. These
revaluations are made with sufficient regularity to ensure that the
carrying amount does not differ materially from that which would be
determined using fair value at the end of the reporting period.
Changes in fair value are recognised in other comprehensive income
and accumulated in the revaluation reserve except to the extent
that any decrease in value in excess of the credit balance on the
revaluation reserve, or reversal of such a transaction, is
recognised in income statement. On the disposal of a revalued
estate, any related balance remaining in the revaluation reserve is
transferred to retained earnings as a movement in reserves.
Construction in progress is stated at cost. The accumulated
costs will be reclassified to the appropriate class of assets when
construction is completed and the asset is ready for its intended
use. Construction in progress is also not depreciated until such
time when the asset is available for use.
Buildings and oil mills are depreciated using the straight-line
method. All other property, plant and equipment items are
depreciated using the double-declining-balance method. The yearly
rates of depreciation are as follows:
Buildings - 5% to 10% per annum
Oil Mill - 5% per annum
Estate plant, equipment & vehicle - 12.5% to 50% per
annum
Office plant, equipment & vehicle - 25% to 50% per annum
Biological assets
Biological assets comprise oil palm trees and nurseries. The
biological process commences with the initial preparation of land
and planting of seedlings and ceases with the delivery of crop in
the form of fresh fruit bunches ("FFB") to the manufacturing
process in which crude palm oil and palm kernel are extracted from
the FFB.
Biological assets are carried at fair value less costs to sell
determined on the basis of the net present value of cash flows
arising in producing FFB. No account is taken in the valuation of
future replanting. Biological assets are valued at each accounting
date based upon a valuation of the planted areas using a discounted
cash flow method by reference to the FFB expected to be harvested
over the full remaining productive life of the trees up to 20
years. Areas are included in the valuation once they are planted.
However oil palm which are not yet mature at the accounting date,
and hence are not producing FFB, are valued on a similar basis but
with the discounted value of the estimated cost to complete
planting and to maintain the assets to maturity being deducted from
the discounted FFB value. Movement in valuation surplus of
biological assets is charged or credited to the income statement
for the relevant period (BA adjustment).
Leased assets
Assets financed by leasing agreements which give rights
approximating to ownership (finance leases) are capitalised at
amounts equal to the original cost of the asset to the lessors and
depreciation is provided on the asset over the shorter of the lease
term or its useful economic life in accordance with Group
depreciation policy for those held at cost. Land rights are held at
fair value and revalued at the balance sheet date. The capital
elements of future obligations under finance leases are included as
liabilities in the balance sheet and the current year's interest
element is charged to the income statement to produce a constant
rate of charge on the balance of capital repayments outstanding.
There are no operating leases.
Impairment
Impairment tests on tangible assets are undertaken annually on
31 December. Where the carrying value of an asset exceeds its
recoverable amount (i.e. the higher of value in use or fair value,
less costs to sell), the asset is written down accordingly.
Impairment charges are included in the administrative expenses in
the income statement, except to the extent they reverse gains
previously recognised in the statement of recognised income and
expense.
Inventories
FFB harvested from the biological assets are stated at fair
value less costs to sell at the point of harvest. The fair value
gain arising on the initial recognition of harvested produce is the
result of the FFB weight produced multiplied by the FFB price
adjusted for transportation costs to sell. There is an active
market for FFB and the price is based on statistics provided by the
government for each region.
The gain/(loss) arising on the initial recognition at the point
of harvest is recognised in the income statement within the
biological asset revaluation. The FFB is transferred to the mill,
processed in to CPO and sold within 24 hours so the write off of
the FFB is netted off against the initial recognition within the
biological asset revaluation.
All other inventories are initially recognised at cost, and
subsequently at the lower of cost and net realisable value. In the
case of processed produce for sale which comprises palm oil and
kernel, cost represents the monthly weighted-average cost of
production, and appropriate production overheads. Estate and mill
consumables are valued on a weighted average cost basis.
Financial assets
All the Group's receivables and loans are non-derivative
financial assets with fixed or determinable payments that are not
quoted in an active market. They are recognised at fair value at
inception and subsequently at amortised cost. No impairment
provisions have been considered necessary.
Cash and cash equivalents consist of cash in hand and short term
deposits at banks with an original maturity of not exceeding three
months. Bank overdrafts are shown within loans and borrowings under
current liabilities on the balance sheet.
There are no assets in hedging relationships and no financial
assets or liabilities available for sale.
Financial liabilities
All the Group's financial liabilities are non-derivative
financial liabilities.
Bank borrowings and long term development loans are initially
recognised at fair value and subsequently at amortised cost, which
is the total of proceeds received net of issue costs. Finance
charges are accounted for on an accruals basis and charged in the
income statement, unless capitalised according to the policy as set
out under Interest capitalisation above.
Trade and other payables are shown at fair value at recognition
and subsequently at amortised cost.
Deferred tax
Deferred tax assets and liabilities are recognised where the
carrying amount of an asset or liability in the balance sheet
differs from its tax base except for differences in the initial
recognition of an asset or liability in a transaction which is not
a business combination and at the time of the transaction affects
neither accounting nor taxable profit.
The Group recognises deferred tax liabilities arising from
taxable temporary differences on investments in subsidiaries,
except where the Group is able to control the reversal of the
temporary differences and it is probable that the temporary
difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those
instances where it is possible that taxable profit will be
available against which the difference can be utilised.
Deferred tax is recognised on temporary differences arising on
property revaluation surpluses.
Deferred tax is determined using the tax rates that are enacted
or substantively enacted at the balance sheet date. Deferred tax is
charged or credited in the income statement, except when it relates
to items charged or credited directly to equity, such as
revaluations, in which case the deferred tax is also dealt with in
equity; in this case assets and liabilities are offset.
Retirement benefits
Defined contribution schemes
Contributions to defined contribution pension schemes are
charged to the consolidated income statement in the year to which
they relate.
Defined benefit schemes
The Group operates a number of defined benefit schemes in
respect of its Indonesian operations. These schemes' surpluses and
deficits are measured at:
-- The fair value of plan assets at the reporting date; less
-- Plan liabilities calculated using the projected unit credit
method discounted to its present value using yields available on
high quality corporate bonds that have maturity dates approximating
to the terms of the liabilities; plus
-- Unrecognised past service costs; less
-- The effect of minimum funding requirements agreed with scheme trustees.
Remeasurements of the net defined obligation are recognised
directly within equity. The remeasurements include:
-- Actuarial gains and losses;
-- Return on plan assets (interest exclusive);
-- Any asset ceiling effects (interest inclusive).
Service costs are recognised in comprehensive income, and
include current and past service costs as well as gains and losses
on curtailments.
Net interest expense / (income) is recognised in comprehensive
income, and is calculated by applying the discount rate used to
measure the defined benefit obligation / (asset) at the beginning
of the annual period to the balance of the net defined benefit
obligation / (asset), considering the effects of contributions and
benefit payments during the period.
Gains or losses arising from changes to scheme benefits or
scheme curtailment are recognised immediately in comprehensive
income.
Settlements of defined benefit schemes are recognised in the
period in which the settlement occurs.
Treasury shares
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Consideration paid or received for the purchase or sale of the
Company's own shares for holding in treasury is recognised directly
in equity, where the cost is presented as the treasury share
reserve. Any excess of the consideration received on the sale of
treasury shares over the weighted average cost of shares sold, is
taken to the share premium account.
Any shares held in treasury are treated as cancelled for the
purpose of calculating earnings per share.
Financial guarantee contracts
Where the Company enters into financial guarantee contracts and
guarantees the indebtedness of other companies within the Group,
the Company considers these to be insurance arrangements and
accounts for them as such. In this respect, the Company treats the
guarantee contract as a contingent liability until such time that
it becomes probable that the Company will be required to make a
payment under the guarantee.
Critical accounting estimates and judgements
The preparation of the Group financial statements in conformity
with IFRS requires the use of estimates and assumptions that affect
the reported assets and liabilities and reported revenue and
expenses. Actual results could differ from those estimates and
accordingly they are reviewed on an on-going basis. The main areas
in which estimates are used are: fair value of biological assets,
property, plant and equipment, deferred tax and retirement
benefits.
Revisions to accounting estimates are recognised in the period
in which the estimate is revised or the revision affects only that
period, or in the period of revision and future periods if the
revision affects both current and future periods.
Assumptions regarding the valuation of biological assets,
property, plant and equipment are set out in note 9. Assumptions
regarding the valuation of agricultural produce at the point of
harvest less costs to sell are set out in the inventories
accounting policy. The Group's policy with regard to impairment of
such assets is set out above.
2 Revenue
2015 2014
$000 $000
Sales of produce:
- CPO 193,364 247,868
- Rubber 1,075 1,836
- Shell nut 1,685 1,554
- Biomass products 327 -
196,451 251,258
--------- ---------
3 Finance income and expense
2015 2014
$000 $000
Finance income
Interest receivable on:
Credit bank balances and time deposits 6,683 7,276
Finance expense
Interest payable on:
Development loans (2,010) (2,019)
----------
Net finance income recognised in
income statement 4,673 5,257
---------- ----------
4 Profit before tax
2015 2014
$000 $000
Profit before tax is stated after
charging
Depreciation (note 9) 6,768 6,833
Exchange losses / (gains) 2,354 (852)
Operating lease expense
- Property 523 574
Professional fees 1,086 441
Staff costs (note 6) 29,007 28,881
Remuneration received by the group's
auditor or associates of the group's
auditor:
- Audit of parent company 5 6
- Audit of consolidated financial
statement 157 159
- Audit related assurance service 7 7
- Audit of UK subsidiaries 13 -
-------- --------
Total audit services 182 172
-------- --------
Audit of overseas subsidiaries
- Malaysia 19 22
- Indonesia 66 75
-------- --------
Total audit services 85 97
-------- --------
Total auditors' remuneration 267 269
-------- --------
5 Segment information
Measurement of operating segment profit or loss, assets and
liabilities
The Group evaluates segmental performance on the basis of profit
or loss from operations calculated in accordance with IFRS but
excluding non-recurring losses, such as share based payments.
Inter-segment transactions are made based on terms mutually
agreed by the parties to maximise the utilisation of Group's
resources at a rate acceptable to local tax authorities. This
policy was applied consistently throughout the current and prior
period.
The Group's assets are allocated to segments based on
geographical location.
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
2015
Total sales revenue
(all
external)
* CPO 67,978 73,661 37 37,129 1 11,426 190,232 3,132 - 193,364
* Rubber 1,075 - - - - - 1,075 - - 1,075
* Biomass products 327 - - - - - 327 - - 327
Other income 513 812 10 225 38 87 1,685 - - 1,685
----------- --------- ----------- --------- -------- ----------- ----------- ---------- ---------- ---------
Total revenue 69,893 74,473 47 37,354 39 11,513 193,319 3,132 - 196,451
----------- --------- ----------- --------- -------- ----------- ----------- ---------- ---------- ---------
Profit/(Loss) before
tax 18,947 17,427 (1,146) 15,637 13 (4,555) 46,323 (233) (1,043) 45,047
BA movement (30,717) (11,582) (16,575) (1,128) (549) (3,482) (64,033) (88) - (64,121)
----------- --------- ----------- --------- -------- ----------- ----------- ---------- ---------- ---------
Loss for the year
before
tax per
consolidated
income
statement (11,770) 5,845 (17,721) 14,509 (536) (8,037) (17,710) (321) (1,043) (19,074)
----------- --------- ----------- --------- -------- ----------- ----------- ---------- ---------- ---------
Depreciation (2,262) (2,098) (325) (636) (26) (1,229) (6,576) (192) - (6,768)
Inter-segment
transactions 3,546 (2,169) (765) (624) - (1,427) (1,439) 1,157 282 -
Income tax 370 (158) 5,518 (3,586) 137 3,517 5,798 (48) (105) 5,645
Total Assets 165,722 133,247 42,413 71,883 10,288 94,496 518,049 21,023 4,294 543,366
Non-Current Assets 113,390 100,318 41,327 37,288 10,133 89,944 392,400 17,083 1,193 410,676
Non-Current Assets -
Additions 8,973 3,627 4,219 2,658 1,012 17,925 38,414 141 - 38,555
2014
Total sales revenue
(all
external)
* CPO 95,299 95,886 102 44,912 - 7,416 243,615 4,253 - 247,868
* Rubber 1,836 - - - - - 1,836 - - 1,836
Other income 813 697 3 37 - 2 1,552 2 - 1,554
----------- --------- ----------- --------- -------- ----------- ----------- ---------- ---------- ---------
Total revenue 97,948 96,583 105 44,949 - 7,418 247,003 4,255 - 251,258
----------- --------- ----------- --------- -------- ----------- ----------- ---------- ---------- ---------
Profit/(Loss) before
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tax 36,631 30,795 (552) 19,477 (57) (1,226) 85,068 255 (369) 84,954
BA movement (11,092) (1,886) (5,255) 694 (627) (13,449) (31,615) (2,103) - (33,718)
----------- --------- ----------- --------- -------- ----------- ----------- ---------- ---------- ---------
Profit for the year
before
tax per
consolidated
income
statement 25,539 28,909 (5,807) 20,171 (684) (14,675) 53,453 (1,848) (369) 51,236
----------- --------- ----------- --------- -------- ----------- ----------- ---------- ---------- ---------
Depreciation (2,385) (2,228) (411) (572) (33) (958) (6,587) (246) - (6,833)
Inter-segment
transactions 3,446 (2,331) (257) (671) - (1,443) (1,256) 962 294 -
Income tax (8,731) (5,775) 1,968 (4,589) 171 4,268 (12,688) 437 (287) (12,538)
Total Assets 202,675 153,730 58,922 84,371 13,093 95,096 607,887 25,398 4,279 637,564
Non-Current Assets 149,581 121,483 57,452 39,864 12,859 84,477 465,716 18,834 1,193 485,743
Non-Current Assets -
Additions 10,214 4,845 5,492 1,224 930 26,932 49,637 117 - 49,754
In year 2015, revenue from 4 customers of the Indonesian segment
represent approximately $107.2m (2014: $152.1m) of the Group's
total revenue. An analysis of these revenue is provided as below.
Although Customer 1 to 4 are over 10% of the Group total revenue,
there is no over reliance on these Customers as tenders are
performed on a monthly basis. Three of the top four customers are
the same as in the prior year.
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
2015
Customer
1 - 35,069 - - - - 35,069 - - 35,069
Customer
2 19,544 - - 13,088 - - 32,632 - - 32,632
Customer
3 2,654 15,193 - 2,004 - - 19,851 - - 19,851
Customer
4 19,633 - - - - - 19,633 - - 19,633
---------- --------- ---------- ------- ------- ----------- ---------- ----------- ----- --------
41,831 50,262 - 15,092 - - 107,185 - - 107,185
---------- --------- ---------- ------- ------- ----------- ---------- ----------- ----- --------
2014
Customer
1 - 47,941 - - - - 47,941 - - 47,941
Customer
2 32,935 - - 12,557 - - 45,492 - - 45,492
Customer
3 7,137 24,501 - 1,839 - - 33,477 - - 33,477
Customer
4 13,447 - - 11,721 - - 25,168 - - 25,168
---------- --------- ---------- ------- ------- ----------- ---------- ----------- ----- --------
53,519 72,442 - 26,117 - - 152,078 - - 152,078
---------- --------- ---------- ------- ------- ----------- ---------- ----------- ----- --------
% % % % % % % % % %
2015
Customer
1 - 17.9 - - - - 17.9 - - 17.9
Customer
2 9.9 - - 6.7 - - 16.6 - - 16.6
Customer
3 1.4 7.7 - 1.0 - - 10.1 - - 10.1
Customer
4 10.0 - - - - - 10.0 - - 10.0
---------- --------- ---------- ------- ------- ----------- ---------- ----------- ----- --------
21.3 25.6 - 7.7 - - 54.6 - - 54.6
---------- --------- ---------- ------- ------- ----------- ---------- ----------- ----- --------
2014
Customer
1 - 19.1 - - - - 19.1 - - 19.1
Customer
2 13.1 - - 5.0 - - 18.1 - - 18.1
Customer
3 2.8 9.8 - 0.7 - - 13.3 - - 13.3
Customer
4 5.4 - - 4.7 - - 10.1 - - 10.1
---------- --------- ---------- ------- ------- ----------- ---------- ----------- ----- --------
21.3 28.9 - 10.4 - - 60.6 - - 60.6
---------- --------- ---------- ------- ------- ----------- ---------- ----------- ----- --------
Save for a small amount of rubber, all the Group's operations
are devoted to oil palm. The Group's report is by geographical
area, as each area tends to have different agricultural
conditions.
6 Employees' and Directors' remuneration
2015 2014
Number number
Average numbers employed (primarily
overseas) during the year:
- full time 5,832 5,522
- part-time field workers 10,980 9,687
--------- ---------
16,812 15,209
--------- ---------
2015 2014
$000 $000
Staff costs (including Directors)
comprise:
Wages and salaries 26,691 26,725
Social security costs 880 939
Retirement benefit costs
- Indonesia 1,378 1,150
- Malaysia 58 67
--------- ---------
29,007 28,881
--------- ---------
2015 2014
$000 $000
Directors emoluments 240 248
Remuneration expense for key management
personnel 2,289 2,273
-------- -------
The Executive Director, Non-Executive Directors and senior
management (general managers and above) are considered to be the
key management personnel.
7 Earnings per ordinary share (EPS)
2015 2014
$000 $000
Profit for the year attributable
to owners of the Company before
BA adjustment 27,505 52,422
Net BA adjustment (42,402) (21,660)
------------ -----------
Earnings used in basic and diluted
EPS (14,897) 30,762
------------ -----------
Number Number
'000 '000
Weighted average number of shares
in issue in year
- used in basic EPS 39,636 39,636
- dilutive effect of outstanding
share options - 43
------------ -----------
- used in diluted EPS 39,636 39,679
------------ -----------
Basic EPS before BA adjustment 69.39cts 132.26cts
Basic EPS after BA adjustment (37.58)cts 77.61cts
Dilutive EPS before BA adjustment 69.39cts 132.12cts
Dilutive EPS after BA adjustment (37.58)cts 77.53cts
8 Dividends
2015 2014
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 11:00 ET (15:00 GMT)
$000 $000
Paid during the year
Final dividend of 3.0p per ordinary
share for the year ended 31 December
2014 (2013: 3.0p) 1,869 1,998
---------- ----------
Proposed final dividend of 1.75p
per ordinary share for the year
ended 31 December 2015 (2014: 3.0p) 1,028 1,854
---------- ----------
The proposed dividend for 2015 is subject to shareholders'
approval at the forthcoming annual general meeting and has not been
included as a liability in these financial statements.
--
9 Biological assets, property, plant and equipment
Biological Estate Office PPE
assets plant, plant, Total
Leasehold equipment equipment Construction
Mill Land Buildings & vehicle & vehicle in progress Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
Cost or valuation
At 1 January 2014 265,835 39,563 149,871 34,736 14,643 1,296 2,077 242,186 508,021
Exchange
translations (4,420) (1,252) (3,494) (894) (378) (45) (79) (6,142) (10,562)
Reclassification - - - 5,356 1 - (5,357) - -
Decrease due to
harvest (26,021) - - - - - - - (26,021)
Revaluations (7,697) - 386 - - - - 386 (7,311)
Additions 85 13,305 4,219 64 1,840 158 6,057 25,643 25,728
Development costs
capitalised 23,592 112 - - - - 322 434 24,026
Disposal /
Written
off - (72) - (219) (591) (207) - (1,089) (1,089)
----------- -------- ----------- ---------- ---------- ---------- ------------- --------- ---------
At 31 December
2014 251,374 51,656 150,982 39,043 15,515 1,202 3,020 261,418 512,792
Exchange
translations (24,611) (5,596) (16,936) (4,331) (1,721) (166) (268) (29,018) (53,629)
Reclassification - (11) - 7,477 11 - (7,477) - -
Decrease due to
harvest (25,221) - - - - - - - (25,221)
Revaluations (38,900) - 4,902 - - - - 4,902 (33,998)
Additions 63 11,161 1,727 32 702 58 5,402 19,082 19,145
Development costs
capitalised 18,733 - 14 - - - 663 677 19,410
Disposals /
Written
off (790) (298) - (119) (353) (6) - (776) (1,566)
Conversion of
rubber
to oil palm (1,638) - - - - - - - (1,638)
----------- -------- ----------- ---------- ---------- ---------- ------------- --------- ---------
At 31 December
2015 179,010 56,912 140,689 42,102 14,154 1,088 1,340 256,285 435,295
----------- -------- ----------- ---------- ---------- ---------- ------------- --------- ---------
Accumulated
depreciation
and impairment
At 1 January 2014 - 11,552 - 7,185 9,171 936 - 28,844 28,844
Exchange
translations - (312) - (255) (275) (35) - (877) (877)
Charge for the
year - 2,697 - 2,244 1,723 169 - 6,833 6,833
Disposal /
Written
off - (53) - (99) (438) (172) - (762) (762)
----------- -------- ----------- ---------- ---------- ---------- ------------- --------- ---------
At 31 December
2014 - 13,884 - 9,075 10,181 898 - 34,038 34,038
Exchange
translations - (1,496) - (1,066) (1,187) (134) - (3,883) (3,883)
Reclassification - (11) - - 11 - - - -
Charge for the
year - 2,931 - 2,270 1,432 135 - 6,768 6,768
Disposal /
Written
off - (277) - (60) (285) (6) - (628) (628)
At 31 December
2015 - 15,031 - 10,219 10,152 893 - 36,295 36,295
----------- -------- ----------- ---------- ---------- ---------- ------------- --------- ---------
Carrying amount
At 31 December
2013 265,835 28,011 149,871 27,551 5,472 360 2,077 213,342 479,177
At 31 December
2014 251,374 37,772 150,982 29,968 5,334 304 3,020 227,380 478,754
At 31 December
2015 179,010 41,881 140,689 31,883 4,002 195 1,340 219,990 399,000
Net loss arising
from changes in
fair
value of
biological
assets
At 31 December
2014 (33,718) - - - - - - - (33,718)
At 31 December
2015 (64,121) - - - - - - - (64,121)
-------- ----------- ---------- ---------- ---------- -------------
The fair value less costs to sell of FFB harvested during the
period, determined at the point of harvest is exhibited below:
2015 2014
Fair value of FFB
Crop production and yield - FFB
(mt) 900,000 857,000
Fair value of FFB ($000) 101,019 132,342
Fair value of FFB less costs to
sell ($000) 90,924 121,850
The gain arising on the fair value of FFB at the point of
harvest is recognised in the income statement within the biological
asset revaluation. A reconciliation of the amount included within
the income statement and the biological asset has been included
below:
2015 2014
$000 $000
Harvest included in the biological
asset valuation from estimated production
and pricing assumptions less costs
to sell in the prior year 25,221 26,021
Gain from actual production and
pricing 65,703 95,829
-------- ----------
Fair value of FFB harvested from
own production 90,924 121,850
-------- ----------
The decrease of $25,221,000 (2014: $26,021,000) from harvest was
included in the prior year valuation for the current year and is
therefore deducted from biological asset valuation in the current
year as the FFB is harvested. The actual fair value of harvested
FFB varies to forecast due to the changes in actual production,
actual FFB price and actual costs incurred. The gain on fair value
of the harvested FFB is written off as the FFB is processed in to
CPO.
The biological asset revaluation movement included within the
income statement is calculated as follows:
2015 2014
$000 $000
Decrease due to harvest (25,221) (26,021)
Revaluations (38,900) (7,697)
---------- ----------
Net loss arising in the income statement
from changes in fair value of biological
assets (64,121) (33,718)
---------- ----------
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 11:00 ET (15:00 GMT)
The Group engaged Muttaqin Bambang Purwanto Rozak Uswatun &
Rekan (MBPRU) with its head office located in Jakarta, Indonesia to
undertake the valuation of biological assets for both financial
years ended 31 December 2014 and 2015. Except for an adjustment on
discount rate, CPO price and the measurement of the notional rent
which are determined by the Directors, the valuation was carried
out independently by MBPRU who has the appropriate professional
qualifications and recent experience in the location and category
of the properties being valued. Further information of MBPRU can be
obtained from 'www.kjpp-mbpru.com'.
MBPRU was also engaged to undertake the land valuation for the
Group. For the year ended 31 December 2015, valuation was done on
land of nine subsidiaries. The increase per hectare obtained by
comparing the current valuation against the year 2014's carrying
amount were then applied to the 2014 land value of the remaining
companies in the same geographical location to derive the fair
value of land in 2015. In the year 2014, independent land valuation
was undertaken for 11 subsidiary companies in Indonesia. The
increase per hectare obtained by comparing the year 2014 valuation
against the valuation undertaken in year 2013 were then applied to
the 2013 land value of the remaining subsidiary companies in the
same geographical location to derive the fair value of land in
2014. Unplantable land was excluded in this exercise since it has
zero value. Land is valued on a rotational basis and all land is
valued by qualified valuers every two years. Had the revalued land
been measured on a historical cost basis, their net book value
would have been $42,993,000 (2014: $47,317,000).
The methodology of the biological asset valuations was using
discounted cash flow ("DCF") over the expected 20-year economic
life of the asset. The assumption applied in the valuation were,
inter alia, an assumed CPO selling price of $625/mt (2014:
$700/mt), discount rate of 16.8% (2014: 16.4%) and notional rent
equivalent to 9% (2014: 9%) of the value of planted land. The
discount rates were determined by the Directors based on their
assessment of various risks including financial, business and
country risk of where the plantations are located as well as taking
into account the Company's weighted average cost of capital. The
CPO price is normally based on the 10-year average (2014: 10-year
average) rounded to the nearest $25 based on historical
widely-quoted commodity price for CPO and represents the Directors'
best estimate of the price sustainable over the longer term.
However the CPO price for 2015 remained weak. It ended the year at
$560/mt far lower than the 10-year average CPO price at $750/mt,
therefore a benchmarking exercise was made to ensure the directors'
best estimate of the price sustainable over the longer term is
being used. The directors adopted the recommendation of the valuer
who has suggested applying a ratio of 70% of the current CPO price
and 30% of the historical price (10-year average) given the
assumption to calculate CPO price over the past 10 years is no
longer considered to be appropriate. As a result, the directors
adopted the CPO price of $625/mt which falls within the valuer's
recommended range of $600/mt to $650/mt and the World Bank forecast
of CPO price for 2016 at $600/mt. An inflation rate of 3.4% (2014:
4.0%) was applied to the second to sixth years of the DCF. The
notional rent charge is based on key capital market and property
indicators in the countries and regions of operations.
Details of the information about the fair value hierarchy in
relation to biological assets and land at 31 December are as
follows:
Level Level Level Fair value
1 2 3
$000 $000 $000 $000
At 31 December 2015
Biological assets - - 179,010 179,010
Land - - 140,689 140,689
At 31 December 2014
Biological assets - - 251,374 251,374
Land - - 150,982 150,982
There were no items classified under Level 1 and Level 2 and
thus there were no transfers between Level 1 and Level 2 during the
year.
The valuation techniques and significant unobservable inputs
used in determining the fair value measurement of biological assets
and land, as well as the inter-relationship between key
unobservable inputs and fair value, are set out in the table
below:
Item Valuation approach Inputs used Inter-relationship
between key unobservable
inputs and fair
value
----------- -------------------- ---------------- --------------------------
Land Selling prices Selling prices The higher the
of comparable of comparable selling price,
land in similar land the higher the
location adjusted fair value
for differences
in key attributes. Location, These are qualitative
The valuation legal title, inputs which require
model is based land area, significant judgement
on price per land type by professional
hectare. and topography valuer, MBPRU
----------- -------------------- ---------------- --------------------------
Biological Discounted cash CPO selling The higher the
assets flow over the price CPO selling price,
expected 20-year the higher the
economic life fair value
of the asset Discount rate
The higher the
discount rate,
Notional rent the lower the fair
value
Yield The higher the
notional rent,
the lower the fair
Overhead cost value
The higher the
yield, the higher
the fair value
The higher the
overhead cost,
the lower the fair
value
----------- -------------------- ---------------- --------------------------
There were no changes to the valuation techniques during the
period.
The fair value measurement is based on the above items' highest
and best use, which does not differ from their actual use.
The following table exhibits the sensitivity of the Group's
biological assets to the fluctuation in CPO price, discount rate,
notional rent, CPO yield and overhead cost:
2015 2014
$000 $000
A change of $50 in the price assumption
for CPO
-$50 in the price assumption (56,647) (54,021)
+$50 in the price assumption 56,670 53,993
A change of 1% in the discount
rate
-1% in the discount rate 8,900 14,182
+1% in the discount rate (8,207) (13,043)
A change of notional rent equivalent
to 1% of the value of planted land
-1% in the value of planted land 4,849 5,191
+1% in the value of planted land (4,848) (5,190)
A change of 1% in the CPO yield
-1% in the CPO yield (23,117) (28,863)
+1% in the CPO yield 23,140 28,835
A change of 1% in the overhead
cost
-1% in the overhead cost 6,272 7,468
+1% in the overhead cost (6,249) (7,496)
The estates include $483,000 (2014: $1,321,000) of interest and
$4,909,000 (2014: $5,623,000) of overheads capitalised during the
year in respect of expenditure on estates under development.
The Indonesian authorities have granted certain land
exploitation rights and operating permits for the estates. In the
case of established estates in North Sumatera these rights and
permits expire between 2023 and 2038 with rights of renewal
thereafter. As of estates in Bengkulu land titles were issued
between 1994 and 2008 and the titles expire between 2028 and 2034
with rights of renewal thereafter for two consecutive periods of 25
and 35 years respectively. In Riau, land titles were issued in 2004
and expire in 2033. In the case of PT Cahaya Pelita Andhika's
estate acquired in 2007 land titles were issued in 1996 to expire
in 2029.
Subject to compliance with the laws and regulations of
Indonesia, land rights are usually renewed. The cost of renewing
the land rights is not significant.
The land title of the estate in Malaysia is a long-term lease
expiring in 2084.
10 Posting of annual financial report
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 11:00 ET (15:00 GMT)
The Annual Financial Report will be posted to shareholders on or
before 26 May 2016. Copies of the Annual Financial Report will then
be available from the offices of the Company Secretary, CETC
(Nominees) Limited, Quadrant House, 6th Floor, 4 Thomas More
Square, London E1W 1YW and on the Company's website at
www.angloeastern.co.uk.
Copies of this announcement are available from the offices of
the Company Secretary, CETC (Nominees) Limited, Quadrant House, 6th
Floor, 4 Thomas More Square, London E1W 1YW and on the Company's
website.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKADNBBKDBQB
(END) Dow Jones Newswires
April 26, 2016 11:00 ET (15:00 GMT)
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