TIDMAEP
RNS Number : 7869O
Anglo-Eastern Plantations PLC
23 August 2017
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Announcement of interim results for six months ended 30 June
2017
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 128,400 hectares, has today released
its results for the six months ended 30 June 2017.
Financial Highlights
2017 2016 2016
6 months 6 months 12 months
to 30 to 30 to 31
June June December
$m $m $m
(unaudited) (unaudited (audited)
& restated)
Revenue 146.9 86.0 246.2
Profit before tax
- before biological
assets ("BA") movement 31.8 14.0 57.5
- after biological
assets movement 31.6 17.3 60.8
Earnings per share 46.24cts 14.99cts 82.16cts
before BA movement
Earnings per share 45.97cts 20.29cts 87.58cts
after BA movement
Total net assets 470.6 420.0 445.3
Enquiries:
Anglo-Eastern Plantations
Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Panmure Gordon
Andrew Godber +44 (0)20 7886 2500
Chairman's Interim Statement
I am pleased to present the interim results for the Group for
the six months to 30 June 2017.
The revenue for the six months to 30 June was $146.9 million,
71% higher than $86.0 million for the first six months of 2016. In
the same period the Group gross profit rose to $34.9 million from
$18.5 million. Overall the profit before tax for the first half of
2017 improved by 83% to $31.6 million from $17.3 million for the
corresponding period. Higher crop production and purchase of
external crops as well as higher Crude Palm Oil ("CPO") prices
lifted the profit of the Group.
Fresh Fruit Bunches ("FFB") production for the first half of
2017 was 15% higher at 436,900mt compared to 378,400mt in the same
period last year. The increase in production was due to the strong
recovery of FFB production especially in Riau and Kalimantan
regions post El-Nino weather disruption. The Group continued to buy
more external crops to maximise the utilization of its mills.
Bought-in crops increased by 84% to 486,300mt from 264,500mt.
Operational and financial performance
For the six months ended 30 June 2017, the gross profit margin
increased to 24% from 22% as the Group benefited from higher CPO
prices and a higher contribution from the purchase of external
crop.
CPO price ex-Rotterdam averaged $740/mt for the first six months
of 2017, 11% higher than $668/mt over the same period in 2016.
The amendments to IAS 16 and the amendments to IAS 41, which
came into effect on 1 January 2016, require Biological Assets that
meet the definition of bearer plants to be accounted for as
Property, Plant and Equipment in accordance with IAS 16. This was
adopted in the prior year interim and annual financial statements
for the first time and required retrospective application. The
prior year interim financial statements have been restated to
reflect the changes made in the annual financial statements which
were subject to audit. The details of the changes are disclosed in
Note 2 - Prior period's restatement.
Profit after tax for the six months ended 30 June 2017 was $23.3
million, 112% higher than $11.0 million for the first six months of
2016.
The resulting earnings per share for the period improved by 127%
to 45.97cts (1H 2016: 20.29cts).
The Group's balance sheet remains reasonably strong and cash
flow remains healthy. Net assets at 30 June 2017 were $470.6
million compared to $445.3 million at 31 December 2016. The
increase in net assets was attributed to increase in profit for the
first half of 2017.
As at 30 June 2017 the Group's total cash balance was $123.0
million (1H 2016: $93.0 million) with total borrowings of $31.2
million (1H 2016: $35.6 million), giving a net cash position of
$91.8 million, compared to $57.4 million as at 30 June 2016.
Operating costs
The operating costs per hectare for the Indonesian operations
were higher in the first half of 2017 compared to the same period
in 2016 mainly due to an increase in wages, fuel, transportation
costs and depreciation. Higher operating costs were also partly
attributed to a 1% increase in matured areas for the corresponding
period.
Production and Sales
2017 2016 2016
6 months 6 months Year
to 30
June to 30 June to 31 December
mt mt mt
Oil palm production
FFB
- all estates 436,900 378,400 897,700
- bought-in or processed
for third parties 486,300 264,500 813,700
Saleable CPO 187,400 134,100 353,100
Saleable palm kernels 44,900 30,500 81,500
Oil palm sales
CPO 192,900 130,400 345,000
Palm kernels 45,600 29,300 79,900
FFB sold outside 11,000 12,100 24,300
Rubber production 397 371 868
The Group's six mills processed a total of 912,200mt in FFB for
the first half of 2017, a 45% increase compared to 630,800mt for
the same period last year. The higher throughput was due to both
higher internal crops production and external purchases.
Overall CPO produced for the first half of 2017 was higher by
40% at 187,400mt from 134,100mt.
The Group continues to reduce its overall carbon footprint as
the two biogas plants in Bengkulu and Kalimantan are in full
operation. The biogas plant in Bengkulu with a capacity to generate
2 megawatts of electrical power will sell the surplus power to the
regional grid from the beginning of third quarter of 2017. While
the biogas plant in North Sumatera with a capacity of 1 megawatt
has sold over 3,000 MWh of surplus electricity to the National Grid
since January this year.
Commodity prices
Although the CPO price for first half of 2017 averaged $740/mt,
11% higher than last year (1H 2016: $668/mt), the price has
gradually trended downwards from the start of the year at $795/mt
to close at $645/mt on 30 June 2017. A higher CPO production for
the second half of the year amid strong competition from bumper
soybean production will likely hurt and depress the CPO price for
the remainder of the year.
Rubber price averaged $1,849/mt, 56% higher than 2016 (1H 2016:
$1,188/mt).
Development
The Group's planted areas at 30 June 2017 comprised:
Total Mature Immature
ha ha Ha
North Sumatera 19,049 14,884 4,165
Bengkulu 16,943 16,943 -
Riau 4,873 4,873 -
South Sumatera 5,778 5,037 741
Kalimantan 13,844 9,679 4,165
Bangka 703 236 467
Plasma 2,706 1,417 1,289
------- ------- ---------
Indonesia 63,896 53,069 10,827
Malaysia 3,696 3,460 236
------- ------- ---------
Total: 30 June 2017 67,592 56,529 11,063
------- ------- ---------
Total: 31 December
2016 66,674 54,217 12,457
------- ------- ---------
Total: 30 June 2016 65,561 55,842 9,719
------- ------- ---------
The Group's new planting for the first six months of 2017
totalled 781ha compared to 518ha for the same corresponding period
last year. The slower than anticipated rate of new planting is due
to protracted land compensation negotiations and also the dry
condition which was not conducive for planting.
The Group remains optimistic that planting will pick up in the
second half of 2017. The Group's total landholding comprises some
128,400ha, of which the planted area stands around 67,592ha (1H
2016: 65,561ha).
Significant capital expenditure is expected in the replanting of
over 1,700ha of old palms in North Sumatera which started in June
2017.
Dividend
As in previous years no interim dividend has been declared. The
Board is mindful that given the anticipated further capital
commitments the level of dividend needs to be balanced against the
planned expenditure. A final dividend of 3.0 pence per share in
respect of the year to 31 December 2016 was paid on 14 July
2017.
Outlook
The upside of the CPO price is limited as the industry heads
into its peak production cycle in the third quarter of 2017. The
demand of CPO from price-sensitive markets may however pick-up as
CPO price discount to soybean oil has widened.
The Board looks forward to reporting further progress in its
next trading update.
Others
I am pleased to advise that after an absence of one year, AEP
with effect from 1 June 2017, has been included in the FTSE Small
Cap and FTSE All Share-Index. This may potentially lead to greater
liquidity as index related funds re-weight their holding.
Principal risks and uncertainties
The directors believe the potential impact of Britain's vote to
leave the European Union, better known as Brexit, on the Group is
limited. Other than maintaining its corporate presence and listing
in United Kingdom ("UK"), all plantation and mill operations
together with marketing are primarily based in Indonesia. Unless
Brexit causes a worldwide recession which significantly reduces the
consumption of CPO, the principal risks and uncertainties have
broadly remained the same since the publication of the annual
report for the year ended 31 December 2016.
A more detailed explanation of the risks relevant to the Group
is on pages 18 to 22 and from pages 87 to 91 of the 2016 annual
report which is available at www.angloeastern.co.uk.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Market Abuse
Regulation 596/2014.
Madam Lim Siew Kim
Chairman
23 August 2017
Responsibility Statements
We confirm that to the best of our knowledge:
a) The unaudited interim financial statements have been prepared
in accordance with IAS34: Interim Financial Reporting as adopted by
the European Union;
b) The Chairman's statement includes a fair review of the
information required by DTR 4.2.7R (an indication of important
events during the first six months and a description of the
principal risks and uncertainties for the remaining six months of
the year); and
c) The interim financial statements include a fair review of the
information required by DTR 4.2.8R (material related party
transactions in the six months ended 30 June 2017 and any material
changes in the related party transactions described in the last
Annual Report) of the Disclosure and Transparency Rules of the
United Kingdom Financial Services Authority.
By order of the Board
Dato' John Lim Ewe Chuan
Executive Director, Corporate Finance and Corporate Affairs
23 August 2017
Condensed Consolidated Income Statement
2017 2016 2016
6 months to 30 June 6 months to 30 June Year to 31 December
(unaudited) (unaudited & restated) (audited)
--------------------------------- ------------------------------- ---------------------------------
Notes Result Result Result
Continuing before before before
operations BA BA BA BA BA BA
movement movement Total movement movement Total movement movement Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ----------
Revenue 146,870 - 146,870 86,044 - 86,044 246,210 - 246,210
Cost of sales (111,826) (181) (112,007) (70,815) 3,288 (67,527) (184,337) 3,383 (180,954)
----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ----------
Gross profit 35,044 (181) 34,863 15,229 3,288 18,517 61,873 3,383 65,256
Administration
expenses (3,269) - (3,269) (3,355) - (3,355) (6,653) - (6,653)
Impairment
losses (1,596) - (1,596) (1,722) - (1,722) (2,740) - (2,740)
----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ----------
Operating profit 30,179 (181) 29,998 10,152 3,288 13,440 52,480 3,383 55,863
Exchange gains 156 - 156 1,244 - 1,244 845 - 845
Finance income 2,390 - 2,390 3,406 - 3,406 5,881 - 5,881
Finance expense 4 (913) - (913) (835) - (835) (1,743) - (1,743)
----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ----------
Profit before
tax 31,812 (181) 31,631 13,967 3,288 17,255 57,463 3,383 60,846
Tax expense 6 (8,394) 45 (8,349) (5,472) (820) (6,292) (16,021) (844) (16,865)
----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ----------
Profit for the
period 23,418 (136) 23,282 8,495 2,468 10,963 41,442 2,539 43,981
----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ----------
Attributable
to:
- Owners of the
parent 18,328 (109) 18,219 5,940 2,104 8,044 32,563 2,150 34,713
-
Non-controlling
interests 5,090 (27) 5,063 2,555 364 2,919 8,879 389 9,268
----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ----------
23,418 (136) 23,282 8,495 2,468 10,963 41,442 2,539 43,981
----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ----------
Earnings per
share for
profit
attributable
to the owners
of the parent
during the
period
- basic 8 45.97cts 20.29cts 87.58cts
- diluted 8 45.93cts 20.29cts 87.58cts
Condensed Consolidated Statement of Comprehensive Income
2017 2016 2016
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited &
(unaudited) restated) (audited)
$000 $000 $000
-------------------------------------------------- ------------ ------------- ---------------
Profit for the period 23,282 10,963 43,981
--------------------------------------------------- ------------ ------------- ---------------
Other comprehensive income
Items may be reclassified to profit
or loss:
Gain on exchange translation of
foreign operations 4,606 18,950 8,860
--------------------------------------------------- ------------ ------------- ---------------
Net other comprehensive income
may be reclassified to profit or
loss 4,606 18,950 8,860
--------------------------------------------------- ------------ ------------- ---------------
Items not to be reclassified to
profit or loss:
Unrealised (loss) / gain on revaluation
of leasehold land, net of tax (795) (1,126) 1,752
Remeasurement of retirement benefits
plan, net of tax - - (567)
--------------------------------------------------- ------------ ------------- ---------------
Net other comprehensive (expense)
/ income not being reclassified
to profit or loss (795) (1,126) 1,185
--------------------------------------------------- ------------ ------------- ---------------
Total other comprehensive income
for the period, net of tax 3,811 17,824 10,045
Total comprehensive income for
the period 27,093 28,787 54,026
Attributable to:
- Owners of the parent 21,049 22,155 43,099
- Non-controlling interests 6,044 6,632 10,927
--------------------------------------------------- ------------ ------------- ---------------
27,093 28,787 54,026
-------------------------------------------------- ------------ ------------- ---------------
Condensed Consolidated Statement of Financial Position
2017 2016 2016
as at 30 June as at 30 June as at 31 December
(unaudited
(unaudited) & restated) (audited)
$000 $000 $000
-------------------------------- --- --------------- -------------- ------------------
Non-current assets
Property, plant and equipment 361,270 355,030 356,790
Receivables 5,248 3,565 3,891
Deferred tax assets 15,883 11,235 13,451
-------------------------------- --- --------------- -------------- ------------------
382,401 369,830 374,132
-------------------------------- --- --------------- -------------- ------------------
Current assets
Inventories 8,257 8,147 9,219
Tax receivables 33,664 22,856 26,695
Biological assets 6,995 7,195 7,107
Trade and other receivables 8,903 8,460 5,767
Cash and cash equivalents 123,041 92,994 118,176
-------------------------------- --- --------------- -------------- ------------------
180,860 139,652 166,964
-------------------------------- --- --------------- -------------- ------------------
Current liabilities
Loans and borrowings (7,234) (4,391) (6,203)
Trade and other payables (15,459) (14,508) (16,054)
Tax liabilities (7,500) (3,690) (8,974)
Dividend payables (1,515) (1,003) -
-------------------------------- --- --------------- -------------- ------------------
(31,708) (23,592) (31,231)
-------------------------------- --- --------------- -------------- ------------------
Net current assets 149,152 116,060 135,733
-------------------------------- --- --------------- -------------- ------------------
Non-current liabilities
Loans and borrowings (24,000) (31,234) (27,875)
Deferred tax liabilities (29,688) (29,393) (30,063)
Retirement benefits - net
liabilities (7,257) (5,241) (6,666)
-------------------------------- --- --------------- -------------- ------------------
(60,945) (65,868) (64,604)
-------------------------------- --- --------------- -------------- ------------------
Net assets 470,608 420,022 445,261
-------------------------------- --- --------------- -------------- ------------------
Issued capital and reserves
attributable to owners of
the parent
Share capital 15,504 15,504 15,504
Treasury shares (1,171) (1,171) (1,171)
Share premium 23,935 23,935 23,935
Capital redemption reserve 1,087 1,087 1,087
Revaluation reserves 60,322 58,583 61,038
Exchange reserves (216,024) (211,874) (219,570)
Retained earnings 498,992 456,103 482,288
-------------------------------- --- --------------- -------------- ------------------
382,645 342,167 363,111
Non-controlling interests 87,963 77,855 82,150
-------------------------------- --- --------------- -------------- ------------------
Total equity 470,608 420,022 445,261
-------------------------------- --- --------------- -------------- ------------------
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent
-----------------------------------------------------------------------------------------------
Capital Foreign Non-controlling
Share Treasury Share redemption Revaluation exchange Retained interests Total
capital shares premium reserve reserves reserves earnings Total equity
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ---------
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
Restatement (note
2) - - - - (22) 7,516 (55,830) (48,336) (9,009) (57,345)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Balance at 31 December
2015 after restatement 15,504 (1,171) 23,935 1,087 59,572 (226,974) 449,062 321,015 73,598 394,613
---------------------------------------------------------- ---------- ---------- --------- ---------------- -----------
Items of other comprehensive
income:
* Unrealised gain on revaluation of leasehold land,
net
of tax - - - - 1,466 - - 1,466 286 1,752
* Remeasurement of retirement benefits plan, net of
tax - - - - - - (484) (484) (83) (567)
* Gain on exchange translation of foreign operations - - - - - 7,404 - 7,404 1,456 8,860
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
income / (expense) - - - - 1,466 7,404 (484) 8,386 1,659 10,045
Profit for the year - - - - - - 34,713 34,713 9,268 43,981
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive
income for the year - - - - 1,466 7,404 34,229 43,099 10,927 54,026
Dividends paid - - - - - - (1,003) (1,003) (2,375) (3,378)
----------------------------------------------------------
Balance at 31 December
2016 15,504 (1,171) 23,935 1,087 61,038 (219,570) 482,288 363,111 82,150 445,261
--------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Items of other comprehensive
income:
* Unrealised loss on revaluation of leasehold land,
net
of tax - - - - (716) - - (716) (79) (795)
* Gain on exchange translation of foreign operations - - - - - 3,546 - 3,546 1,060 4,606
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
(expense) / income - - - - (716) 3,546 - 2,830 981 3,811
Profit for the period - - - - - - 18,219 18,219 5,063 23,282
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive
(expense) / income
for the period - - - - (716) 3,546 18,219 21,049 6,044 27,093
Dividend payable - - - - - - (1,515) (1,515) (231) (1,746)
Balance at 30 June
2017 15,504 (1,171) 23,935 1,087 60,322 (216,024) 498,992 382,645 87,963 470,608
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Attributable to owners of the parent
-----------------------------------------------------------------------------------------------
Capital Foreign Non-controlling
Share Treasury Share redemption Revaluation exchange Retained interests Total
capital shares premium reserve reserves reserves earnings Total Equity
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ---------
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
Restatement (note
2) - - - - (22) 7,516 (55,830) (48,336) (9,009) (57,345)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Balance at 31 December
2015 after restatement 15,504 (1,171) 23,935 1,087 59,572 (226,974) 449,062 321,015 73,598 394,613
Items of other comprehensive
income:
* Unrealised loss on revaluation of leasehold land,
net
of tax - - - - (989) - - (989) (137) (1,126)
* Gain on exchange translation of foreign operations - - - - - 15,100 - 15,100 3,850 18,950
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
(expense) / income - - - - (989) 15,100 - 14,111 3,713 17,824
Profit for the period - - - - - - 8,044 8,044 2,919 10,963
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive
(expense) / income
for the period - - - - (989) 15,100 8,044 22,155 6,632 28,787
Dividends payable - - - - - - (1,003) (1,003) (2,375) (3,378)
Balance at 30 June
2016 after restatement 15,504 (1,171) 23,935 1,087 58,583 (211,874) 456,103 342,167 77,855 420,022
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Condensed Consolidated Statement of Cash Flows
2017 2016 2016
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited
(unaudited) & restated) (audited)
$000 $000 $000
--------------------------------- ------------ ------------- ---------------
Cash flows from operating
activities
Profit before tax 31,631 17,255 60,846
Adjustments for:
Biological assets
movement 181 (3,288) (3,383)
Gain on disposal of
property, plant and
equipment (7) (2) (13)
Depreciation 8,050 7,516 15,677
Retirement benefits
provisions 680 502 1,700
Net finance income (1,477) (2,571) (4,138)
Unrealised gain in
foreign exchange (156) (1,244) (845)
Property, plant and
equipment written
off 88 54 731
Impairment losses 1,596 1,722 2,740
Operating cash flow
before changes in
working capital 40,586 19,944 73,315
Decrease / (Increase)
in inventories 1,044 (1,140) (2,353)
Increase in non-current,
trade and other receivables (4,597) (3,888) (1,460)
Decrease in trade
and other payables (734) (3,630) (1,749)
--------------------------------- ------------ ------------- ---------------
Cash inflow from operations 36,299 11,286 67,753
Interest paid (913) (835) (1,743)
Retirement benefits
paid (148) - (250)
Overseas tax paid (19,350) (15,689) (27,133)
--------------------------------- ------------ ------------- ---------------
Net cash from / (used
in) operations 15,888 (5,238) 38,627
--------------------------------- ------------ ------------- ---------------
Investing activities
Property, plant and
equipment
- purchases (11,628) (13,366) (30,484)
- sales 81 58 931
Interest received 2,390 3,406 5,881
Net cash used in investing
activities (9,157) (9,902) (23,672)
--------------------------------- ------------ ------------- ---------------
Financing activities
Dividends paid by
Company - (1,003) (1,003)
Dividends paid to
non-controlling interests (202) (1,372) (2,375)
Drawdown of long term
loans - 1,250 1,250
Repayment of existing
long term loans (2,844) (250) (1,797)
Net cash used in financing
activities (3,046) (1,375) (3,925)
------------------------------- -------- --------- ------------
Increase / (Decrease)
in cash and cash equivalents 3,685 (16,515) 11,030
Cash and cash equivalents
At beginning of period 118,176 104,614 104,614
Foreign exchange 1,180 4,895 2,532
------------------------------- -------- --------- ------------
At end of period 123,041 92,994 118,176
------------------------------- -------- --------- ------------
Comprising:
Cash at end of period 123,041 92,994 118,176
------------------------------- -------- --------- ------------
Notes to the interim statements
1. Basis of preparation of interim financial statements
These interim consolidated financial statements have been
prepared in accordance with IAS 34, "Interim Financial Reporting",
as adopted by the European Union. They do not include all
disclosures that would otherwise be required in a complete set of
financial statements and should be read in conjunction with the
2016 Annual Report. The financial information for the half years
ended 30 June 2017 and 30 June 2016 does not constitute statutory
accounts within the meaning of Section 434(3) of the Companies Act
2006 and has been neither audited nor reviewed pursuant to guidance
issued by the Auditing Practices Board.
Basis of preparation
The annual financial statements of Anglo-Eastern Plantations Plc
are prepared in accordance with IFRSs as adopted by the European
Union. The comparative financial information for the year ended 31
December 2016 included within this report does not constitute the
full statutory accounts for that period. The statutory Annual
Report and Financial Statements for 2016 have been filed with the
Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Financial Statements for 2016 was 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.
Changes in accounting standards
The same accounting policies, presentation and methods of
computation are followed in these condensed consolidated financial
statements as were applied in the Group's latest annual audited
financial statements.
After making enquiries, the directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue operations for the foreseeable future. For this reason,
they continue to adopt the going concern basis in preparing the
financial statements.
2. Prior period's restatement
The amendments to IAS 16 and the amendments to IAS 41, which
came into effect on 1 January 2016, require Biological Assets that
meet the definition of bearer plants to be accounted for as
Property, Plant and Equipment in accordance with IAS 16. This was
adopted in the prior year interim and annual financial statements
for the first time and required retrospective application. The
prior year interim financial statements have been restated to
reflect the changes made in the annual financial statements which
were subject to audit.
The effects of the restatements are summarised as follows:
2016 2015
6 months to Year to 31
30 June December
(unaudited (audited &
& restated) restated)
$000 $000
Impact on condensed
consolidated income
statement
Profit / (Loss) for
the period before
restatement 14,002 (13,429)
----------------------------- ------------- -----------
Effect of change in
restatement:
Cost of sales (480) (6,787)
Biological assets
movement - 63,389
Administration expenses (17) 196
Impairment losses (1,722) (12,470)
Tax expense (820) (15,847)
----------------------------- ------------- -----------
(3,039) 28,481
Profit for the period
after restatement 10,963 15,052
----------------------------- ------------- -----------
2016 2015
6 months to Year to 31
30 June December
(unaudited (audited &
& restated) restated)
Impact on earnings
per share
Basic EPS before BA
movement (4.09)cts (43.50)cts
Basic EPS after BA
movement (7.09)cts 62.24cts
Diluted EPS before
BA movement (4.09)cts (43.52)cts
Diluted EPS after
BA movement (7.09)cts 62.22cts
2016 2015
6 months to Year to 31
30 June December
(unaudited (audited &
& restated) restated)
$000 $000
Impact on condensed
consolidated statement
of comprehensive income
Other comprehensive
income / (expense)
for the period before
restatement 16,696 (50,585)
---------------------------------- ------------- -----------
Effect of change in
restatement:
Unrealised gain on
revaluation of leasehold
land 390 -
Loss on exchange translation
of foreign operations 1,136 8,858
Deferred tax on revaluation (398) (40)
---------------------------------- ------------- -----------
1,128 8,818
---------------------------------- ------------- -----------
Other comprehensive
income / (expense)
for the period after
restatement 17,824 (41,767)
---------------------------------- ------------- -----------
Restated
Balance balance
as reported at
30 June Effect 30 June
2016 of restatement 2016
$000 $000 $000
Impact on condensed
consolidated statement
of financial position
Property, plant and
equipment 329,788 25,242 355,030
Deferred tax (16,506) (1,652) (18,158)
Revaluation reserves (58,587) 4 (58,583)
Exchange reserves 211,615 259 211,874
Retained earnings (433,069) (23,034) (456,103)
Non-controlling interests (77,036) (819) (77,855)
Restated
Balance balance
as reported at
31 December Effect 31 December
2015 of restatement 2015
$000 $000 $000
Impact on condensed
consolidated statement
of financial position
Non-current assets
- Biological assets 179,010 (179,010) -
Property, plant and
equipment 219,990 116,454 336,444
Deferred tax (20,911) 1,538 (19,373)
Current assets - Biological
assets - 3,673 3,673
Revaluation reserves (59,594) 22 (59,572)
Exchange reserves 234,490 (7,516) 226,974
Retained earnings (504,892) 55,830 (449,062)
Non-controlling interests (82,607) 9,009 (73,598)
3. Foreign exchange
2017 2016 2016
6 months 6 months Year
to 30 to 30
June June to 31 December
(unaudited) (unaudited) (audited)
Average exchange rates
Rp : $ 13,331 13,420 13,307
$ : GBP 1.26 1.43 1.35
RM : $ 4.39 4.10 4.14
Closing exchange rates
Rp : $ 13,319 13,180 13,436
$ : GBP 1.30 1.34 1.23
RM : $ 4.29 4.03 4.49
4. Finance expense
2017 2016 2016
6 months 6 months Year
to 30 to 30
June June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Payable 913 835 1,743
------------ ------------ ---------------
5. Segment information
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2017
(unaudited)
Total sales revenue
(all external)
* CPO, palm kernel
and FFB 46,827 51,956 - 25,930 51 18,083 142,847 1,588 - 144,435
* Rubber 745 - - - - - 745 - - 745
* Shell nuts 373 365 2 434 - 8 1,182 - - 1,182
* Biomass products 451 57 - - - - 508 - - 508
Total revenue 48,396 52,378 2 26,364 51 18,091 145,282 1,588 - 146,870
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss)
before tax 10,414 13,319 (1,921) 7,351 (293) 3,237 32,107 288 (583) 31,812
BA movement 131 (17) (41) (167) (1) (62) (157) (24) - (181)
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss)
for the period
before
tax per
consolidated
income statement 10,545 13,302 (1,962) 7,184 (294) 3,175 31,950 264 (583) 31,631
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Depreciation (1,959) (2,026) (1,356) (461) (79) (1,875) (7,756) (294) - (8,050)
Impairment losses - - 446 - (110) (1,932) (1,596) - - (1,596)
Inter-segment
transactions 2,559 (1,058) (402) (304) (40) (831) (76) 46 30 -
Income tax (4,448) (2,918) 1,906 (2,517) 86 (214) (8,105) (102) (142) (8,349)
Total assets 182,406 140,227 57,161 36,290 11,913 107,376 535,373 22,334 5,554 563,261
Non-current assets 104,221 75,796 55,473 20,108 11,699 97,809 365,106 16,717 578 382,401
Non-current assets
- additions 3,353 1,171 997 368 222 5,495 11,606 22 - 11,628
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2016
(unaudited & restated)
Total sales revenue
(all external)
* CPO, palm kernel
and FFB 33,302 30,876 1 11,771 5 7,526 83,481 1,637 - 85,118
* Rubber 441 - - - - - 441 - - 441
* Shell nuts 90 252 - 27 - 9 378 - - 378
* Biomass products 107 - - - - - 107 - - 107
Total revenue 33,940 31,128 1 11,798 5 7,535 84,407 1,637 - 86,044
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Profit / (loss)
before tax 8,205 6,434 (2,730) 2,974 (281) (1,315) 13,287 65 615 13,967
BA movement 1,142 1,533 50 441 - 40 3,206 82 - 3,288
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Profit / (loss)
for the period
before
tax per
consolidated
income statement 9,347 7,967 (2,680) 3,415 (281) (1,275) 16,493 147 615 17,255
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Depreciation (1,951) (1,939) (1,228) (439) (32) (1,597) (7,166) (330) - (7,516)
Impairment losses - - 201 - (165) (1,758) (1,722) - - (1,722)
Inter-segment
transactions 1,683 (1,060) (384) (305) - (637) (703) 673 30 -
Income tax (4,101) (1,692) 1,622 (1,397) 25 663 (4,880) (135) (1,277) (6,292)
Total assets 163,970 112,878 52,434 38,341 11,720 102,167 481,510 23,277 4,695 509,482
Non-current assets 100,264 73,974 50,706 20,138 11,499 94,255 350,836 18,416 578 369,830
Non-current assets
- additions 3,353 1,576 1,228 525 254 6,399 13,335 31 - 13,366
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Year to 31 December 2016
(audited)
Total sales revenue
(all external)
* CPO, palm kernel
and FFB 88,465 86,564 3 40,169 27 24,342 239,570 3,450 - 243,020
* Rubber 1,149 - - - - - 1,149 - - 1,149
* Shell nuts 628 736 1 205 - 147 1,717 - - 1,717
* Biomass products 324 - - - - - 324 - - 324
Total revenue 90,566 87,300 4 40,374 27 24,489 242,760 3,450 - 246,210
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Profit / (loss)
before tax 23,219 24,785 (4,695) 12,861 (602) 1,623 57,191 296 (24) 57,463
BA movement 628 1,421 144 653 2 431 3,279 104 - 3,383
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Profit / (loss)
for the period
before
tax per
consolidated
income statement 23,847 26,206 (4,551) 13,514 (600) 2,054 60,470 400 (24) 60,846
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Depreciation (4,029) (4,096) (2,505) (898) (85) (3,414) (15,027) (650) - (15,677)
Impairment losses - - 693 - (335) (3,098) (2,740) - - (2,740)
Inter-segment
transactions 3,828 (2,117) (767) (609) - (1,334) (999) 604 395 -
Income tax (9,275) (5,744) 3,410 (4,531) 90 644 (15,406) (81) (1,378) (16,865)
Total assets 175,332 129,428 54,280 41,887 11,732 103,906 516,565 20,944 3,587 541,096
Non-current assets 101,843 76,048 52,862 20,044 11,520 94,974 357,291 16,263 578 374,132
Non-current assets
- additions 7,956 5,544 2,638 857 657 12,771 30,423 61 - 30,484
In the 6 months to 30 June 2017, revenues from 4 customers of
the Indonesian segment represent approximately $78.5m (1H 2016:
$47.6m) of the Group's total revenues. In the year of 2016,
revenues from 4 customers of the Indonesian segment represent
approximately $114.1m of the Group's total revenues. An analysis of
these revenues is provided below. Although Customer 1 to 2 are over
10% of the Group's total revenue, there is no over reliance on
these Customers as tenders are performed on a monthly basis. Two of
the top four customers are the same as in the year to 31 December
2016.
2017 2016 2016
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$m % $m % $m %
Major Customers
Customer 1 28.2 19.2 16.9 19.6 39.1 15.9
Customer 2 23.3 15.9 13.6 15.8 27.0 11.0
Customer 3 14.6 9.9 10.7 12.4 24.2 9.9
Customer 4 12.4 8.4 6.4 7.5 23.8 9.7
------------------ --------- --------- ---------- -------- -------- --------
Total 78.5 53.4 47.6 55.3 114.1 46.5
------------------ --------- --------- ---------- -------- -------- --------
6. Tax expense
2017 2016 2016
6 months 6 months Year
to 30 to 30
June June to 31 December
(unaudited
(unaudited) & restated) (audited)
$000 $000 $000
Foreign corporation
tax - current year 11,049 7,963 20,438
Foreign corporation
tax - prior year - - (30)
Deferred tax adjustment
- current year (2,700) (1,671) (3,543)
8,349 6,292 16,865
------------ ------------- ---------------
7. Dividend
The final and only dividend in respect of 2016, amounting to
3.0p per share, or $1,515,140 was paid on 14 July 2017 (2015: 1.75p
per share, or $1,002,785, paid on 11 July 2016). As in previous
years no interim dividend has been declared.
8. Earnings per ordinary share (EPS)
2017 2016 2016
6 months 6 months Year
to 30 to 30
June June to 31 December
(unaudited
(unaudited) & restated) (audited)
$000 $000 $000
Profit for the year
attributable to owners
of the Company before
BA movement 18,328 5,940 32,563
BA movement (109) 2,104 2,150
------------ ------------- ---------------
Earnings used in basic
and diluted EPS 18,219 8,044 34,713
------------ ------------- ---------------
Number Number Number
'000 '000 '000
Weighted average number
of shares in issue in
period
- used in basic EPS 39,636 39,636 39,636
- dilutive effect of
outstanding share options 33 - -
------------ ------------- ---------------
- used in diluted EPS 39,669 39,636 39,636
------------ ------------- ---------------
Basic EPS before BA
movement 46.24cts 14.99cts 82.16cts
Basic EPS after BA movement 45.97cts 20.29cts 87.58cts
Dilutive EPS before
BA movement 46.20cts 14.99cts 82.16cts
Dilutive EPS after BA
movement 45.93cts 20.29cts 87.58cts
9. Fair value measurement of financial instruments
The carrying amounts and fair values of the financial
instruments which are not recognised at fair value in the Statement
of Financial Position are exhibited below:
2017 2016 2016
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Carrying Fair Carrying Fair Carrying Fair
amount value amount value amount value
$000 $000 $000 $000 $000 $000
Non-current
receivables
Due from non-controlling
interests 578 424 578 424 578 424
Due from cooperatives
under Plasma
scheme 4,670 4,394 2,987 2,843 3,313 2,973
5,248 4,818 3,565 3,267 3,891 3,397
--------- ------- ------------ ------- --------- -------
Borrowings
due after
one year
Long term
loan 24,000 23,349 31,234 31,387 27,875 27,208
--------- ------- ------------ ------- --------- -------
Financial instruments not measured at fair value includes cash
and cash equivalents, trade and other receivables, trade and other
payables, and borrowings due within one year.
Due to their short-term nature, the carrying value of cash and
cash equivalents, trade and other receivables, trade and other
payables and borrowings due within one year approximates their fair
value.
All non-current receivables and long term loan are classified as
Level 3 in the fair value hierarchy.
The valuation techniques and significant unobservable inputs
used in determining the fair value measurement of non-current
receivables and borrowings due after one year, as well as the
inter-relationship between key unobservable inputs and fair value,
are set out in the table below:
Item Valuation approach Inputs Inter-relationship
used between key
unobservable
inputs and
fair value
----------------- ---------------------- --------- --------------------
Non-current receivables
Due from Based on cash Discount The higher
non-controlling flows discounted rate the discount
interests using current rate, the
lending rate lower the
of 6% (1H 2016 fair value
and 2016: 6%)
Due from Based on cash Discount The higher
cooperatives flows discounted rate the discount
under Plasma using an estimated rate, the
scheme current lending lower the
rate of 5.56% fair value
(1H 2016: 5.57%,
2016: 5.56%)
Borrowings due after one year
Long term Based on cash Discount The higher
loan flows discounted rate the discount
using an estimated rate, the
current lending lower the
rate of 5.56% fair value
(1H 2016: 5.57%,
2016: 5.56%)
10. Report and financial information
Copies of the interim report for the Group for the period ended
30 June 2017 are available on the AEP website at
www.angloeastern.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFLITVIVFID
(END) Dow Jones Newswires
August 23, 2017 12:00 ET (16:00 GMT)
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