LENDU HOLDINGS PLC
OWNERS AND OPERATORS OF IRRIGATED-COTTON, BEEF-CATTLE AND CEREAL FARMS,
COMPRISING 26,000 HECTARES, IN QUEENSLAND AND NEW SOUTH WALES, AUSTRALIA
Announcement of unaudited interim results
for the six months ended 31 December 2002
Highlights from the chairman's statement and unaudited interim results
as follows
* Farm loss, as normal, recorded in first half since Group's main
income, from cotton, received in second half
* Profit before tax of �1,000, compared with loss of �355,000 in 2001,
owing to sale of investments realising profit of �648,000
* Transfer to Alternative Investment Market and Warendi acquisition
successfully completed in August and September 2002 respectively
* Reduced area of 1,320 hectares of cotton planted in September owing
to Australia's drought
* Harvesting due to commence shortly and 10,000-bale crop hoped for.
6,500 bales sold to date at A$515 per bale
* Cattle selling programme delayed by drought shortly to be resumed
* Since period end, sale of balance of investments completed, realising
further profit of �393,000
* Farm loss expected for the year but likely profit before tax as a
result of investment disposals
CHAIRMAN'S STATEMENT
REVIEW OF THE PERIOD
The first half proved both fruitful and challenging. It encompassed the
acquisition of Warendi, the successful transfer of the Company to the
Alternative Investment Market ("AIM") and the start of one of the most
severe droughts experienced in Australia in over a century. Fortunately,
the Group's properties were less severely affected by this than many
others.
Whilst it is naturally pleasing to record a small pre-tax profit,
compared with a loss for the first half of last year of �355,000, this
was attributable to the exceptional sale of investments, to which I
refer in more detail below. A farm loss was, as usual, recorded since
the majority of the farm's income, arising from cotton sales, is not
received until the second half. Direct cotton costs are carried forward
into the second half so that they are matched against the cotton income
but most of the other overheads are charged as they are incurred,
thereby giving rise to a loss. The farm loss was higher than last year
because it included all the overheads of the newly-acquired Warendi.
In view of the difficult season, an operating loss is expected for the
year. However, this is likely to be more than offset by the exceptional
gain on the disposal of investments.
Cotton
In view of the drought and the low level of water in the farm
reservoirs, only 1,320 hectares of cotton were planted on
Gubbagunyah/Oonavale and Warendi, less than half of what would have been
planted if the reservoirs had been full. The extreme heat and dry soil
conditions meant that more water than usual had to be released for each
irrigation, hence causing concern that there would be insufficient water
to complete the full irrigation programme for the season. In the event,
however, some welcome rains were received in December and, more
recently, in late February/early March, denoting a probable end to the
drought. As a result, about 90% of the crop will have received a full
irrigation by the end of the season and, although it is difficult to
predict the yield before harvesting has commenced, it is hoped that a
crop of some 10,000 bales will be achieved. The world cotton market has
been reasonably buoyant and to date 6,500 bales of the 2003 crop have
been sold forward at an average price of A$515 per bale, compared with
the average price attained for the 2002 crop of A$463.
Cereal and other crops
A relatively small income, amounting to A$196,355, was derived from
cereal and other crops, compared with A$171,815 for the same period last
year. This year some 480 hectares of sorghum were planted in the
irrigation areas but did not receive any irrigations. Harvesting has
recently commenced.
Cattle
A cattle trading profit of A$546,539 was recorded, compared with
A$612,808 a year ago. As I referred to in the 2002 annual report, the
new strategy with regard to the cattle is to sell the existing herd and
grass-feed young cattle owned by other operators who will pay a fee
based on weight gain. This has been decided partly in order to reduce
the increased debt level assumed with the acquisition of Warendi and
partly because, as the pastures at Woodlands/Flinton are upgraded, they
are becoming of too high a quality on which to continue to run a
breeding herd. The selling programme was delayed as a result of the
widespread drought conditions, impacting downwards on cattle values.
Fortunately, as a result of the December rains, we were not forced
sellers of the herd. Now that a significant amount of rain has recently
been received in Australia, cattle values have started to rise again and
the selling programme should shortly be resumed.
Mount Hope
The small property, Mount Hope, has now been placed on the market. It is
planned to retain part of its water entitlement and to achieve some
A$600,000 from the sale of the property and the remaining water.
Share sales
During the first half, a substantial part of the Group's shares in Rowe
Evans Investments PLC and Bertam Holdings PLC was disposed of realising
a total profit of �648,000. Since the period end, the balance of the
shares in these two companies has been sold, realising a further profit
of �393,000.
P E HADSLEY-CHAPLIN
Chairman
14 March 2003
The board announces the following unaudited results
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2002 2001 2002
�'000 �'000 �'000
Turnover 322 324 4,105
Cost of sales (664) (500) (2,859)
-------- -------- --------
Farm (loss)/profit (342) (176) 1,246
Administrative expenses (181) (123) (194)
-------- -------- --------
Operating (loss)/profit (523) (299) 1,052
Exceptional item - sale of fixed-
asset Investments 648 - -
-------- -------- --------
Profit/(loss) on ordinary
activities 125 (299) 1,052
before interest
Income from fixed-asset 2 12 50
investments
Interest receivable and similar 2 22 -
income
Interest payable and similar (128) (90) (187)
charges
-------- -------- --------
Profit/(loss) on ordinary
activities before taxation 1 (355) 915
Tax charge on profit/(loss) on
ordinary activities - - (145)
-------- -------- --------
Profit/(loss) on ordinary
activities 1 (355) 770
after taxation
Equity minority interests 81 50 (104)
-------- -------- --------
Profit/(loss) on ordinary
activities
attributable to the members of 82 (305) 666
Lendu Holdings PLC
Equity dividend proposed - - (337)
-------- -------- --------
Profit/(loss) retained for the
financial period/year 82 (305) 329
======== ======== ========
Basic and diluted earnings/(loss)
per 5p share - pence 0.61 (2.26) 4.94
======== ======== ========
All operations are classed as
continuing.
Exchange rates
�1 = Australian - average 2.83 2.81 2.70
Dollar
- period/year 2.87 2.86 2.77
end
======== ======== ========
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2002
31 31 December 30 June
December
2002 2001 2002
�'000 �'000 �'000
Fixed assets
Tangible assets 15,218 10,592 11,268
Investments 107 253 241
-------- -------- --------
15,325 10,845 11,509
-------- -------- --------
Current assets
Stocks 784 1,050 553
Debto - due within one year 259 120 537
rs
- due after more than one 2 2 2
year
Cash at bank and in hand 412 32 123
-------- -------- --------
1,457 1,204 1,215
-------- -------- --------
Creditors: Amounts falling due
within one year
Bank loans and overdraft 5,090 1,259 147
Trade creditors 194 290 214
Other creditors including
taxation and 1,760 1,682 1,804
social security
Obligations due under hire-
purchase contracts 22 45 47
Equity dividend proposed - - 337
-------- -------- --------
7,066 3,276 2,549
-------- -------- --------
Net current liabilities (5,609) (2,072) (1,334)
-------- -------- --------
Total assets less current 9,716 8,773 10,175
liabilities
Creditors: Amounts falling due
after (38) (43) (46)
more than one year
Provisions for liabilities and (139) - (147)
charges
-------- -------- --------
9,539 8,730 9,982
Equity minority interests (678) (612) (800)
-------- -------- --------
8,861 8,118 9,182
======== ======== ========
Capital and reserves
Called-up share capital 682 673 674
Share premium account 946 876 876
Revaluation reserve 2,830 2,840 2,986
Profit and loss account 4,403 3,729 4,646
-------- -------- --------
Total equity shareholders' funds 8,861 8,118 9,182
======== ======== ========
Reconciliation of movements in
shareholders' funds for the
period/year
Profit/(loss) attributable to the
members 82 (305) 666
of the Company
Equity dividend - - (337)
-------- -------- --------
82 (305) 329
Equity shares issued 78 3 4
Other recognised gains and losses
relating (481) (260) 169
to the period/year
-------- -------- -------
Net (reduction in)/addition to
equity (321) (562) 502
shareholders' funds
Opening equity shareholders' 9,182 8,680 8,680
funds
-------- -------- --------
Closing equity shareholders' 8,861 8,118 9,182
funds
======== ======== ========
CONSOLIDATED CASH-FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2002
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2002 2001 2002
�'000 �'000 �'000
Reconciliation of operating
(loss)/profit
To net cash (outflow)/inflow
from operating activities
Operating (loss)/profit (523) (299) 1,052
Depreciation charges 129 124 248
Gain on sale of tangible fixed - - (14)
assets
Provision for impairment of - - 13
investments
Increase in stocks (231) (586) (89)
Decrease/(increase) in debtors 277 (70) (487)
(Decrease)/increase in (17) 158 83
creditors
Exchange differences (46) (8) 29
-------- -------- --------
Net cash (outflow)/inflow from
operating activities (411) (681) 835
-------- -------- --------
Returns on investments and
servicing
of finance
Income from fixed-asset 2 12 50
investments
Interest received 2 22 -
Interest paid (77) (50) (113)
-------- ------- --------
Net cash outflow on returns on
investments
and servicing of finance (73) (16) (63)
-------- -------- --------
Capital expenditure and
financial investment
Purchase of tangible fixed (4,653) (151) (420)
assets
Sale of tangible fixed assets 2 8 29
Purchase of other fixed-asset (4) - -
investments
Sale of other fixed-asset 783 - -
investments
-------- -------- --------
Net cash outflow from capital
expenditure (3,872) (143) (391)
and financial investment
-------- -------- --------
Equity dividend paid (259) (31) (31)
-------- -------- --------
Net cash (outflow)/inflow (4,615) (871) 350
before financing
-------- -------- --------
Financing
New borrowings - commercial 5,157 822 1,673
bills
Capital element of hire- (45) (56) (59)
purchase payments
Repayment of borrowings - (244) - (1,985)
commercial bills
-------- -------- --------
Net cash inflow/(outflow) from 4,868 766 (371)
financing
-------- -------- --------
Increase/(decrease) in cash 253 (105) (21)
======== ======== ========
Reconciliation of net cash
flow to
movement in net debt
Increase/(decrease) in cash 253 (105) (21)
Cash (inflow)/outflow from (4,868) (766) 371
financing
-------- -------- --------
(4,615) (871) 350
Inception of new hire-purchase (14) (53) (55)
contracts
Translation differences 87 58 (34)
-------- -------- --------
Movement in net debt (4,542) (866) 261
Net debt at 1 July (1,580) (1,841) (1,841)
-------- -------- --------
Net debt at 31 December/30 (6,122) (2,707) (1,580)
June
======== ======== ========
NOTES
1) Statutory information
The financial information for the six-month periods ended 31
December 2001 and 2002 has been neither audited nor reviewed by
the Group's auditors and does not constitute accounts within the
meaning of section 240 of the Companies Act 1985. The financial
information for the year ended 30 June 2002 is abridged from the
statutory accounts which have been reported on by the Group's
auditors, Deloitte & Touche, and which have been filed with the
Registrar of Companies. The report of the auditors thereon was
unqualified and did not contain a statement under section 237(2)
or (3) of the Companies Act 1985.
2) Accounting policies
These interim accounts have been prepared on the basis of
accounting policies as set out in the annual financial statements
at 30 June 2002.
3) Distribution
The company will be circulating its interim report to
shareholders forthwith and copies may be obtained from M.P.Evans
(UK) Limited, 3 Clanricarde Gardens, Tunbridge Wells, Kent TN1
1HQ.
By order of the board
M.P.Evans (UK) Limited
Secretaries
14 March 2003