RNS Number:6197P
Anglo-Eastern Plantations PLC
11 September 2003
ANGLO-EASTERN PLANTATIONS PLC - INTERIM ANNOUNCEMENT
* Anglo-Eastern Plantations, which owns approximately 24,000ha of oil palm
plantations, primarily in Indonesia, announces that the strong performance of
the second half of 2002 continued into the first half of 2003, whose pre-tax
profits (in sterling) were double those of the first half of 2002.
2003 2002 Change
Turnover (#000) 12,665 6,113 +107%
Operating profit (#000) 4,601 2,267 +103%
Pre-tax profit (#000) 4,441 2,181 +104%
Basic earnings per share (p) 6.2 2.8 +121%
Net assets per share (p) 132 139 -5%
* The profit increase reflects increases in both average CPO (crude palm
oil) prices to $420 from $360 in the first half of 2002 and FFB (fresh fruit
bunches) crops, which were some 35% better than in the first half of 2002.
* Net debt at 31 December 2002 of $1.7 million was converted into net cash
at 30 June 2003 of $0.2 million.
* The 5% fall in net assets per share reflects the weakening of sterling
to $1.65: #1 from $1.52: #1 at 30 June 2002. In US$ terms, net assets per share
increased by 3%.
* Work commenced in May on a 20mt/hr oil mill to service our three small
estates around Medan in North Sumatra, the rate of new planting in Bengkulu is
being accelerated, and the mill in Bengkulu is to be expanded by 20mt/hr early
in 2004 - some nine months earlier than orginally scheduled.
* Mr T H Chan, Chairman, commented "Operations in our estates are
satisfactory. The new management installed at our Malaysian estates are showing
results. However, oil palm crops since June have fallen due to seasonal effects,
but we still expect to maintain a substantial improvement in 2003 over 2002.
CPO prices have been holding recently around $400/mt. If they continue to hold
around that level and barring adverse circumstances, we can expect the current
improvement in profits over 2002 to continue."
Enquiries:
Anglo-Eastern Plantations plc 020-7236 2838
Rollo Barnes (Financial Director)
Bankside Consultants Limited 020-7444 4166
Charles Ponsonby
Financial overview
The strong performance of the second half of 2002 continued into the first half
of 2003. Although the average price of CPO (crude palm oil) was lower than that
in the second half of 2002, output of FFB (fresh fruit bunches) was helped by
the increasing maturity of our Bengkulu estates in South Sumatra and better
yields experienced in our Malaysian estates.
Crop output and average prices in the first half of 2003 were substantially
higher than the corresponding period in the previous year. As a result, profit
before tax for the six months to 30 June 2003 was $7.2 million (#4.4 million)
compared to $3.3 million (#2.2 million) for the same period in 2002. Turnover
was $20.4 million (#12.7 million) compared to $10.8 million (#6.1 million) for
the same period in 2002.
The results reflect FFB crops some 35% better than in the same period in 2002,
together with satisfactory prices for palm oil as well as for rubber and cocoa.
Earnings per share for the six months were 10.0 cts (6.2p) compared to 4.1 cts
(2.8p) for the same period in 2002.
As in previous years, no interim dividend is being declared.
Borrowings net of cash reduced from $1.7 million at 31 December 2002 to a cash
net surplus of $0.2 million at 30 June 2003. While cash generation from
operations has been strong, there were heavy tax payments in respect of 2002
profits together with loan repayments of $1.0 million and a dividend double that
paid in 2002.
Production and sales
2003 2002 2002
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
mt mt mt
Oil palm production
FFB
- own estates 171,491 126,823 294,062
- bought in or processed for third 66,978 36,994 99,029
parties
Saleable CPO 40,147 24,363 63,240
Oil palm sales
CPO 37,923 21,550 63,042
FFB sold outside 44,606 50,277 93,929
Other crops production
Rubber 737 653 1,491
Cocoa 80 71 193
Of the increase of 44,668 mt in total FFB production, 18,842 mt (+21%) came from
the North Sumatra estates, 21,860 mt (+90%) from Bengkulu and 3,966 mt (+30%)
from Cenderung in Malaysia. These results are all ahead of expectations and it
is particularly pleasing that this was the case in Cenderung, where previously
we have repeatedly reported weak performance.
As mentioned in the last annual report, buying outside crop in the Tasik region
of North Sumatra has become more competitive and the total increase of 29.984 mt
masks a fall of 4,005 mt for the Tasik mill. However, supplies in Bengkulu
continue to be reasonably plentiful and the total of 39,035 mt for the six
months compares with 27,452 mt in the second half of 2002.
Prices
While CPO prices for January and February averaged $450, they then fell to about
$415 by the end of June, averaging about $ 420 for the six months period. This
compares with an average of $360 for the first half of 2002 and $400 for 2002 as
a whole.
Cocoa and rubber prices have been strong, averaging 13% and 24% better than for
2002 as a whole.
Development
The group's planted areas at 30 June 2003 comprise:
Mature Immature Total
ha ha ha
North Sumatra 9,910 438 10,348
Bengkulu 8,720 1,109 9,829
---------------- --------------- -----------
18,630 1,547 20,177
Malaysia 3,267 549 3,816
---------------- --------------- -----------
Total: 30 June 2003 21,897 2,096 23,993
---------------- --------------- -----------
Total: 31 December 20,375 3,498 23,873
2002 ---------------- --------------- -----------
We have decided to accelerate the rate of new planting in Bengkulu and aim to
complete 1,000 ha during 2003, leaving plantable reseves of about 5,000ha. By
June, preparation of about 500 ha was in hand but not finally planted and
therefore the table above shows only a small increase of 120 ha in planted area.
Work commenced in May on a 20 mt/hr oil mill to service our three small estates
around Medan in North Sumatra. Completion is expected in the second half of
2004. Cost is expected to be about $2.7 million.
In view of the availability of outside crop and the improving performance of the
Bengkulu estates, we now plan to begin expanding the mill there early in 2004 to
80mt/hr capacity from 40mt/hr- some nine months earlier than originally
scheduled at an expected cost of $2.6 million.
Outlook
Operations in our estates are satisfactory. The new management installed at our
Malaysian estates is showing results. However, oil palm crops since June have
fallen due to seasonal effects, but we still expect to maintain the substantial
improvement in 2003 over 2002.
CPO prices have been holding recently around $400/mt. If they continue to hold
around that level and barring adverse circumstances, we can expect the current
improvement in profits over 2002 to continue.
Chan Teik Huat
Chairman and Chief Executive 11 September 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT
US DOLLARS STERLING
2003 2002 2002 2003 2002 2002
6 mnths 6 mnths year to 6 mnths 6 mnths year to
to 30 June to 30 June 31 Dec to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
Note $'000 $'000 $'000 #'000 #'000 #'000
Turnover 20,390 10,784 31,139 12,665 6,113 20,622
Profit before exchange
and revaluation
provisions 7,423 3,302 11,939 4,610 2,277 9,003
Exchange (losses)/ 1 (15) (15) 828 (9) (10) (548)
profits -------- -------- -------- --------- --------- --------
Operating profit 7,408 3,287 12,767 4,601 2,267 8,455
Interest - receivable 60 16 50 37 11 33
- payable (385) (303) (945) (239) (209) (626)
- capitalised 67 162 220 42 112 146
-------- -------- -------- --------- --------- --------
Profit before taxation 7,150 3,162 12,092 4,441 2,181 8,008
Taxation
Foreign corporation (2,389) (1,122) (4,170) (1,484) (774) (2,762)
tax
Foreign withholding (144) (145) (372) (89) (100) (246)
tax
Deferred tax 127 48 175 79 33 116
adjustment -------- -------- -------- --------- --------- --------
Profit after taxation 4,744 1,943 7,725 2,947 1,340 5,116
Minority interests (all
equity interests) (825) (327) (1,250) (513) (226) (828)
-------- -------- -------- --------- --------- --------
Profit attributable to
shareholders 3,919 1,616 6,475 2,434 1,114 4,288
Dividend - - (1,571) - - (1,040)
-------- -------- -------- --------- --------- --------
3,919 1,616 4,904 2,434 1,114 3,248
======== ======== ======== ========= ========= ========
Earnings per share
- basic 10.0cts 4.1cts 16.5cts 6.2p 2.8p 10.9p
- diluted 9.9cts 4.1cts 16.4cts 6.1p 2.8p 10.9p
Dividend per share 5 - - 4.0cts - - 2.58p
Av. shares in issue 39,347 39,227 39,227 39,347 39,227 39,227
('000)
NOTES
1. At 30 June 2003, there was an exchange translation surplus of
$199,000 (30 June 2002: $900,000)arising on third party US dollar borrowings by
two Indonesian subsidiaries net of cash balances. In view of the
unpredictability of the rupiah/dollar exchange rate, this has been held in
exchange reserves at 30 June 2003 pending determination of the final profit or
loss at 31 December 2003.
2. The unaudited accounts for the six months ended 30 June 2003 were
approved by the board of directors on 10 September 2003 and have been prepared
in accordance with applicable Accounting Standards in the United Kingdom. The
accounting principles applied, including the valuation of fixed assets, are
those set out in the annual report for the year ended 31 December 2002 together
with any subsequent requirements thereafter.
3. The results for the year ended 31 December 2002 are extracted from
the group's full statutory accounts for that year.
4. The financial information in this statement does not constitute
full statutory accounts within the meaning of Section 240 of the Companies Act
1985. Full statutory accounts for the year ended 31 December 2002 incorporating
an unqualified auditors' report have been delivered to the Registrar of
Companies.
5. The final and only dividend in respect of 2002 was paid on 18 June
2003.
6. Copies of the interim statement of results are available from the
company's registered office at 6/7 Queen Street, London EC4N 1SP.
CONSOLIDATED BALANCE SHEET
US DOLLARS STERLING
2003 2002 2002 2003 2002 2002
6 months 6 months year to 6 months 6 months year to
to 30 June to 30 June 31 Dec to 30 June to 30 June 31 Dec
Notes (unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
$'000 $'000 $'000 #'000 #'000 #'000
Fixed assets
Tangible assets 105,917 107,797 103,558 64,192 70,719 64,322
-------- --------- -------- --------- --------- --------
Current assets
Stocks 1,526 1,296 928 925 850 576
Debtors 3,965 3,408 2,001 2,403 2,236 1,243
Investments 290 293 234 176 192 145
Cash at bank and 9,268 1,793 8,416 5,617 1,176 5,227
in hand
-------- --------- -------- --------- --------- --------
15,049 6,790 11,579 9,121 4,454 7,191
-------- --------- -------- --------- --------- --------
Current
liabilities
Creditors:
falling due
within one year
Borrowings 7 (2,041) (1,378) (2,040) (1,237) (904) (1,267)
Other creditors (8,592) (6,136) (7,717) (5,207) (4,025) (4,793)
-------- --------- -------- --------- --------- --------
(10,633) (7,514) 9,757 (6,444) (4,929) (6,060)
-------- --------- -------- --------- --------- --------
Net current
assets/
(liabilities) 4,416 (724) 1,822 2,677 (475) 1,131
-------- --------- -------- --------- --------- --------
Total assets less
current
liabilities 110,333 107,073 105,380 66,869 70,244 65,453
Non-current
assets/
liabilities
Creditors:
falling due after
more than one
year
Borrowings (7,073) (6,196) (8,085) (4,286) (4,065) (5,022)
Deferred 1,442 1,115 1,215 873 731 755
taxation
-------- --------- -------- --------- --------- --------
Net assets 104,702 101,992 98,510 63,456 66,910 61,186
======== ========= ======== ========= ========= ========
Capital and
reserves
Called-up share 15,249 15,171 15,171 9,856 9,808 9,808
capital
Share premium 23,610 23,570 23,570 15,353 15,329 15,329
account
Share capital 1,087 1,087 1,087 663 663 663
redemption
reserve
Revaluation and
exchange
reserve 7,381 11,990 6,586 2,811 8,194 3,028
Profit and loss 38,638 31,431 34,719 23,417 20,620 21,565
account
-------- --------- -------- --------- --------- --------
Shareholders'
funds - all
equity
interests 85,965 83,249 81,133 52,100 54,614 50,393
-------- --------- -------- --------- --------- --------
Minority
interests - all
equity
interests 18,737 18,743 17,377 11,356 12,296 10,793
-------- --------- -------- --------- --------- --------
Total capital 104,702 101,992 98,510 63,456 66,910 61,186
employed ======== ========= ======== ========= ========= ========
Notes
7. (2,020) (1,180) (2,020) (1,224) (774) (1,255)
Element of
borrowings
falling due
within one year
which relate to
repayment of long
term loan
8. Shares in 39,419 39,227 39,227 39,419 39,227 39,227
issue ('000)
9. Asset value 218cts 212cts 207cts 132p 139p 128p
per share ======== ========= ======== ========= ========= ========
CONSOLIDATED CASH FLOW STATEMENT
US DOLLARS STERLING
2003 2002 2002 2003 2002 2002
6 months 6 months year to 6 months 6 months year to
to 30 June to 30 June 31 Dec to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
$'000 $'000 $'000 #'000 #'000 #'000
-------- --------- -------- --------- --------- --------
Net cash
inflow from
operating
activities 9,299 5,183 13,691 5,637 3,529 8,670
-------- --------- -------- --------- --------- --------
Returns on
investments
and servicing
of finance 60 16 50 37 11 33
Interest
received
Interest (385) (303) (942) (239) (209) (624)
paid
Interest
element of
finance lease
payments - - (3) - - (2)
-------- --------- -------- --------- --------- --------
Dividends paid
to minority
shareholders - - (263) - - (174)
-------- --------- -------- --------- --------- --------
(325) (287) (1,158) (202) (198) (767)
-------- --------- -------- --------- --------- --------
Taxation
Foreign tax (3,173) (1,856) (2,424) (1,971) (1,280) (1,605)
paid
UK tax paid (7) (6) - (4) (4) -
-------- --------- -------- --------- --------- --------
(3,180) (1,862) (2,424) (1,975) (1,284) (1,605)
-------- --------- -------- --------- --------- --------
Capital
expenditure
Payment to
acquire
tangible fixed
assets (2,496) (3,735) (6,136) (1,550) (2,575) (4,064)
Payments to - - (620) - - (411)
acquire land
Proceeds from
sale of
tangible fixed
assets 18 16 34 11 11 23
-------- --------- -------- --------- --------- --------
(2,478) (3,719) (6,722) (1,539) (2,564) (4,452)
-------- --------- -------- --------- --------- --------
Equity
dividends
paid
Parent (1,571) (785) (785) (976) (541) (520)
company -------- --------- -------- --- --------- --------- --------
Cash inflow/
(outflow)
before
financing 1,745 (1,470) 2,602 945 (1,058) 1,326
-------- --------- -------- --------- --------- --------
Financing
Employee share 118 - - 73 - -
option
subscription
(Repayment)/
drawdown of
long term
loans (1,011) 916 3,663 (628) 632 2,427
Finance lease (14) - (29) (9) - (19)
repayments -------- --------- -------- --------- --------- --------
(907) 916 3,634 (564) 632 2,408
-------- --------- -------- --------- --------- --------
Increase/
(decrease) in
cash and cash
equivalents 838 (554) 6,236 381 (426) 3,734
======== ========= ======== ========= ========= ========
Cash in hand
and at bank
less short
term
borrowings
Opening 8,416 2,149 2,180 5,227 1,493 1,493
Closing 9,254 1,595 8,416 5,608 1,067 5,227
-------- --------- -------- --------- --------- --------
Net inflow/ 838 (554) 6,236 381 (426) 3,734
(outflow) ======== ========= ======== ========= ========= ========
RECONCILIATION OF OPERATING PROFIT
TO NET CASH INFLOW FROM OPERATING ACTIVITIES
US DOLLARS
2003 2002 2002
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Operating profit 7,408 3,287 12,767
Depreciation and 1,293 1,311 2,411
amortisation
(Profit)/loss on sale of (12) (9) 5
fixed assets
Movement in market value of (56) (27) 32
investments
(Increase) in stocks (599) (696) (328)
(Increase) in debtors (287) (267) (263)
Increase/(decrease) in 1,417 1,025 (815)
creditors
Foreign exchange 135 559 (118)
------------- --------- --------
Net cash flow from operating 9,299 5,183 13,691
activities ============= ========= ========
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
US DOLLARS
2003 2002 2002
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Profit for the period 3,919 1,616 6,475
Unrealised (deficit) on (4,568) (11,845) (15,375)
revaluation of the estates
Profit on exchange 5,363 12,849 10,975
------------ ---------- --------
Total recognised gains 4,714 2,620 2,075
============ ========= ========
RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
US DOLLARS
2003 2002 2002
6 months 6 months year to
to 30 June to 30 June 31 Dec
(unaudited) (unaudited) (audited)
$'000 $'000 $'000
Total recognised gains 4,714 2,620 2,075
Dividend - - (1,571)
Issue of shares on exercise 118 - -
of employee options -------------- --------- --------
Net increase in shareholders' 4,832 2,620 504
funds -------------- --------- --------
Beginning of period 81,133 80,629 80,629
-------------- --------- --------
End of period 85,965 83,249 81,133
============== ========= ========
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END
IR ILFESADIILIV