TIDMAEP
RNS Number : 1390L
Anglo-Eastern Plantations PLC
30 August 2012
Anglo-Eastern Plantations Plc
("AEP" or the "Group")
Interim results for the six months ended 30 June 2012
Anglo-Eastern Plantations Plc (AEP.L), which owns approximately
130,000 hectares of plantation land, primarily in Indonesia, and
operates approximately 58,200 hectares of developed plantations, is
pleased to announce the interims results for the six months to 30
June 2012.
Financial Highlights
-- Revenue of $116.0 million (1H 2011: $128.9 million), a decline of 10%;
-- Operating profit of $37.3 million (1H 2011: $52.1 million*), a fall of 28%;
-- Profit before tax $38.5 million (1H 2011: $54.1 million*) a reduction of 29%;
-- Basic earnings per share of 51.24 cts (1H 2011: 90.00 cts) down by 43%;
-- Total cash balance at 30 June 2012 was $71.5 million compared
with $85.0 millionat 30 June 2011*;
-- Total borrowings at the period end of $1.6 million, compared to $15.4m at 30 June 2011.
* The 2011 figures have been restated following a review and
amendment to the Company's accounting policies relating to the
proportionate values attributed to the Group's biological and
non-biological assets.
Commercial Highlights
-- The market average price for crude palm oil for the period
was 9% lower at $1,095/mt compared to an average of $1,198/mt for
the same period in 2011.
-- Total own crop production was 340,350mt, an increase of 8%
compared to the same period last year.
-- Bought-in crop volumes was 2% lower at 255,386mt compared to the same period in 2011.
For further information, contact:
Anglo-Eastern Plantations Plc
Dato' John Lim Ewe Chuan +44 (0)20 7216 4621
Charles Stanley Securities
Russell Cook
Karri Vuori +44 (0)20 7149 6000
Chairman's Interim Statement
Operational and financial performance
For the six months ended 30 June 2012, revenue was 10% lower at
$116.0 million compared to $128.9 million for the same period in
2011. The operating profit was 28% lower at $37.3 million (1H 2011:
$52.1 million) while profit before tax was $38.5 million, 29% lower
compared to $54.1 million for the same period in 2011.
The revenue and operating profit were reported lower mainly due
to a 9% drop in average Crude Palm Oil ("CPO") price for the 1H
2012 coupled with a 5% weakening of Indonesian Rupiah against U$
Dollar for the same period. CPO price averaged $1,095/mt for 1H
2012 compared to $1,198/mt for 1H 2011. However fresh fruit bunch
("FFB") production for the first six months of 2012 was 340,350mt,
8% higher compared to 315,787mt for 1H 2011. Bought-in crops for
the same period was 255,386mt, 2% lower than last year of
258,956mt.
The Group's balance sheet remains strong and cash flow remains
healthy despite considerable expenditure to maintain the immature
trees and new planting. As at 30 June 2012 the Group's total cash
balance was $71.5 million (1H 2011: $85.0 million) with total
borrowings of $1.6 million (1H 2011: $15.4 million), giving a net
cash position of $69.9 million, an improved position when compared
to 30 June 2011 of $69.6 million.
Earnings per share were down 43% at 51.24cts (1H 2011:
90.00cts).
Operating costs
The operating costs for the Indonesian operations were higher in
1H 2012 compared to the same period in 2011 mainly due to increase
in wages, fertilisers and general upkeep of plantations
Prior period adjustments
During the period the Company has revisited the bases of valuing
and accounting for its estate assets. As a result of this review
the directors have concluded that although the policy previously
applied gave rise to a materially accurate valuation of the
combined assets, the proportionate values attributed to the
biological and non-biological assets need to be restated.
Accordingly, the directors have concluded that prior period
adjustments are required to restate the figures previously
reported. Further details are provided in note 2.
Production and Sales
2012 2011 2011
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
mt mt mt
Oil palm production
FFB
- all estates 340,350 315,787 707,000
- bought-in or processed for
third parties 255,386 258,956 546,800
Saleable CPO 117,749 113,854 248,000
Saleable palm kernels 29,364 28,386 62,300
Oil palm sales
CPO 116,534 112,865 248,900
Palm kernels 29,111 28,238 62,200
FFB sold outside 11,194 15,356 34,300
Rubber production 365 355 870
The total FFB processed in 1H 2012 was 595,736mt, a 4% increase
compared to 574,743mt for the same period last year.
Internal crop production was higher by 8% due mainly to a 6%
increase in matured planted area to 39,771ha from 37,525ha.
Bought-in crops on the other hand was 2% lower than last year
due to more intense competition for FFB supply from small
holders.
Commodity prices
CPO price remains volatile for the 1H 2012. CPO price surged to
a new 13-month high of US$1,195/mt in April 2012 from $1,045/mt at
the beginning of the year. But the price has since dropped to
around $1,000/mt on the back of concerns over a slowing economy in
China and the European debt crisis which we anticipate may further
reduce commodity demand. The average CPO price for 1H 2012 was
$1,095/mt (1H 2011:$1,198/mt).
Rubber price averaged around $3,346/mt (1H 2011: $4,887/mt).
Development
The Group's planted areas at 30 June 2012 comprised:-
Total Mature Immature
ha ha ha
North Sumatra 19,237 15,698 3,539
Bengkulu 18,495 15,308 3,187
Riau 4,952 4,952 -
South Sumatra 3,021 - 3,021
Kalimantan 8,847 353 8,494
------- ------- ---------
Indonesia 54,552 36,311 18,241
Malaysia 3,646 3,460 186
------- ------- ---------
Total : 30 June 2012 58,198 39,771 18,427
------- ------- ---------
Total : 31 Dec 2011 57,113 39,105 18,008
------- ------- ---------
Total : 30 June 2011 54,506 37,525 16,981
------- ------- ---------
The Group's new planting for the first six months ended 30 June
2012 totalled 1,085 hectares. The slower rate of new planting is
due to a host of reasons including delay in the issuance of land
release permit (Izin Pelepasan) for two plantations in
Indonesia.
The Group plans to plant 9,000ha over the next two years from 1
January 2012. The Group's total landholding comprises 130,000ha, of
which the planted area now stands around 58,198ha (1H 2011:
54,506ha).
The construction of the two palm oil mills in North Sumatra and
Central Kalimantan announced previously will commence by 3Q
2012.
A biogas and biomass project planned for the mill in North
Sumatra costing $4.5m will also start in the 3Q 2012 upon
conclusion of agreements with the selected contractor. This project
will enhance our waste management treatment and at the same time
mitigate the emissions of biogas.
Dividend
As in previous years no interim dividend has been declared. A
final dividend of 6.0 cents per share in respect of the year to 31
December 2011 was paid on 9 July 2012.
Outlook
It is generally expected that the imminent El Nino weather
phenomenon will lead to a weaker palm oil output in Southeast Asia
and lift the CPO price from its current level during the second
half of 2012. Furthermore with India's recent purchase of palm oil
climbing to new levels and this year's soyabean output in North
America affected by unfavourably hot weather, there is room for
palm oil price to move higher still. The board remains cautiously
confident of reporting a satisfactory level of profitability and
cash flow for the second half of 2012.
Principal risks and uncertainties
The directors do not consider that the principal risks and
uncertainties have changed since the publication of the annual
report for the year ended 31 December 2011.
A more detailed explanation of the risks relevant to the Group
is on pages 13 to 16 and from 50 to 53 of the 2011 annual report
which is available at www.angloeastern.co.uk.
Madam Lim Siew Kim
Chairman
30 August 2012
Condensed Consolidated Income Statement
Restated Restated
2012 2011 2011
6 months to 30 June 6 months to 30 June Year to 31 December
(unaudited) (unaudited) (unaudited*)
----------------------------------- ----------------------------------- ------------------------------------
Result Result Result
before before before
BA BA BA BA BA BA
Continuing adjustment adjustment Total adjustment adjustment Total adjustment adjustment Total
operations Notes $000 $000 $000 $000 $000 $000 $000 $000 $000
------------------- ------ ----------- ----------- --------- ----------- ----------- --------- ----------- ----------- ----------
Revenue 115,988 - 115,988 128,896 - 128,896 259,037 - 259,037
Cost of sales (76,816) - (76,816) (75,804) - (75,804) (155,147) - (155,147)
------------------- ------ ----------- ----------- --------- ----------- ----------- --------- ----------- ----------- ----------
Gross profit 39,172 - 39,172 53,092 - 53,092 103,890 - 103,890
Biological asset
revaluation
movement (BA
adjustment) 2 - 655 655 - 1,338 1,338 - 21,056 21,056
Administration
expenses (2,567) - (2,567) (2,331) - (2,331) (5,372) - (5,372)
------------------- ------ ----------- ----------- --------- ----------- ----------- --------- ----------- ----------- ----------
Operating profit 36,605 655 37,260 50,761 1,338 52,099 98,518 21,056 119,574
Exchange (loss) /
profits 3 (152) - (152) 875 - 875 213 - 213
Finance income 1,469 - 1,469 1,546 - 1,546 3,891 - 3,891
Finance expense 4 (110) - (110) (415) - (415) (707) - (707)
------------------- ------ ----------- ----------- --------- ----------- ----------- --------- ----------- ----------- ----------
Profit before tax 5 37,812 655 38,467 52,767 1,338 54,105 101,915 21,056 122,971
Tax expense 6 (9,951) (553) (10,504) (14,162) 292 (13,870) (26,809) (4,246) (31,055)
------------------- ------ ----------- ----------- --------- ----------- ----------- --------- ----------- ----------- ----------
Profit for the
period 27,861 102 27,963 38,605 1,630 40,235 75,106 16,810 91,916
------------------- ------ ----------- ----------- --------- ----------- ----------- --------- ----------- ----------- ----------
Attributable to:
- Owners of the
parent 22,573 (2,296) 20,277 31,568 4,019 35,587 61,093 16,843 77,936
- Non-controlling
interests 5,288 2,398 7,686 7,037 (2,389) 4,648 14,013 (33) 13,980
------------------- ------ ----------- ----------- --------- ----------- ----------- --------- ----------- ----------- ----------
27,861 102 27,963 38,605 1,630 40,235 75,106 16,810 91,916
------------------- ------ ----------- ----------- --------- ----------- ----------- --------- ----------- ----------- ----------
Earnings per share
for profit
attributable
to the owners of
the
parent during the
period
- basic 8 51.24cts 90.00cts 197.11cts
- diluted 8 51.10cts 89.63cts 196.41cts
*The 31 December 2011 comparative period is based on the audited
financial statements for the year end as amended for prior year
adjustments as set out in Note 2.
Condensed Consolidated Statement of Comprehensive Income
Restated Restated
2012 2011 2011
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (unaudited*)
$000 $000 $000
----------------------------------------------- ------------ ------------ ---------------
Profit for the period 27,963 40,235 91,916
----------------------------------------------- ------------ ------------ ---------------
Other comprehensive income:
Unrealised loss on revaluation of the estates (1,850) (2,064) (48,932)
(Loss) / Profit on exchange translation of
foreign operations (13,229) 21,294 (5,670)
Deferred tax on revaluation (2,712) 12,370 23,933
----------------------------------------------- ------------ ------------ ---------------
Other comprehensive income / (expense) for
the period (17,791) 31,600 (30,669)
Total comprehensive income for the period 10,172 71,835 61,247
Attributable to:
- Owners of the parent 5,257 62,021 55,995
- Non-controlling interests 4,915 9,814 5,252
----------------------------------------------- ------------ ------------ ---------------
10,172 71,835 61,247
----------------------------------------------- ------------ ------------ ---------------
*The 31 December 2011 comparative period is based on the audited
financial statements for the year end as amended for prior year
adjustments as set out in Note 2.
Condensed Consolidated Statement of Financial Position
Restated Restated Restated
2012 2011 2011 2010
as at 30 as at 31 December
as at 30 June June as at 31 December
Notes (unaudited) (unaudited) (unaudited*) (unaudited*)
$000 $000 $000 $000
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
Non-current assets
Biological assets 2 246,372 212,645 235,158 186,755
Property, plant and equipment 212,464 265,214 214,840 249,610
Receivables 210 1,531 1,551 1,494
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
459,046 479,390 451,549 437,859
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
Current assets
Inventories 10,306 9,143 9,439 6,820
Tax receivables 12,465 16,160 5,098 7,342
Trade and other receivables 8,650 4,723 4,877 3,356
Cash and cash equivalents 71,458 85,016 90,482 70,871
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
102,879 115,042 109,896 88,389
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
Current liabilities
Loans and borrowings (1,513) (8,938) (6,465) (15,650)
Trade and other payables (16,696) (17,696) (20,878) (15,170)
Tax liabilities (9,648) (16,878) (11,019) (5,130)
Dividend payables (2,372) - - -
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
(30,229) (43,512) (38,362) (35,950)
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
Net current assets 72,650 71,530 71,534 52,439
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
Non-current liabilities
Loans and borrowings (56) (6,438) (58) (6,438)
Deferred tax liabilities (42,114) (49,808) (40,240) (59,192)
Retirement benefits - net liabilities (512) (2,673) (1,593) (2,305)
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
Net assets 489,014 492,001 481,192 422,363
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
Issued capital and reserves
attributable
to owners of the parent
Share capital 15,504 15,504 15,504 15,504
Treasury shares (1,401) (1,507) (1,507) (1,507)
Share premium reserve 23,935 23,935 23,935 23,935
Share capital redemption reserve 1,087 1,087 1,087 1,087
Revaluation and exchange reserves (32,965) 30,430 (17,945) 3,996
Retained earnings 399,508 339,293 381,687 305,683
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
405,668 408,742 402,761 348,698
Non-controlling interests 83,346 83,259 78,431 73,665
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
Total equity 489,014 492,001 481,192 422,363
---------------------------------------- ------ -------------- ------------ ------------------ ------------------
*The 31 December 2011 comparative period is based on the audited
financial statements for the year end as amended for prior year
adjustments as set out in Note 2.
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent
Share
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
2010 15,504 (1,507) 23,935 1,087 149,396 (63,307) 229,060 354,168 74,495 428,663
Restatement
(Note 2) - - - - (82,093) - 76,623 (5,470) (830) (6,300)
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Balance at 31
December
2010 after
restatement 15,504 (1,507) 23,935 1,087 67,303 (63,307) 305,683 348,698 73,665 422,363
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Items of other
comprehensive
income
Unrealised
loss on
revaluation
of estates - - - - (37,097) - - (37,097) (11,835) (48,932)
Deferred tax
on
revaluation
of assets - - - - 19,840 - - 19,840 4,093 23,933
Loss on
exchange
translation - - - - - (4,684) - (4,684) (986) (5,670)
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Net loss
recognised
directly
in equity - - - - (17,257) (4,684) - (21,941) (8,728) (30,669)
Profit for
year - - - - - - 77,936 77,936 13,980 91,916
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Total
comprehensive
income
and expense
for the year - - - - (17,257) (4,684) 77,936 55,995 5,252 61,247
Acquisition of
subsidiary - - - - - - - - 2,054 2,054
Share options
exercised
/ Share based
payment
expense - - - - - - 45 45 - 45
Dividends paid - - - - - - (1,977) (1,977) (2,540) (4,517)
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Balance at 31
December
2011 15,504 (1,507) 23,935 1,087 50,046 (67,991) 381,687 402,761 78,431 481,192
Items of other
comprehensive
income
Unrealised
loss on
revaluation
of estates - - - - (1,743) - - (1,743) (107) (1,850)
Deferred tax
on
revaluation
of assets - - - - (2,669) - - (2,669) (43) (2,712)
Loss on
exchange
translation - - - - - (10,608) - (10,608) (2,621) (13,229)
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Net loss
recognised
directly
in equity - - - - (4,412) (10,608) - (15,020) (2,771) (17,791)
Profit for
period - - - - - - 20,277 20,277 7,686 27,963
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Total
comprehensive
income
and expense
for the
period - - - - (4,412) (10,608) 20,277 5,257 4,915 10,172
Share option
exercised - 106 - - - - (84) 22 - 22
Dividends
payable - - - - - - (2,372) (2,372) - (2,372)
------------ -----------
Balance at 30
June 2012 15,504 (1,401) 23,935 1,087 45,634 (78,599) 399,508 405,668 83,346 489,014
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Balance at 31
December
2010 15,504 (1,507) 23,935 1,087 149,396 (63,307) 229,060 354,168 74,495 428,663
Restatement
(Note 2) - - - - (82,093) - 76,623 (5,470) (830) (6,300)
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Balance at 31
December
2010 after
restatement 15,504 (1,507) 23,935 1,087 67,303 (63,307) 305,683 348,698 73,665 422,363
Items of other
comprehensive
income
Unrealised
loss on
revaluation
of estates - - - - (1,881) - - (1,881) (183) (2,064)
Deferred tax
on
revaluation
of assets - - - - 10,516 - 10,516 1,854 12,370
Gain on
exchange
translation - - - - - 17,799 - 17,799 3,495 21,294
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Net income
recognised
directly
in equity - - - - 8,635 17,799 - 26,434 5,166 31,600
Profit for
period - - - - - - 35,587 35,587 4,648 40,235
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Total
comprehensive
income
and expense
for the
period - - - - 8,635 17,799 35,587 62,021 9,814 71,835
Dividends paid - - - - - - (1,977) (1,977) (220) (2,197)
Balance at 30
June 2011 15,504 (1,507) 23,935 1,087 75,938 (45,508) 339,293 408,742 83,259 492,001
--------------- -------- --------- -------- ----------- ------------ ----------- --------- --------- ---------------- ---------
Condensed Consolidated Statement Cash Flows
Restated Restated
2012 2011 2011
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (unaudited*)
$000 $000 $000
-------------------------------------- ------------ ------------ ---------------
Cash flows from operating
activities
Profit before tax 38,467 54,105 122,971
Adjustments for:
BA adjustment (655) (1,338) (21,056)
Loss on disposal of
tangible fixed assets 36 73 68
Depreciation 2,783 2,341 5,124
Retirement benefit provisions - 250 536
Net finance income (1,359) (1,131) (3,184)
Unrealised (loss) / gain
in foreign exchange 152 (1,145) (927)
Tangible fixed assets written
off 786 - -
Share based payments expense - - 45
Operating cash flow before
changes in working capital 40,210 53,155 103,577
Increase in inventories (939) (1,981) (2,665)
Increase in trade and other
receivables (2,432) (1,404) (1,578)
(Decrease) / Increase in
trade and other payables (4,072) 2,124 4,818
--------------------------------------- ------------ ------------ ---------------
Cash inflow from operations 32,767 51,894 104,152
Interest paid (137) (494) (759)
Retirement benefit paid - (4) (1,289)
Overseas tax paid (18,710) (10,524) (17,917)
--------------------------------------- ------------ ------------ ---------------
Net cash flow from operations 13,920 40,872 84,187
--------------------------------------- ------------ ------------ ---------------
Investing activities
Property, plant and equipment
- purchase (29,463) (22,614) (50,086)
- sale 249 7 237
Interest received 1,469 1,546 3,891
Net cash used in investing
activities (27,745) (21,061) (45,958)
--------------------------------------- ------------ ------------ ---------------
Financing activities
Dividends paid by Company - (1,977) (1,977)
Share options exercised 22 - -
Repayment of existing long
term loans (4,855) (6,712) (15,555)
Dividends paid to non-controlling
interests - (220) (2,540)
Issue of subsidiary shares
to minority shareholder - - 2,054
Net cash used in financing
activities (4,833) (8,909) (18,018)
--------------------------------------- ------------ ------------ ---------------
Increase / (Decrease) in
cash and cash equivalents (18,658) 10,902 20,211
Cash and cash equivalents
At beginning of period 90,482 70,871 70,871
Foreign exchange (366) 3,243 (600)
--------------------------------------- ------------ ------------ ---------------
At end of period 71,458 85,016 90,482
--------------------------------------- ------------ ------------ ---------------
Comprising:
Cash at end of period 71,458 85,016 90,482
--------------------------------------- ------------ ------------ ---------------
*The 31 December 2011 comparative period is based on the audited
financial statements for the year end as amended for prior year
adjustments as set out in Note 2.
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
2011 Annual Report. The financial information for the half years
ended 30 June 2012 and 30 June 2011 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.
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 2011 included within this report does not constitute the
full statutory accounts for that period. The statutory Annual
Report and Financial Statements for 2011 have been filed with the
Registrar of Companies. The Independent Auditors' Report on that
Annual Report and Financial Statement for 2011 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.
Other than noted below, 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 year restatement
During the period the Company has revisited its policies and
methodologies for valuing and accounting for its estate assets. As
a result, the directors have concluded that although the policies
and methodologies previously applied gave rise to a materially
accurate valuation of the combined assets, the proportions of the
total value attributed to the biological and non-biological assets
need to be restated. Accordingly, the directors have concluded that
in accordance with the requirements of IAS 8 (Accounting Policies,
Changes in Accounting Estimates and Errors), prior period
adjustments are required to restate the figures previously
reported.
Former policy and methodology
Estates comprise biological assets and non-biological plantation
assets including land, infrastructure and mills. In previous
periods, an overall estate valuation was determined based upon a
valuation of the planted and unplanted areas using a discounted
cash flow method. The value of the biological assets was estimated
as a proportion of the overall estate value using percentages
derived from historic data. For a plantation with a mill, the
biological asset portion was estimated at 18% of the estate value
while for a plantation without a mill, it was estimated at 23%. The
movement in valuation of biological assets was charged or credited
to the income statement for the relevant period. The movement in
valuation of non-biological assets (excluding mills which were
carried at depreciated cost) was transferred to the revaluation
reserve.
Revised policy and methodology
For the current period, rather than valuing the entire estate
and then estimate the amount attributable to its biological and
non-biological components using the percentages noted above, the
group has changed to an approach of valuing and accounting for the
components separately, as follows:
-- 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. 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. No account is taken in the
valuation of future replanting. As in previous periods, the
movement in valuation surplus of biological assets is charged or
credited to the income statement for the relevant period.
-- Estate land - is initially recognised at cost, including
related transaction costs. It is subsequently carried at fair value
on an open market basis. Land is not depreciated. As in previous
periods, any surplus or deficit on revaluation of estate land is
transferred to the revaluation reserve, except that a deficit which
is in excess of any previously recognised surplus relating to the
same property is charged to the income statement. On the disposal
of a revalued estate, any balance remaining in the revaluation
reserve is transferred to retained earnings as a movement in
reserves.
-- Non-biological assets (excluding land) comprise oil mills,
plant, machinery and estate infrastructure - the group's historic
accounting policy in respect of oil mills was to carry them at
depreciated cost and there has been no change to that policy.
However, under the group's former policy plant, machinery and
estate infrastructure was valued as an integral part of the estate
and, along with estate land, carried at valuation in the
consolidated balance sheet as 'non-biological assets'. As noted
above, the group has now moved to a methodology whereby the
biological assets and estate land are valued as separate
components. In the opinion of the directors, it is not possible to
measure reliably the fair value of plant, machinery and estate
infrastructure as separate components. The group has therefore
changed to a policy of carrying plant, machinery and estate
infrastructure at cost less depreciation which they believe is a
more appropriate policy for the nature of the assets. Depreciation
is calculated on a straight line basis.
The Company has obtained independent valuations of its
biological assets as at 31 December 2011 and as at those relevant
period ends to support the reflection of the prior year
adjustments. In addition, the Company has obtained independent
valuations of its estate land as at 31 December 2011 on an open
market basis.
The change to a methodology of obtaining separate valuations of
the biological assets and estate land has highlighted that
biological assets and estate land need to be restated in prior
periods as a consequence of using the percentage allocation method.
A prior period adjustment has therefore been made to restate the
comparative figures to reflect the revised methodology.
Revised policy and methodology
The impact of this prior period adjustment :-
2012 2011
6 months 6 months 2011
to 30 June to 30 June Year to
31 December
After Biological Assets $000 $000 $000
------------------------------------ ------------ ------------ -------------
Profit for the period before
restatement 27,963 36,126 79,628
Change in accounting policy - 2,659 2,497
Restatement - 1,450 9,791
------------ ------------ -------------
Profit for the period after
restatement 27,963 40,235 91,916
------------ ------------ -------------
Other comprehensive income
for the period before restatement (17,791) 36,550 (53,886)
Change in accounting policy - (4,784) 23,844
Restatement - (166) (627)
------------ ------------ -------------
Other comprehensive income
for the period after restatement (17,791) 31,600 (30,669)
------------ ------------ -------------
The consequential change to carrying non-biological assets
excluding land and oil mills at cost less depreciation rather than
at a valuation represents a change in accounting policy. A prior
period adjustment has therefore been made to restate the
comparative figures in accordance with the new policy.
The impact of this prior period adjustment:-
2012 2011
6 months 6 months 2011
to 30 June to 30 June Year to
31 December
Before Biological Assets $000 $000 $000
------------------------------ ------------ ------------ -------------
Profit for the period before
restatement 27,861 35,946 72,609
Change in accounting policy - 2,659 2,497
Profit for the period after
restatement 27,861 38,605 75,106
------------ ------------ -------------
This change of accounting policy had a positive impact on the
earnings per share of 15.05cts for the period to 30 June 2011 and
32.81cts for the year to 31 December 2011.
The following table summarises the impact of these prior period
adjustments due to the implementation of the new accounting
policy:-
Property, Revaluation
Biological plant and Deferred and exchange Retained Non controlling
assets equipment tax liabilities reserve earnings interest
$000 $000 $000 $000 $000 $000
Balance as reported 1
January 2011 68,593 376,173 (61,293) 86,089 229,060 74,495
Effect of changes in
accounting policy - (126,563) 31,642 (82,093) - (12,830)
Effect of restatement 118,162 - (29,541) - 76,623 12,000
Restated balance as at 1
January 2011 186,755 249,610 (59,192) 3,996 305,683 73,665
----------- ----------- ----------------- -------------- ---------- ----------------
Balance as reported 31
December 2011 77,066 340,786 (37,299) 44,567 292,092 76,309
Effect of changes in
accounting policy and
restatement up to 1
January 2011 118,162 (126,563) 2,101 (82,093) 76,623 (830)
Effect of changes in
accounting policy during
the year - 617 (3,135) 20,155 1,892 4,241
Effect of restatement
during the year 39,930 - (1,907) (574) 11,080 (1,289)
Restated balance as at 31
December 2011 235,158 214,840 (40,240) (17,945) 381,687 78,431
----------- ----------- ----------------- -------------- ---------- ----------------
Balance as reported 30
June 2011 72,125 424,967 (61,900) 118,223 256,717 85,183
Effect of changes in
accounting policy and
restatement up to 1
January 2011 118,162 (126,563) 2,101 (82,093) 76,623 (830)
Effect of changes in
accounting policy during
the year - (33,190) 9,639 (5,571) 2,097 1,312
Effect of restatement
during the year 22,358 - 352 (129) 3,856 (2,406)
Restated balance as at 30
June 2011 212,645 265,214 (49,808) 30,430 339,293 83,259
----------- ----------- ----------------- -------------- ---------- ----------------
3. Foreign exchange
2012 2011 2011
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Average exchange rates
Rp : $ 9,171 8,743 8,763
$ : GBP 1.58 1.62 1.60
RM : $ 3.09 3.03 3.06
Closing exchange rates
Rp : $ 9,393 8,576 9,068
$ : GBP 1.57 1.61 1.55
RM : $ 3.18 3.02 3.17
4. Finance costs
2012 2011 2011
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Payable 110 415 707
------------ ------------ ---------------
5. Segment information
North South Total
Sumatra Bengkulu Sumatra Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30
June
2012
(unaudited)
Total sales
revenue
(all external) 46,401 37,835 - 28,265 - 119 112,620 2,521 - 115,141
Other income 425 76 - 303 - 4 808 39 - 847
-------- --------- -------- ------- ------- ----------- ---------- ---------
Total revenue 46,826 37,911 - 28,568 - 123 113,428 2,560 - 115,988
-------- --------- -------- ------- ------- ----------- ---------- --------- -------- --------
Profit / (loss)
before
tax 19,671 10,498 53 8,022 - 39 38,283 398 (869) 37,812
BA Movement 655
--------
Profit for the
period
before tax per
consolidated
income
statement 38,467
--------
Total Assets 181,745 174,773 47,847 60,859 11,843 52,731 529,798 24,106 8,021 561,925
Non-Current
Assets 144,168 153,554 45,101 38,164 11,217 49,813 442,017 17,029 - 459,046
6 months to 30 June 2011 (restated
& unaudited)
Total sales
revenue
(all external) 51,052 46,320 - 26,563 - - 123,935 3,970 - 127,905
Other income 359 194 - 311 - - 864 123 4 991
Total revenue 51,411 46,514 - 26,874 - - 124,799 4,093 4 128,896
-------- --------- -------- ------- ------- ----------- ---------- --------- -------- --------
Profit / (loss)
before
tax 24,181 18,055 - 9,524 - - 51,760 1,687 (680) 52,767
BA Movement 1,338
--------
Profit for the
period
before tax per
consolidated
income
statement 54,105
--------
Total Assets 204,450 175,634 41,040 58,776 7,073 64,717 551,690 40,641 2,101 594,432
Non-Current
Assets 161,723 134,124 39,384 42,091 6,917 62,394 446,633 31,394 1,363 479,390
Year to 31 December 2011 (restated
& unaudited*)
Total sales
revenue
(all external) 100,154 91,678 - 57,265 - - 249,097 7,929 - 257,026
Other income 513 485 15 811 - - 1,824 183 4 2,011
Total revenue 100,667 92,163 15 58,076 - - 250,921 8,112 4 259,037
-------- --------- -------- ------- ------- ----------- ---------- --------- -------- --------
Profit / (loss)
before
tax 45,928 34,065 18 20,377 - - 100,388 3,475 (1,948) 101,915
BA Movement 21,056
--------
Profit for the
year
before tax per
consolidated
income
statement 122,971
--------
Total Assets 174,623 167,265 51,219 64,503 11,701 59,398 528,709 26,138 6,598 561,445
Non-Current
Assets 137,086 146,433 48,904 32,189 11,629 56,917 433,158 17,028 1,363 451,549
*The 31 December 2011 comparative period is based on the audited
financial statements for the year end as amended for prior year
adjustments as set out in note 2.
In the 6 months to 30 June 2012, revenues from 4 customers of
the Indonesian segment represent approximately $62.0m of the
Group's total revenues. An analysis of these revenues is provided
below:
2012 2011
6 months 6 months
to 30 June to 30 June
(unaudited) (unaudited)
Major Customers $m % $m %
Customer 1 20.0 17.2 23.9 18.5
Customer 2 17.1 14.7 20.9 16.2
Customer 3 13.6 11.7 18.9 14.7
Customer 4 11.3 9.7 12.1 9.4
--------------------- ------- ----------- ---------- --------
Total 62.0 53.3 75.8 58.8
--------------------- ------- ----------- ---------- --------
In year 2011, revenues from 4 customers of the Indonesian
segment represent approximately $139.4m of the Group's total
revenues. An analysis of these revenues is provided below:
2011
Year
to 31 December
(audited)
Major Customers $m %
Customer 1 37.3 14.4
Customer 2 36.3 14.0
Customer 3 32.9 12.7
Customer 4 32.9 12.7
----------------------- ---------- --------
Total 139.4 53.8
----------------------- ---------- --------
6. Tax
Restated Restated
2012 2011 2011
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (unaudited*)
$000 $000 $000
Foreign corporation tax 9,950 13,550 26,318
Deferred tax adjustment 554 320 4,737
------------ ------------ ---------------
10,504 13,870 31,055
------------ ------------ ---------------
*The 31 December 2011 comparative period is based on the audited
financial statements for the year end as amended for prior year
adjustments as set out in Note 2.
7. Dividend
The final and only dividend in respect of 2011, amounting to
6.0cts per share, or $2,372,344, was paid on 9 July 2012 (2010:
5.0cts per share, or $1,976,954, paid on 28 June 2011). As in
previous years no interim dividend has been declared.
8. Earnings per ordinary share (EPS)
Restated Restated
2012 2011 2011
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (unaudited*)
Profit for the period attributable
to owners of the Company before
BA adjustment 22,573 31,568 61,093
Net BA adjustment (2,296) 4,019 16,843
------------ ------------ ---------------
Earnings used in basic and
diluted EPS 20,277 35,587 77,936
------------ ------------ ---------------
Number Number Number
'000 '000 '000
Weighted average number of
shares in issue in period
- used in basic EPS 39,570 39,539 39,539
- dilutive effect of outstanding
share options 111 166 141
------------ ------------ ---------------
- used in diluted EPS 39,681 39,705 39,680
------------ ------------ ---------------
Shares in issue at period end 39,976 39,976 39,976
Less: Treasury shares (406) (437) (437)
------------ ------------ ---------------
Shares in issue at period end
excluding treasury shares 39,570 39,539 39,539
------------ ------------ ---------------
Basic EPS before BA adjustment 57.05cts 79.84cts 154.51cts
Basic EPS after BA adjustment 51.24cts 90.00cts 197.11cts
Dilutive EPS before BA adjustment 56.89cts 79.51cts 153.96cts
Dilutive EPS after BA adjustment 51.10cts 89.63cts 196.41cts
*The 31 December 2011 comparative period is based on the audited
financial statements for the year end as amended for prior year
adjustments as set out in Note 2.
9. Post balance sheet events
On 6 May 2011, SPPT Development Sdn. Bhd. ("the Petitioner"), a
minority shareholder of Anglo-Eastern Plantations (M) Sdn Bhd,
filed a petition in the Kuala Lumpur High Court to wind-up
Anglo-Eastern Plantations (M) Sdn Bhd based on inter-alia some
alleged shareholders' disputes between the Petitioner and
Anglo-Eastern Plantations Plc. The winding-up petition is being
defended and the continued hearing on 4 July 2012 was adjourned to
September 2012 by the Court.
Apart from the above mentioned, no other major events or
transactions have occurred between 30 June 2012 and the date of
this report.
10. Report and Financial Information
Copies of the interim report for the Group for the period ended
30 June 2012 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
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