RNS Number:0101K
Plantation & General Investmnts.PLC
14 September 2001
Plantation & General Investments Plc
Chairman's Statement
I am pleased to report better results for the half year to 30th June 2001.
Profit before tax and the hyperinflation adjustment was #1,027,000 compared with
#228,000, in the first six months of last year.
This progress has been achieved partly as a result of underlying improvements in
crop yields and quality, and despite a background of continuing poor commodity
prices. Overall tea production is up 10% on the previous year, and market prices
are down by 6%.
Eastern Highlands in Zimbabwe has recorded the biggest improvement, largely due
to the refinancing that we put in place last year. This significantly reduced
interest costs. Since then, the business has also benefited from movements in
exchange rates.
In my previous statements, I reported that some of Eastern Highlands was listed
for acquisition in the Zimbabwe Government's Land Reform Programme. Negotiations
about this continue. Although we have so far managed to maintain normal
operations, the social upheaval and uncertainty are a serious distraction to
management.
Of the UK businesses, Chillington Manufacturing, the group's wheelbarrow
manufacturer, has made a further modest advance in profits. We have plans to
develop this business in the second half of the year. Jacobs Young & Westbury,
the supplier of garden furniture, is experiencing difficult market conditions
resulting in much lower margins. Indications are that this will only be a
temporary setback, and the business is well placed for a recovery next year.
Reshaping and refinancing have again been a feature of the group's activity. The
initial development of our internet-based tea auction, eteatrade, has now been
completed and regular weekly auctions will commence in October. Khal-Amazi, the
Zambian rose grower, has now installed a further 5 hectares of greenhouses. They
will increase its production by 50 per cent, to over 700,000 stems per week.
Earlier in the year, we sold a small Indonesian rubber estate, Sampang Peundeuy.
More recently, we announced the disposal of all the group's remaining assets in
Brazil. We have also sold a surplus industrial property in the UK.
Last year's accounts were accompanied by proposals to restructure the group's
borrowings through a rights issue of convertible unsecured loan stock. This was
successfully completed, and the preference shares and loan stock due for
redemption by the end of the year have now been repaid. Over half the group's
debt is now medium term.
For the usual seasonal reasons, the Group's first half performance is not
necessarily a guide to the outcome for the full year. We are also still bearing
the startup costs of eteatrade. However, setting aside the possible effects of
further deterioration in Zimbabwe, I am cautiously optimistic that we will
report an improvement for the fall year compared to 2000.
Following the retirement of Keith Kirkman at last year's AGM, we were pleased to
report the appointment of Dr Julius Makoni, a Zimbabwean banker, to the Board in
June.
Rupert Pennant-Rea
14 September 2001
Contact for further information
R J Clothier - Chief Executive )
) 020 7246 0207
G Moores - Finance Director )
PLANTATION & GENERAL INVESTMENTS PLC
Consolidated profit & loss account
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2001 2000 2000
(Unaudited) (Unaudited) (Audited)
Note #'000 #'000 #'000
Turnover 29,253 25,948 40,820
Operating profit 2,284 1,786 1,139
Share of results of associated
undertaking - (26) (15)
Loss on disposal or closure of
operations (35) (44) (28)
Profit on disposal of investments 17 34 34
Profit before interest 2,266 1,750 1,130
Interest (1,239) (1,522) (2,339)
Monetary working capital
hyper-inflation adjustment 727 1,099 1,600
Profit before taxation 1,754 1,327 391
Taxation 2 (283) (309) (309)
Profit after taxation 1,471 1,018 82
Minority interests (66) 4 (11)
Profit for the period 1,405 1,022 71
Preference dividends - (non-equity) (81) (86) (171)
Amount transferred to/(from) reserves 1,324 936 (100)
pence pence pence
Earnings/(loss) per ordinary share 3
Basic 2.6 1.8 (0.2)
Notes to the interim statements
1. Basis of preparation of financial statements
The results for the six months ended 30 June, 2001 are unaudited. They have
been prepared on accounting bases and policies consistent with those used in
the Annual Report and Accounts for the year ended 31 December 2000. The
comparative figures for the year ended 31 December 2000 are an extract from
the full accounts for the year which have been filed with the Registrar of
Companies and on which the auditors made a report under Section 235 of the
Companies Act 1985 - such report was qualified on a technical issue concerning
directors' valuations of oversea plantations, factories and ancillary property
and did not contain a statement under Section 237(2) or (3) of the Companies
Act.
2. Taxation
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2001 2000 2000
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
UK Corporation tax (after double
taxation relief) - - -
Foreign tax 283 309 309
283 309 309
3. Earnings/(loss) per ordinary share
Basic earnings per ordinary share for the six months ended 30 June 2001 is
calculated on a weighted average of 51,783,719 ordinary shares (six months ended
30 June 2000 51,782,636 ordinary shares and year ended 31 December 2001
51,783,087 ordinary shares). The conversion of the new convertible loan stock
would be antidilutive.
4. Copies of the Interim Statement will be sent to all shareholders and holders
of the loan stock and are available at the Company's office at 81 Carter Lane,
London EC4V 5EP.
PLANTATION & GENERAL INVESTMENTS PLC
Summarised consolidated balance sheet
As at As at As at
30 June 30 June 31 December
2001 2000 2000
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Fixed assets 31,228 30,418 28,708
Current assets
Stocks 4,678 6,060 7,526
Debtors 8,310 7,424 6,623
Cash at bank and in hand 6,109 560 843
19,097 14,044 14,992
Creditors falling due within one year:
Debt finance (11,399) (4,805) (11,852)
Other (7,836) (9,109) (8,631)
Net current(liabilities)/assets (138) 130 (5,491)
Total assets less current liabilities 31,090 30,548 23,217
Creditors falling due after more than one year:
Debt finance (9,062) (7,146) (1,262)
Other (810) (1,084) (867)
Provision for liabilities and charges (16) (21) (15)
21,202 22,297 21,073
Capital and reserves
Called up share capital 12,946 14,751 14,751
Reserves 6,352 5,899 4,560
19,298 20,650 19,311
Minority interests 1,904 1,647 1,762
21,202 22,297 21,073
Statement of total recognised gains and losses
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2001 2000 2000
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Profit for the period 1,405 1,022 71
Revaluation surplus net of minority 821 1,143 5,754
interests
Exchange differences (53) (1,099) (6,013)
Total recognised gains/losses for
the period 2,173 1,066 (188)
Statement of movement in shareholders' funds
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2001 2000 2000
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Total recognised gains/losses) for 2,173 1,066 (188)
the period
Dividends (81) (86) (171)
Redemption of preference shares (1,805) - -
Costs on issue of new convertible loan (300) - -
stock
Additional costs: purchase of own shares - (44) (44)
in prior years
Net (reduction)/increase in shareholders' (13) 936 (403)
funds
Shareholders' funds at beginning of 19,311 19,714 19,714
period
Shareholders' funds at the end of period 19,298 20,650 19,311
PLANTATION & GENERAL INVESTMENTS PLC
Consolidated cash flow statement
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2001 2000 2000
(Unaudited) (Unaudited) (Audited)
#'000 #'000 #'000
Cash flow from operating activities 3,420 5,188 4,745
Returns on investments and servicing (1,402) (1,607) (2,525)
of finance
Taxation - UK corporation tax paid - - (44)
Oversea tax paid (181) (296) (272)
Net fixed asset and investment (1,612) 472 (56)
disposals/(additions)
Acquisitions and disposals 219 (12) 464
444 3,745 2,312
Financing
Issue of new convertible loan stock 7,700 - -
(net of expenses)
Redemption of preference shares (1,805) - -
Loans (net of repayments) (289) (363) 895
Capital elements of finance lease (179) (122) (257)
rentals payable
Total financing 5,427 (485) 638
Increase in cash in the period 5,871 3,260 2,950
Reconciliation of net cash flow to movement in net debt
Increase in cash in the period 5,871 3,260 2,950
Cash (inflow)/outflow from change (7,711) 363 (895)
in debt
Cash outflow from reduction in 179 122 257
finance liabilities
Change in net debt resulting from (1,661) 3,745 2,312
cash flows
New finance leases (219) (283) (320)
Exchange translation differences (201) (185) 875
Net borrowings disposed with subsidiaries - 470 -
Movement in net debt in the period (2,081) 3,747 2,867
Net debt at beginning of period (12,271) (15,138) (15,138)
Net debt at end of period (14,352) (11,391) (12,271)
(2,081) 3,747 2,867
Reconciliation of operating profit to operating cash flow
Operating profit 2,284 1,786 1,139
Depreciation 819 532 1,153
Amortisation of goodwill 27 27 55
Cost of closure of operations - (171) -
Working capital (increase)/decrease
Stocks 2,848 2,330 1,109
Debtors (1,687) 475 1,475
Creditors (900) 336 363
Exchange translation difference 43 (68) (174)
on working capital
Working capital derived from disposal 1 - (142)
of subsidiary undertakings
Disposal of tangible fixed assets (15) (59) (233)
3,420 5,188 4,745
Pgi Group (LSE:PGI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pgi Group (LSE:PGI)
Historical Stock Chart
From Jul 2023 to Jul 2024
