Plantation & General - Interim Results
September 24 1997 - 3:46AM
UK Regulatory
RNS No 2652w
PLANTATION & GENERAL INVESTMENTS PLC
24th September 1997
INTERIM STATEMENT
The group profit before tax for the half year ended 30th June 1997 amounted to
#879,000 (half year ended 30th June 1996 #359,000). Earnings per share
increased to 1.3p (half year ended 30th June 1996 0.1p).
Profits from the African plantation operations were particularly strong and
boosted by very good results from Lujeri Tea Estates which was acquired at the
end of 1996. Results from the plantations were also helped by much better tea
prices which were approximately US 30 cents per Kg (approximately 35%) higher
than the average achieved in 1996.
Overall, the coffee crops in 1997 from the group's Zimbabwe and Malawi
operations should be at a similar level to those achieved in 1996. The first
half year's results to 30th June 1997 have suffered to some extent from coffee
futures losses incurred as a result of the significant rises in coffee prices
but this will be recouped in the second half as physical coffee shipments are
made.
For some time now, the profitability of many of the group's overseas
operations has been seriously curtailed by the high local rates of inflation
with no corresponding devaluation of the national currencies. Since 30th June
1997 several devaluations have occurred. These will initially depress the
reported profits when translated at the new rates of exchange. However, since
most of the output from the various operations is sold in US dollars the
profitability of these businesses, in the medium term, should be enhanced.
P & G Industries Plc (which incorporates all of the UK manufacturing
businesses) recorded a worthwhile increase in profitability during the half
year. The Jacobs Young & Westbury division reported a particularly strong
performance, with a doubling of profits compared with the first half of 1996.
The most disappointing results came from the group's agricultural hand tool
companies, particularly those based in Uganda and Rwanda. Sales and margins
from these operations were again significantly affected by the competitive
pressures of a saturated commercial market.
Shareholders will have received various communications from the company during
the course of the last six months, culminating in the mandatory cash offer for
the company pursuant to Rule 9 of the City Code on Takeovers and Mergers, made
by Rovida International Ltd ("Rovida") and issued on 13th August. It was
announced that this offer lapsed on 3rd September 1997 and Rovida therefore
continues to hold 43.1% of the issued ordinary share capital. Exceptional
costs relating to this approach and offer amounting to #83,000 were incurred
in the half year to 30th June 1997 and further exceptional costs (including
severance costs relating to a former director) amounting to approximately
#260,000 have been incurred since 30th June 1997.
At the same time shareholders were also notified of several Board changes. Mr
Selwyn Pryor and Mr Konrad Legg retired from the Board on 4th September 1997.
Mr Rupert Pennant-Rea and Mr Derek Netherton were appointed to the Board on
31st July 1997. Mr Nicholas Roditi was appointed to the Board on 3rd
September 1997 and Mr Pennant-Rea assumed the role of Chairman on 4th
September 1997.
Crop prospects for the group's plantations in the second half will be governed
by the El Nino weather pattern, which is anticipated to result in a late start
to the new tea season. The higher tea prices currently prevailing will only
partially offset the likely reduction in crops. The results will also be
affected by exchange rate movements and exceptional costs incurred since 30th
June 1997 in relations to the Rovida offer.
As your Board intends to concentrate the group's activities in Africa, it is
preparing a major restructuring that will involve the phased sale of
non-African assets. The probable outcome of that exercise will be much
clearer by the time the full year results are reported early in 1998. The
Board will then propose a dividend for the full year, and has therefore
decided not to pay an interim dividend.
Contact: G Moores Finance Director 0171 236 6135
Plantation & General Investments plc
PLANTATION & GENERAL INVESTMENTS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months ended Six months ended Year ended
30th June 30th June 31st December
1997 1996 1996
(Unaudited) (Unaudited) (Unaudited)
------------------------------------------------------------------------------
Notes #'000 #'000 #'000
Turnover 28,823 23,630 45,193
========================================
Operating Profit 3 2,206 1,415 2,983
Share of results of
associated undertakings (144) 11 (129)
Profit on sale
of fixed assets 92 12 61
----------------------------------------
Profits before interest 2,154 1,438 2,915
Interest (1,275) (1,079) (2,000)
----------------------------------------
Profit before taxation 879 359 915
Taxation 4 (321) (141) (245)
----------------------------------------
Profit after taxation 558 218 670
Minority interests (43) (96) (121)
----------------------------------------
Profit for the period 515 122 549
Dividends - ordinary - (160) (642)
- preference (87) (89) (176)
----------------------------------------
Amount transferred to/
(from) reserves 428 (127) (269)
========================================
Earnings per ordinary
share 5
- Net basis
Basic 1.3p 0.1p 1.2p
- Nil basis
Basic 1.3p 0.1p 1.2p
Dividends per ordinary
share - 0.5p 2.0p
PLANTATION & GENERAL INVESTMENTS PLC
CONSOLIDATED BALANCE SHEET
30th June 30th June 31st December
1997 1996 1996
(unaudited) (unaudited) (Audited)
#'000 #'000 #'000
Fixed Assets 44,017 38,425 43,328
------------------------------------------
Current Assets 23,935 27,047 23,713
Creditors falling due within one year:
Debt finance (8,809) (5,601) (6,216)
Other (15,920) (13,689) (14,568)
------------------------------------------
Net Current (Liabilities)/Assets (794) 7,757 2,929
------------------------------------------
Total Assets less current liabilities 43,223 46,182 46,257
Creditors falling due after more
than one year:
Debt finance (7,507) (8,898) (11,001)
Other (954) (1,404) (921)
Provisions for liabilities and changes (135) (82) (135)
------------------------------------------
34,627 35,798 34,200
==========================================
Capital and reserves
Called up share capital 9,839 9,855 9,838
Reserves 19,580 19,857 19,062
------------------------------------------
29,419 29,712 28,900
Minority Interests 5,208 6,086 5,300
------------------------------------------
34,627 35,798 34,200
==========================================
PLANTATION & GENERAL INVESTMENTS PLC
NOTES
1 The results for the six months ended 30th June 1997 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 31st December
1996.
2 The comparative figures for the year ended 31st December 1996 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 unqualified and did
not contain a statement under Section 237(2) or (3) of the Companies Act.
3 Exceptional items
The operating profit for the half year ended 30th June 1997 included
exceptional costs of #83,000 relating to the approach and offer made by
Rovida International Ltd.
The operating profit for the year ended 31st December 1996 included an
exceptional credit of #1,835,000 relating to the depreciation adjustment on
a reassessment of the expected useful lives of tangible fixed assets.
4 Taxation Six months Six months Year
ended ended ended
30th June 30th June 31st December
1997 1996 1996
#'000 #'000 #'000
UK Corporation Tax (57) 47 88
Overseas Taxation 378 88 154
Share of associate company
taxation - 6 3
-----------------------------------------------
321 141 245
-----------------------------------------------
5 Earnings per ordinary share
Basic earnings per ordinary share for the six months ended 30th June 1997
is calculated on a weighted average of 32,034,341 ordinary shares (six
months ended 30th June 1996 31,946,860 and year ended 31st December 1996
32,013,482 ordinary shares).
6 Copies of the Interim Statement will be sent to all shareholders and
holders of loan stocks and are available at the Company's office at 81
Carter Lane, London EC4V 5EP.
END
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