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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Anglo-eastern Plantations Plc | LSE:AEP | London | Ordinary Share | GB0000365774 | ORD 25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 4.00 | 0.54% | 744.00 | 740.00 | 744.00 | 746.00 | 742.00 | 742.00 | 24,333 | 14:31:28 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Shortng,oils,margarine, Nec | 456.93M | 79.64M | 2.0094 | 3.70 | 294.89M |
From Apr 2019 to Apr 2024
TIDMAEP
RNS Number : 1582I
Anglo-Eastern Plantations PLC
25 August 2016
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Announcement of interim results for six months ended 30 June 2016
Anglo-Eastern Plantations Plc, and its subsidiaries are a major producer of palm oil and rubber with plantations across Indonesia and Malaysia amounting to some 128,600 hectares, has today released its results for the six months ended 30 June 2016.
Financial Highlights
Hot Features
Premium
2016 2015 2015
6 months 6 months 12 months
to 30 to 30 to 31
June June December
$m $m $m
(unaudited) (unaudited (audited
& restated) & restated)
Revenue 86.0 104.0 196.5
Profit before tax 19.5 21.8 6.4
Earnings per share 27.38cts 31.89cts (20.14)cts
Total net assets 396.4 398.7 369.1
Enquiries:
Anglo-Eastern Plantations Plc Dato' John Lim Ewe Chuan +44 (0)20 7216 4621 Panmure Gordon Andrew Godber +44 (0)20 7886 2500
Chairman's Interim Statement
I am pleased to present the interim results for the Group for the six months to 30 June 2016.
The revenue for the six months to 30 June was $86.0 million, 17% lower than $104.0 million for the first six months of 2015. In the same period the Group experienced an increase in operating expenses which resulted in a lower gross profit of $15.7 million compared to $22.1 million for the same period last year. Overall profit before tax fell by 10% to $19.5 million from $21.8 million for the corresponding period.
Fresh Fruit Bunches ("FFB") production for the first half of 2016 was 3% lower at 378,400mt compared to 388,600mt in the same period last year. The decline in production, in spite of an increase in matured area, was mainly attributed to the replanting of old palms in North Sumatera while lower crop yield was evident in Riau and Kalimantan which were affected by four months of severe drought in the second half of last year. It was reported that plantations across Indonesia faced production decline, some up to 20% for a similar reason. The Group continued to buy external crops to maximise the utilization of its mills. However, bought-in crops decreased by 22% from 338,400mt to 264,500mt due to the dry weather and intense competition particularly at its mill in Riau.
Operational and financial performance
For the six months ended 30 June 2016, the revenue was $86.0 million, a decrease of 17% (1H 2015: $104.0 million). Gross profit margin dropped to 18% from 21% reflecting higher operating expenses in the first half of 2016 compared to the same period in the previous year.
Although for the first six months of 2016 Crude Palm Oil ("CPO") price ex-Rotterdam averaged $668/mt, higher than $663/mt for the first half of 2015, the net receivable by the Group is lower due to export tax levy of $50/mt imposed by Indonesian government in July 2015. The recovery of price since the beginning of the year was due to the decline in CPO production brought on by the drought from last year.
The financial statements for the comparative period of 2015 were restated with the adoption of new amendments to IAS 16 and IAS 41 for bearer plants which were mandatory from 1 January 2016. The new standards require bearer plants to be treated as property, plant and equipment to be valued at historical costs less depreciation or deemed costs at last valuation. The amendment means that the movement in the fair value of biological assets in the financial statements will be replaced by a depreciation charge which is expected to be a lower amount. The amendment also requires FFB growing on the trees which are not due for harvest to be measured at fair value. The methodology and its impact are explained in detail in Note 2 - Prior periods restatement.
Although the company has adopted the amendments to IAS41 by valuing the FFB growing on the trees as advised by our auditors, the Company, together with three other plantation companies have written to International Financial Reporting Interpretations Committee ("IFRIC") to seek guidance on the interpretation of whether the growing produce can be reliably measured. The guidance from IFRIC would influence and encourage our peer group to a common practice with regards to the accounting treatment of the growing produce.
In the restatement of operating results for the year ended 31 December 2015, $34.1 million in impairment of plantations previously recognized under Biological Asset adjustment is now charged under administration expenses. Profit after tax for the six months ended 30 June 2016 was $14.0 million, 11% lower than last year of $15.7 million.
The resulting earnings per share for the period were reduced by 14% at 27.38cts (1H 2015: 31.89cts).
The Group's balance sheet remains reasonable strong and cash flow remains healthy. Net assets at 30 June 2016 after restatement were $396.4 million compared to $369.1 million at 31 December 2015. The increase in net assets was attributed partly to the strengthening of Rupiah against US Dollar.
As at 30 June 2016 the Group's total cash balance was $93.0 million (1H 2015: $110.9 million) with total borrowings of $35.6 million (1H 2015: $34.8 million), giving a net cash position of $57.4 million, compared to $76.1 million as at 30 June 2015.
The decline in cash reflects the need to sustain and finance five loss making subsidiaries as the revenue of newly matured plantations cannot cover operating expenses due to the low CPO price and yield.
Operating costs
The operating costs per hectare for the Indonesian operations were higher in the first half of 2016 compared to the same period in 2015 mainly due to an increase in wages, fertilisers, fuel, drainage maintenance, general upkeep of plantations costs and depreciation. Higher operating costs were also partly attributed to a 4% increase in matured areas for the corresponding period.
Production and Sales
2016 2015 2015
6 months 6 months Year
to 30
June to 30 June to 31 December
mt mt mt
Oil palm production
FFB
- all estates 378,400 388,600 900,400
- bought-in or processed
for third parties 264,500 338,400 678,200
Saleable CPO 134,100 141,300 321,400
Saleable palm kernels 30,500 33,500 74,000
Oil palm sales
CPO 130,400 144,900 326,000
Palm kernels 29,300 34,200 75,200
FFB sold outside 12,100 50,000 65,100
Rubber production 371 457 847
The Group's six mills processed a total of 630,800mt in FFB for the first half of 2016, a 7% decrease compared to 677,000mt for the same period last year.
Bought-in crops were 22% lower than last year due to the effect of the dry season and haze during the second half of 2015 and intense competition from private mills in Riau and North Sumatera. Overall CPO produced was lower by 5% at 134,100mt from 141,300mt due to higher oil extraction rate of 21.2% compared to 20.9% previously.
In spite of lower profits this year the Group continues with its commitment to reduce its carbon footprint as it began construction of a third biogas plant in Bengkulu in addition to another plant nearing commissioning in Kalimantan. Both projects upon completion will cost an estimate of $6.8 million. The existing biogas plant in North Sumatera is performing well and the final arrangements are being made to sell the surplus electricity generated from its biogas plant to the National Grid.
Commodity prices
CPO price hit a low of $535/mt in January 2016 before recovering fairly strongly in the second quarter of 2016. CPO price for first half of 2016 averaged $668/mt, marginally higher than last year (1H 2015: $663/mt). Despite lower production, CPO price recovery was short lived due to weakness in demand and abundance of vegetable oil.
Rubber price averaged $1,188/mt, 15% lower than 2015 (1H 2015: $1,393/mt).
Development
The Group's planted areas at 30 June 2016 comprised:
Total Mature Immature
ha ha Ha
North Sumatera 19,085 16,076 3,009
Bengkulu 16,938 16,933 5
Riau 4,873 4,873 -
South Sumatera 6,278 5,178 1,100
Kalimantan 13,189 8,521 4,668
Bangka 555 103 452
Plasma 947 778 169
------- ------- ---------
Indonesia 61,865 52,462 9,403
Malaysia 3,696 3,380 316
------- ------- ---------
Total : 30 June 2016 65,561 55,842 9,719
------- ------- ---------
Total : 31 December
2015 65,068 51,957 13,111
------- ------- ---------
Total : 30 June 2015 64,486 53,605 10,881
------- ------- ---------
The Group's new planting for the first six months ended 30 June 2016 totalled 518ha compared to 1,016ha for the same corresponding period for 2015. The slower than anticipated rate of new planting is due to protracted land compensation negotiations and also the dry condition which was not conducive for planting.
The Group remains optimistic that planting will pick up in the second half of 2016. The Group's total landholding comprises some 128,600ha, of which the planted area stands around 65,561ha (1H 2015: 64,486ha).
Significant capital expenditure is expected in the replanting of over 1,500ha of old palms in North Sumatera which started in May 2016.
Dividend
As in previous years no interim dividend has been declared. The Board is mindful that given the anticipated further capital commitments the level of dividend needs to be balanced against the planned expenditure. A final dividend of 1.75 pence per share in respect of the year to 31 December 2015 was paid on 11 July 2016.
Outlook
The upside of CPO price is limited as the industry heads into its peak production cycle in the third quarter of 2016. But as the El Nino weather phenomenon dissipated, weather forecasters globally are predicting a 50-75% chance of La Nina developing in the second half of 2016. The emergence of La Nina and resultant rains in the region could help improve FFB yields. At the same time it will bring extreme dryness to the eastern side of the Pacific affecting regions generally known for growing soy bean. If La Nina develops, it could potentially see CPO price strengthen in the fourth quarter of 2016 especially in the wake of a wider discount to soybean oil.
The Board looks forward to reporting further progress in its next trading update.
Principal risks and uncertainties
The directors believe the potential impact of Britain's vote to leave the European Union, better known as Brexit, on the Group is limited. Other than maintaining its corporate presence and listing in United Kingdom ("UK"), all plantation and mill operations together with marketing are primarily based in Indonesia. Unless Brexit causes a worldwide recession which significantly reduces the consumption of CPO, the principal risks and uncertainties have broadly remained the same since the publication of the annual report for the year ended 31 December 2015.
A more detailed explanation of the risks relevant to the Group is on pages 19 to 25 and from pages 86 to 90 of the 2015 annual report which is available at www.angloeastern.co.uk.
The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014.
Madam Lim Siew Kim
Chairman
25 August 2016
Responsibility Statements
We confirm that to the best of our knowledge:
a) The unaudited interim financial statements have been prepared in accordance with IAS34: Interim Financial Reporting as adopted by the European Union;
b) The Chairman's statement includes a fair review of the information required by DTR 4.2.7R (an indication of important events during the first six months and a description of the principal risks and uncertainties for the remaining six months of the year); and
c) The interim financial statements include a fair review of the information required by DTR 4.2.8R (material related party transactions in the six months ended 30 June 2016 and any material changes in the related party transactions described in the last Annual Report) of the Disclosure and Transparency Rules of the United Kingdom Financial Services Authority.
By order of the Board
Dato' John Lim Ewe Chuan
Executive Director, Corporate Finance and Corporate Affairs
25 August 2016
Condensed Consolidated Income Statement
2016
6 months
to
30 June 2015
2015 Year to
6 months
to 30 June 31 December
(unaudited (audited
(unaudited) & restated) & restated)
Continuing operations Notes $000 $000 $000
------------------------ ------ -------------- ------------------ ----------------
Revenue 5 86,044 103,952 196,451
Cost of sales (70,335) (81,872) (151,597)
------------------------ ------ -------------- ------------------ ----------------
Gross profit 15,709 22,080 44,854
Biological asset
movement 3,288 2,603 (732)
Administration
expenses (3,338) (3,360) (40,014)
------------------------ ------ -------------- ------------------ ----------------
Operating profit 15,659 21,323 4,108
Exchange gain
/ (loss) 1,244 (1,800) (2,354)
Finance income 3,406 3,238 6,683
Finance expense 4 (835) (1,004) (2,010)
------------------------ ------ -------------- ------------------ ----------------
Profit before
tax 5 19,474 21,757 6,427
Tax expense 6 (5,472) (6,083) (10,385)
------------------------ ------ -------------- ------------------ ----------------
Profit / (Loss)
for the period 14,002 15,674 (3,958)
------------------------ ------ -------------- ------------------ ----------------
Attributable
to:
- Owners of the
parent 10,852 12,640 (7,981)
- Non-controlling
interests 3,150 3,034 4,023
------------------------ ------ -------------- ------------------ ----------------
14,002 15,674 (3,958)
------------------------ ------ -------------- ------------------ ----------------
Earnings per
share for profit
/ (loss) attributable
to the owners
of the parent
during the period
- basic 8 27.38cts 31.89cts (20.14)cts
- diluted 8 27.38cts 31.86cts (20.14)cts
Condensed Consolidated Statement of Comprehensive Income
2016 2015 2015
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited & (audited &
(unaudited) restated) restated)
$000 $000 $000
------------------------------------------------- ------------ ------------- ---------------
Profit / (Loss) for the period 14,002 15,674 (3,958)
-------------------------------------------------- ------------ ------------- ---------------
Other comprehensive income
Items may be reclassified to profit
or loss in subsequent periods:
Profit / (Loss) on exchange translation
of foreign operations 17,814 (29,969) (44,367)
-------------------------------------------------- ------------ ------------- ---------------
Net other comprehensive income
/ (expense) may be reclassified
to profit or loss in subsequent
periods 17,814 (29,969) (44,367)
-------------------------------------------------- ------------ ------------- ---------------
Items not to be reclassified to
profit or loss in subsequent periods:
Unrealised (loss) / gain on revaluation
of the estates (1,516) (860) 4,902
Deferred tax on revaluation 398 193 (1,266)
Remeasurements of retirement benefit
plan - - 445
Deferred tax on retirement benefit - - (111)
-------------------------------------------------- ------------ ------------- ---------------
Net other comprehensive (expenses)
/ income not being reclassified
to profit or loss in subsequent
periods (1,118) (667) 3,970
-------------------------------------------------- ------------ ------------- ---------------
Total other comprehensive income
/ (expenses) for the period, net
of tax 16,696 (30,636) (40,397)
Total comprehensive income / (expenses)
for the period 30,698 (14,962) (44,355)
Attributable to:
- Owners of the parent 23,874 (12,028) (40,254)
- Non-controlling interests 6,824 (2,934) (4,101)
-------------------------------------------------- ------------ ------------- ---------------
30,698 (14,962) (44,355)
------------------------------------------------- ------------ ------------- ---------------
Condensed Consolidated Statement of Financial Position
2016 2015 2015
as at 30 June as at 30 June as at 31 December
(unaudited
(unaudited) & restated) (audited & restated)
$000 $000 $000
------------------------------- -------------- -------------- ---------------------
Non-current assets
Property, plant and equipment 329,788 338,513 310,167
Receivables 3,565 3,044 3,655
Deferred tax assets 10,931 5,714 8,021
-------------------------------- -------------- -------------- ---------------------
344,284 347,271 321,843
------------------------------- -------------- -------------- ---------------------
Current assets
Inventories 8,147 8,248 6,693
Tax receivables 22,856 11,158 16,679
Biological assets 7,195 7,079 3,673
Trade and other receivables 8,460 8,153 4,704
Cash and cash equivalents 92,994 110,860 104,614
-------------------------------- -------------- -------------- ---------------------
139,652 145,498 136,363
------------------------------- -------------- -------------- ---------------------
Current liabilities
Loans and borrowings (4,391) (438) (1,750)
Trade and other payables (14,508) (22,660) (17,406)
Tax liabilities (3,690) (3,764) (5,917)
Dividend payables (1,003) (1,869) -
-------------------------------- -------------- -------------- ---------------------
(23,592) (28,731) (25,073)
------------------------------- -------------- -------------- ---------------------
Net current assets 116,060 116,767 111,290
-------------------------------- -------------- -------------- ---------------------
Non-current liabilities
Loans and borrowings (31,234) (34,375) (32,875)
Deferred tax liabilities (27,437) (26,356) (26,618)
Retirement benefits - net
liabilities (5,241) (4,623) (4,528)
-------------------------------- -------------- -------------- ---------------------
(63,912) (65,354) (64,021)
------------------------------- -------------- -------------- ---------------------
Net assets 396,432 398,684 369,112
-------------------------------- -------------- -------------- ---------------------
Condensed Consolidated Statement of Financial Position (continued)
2016 2015 2015
as at 30 June as at 30 June as at 31 December
(unaudited
(unaudited) & restated) (audited & restated)
$000 $000 $000
Issued capital and reserves
attributable to owners of
the parent
Share capital 15,504 15,504 15,504
Treasury shares (1,171) (1,171) (1,171)
Share premium reserve 23,935 23,935 23,935
Share capital redemption reserve 1,087 1,087 1,087
Revaluation reserves 58,587 56,456 59,572
Exchange reserves (211,615) (214,598) (225,622)
Retained earnings 433,069 443,538 423,220
----------------------------------- -------------- -------------- ---------------------
319,396 324,751 296,525
Non-controlling interests 77,036 73,933 72,587
----------------------------------- -------------- -------------- ---------------------
Total equity 396,432 398,684 369,112
----------------------------------- -------------- -------------- ---------------------
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent
-----------------------------------------------------------------------------------------------
Share
capital Foreign Non-controlling
Share Treasury Share redemption Revaluation exchange Retained interests Total
capital shares premium reserve reserve reserve earnings Total equity
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ----------------- ----------
Balance at 31 December
2014 15,504 (1,171) 23,935 1,087 57,029 (190,503) 521,355 427,236 90,813 518,049
Restatement (Note
2) - - - - - - (88,588) (88,588) (13,917) (102,505)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ----------------- ----------
Balance at 31 December
2014 after restatement 15,504 (1,171) 23,935 1,087 57,029 (190,503) 432,767 338,648 76,896 415,544
---------------------------------------------------------- ---------- ---------- --------- ----------------- ----------
Items of other comprehensive
income:
* Unrealised gain on revaluation of estates, net of
tax - - - - 2,543 - - 2,543 1,093 3,636
* Remeasurement of retirement benefit plan, net of t
ax - - - - - - 303 303 31 334
* Loss on exchange translation of foreign operations - - - - - (35,119) - (35,119) (9,248) (44,367)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ----------------- ----------
Total other comprehensive
income / (expenses) - - - - 2,543 (35,119) 303 (32,273) (8,124) (40,397)
(Loss) / Profit for
the year - - - - - - (7,981) (7,981) 4,023 (3,958)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ----------------- ----------
Total comprehensive
income / (expenses)
for the year - - - - 2,543 (35,119) (7,678) (40,254) (4,101) (44,355)
Dividends paid - - - - - - (1,869) (1,869) (208) (2,077)
----------------------------------------------------------
Balance at 31 December
2015 after restatement 15,504 (1,171) 23,935 1,087 59,572 (225,622) 423,220 296,525 72,587 369,112
--------- ---------- --------- ----------- ------------- ---------- ---------- --------- ----------------- ----------
Items of other comprehensive
income:
* Unrealised loss on revaluation of estates, net of
tax - - - - (985) - - (985) (133) (1,118)
* Gain on exchange translation of foreign operations - - - - - 14,007 - 14,007 3,807 17,814
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ----------------- ----------
Total other comprehensive
(expenses) / income - - - - (985) 14,007 - 13,022 3,674 16,696
Profit for the period - - - - - - 10,852 10,852 3,150 14,002
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ----------------- ----------
Total comprehensive
(expenses) / income
for the period - - - - (985) 14,007 10,852 23,874 6,824 30,698
Dividend payable - - - - - - (1,003) (1,003) (2,375) (3,378)
Balance at 30 June
2016 15,504 (1,171) 23,935 1,087 58,587 (211,615) 433,069 319,396 77,036 396,432
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ----------------- ----------
Condensed Consolidated Statement of Changes in Equity (continued)
Attributable to owners of the parent
---------------------------------------------------------------------------------------------------
Share
capital Foreign Non-controlling
Share Treasury Share redemption Revaluation exchange Retained interests Total
capital shares premium reserve reserve reserve earnings Total Equity
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ----------------- ----------
Balance at 31 December
2014 15,504 (1,171) 23,935 1,087 57,029 (190,503) 521,355 427,236 90,813 518,049
Restatement (Note
2) - - - - - - (88,588) (88,588) (13,917) (102,505)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ----------------- ------------
Balance at 31 December
2014 after restatement 15,504 (1,171) 23,935 1,087 57,029 (190,503) 432,767 338,648 76,896 415,544
Items of other comprehensive
income:
* Unrealised loss on revaluation of estates, net of
tax - - - - (573) - - (573) (94) (667)
* Loss on exchange translation of foreign operations - - - - - (24,095) - (24,095) (5,874) (29,969)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ----------------- ------------
Total other comprehensive
expenses - - - - (573) (24,095) - (24,668) (5,968) (30,636)
Profit for the period - - - - - - 12,640 12,640 3,034 15,674
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ----------------- ------------
Total comprehensive
(expenses) / income
for the period - - - - (573) (24,095) 12,640 (12,028) (2,934) (14,962)
Dividends payable - - - - - - (1,869) (1,869) (29) (1,898)
Balance at 30 June
2015 after restatement 15,504 (1,171) 23,935 1,087 56,456 (214,598) 443,538 324,751 73,933 398,684
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ----------------- ------------
Condensed Consolidated Statement of Cash Flows
2016 2015 2015
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited (audited
(unaudited) & restated) & restated)
$000 $000 $000
------------------------------ ------------ ------------- ---------------
Cash flows from operating
activities
Profit before tax 19,474 21,757 6,427
Adjustments for:
Biological asset movement (3,288) (2,603) 732
(Gain) / Loss on disposal
of tangible fixed
assets (2) 41 (391)
Depreciation 7,017 6,329 12,405
Retirement benefit
provisions 502 494 973
Net finance income (2,571) (2,234) (4,673)
Unrealised (gain)
/ loss in foreign
exchange (1,244) 1,800 2,354
Tangible fixed assets
written off 54 86 34,246
Operating cash flow
before changes in
working capital 19,942 25,670 52,073
(Increase) / Decrease
in inventories (1,140) (959) 341
(Increase) / Decrease
in trade and other
receivables (3,888) 971 4,425
(Decrease) / Increase
in trade and other
payables (3,628) 2,999 (1,623)
------------------------------ ------------ ------------- -----------------
Cash inflow from operations 11,286 28,681 55,216
Interest paid (835) (1,004) (2,010)
Retirement benefit
paid - (1) (103)
Overseas tax paid (15,689) (17,259) (27,856)
------------------------------ ------------ ------------- -----------------
Net cash (used in)
/ from operations (5,238) 10,417 25,247
------------------------------ ------------ ------------- -----------------
Investing activities
Property, plant and
equipment
- purchase (13,366) (19,694) (38,562)
- sale 58 19 979
Interest received 3,406 3,238 6,683
Net cash used in investing
activities (9,902) (16,437) (30,900)
------------------------------ ------------ ------------- -----------------
Condensed Consolidated Statement of Cash Flows (continued)
2016 2015 2015
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited (audited
(unaudited) & restated) & restated)
$000 $000 $000
---------------------------- ------------ ------------- ---------------
Financing activities
Dividends paid by
Company (1,003) - (1,869)
Dividends paid to
non-controlling interests (1,372) (46) (228)
Drawdown of long term
loans 1,250 - -
Repayment of existing
long term loans (250) (125) (313)
Net cash used in financing
activities (1,375) (171) (2,410)
---------------------------- ------------ ------------- ---------------
Decrease in cash and
cash equivalents (16,515) (6,191) (8,063)
Cash and cash equivalents
At beginning of period 104,614 125,937 125,937
Foreign exchange 4,895 (8,886) (13,260)
---------------------------- ------------ ------------- ---------------
At end of period 92,994 110,860 104,614
---------------------------- ------------ ------------- ---------------
Comprising:
Cash at end of period 92,994 110,860 104,614
---------------------------- ------------ ------------- ---------------
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 2015 Annual Report. The financial information for the half years ended 30 June 2016 and 30 June 2015 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.
Basis of preparation
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 2015 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2015 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2015 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.
Changes in accounting standards
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 except for the following new standards that have come into effect from the previous reporting date:
-- IAS 16 Amendments - Property, Plant and Equipment; and -- IAS 41 Amendments - Agriculture.
The nature and the impact of the amendments to IAS 16 and IAS 41 are disclosed in Note 2 - Prior periods restatement.
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 periods restatement
The amendments to IAS 16 and the amendments to IAS 41, which came into effect on 1 January 2016, require Biological Assets that meet the definition of bearer plants to be accounted for as Property, Plant and Equipment in accordance with IAS 16, adopting either a cost model or a revaluation model. This required retrospective application.
As the Biological Assets of the Group fall within the definition of bearer plants, with effect from 1 January 2016 the immature plants are stated at accumulated cost until maturity, subject to impairment reviews, and the mature plantations are stated at historical cost less accumulated depreciation. The unharvested FFB, which is agricultural produce under the revised IAS 41, are recognised as Biological Assets and are stated at fair value less cost to sell at the point of harvest, with changes recognised in profit and loss. This has resulted in the accounts for the periods ended 30 June 2015 and 31 December 2015 being restated.
2. Prior periods restatement (continued)
Although the company has adopted the amendments to IAS41 by valuing the FFB growing on the trees as advised by our auditors, the Company, together with three other plantation companies have written to International Financial Reporting Interpretations Committee ("IFRIC") to seek guidance on the interpretation of whether the growing produce can be reliably measured. The guidance from IFRIC would influence and encourage our peer group to a common practice with regards to the accounting treatment of the growing produce.
The effects of the restatements are summarised as follows:
2015 2015
6 months to Year to
30 June 31 December
(unaudited (audited
& restated) & restated)
$000 $000
Impact on condensed
consolidated income
statement
Profit for the period
before restatement 3,182 (13,429)
----------------------------- -------------- -------------
Effect of change
in restatement:
Cost of sales (2,948) (5,700)
Biological asset
movement 19,561 63,389
Administration expenses 118 (32,188)
Tax expense (4,239) (16,030)
----------------------------- -------------- -------------
12,492 9,471
Profit for the period
after restatement 15,674 (3,958)
----------------------------- -------------- -------------
The effect of these prior period adjustments had a positive impact on the earnings per share of 25.98cts for the period to 30 June 2015 and 17.44cts for the year to 31 December 2015.
2. Prior periods restatement (continued)
2015 2015
6 months to
30 June Year to 31 December
(unaudited &
restated) (audited & restated)
$000 $000
Impact on condensed consolidated statement
of comprehensive income
Other comprehensive expenses for the period
before restatement (37,559) (50,585)
--------------------------------------------------------- --------------------- ---------
Effect of change in restatement:
Loss on exchange translation of foreign operations 6,945 10,228
Deferred tax on revaluation (22) (40)
--------------------------------------------------------- --------------------- ---------
6,923 10,188
--------------------------------------------------------- --------------------- ---------
Other comprehensive expenses for the period
after restatement (30,636) (40,397)
--------------------------------------------------------- --------------------- ---------
Impact on condensed consolidated statement of financial position
Current
Non-current Property, assets
assets plant -
- Biological and Deferred Biological Revaluation Exchange Retained Non-controlling
assets equipment tax assets reserves reserves earnings interests
$000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2015 (unaudited & restated)
Balance as
reported 30
June 2015 225,728 217,241 (34,929) - (56,468) 220,612 (521,828) (84,735)
Effect of
restatement
during the
period (225,728) 121,272 14,287 7,079 12 (6,014) 78,290 10,802
--------------- ---------- --------- ----------- ------------ --------- --------- ---------------- ---------
Restated
balance at 30
June 2015 - 338,513 (20,642) 7,079 (56,456) 214,598 (443,538) (73,933)
--------------- ---------- --------- ----------- ------------ --------- --------- ---------------- ---------
Year to 31 December 2015 (audited & restated)
Balance as
reported 31
December 2015 179,010 219,990 (20,911) - (59,594) 234,490 (504,892) (82,607)
Effect of
restatement
during the
year (179,010) 90,177 2,314 3,673 22 (8,868) 81,672 10,020
--------------- ---------- --------- ----------- ------------ --------- --------- ---------------- ---------
Restated
balance at 31
December 2015 - 310,167 (18,597) 3,673 (59,572) 225,622 (423,220) (72,587)
--------------- ---------- --------- ----------- ------------ --------- --------- ---------------- ---------
3. Foreign exchange
2016 2015 2015
6 months 6 months Year
to 30 to 30
June June to 31 December
(unaudited) (unaudited) (audited)
Average exchange rates
Rp : $ 13,420 12,968 13,392
$ : GBP 1.43 1.52 1.53
RM : $ 4.10 3.64 3.91
Closing exchange rates
Rp : $ 13,180 13,332 13,795
$ : GBP 1.34 1.57 1.48
RM : $ 4.03 3.78 4.29
4. Finance costs
2016 2015 2015
6 months 6 months Year
to 30 to 30
June June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Payable 835 1,004 2,010
------------ ------------ ---------------
5. Segment information
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2016
(unaudited)
Total sales revenue
(all external)
* CPO 33,302 30,876 1 11,771 5 7,526 83,481 1,637 - 85,118
* Rubber 441 - - - - - 441 - - 441
* Biomass products 107 - - - - - 107 - - 107
Other income 90 252 - 27 - 9 378 - - 378
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Total revenue 33,940 31,128 1 11,798 5 7,535 84,407 1,637 - 86,044
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Profit / (loss)
for the period
before
tax 9,377 7,971 (2,453) 3,415 (78) 479 18,711 148 615 19,474
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------
Depreciation (1,920) (1,934) (799) (439) 6 (1,601) (6,687) (330) - (7,017)
Inter-segment
transactions 1,683 (1,060) (384) (305) - (637) (703) 673 30 -
Income tax (3,816) (1,309) 1,634 (1,286) 25 673 (4,079) (116) (1,277) (5,472)
Total Assets 160,798 113,213 31,069 38,053 10,363 102,449 455,945 23,296 4,695 483,936
Non-Current Assets 97,092 74,309 29,340 19,851 10,142 94,537 325,271 18,435 578 344,284
Non-Current Assets
- Additions 3,353 1,576 1,228 525 254 6,399 13,335 31 - 13,366
5. Segment information (continued)
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
6 months to 30 June 2015 (unaudited
& restated)
Total sales revenue
(all external)
* CPO 36,594 38,458 38 21,377 - 3,615 100,082 1,691 - 101,773
* Rubber 633 - - - - - 633 - - 633
* Biomass products 299 - - - - - 299 - - 299
Other income 553 302 2 362 - - 1,219 28 - 1,247
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Total revenue 38,079 38,760 40 21,739 - 3,615 102,233 1,719 - 103,952
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss)
for the period
before
tax 10,239 8,308 (548) 8,651 15 (4,287) 22,378 (311) (310) 21,757
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Depreciation (1,977) (1,977) (237) (376) 14 (1,369) (5,922) (407) - (6,329)
Inter-segment
transactions 1,835 (1,078) (380) (310) - (619) (552) 522 30 -
Income tax (3,824) (1,622) 649 (2,263) 3 1,247 (5,810) (248) (25) (6,083)
Total Assets 146,792 108,695 46,638 55,718 12,535 94,122 464,500 23,854 4,415 492,769
Non-Current Assets 93,132 72,314 45,034 17,308 12,375 87,717 327,880 18,198 1,193 347,271
Non-Current Assets
- Additions 3,520 1,342 1,812 584 646 11,689 19,593 101 - 19,694
5. Segment information (continued)
North South Total
Sumatera Bengkulu Sumatera Riau Bangka Kalimantan Indonesia Malaysia UK Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Year to 31 December 2015 (audited
& restated)
Sales revenue (all
external)
* CPO 67,978 73,661 37 37,129 1 11,426 190,232 3,132 - 193,364
* Rubber 1,075 - - - - - 1,075 - - 1,075
* Biomass products 327 - - - - - 327 - - 327
Other income 513 812 10 225 38 87 1,685 - - 1,685
--------- --------- --------- -------- -------- ----------- ---------- --------- -------- ---------
Total revenue 69,893 74,473 47 37,354 39 11,513 193,319 3,132 - 196,451
--------- --------- --------- -------- -------- ----------- ---------- --------- -------- ---------
Profit / (loss)
for the year
before
tax 12,799 15,032 (22,905) 15,216 (1,061) (10,828) 8,253 (783) (1,043) 6,427
--------- --------- --------- -------- -------- ----------- ---------- --------- -------- ---------
Depreciation (3,809) (3,824) (309) (842) 37 (2,905) (11,652) (753) - (12,405)
Inter-segment
transactions 3,546 (2,169) (765) (624) - (1,427) (1,439) 1,157 282 -
Income tax (7,309) (3,053) 1,373 (3,868) - 2,647 (10,210) (70) (105) (10,385)
Total Assets 145,288 105,275 27,361 54,020 9,606 90,734 432,284 21,628 4,294 458,206
Non-Current Assets 91,516 71,341 26,243 18,929 9,451 85,592 303,072 17,578 1,193 321,843
Non-Current Assets
- Additions 8,923 3,623 4,219 2,658 1,012 17,986 38,421 141 - 38,562
5. Segment information (continued)
In the 6 months to 30 June 2016, revenues from 4 customers of the Indonesian segment represent approximately $47.5m of the Group's total revenues. In the year of 2015, revenues from 4 customers of the Indonesian segment represent approximately $107.2m of the Group's total revenues. An analysis of these revenues is provided below. Although Customer 1 to 3 are over 10% of the Group's total revenue, there is no over reliance on these Customers as tenders are performed on a monthly basis. Two of the top four customers are the same as in the year to 31 December 2015.
2016 2015 2015
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$m % $m % $m %
Major Customers
Customer 1 16.9 19.6 19.7 18.9 35.1 17.9
Customer 2 13.6 15.8 16.9 16.2 32.6 16.6
Customer 3 10.7 12.4 14.7 14.2 19.9 10.1
Customer 4 6.4 7.5 10.1 9.7 19.6 10.0
------------------ --------- --------- ---------- -------- -------- --------
Total 47.6 55.3 61.4 59.0 107.2 54.6
------------------ --------- --------- ---------- -------- -------- --------
6. Tax
2016 2015 2015
6 months 6 months Year
to 30 to 30
June June to 31 December
(unaudited (audited
(unaudited) & restated) & restated)
$000 $000 $000
Foreign corporation
tax - current year 7,963 8,155 15,069
Foreign corporation
tax - prior year - - 208
Deferred tax adjustment
- current year (2,491) (2,072) (4,892)
5,472 6,083 10,385
------------ ------------- ---------------
7. Dividend
The final and only dividend in respect of 2015, amounting to 1.75p per share, or $1,002,785 was paid on 11 July 2016 (2014: 3.0p per share, or $1,869,091, paid on 10 July 2015). As in previous years no interim dividend has been declared.
8. Earnings per ordinary share (EPS)
2016 2015 2015
6 months 6 months Year
to 30
June to 30 June to 31 December
(unaudited (audited
(unaudited) & restated) & restated)
$000 $000 $000
Earnings used in basic
and diluted EPS 10,852 12,640 (7,981)
------------ ------------- ---------------
Number Number Number
'000 '000 '000
Weighted average number
of shares in issue
in period
- used in basic EPS 39,636 39,636 39,636
- dilutive effect
of outstanding share -
options - 43
------------ ------------- ---------------
- used in diluted
EPS 39,636 39,679 39,636
------------ ------------- ---------------
Shares in issue at
period end 39,976 39,976 39,976
Less: Treasury shares (340) (340) (340)
------------ ------------- ---------------
Shares in issue at
period end excluding
treasury shares 39,636 39,636 39,636
------------ ------------- ---------------
Basic EPS 27.38cts 31.89cts (20.14)cts
Dilutive EPS 27.38cts 31.86cts (20.14)cts
9. Fair value measurement of financial instruments
The carrying amounts and fair values of the financial instruments which are not recognised at fair value in the Statement of Financial Position are exhibited below:
2016 2015 2015
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Carrying Fair Carrying Fair Carrying Fair
amount value amount value amount value
$000 $000 $000 $000 $000 $000
Non-current
receivables
Due from non-controlling
interests 578 424 1,193 924 1,193 924
Due from cooperatives
under Plasma
scheme 2,987 2,843 1,612 1,527 2,231 2,056
Due from village
smallholder
schemes - - 239 220 231 213
--------- ------- --------- ------- --------- -------
3,565 3,267 3,044 2,671 3,655 3,193
--------- ------- --------- ------- --------- -------
Borrowings
due after
one year
Long term
loan 31,234 31,433 34,375 34,499 32,875 32,306
--------- ------- --------- ------- --------- -------
Financial instruments not measured at fair value includes cash and cash equivalents, trade and other receivables, trade and other payables, and borrowings due within one year.
Due to their short-term nature, the carrying value of cash and cash equivalents, trade and other receivables, trade and other payables and borrowings due within one year approximates their fair value.
All non-current receivables and long term loan are classified as Level 3 in the fair value hierarchy.
9. Fair value measurement of financial instruments (continued)
The valuation techniques and significant unobservable inputs used in determining the fair value measurement of non-current receivables and borrowings due after one year, as well as the inter-relationship between key unobservable inputs and fair value, are set out in the table below:
Item Valuation approach Inputs Inter-relationship
used between key
unobservable
inputs and
fair value
----------------- ---------------------- --------- --------------------
Non-current receivables
Due from Based on cash Discount The higher
non-controlling flows discounted rate the discount
interests using current rate, the lower
lending rate the fair value
of 6% (1H 2015
and 2015: 6%)
Due from Based on cash Discount The higher
cooperatives flows discounted rate the discount
under Plasma using an estimated rate, the lower
scheme current lending the fair value
rate of 5.57%
(1H 2015: 5.55%,
2015: 5.57%)
Borrowings due after one year
Long term Based on cash Discount The higher
loan flows discounted rate the discount
using an estimated rate, the lower
current lending the fair value
rate of 5.57%
(1H 2015: 5.55%,
2015: 5.57%)
10. Report and financial information
Copies of the interim report for the Group for the period ended 30 June 2016 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
IR LLFFLTIIEFIR
(END) Dow Jones Newswires
August 25, 2016 12:00 ET (16:00 GMT)
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