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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 | |
---|---|---|---|---|---|---|---|---|---|---|
2.00 | 0.26% | 762.00 | 760.00 | 776.00 | 778.00 | 756.00 | 760.00 | 9,712 | 16:35:06 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Shortng,oils,margarine, Nec | 456.93M | 79.64M | 2.0094 | 3.78 | 301.24M |
TIDMAEP
RNS Number : 7869O
Anglo-Eastern Plantations PLC
23 August 2017
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Announcement of interim results for six months ended 30 June 2017
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 128,400 hectares, has today released its results for the six months ended 30 June 2017.
Financial Highlights
2017 2016 2016 6 months 6 months 12 months to 30 to 30 to 31 June June December $m $m $m (unaudited) (unaudited (audited) & restated) Revenue 146.9 86.0 246.2 Profit before tax - before biological assets ("BA") movement 31.8 14.0 57.5 - after biological assets movement 31.6 17.3 60.8 Earnings per share 46.24cts 14.99cts 82.16cts before BA movement Earnings per share 45.97cts 20.29cts 87.58cts after BA movement Total net assets 470.6 420.0 445.3
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 2017.
The revenue for the six months to 30 June was $146.9 million, 71% higher than $86.0 million for the first six months of 2016. In the same period the Group gross profit rose to $34.9 million from $18.5 million. Overall the profit before tax for the first half of 2017 improved by 83% to $31.6 million from $17.3 million for the corresponding period. Higher crop production and purchase of external crops as well as higher Crude Palm Oil ("CPO") prices lifted the profit of the Group.
Fresh Fruit Bunches ("FFB") production for the first half of 2017 was 15% higher at 436,900mt compared to 378,400mt in the same period last year. The increase in production was due to the strong recovery of FFB production especially in Riau and Kalimantan regions post El-Nino weather disruption. The Group continued to buy more external crops to maximise the utilization of its mills. Bought-in crops increased by 84% to 486,300mt from 264,500mt.
Operational and financial performance
For the six months ended 30 June 2017, the gross profit margin increased to 24% from 22% as the Group benefited from higher CPO prices and a higher contribution from the purchase of external crop.
CPO price ex-Rotterdam averaged $740/mt for the first six months of 2017, 11% higher than $668/mt over the same period in 2016.
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. This was adopted in the prior year interim and annual financial statements for the first time and required retrospective application. The prior year interim financial statements have been restated to reflect the changes made in the annual financial statements which were subject to audit. The details of the changes are disclosed in Note 2 - Prior period's restatement.
Profit after tax for the six months ended 30 June 2017 was $23.3 million, 112% higher than $11.0 million for the first six months of 2016.
The resulting earnings per share for the period improved by 127% to 45.97cts (1H 2016: 20.29cts).
The Group's balance sheet remains reasonably strong and cash flow remains healthy. Net assets at 30 June 2017 were $470.6 million compared to $445.3 million at 31 December 2016. The increase in net assets was attributed to increase in profit for the first half of 2017.
As at 30 June 2017 the Group's total cash balance was $123.0 million (1H 2016: $93.0 million) with total borrowings of $31.2 million (1H 2016: $35.6 million), giving a net cash position of $91.8 million, compared to $57.4 million as at 30 June 2016.
Operating costs
The operating costs per hectare for the Indonesian operations were higher in the first half of 2017 compared to the same period in 2016 mainly due to an increase in wages, fuel, transportation costs and depreciation. Higher operating costs were also partly attributed to a 1% increase in matured areas for the corresponding period.
Production and Sales
2017 2016 2016 6 months 6 months Year to 30 June to 30 June to 31 December mt mt mt Oil palm production FFB - all estates 436,900 378,400 897,700 - bought-in or processed for third parties 486,300 264,500 813,700 Saleable CPO 187,400 134,100 353,100 Saleable palm kernels 44,900 30,500 81,500 Oil palm sales CPO 192,900 130,400 345,000 Palm kernels 45,600 29,300 79,900 FFB sold outside 11,000 12,100 24,300 Rubber production 397 371 868
The Group's six mills processed a total of 912,200mt in FFB for the first half of 2017, a 45% increase compared to 630,800mt for the same period last year. The higher throughput was due to both higher internal crops production and external purchases.
Overall CPO produced for the first half of 2017 was higher by 40% at 187,400mt from 134,100mt.
The Group continues to reduce its overall carbon footprint as the two biogas plants in Bengkulu and Kalimantan are in full operation. The biogas plant in Bengkulu with a capacity to generate 2 megawatts of electrical power will sell the surplus power to the regional grid from the beginning of third quarter of 2017. While the biogas plant in North Sumatera with a capacity of 1 megawatt has sold over 3,000 MWh of surplus electricity to the National Grid since January this year.
Commodity prices
Although the CPO price for first half of 2017 averaged $740/mt, 11% higher than last year (1H 2016: $668/mt), the price has gradually trended downwards from the start of the year at $795/mt to close at $645/mt on 30 June 2017. A higher CPO production for the second half of the year amid strong competition from bumper soybean production will likely hurt and depress the CPO price for the remainder of the year.
Rubber price averaged $1,849/mt, 56% higher than 2016 (1H 2016: $1,188/mt).
Development
The Group's planted areas at 30 June 2017 comprised:
Total Mature Immature ha ha Ha North Sumatera 19,049 14,884 4,165 Bengkulu 16,943 16,943 - Riau 4,873 4,873 - South Sumatera 5,778 5,037 741 Kalimantan 13,844 9,679 4,165 Bangka 703 236 467 Plasma 2,706 1,417 1,289 ------- ------- --------- Indonesia 63,896 53,069 10,827 Malaysia 3,696 3,460 236 ------- ------- --------- Total: 30 June 2017 67,592 56,529 11,063 ------- ------- --------- Total: 31 December 2016 66,674 54,217 12,457 ------- ------- --------- Total: 30 June 2016 65,561 55,842 9,719 ------- ------- ---------
The Group's new planting for the first six months of 2017 totalled 781ha compared to 518ha for the same corresponding period last year. 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 2017. The Group's total landholding comprises some 128,400ha, of which the planted area stands around 67,592ha (1H 2016: 65,561ha).
Significant capital expenditure is expected in the replanting of over 1,700ha of old palms in North Sumatera which started in June 2017.
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 3.0 pence per share in respect of the year to 31 December 2016 was paid on 14 July 2017.
Outlook
The upside of the CPO price is limited as the industry heads into its peak production cycle in the third quarter of 2017. The demand of CPO from price-sensitive markets may however pick-up as CPO price discount to soybean oil has widened.
The Board looks forward to reporting further progress in its next trading update.
Others
I am pleased to advise that after an absence of one year, AEP with effect from 1 June 2017, has been included in the FTSE Small Cap and FTSE All Share-Index. This may potentially lead to greater liquidity as index related funds re-weight their holding.
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 2016.
A more detailed explanation of the risks relevant to the Group is on pages 18 to 22 and from pages 87 to 91 of the 2016 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
23 August 2017
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 2017 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
23 August 2017
Condensed Consolidated Income Statement
2017 2016 2016 6 months to 30 June 6 months to 30 June Year to 31 December (unaudited) (unaudited & restated) (audited) --------------------------------- ------------------------------- --------------------------------- Notes Result Result Result Continuing before before before operations BA BA BA BA BA BA movement movement Total movement movement Total movement movement Total $000 $000 $000 $000 $000 $000 $000 $000 $000 ----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ---------- Revenue 146,870 - 146,870 86,044 - 86,044 246,210 - 246,210 Cost of sales (111,826) (181) (112,007) (70,815) 3,288 (67,527) (184,337) 3,383 (180,954) ----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ---------- Gross profit 35,044 (181) 34,863 15,229 3,288 18,517 61,873 3,383 65,256 Administration expenses (3,269) - (3,269) (3,355) - (3,355) (6,653) - (6,653) Impairment losses (1,596) - (1,596) (1,722) - (1,722) (2,740) - (2,740) ----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ---------- Operating profit 30,179 (181) 29,998 10,152 3,288 13,440 52,480 3,383 55,863 Exchange gains 156 - 156 1,244 - 1,244 845 - 845 Finance income 2,390 - 2,390 3,406 - 3,406 5,881 - 5,881 Finance expense 4 (913) - (913) (835) - (835) (1,743) - (1,743) ----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ---------- Profit before tax 31,812 (181) 31,631 13,967 3,288 17,255 57,463 3,383 60,846 Tax expense 6 (8,394) 45 (8,349) (5,472) (820) (6,292) (16,021) (844) (16,865) ----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ---------- Profit for the period 23,418 (136) 23,282 8,495 2,468 10,963 41,442 2,539 43,981 ----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ---------- Attributable to: - Owners of the parent 18,328 (109) 18,219 5,940 2,104 8,044 32,563 2,150 34,713 - Non-controlling interests 5,090 (27) 5,063 2,555 364 2,919 8,879 389 9,268 ----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ---------- 23,418 (136) 23,282 8,495 2,468 10,963 41,442 2,539 43,981 ----------------- ------ ---------- --------- ---------- --------- --------- --------- ---------- --------- ---------- Earnings per share for profit attributable to the owners of the parent during the period - basic 8 45.97cts 20.29cts 87.58cts - diluted 8 45.93cts 20.29cts 87.58cts
Condensed Consolidated Statement of Comprehensive Income
2017 2016 2016 6 months 6 months Year to 30 June to 30 June to 31 December (unaudited & (unaudited) restated) (audited) $000 $000 $000 -------------------------------------------------- ------------ ------------- --------------- Profit for the period 23,282 10,963 43,981 --------------------------------------------------- ------------ ------------- --------------- Other comprehensive income Items may be reclassified to profit or loss: Gain on exchange translation of foreign operations 4,606 18,950 8,860 --------------------------------------------------- ------------ ------------- --------------- Net other comprehensive income may be reclassified to profit or loss 4,606 18,950 8,860 --------------------------------------------------- ------------ ------------- --------------- Items not to be reclassified to profit or loss: Unrealised (loss) / gain on revaluation of leasehold land, net of tax (795) (1,126) 1,752 Remeasurement of retirement benefits plan, net of tax - - (567) --------------------------------------------------- ------------ ------------- --------------- Net other comprehensive (expense) / income not being reclassified to profit or loss (795) (1,126) 1,185 --------------------------------------------------- ------------ ------------- --------------- Total other comprehensive income for the period, net of tax 3,811 17,824 10,045 Total comprehensive income for the period 27,093 28,787 54,026 Attributable to: - Owners of the parent 21,049 22,155 43,099 - Non-controlling interests 6,044 6,632 10,927 --------------------------------------------------- ------------ ------------- --------------- 27,093 28,787 54,026 -------------------------------------------------- ------------ ------------- ---------------
Condensed Consolidated Statement of Financial Position
2017 2016 2016 as at 30 June as at 30 June as at 31 December (unaudited (unaudited) & restated) (audited) $000 $000 $000 -------------------------------- --- --------------- -------------- ------------------ Non-current assets Property, plant and equipment 361,270 355,030 356,790 Receivables 5,248 3,565 3,891 Deferred tax assets 15,883 11,235 13,451 -------------------------------- --- --------------- -------------- ------------------ 382,401 369,830 374,132 -------------------------------- --- --------------- -------------- ------------------ Current assets Inventories 8,257 8,147 9,219 Tax receivables 33,664 22,856 26,695 Biological assets 6,995 7,195 7,107 Trade and other receivables 8,903 8,460 5,767 Cash and cash equivalents 123,041 92,994 118,176 -------------------------------- --- --------------- -------------- ------------------ 180,860 139,652 166,964 -------------------------------- --- --------------- -------------- ------------------ Current liabilities Loans and borrowings (7,234) (4,391) (6,203) Trade and other payables (15,459) (14,508) (16,054) Tax liabilities (7,500) (3,690) (8,974) Dividend payables (1,515) (1,003) - -------------------------------- --- --------------- -------------- ------------------ (31,708) (23,592) (31,231) -------------------------------- --- --------------- -------------- ------------------ Net current assets 149,152 116,060 135,733 -------------------------------- --- --------------- -------------- ------------------ Non-current liabilities Loans and borrowings (24,000) (31,234) (27,875) Deferred tax liabilities (29,688) (29,393) (30,063) Retirement benefits - net liabilities (7,257) (5,241) (6,666) -------------------------------- --- --------------- -------------- ------------------ (60,945) (65,868) (64,604) -------------------------------- --- --------------- -------------- ------------------ Net assets 470,608 420,022 445,261 -------------------------------- --- --------------- -------------- ------------------ 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 23,935 23,935 23,935 Capital redemption reserve 1,087 1,087 1,087 Revaluation reserves 60,322 58,583 61,038 Exchange reserves (216,024) (211,874) (219,570) Retained earnings 498,992 456,103 482,288 -------------------------------- --- --------------- -------------- ------------------ 382,645 342,167 363,111 Non-controlling interests 87,963 77,855 82,150 -------------------------------- --- --------------- -------------- ------------------ Total equity 470,608 420,022 445,261 -------------------------------- --- --------------- -------------- ------------------
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent ----------------------------------------------------------------------------------------------- Capital Foreign Non-controlling Share Treasury Share redemption Revaluation exchange Retained interests Total capital shares premium reserve reserves reserves earnings Total equity $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- --------- Balance at 31 December 2015 15,504 (1,171) 23,935 1,087 59,594 (234,490) 504,892 369,351 82,607 451,958 Restatement (note 2) - - - - (22) 7,516 (55,830) (48,336) (9,009) (57,345) ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Balance at 31 December 2015 after restatement 15,504 (1,171) 23,935 1,087 59,572 (226,974) 449,062 321,015 73,598 394,613 ---------------------------------------------------------- ---------- ---------- --------- ---------------- ----------- Items of other comprehensive income: * Unrealised gain on revaluation of leasehold land, net of tax - - - - 1,466 - - 1,466 286 1,752 * Remeasurement of retirement benefits plan, net of tax - - - - - - (484) (484) (83) (567) * Gain on exchange translation of foreign operations - - - - - 7,404 - 7,404 1,456 8,860 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Total other comprehensive income / (expense) - - - - 1,466 7,404 (484) 8,386 1,659 10,045 Profit for the year - - - - - - 34,713 34,713 9,268 43,981 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Total comprehensive income for the year - - - - 1,466 7,404 34,229 43,099 10,927 54,026 Dividends paid - - - - - - (1,003) (1,003) (2,375) (3,378) ---------------------------------------------------------- Balance at 31 December 2016 15,504 (1,171) 23,935 1,087 61,038 (219,570) 482,288 363,111 82,150 445,261 --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Items of other comprehensive income: * Unrealised loss on revaluation of leasehold land, net of tax - - - - (716) - - (716) (79) (795) * Gain on exchange translation of foreign operations - - - - - 3,546 - 3,546 1,060 4,606 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Total other comprehensive
(expense) / income - - - - (716) 3,546 - 2,830 981 3,811 Profit for the period - - - - - - 18,219 18,219 5,063 23,282 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Total comprehensive (expense) / income for the period - - - - (716) 3,546 18,219 21,049 6,044 27,093 Dividend payable - - - - - - (1,515) (1,515) (231) (1,746) Balance at 30 June 2017 15,504 (1,171) 23,935 1,087 60,322 (216,024) 498,992 382,645 87,963 470,608 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Attributable to owners of the parent ----------------------------------------------------------------------------------------------- Capital Foreign Non-controlling Share Treasury Share redemption Revaluation exchange Retained interests Total capital shares premium reserve reserves reserves earnings Total Equity $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- --------- Balance at 31 December 2015 15,504 (1,171) 23,935 1,087 59,594 (234,490) 504,892 369,351 82,607 451,958 Restatement (note 2) - - - - (22) 7,516 (55,830) (48,336) (9,009) (57,345) ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Balance at 31 December 2015 after restatement 15,504 (1,171) 23,935 1,087 59,572 (226,974) 449,062 321,015 73,598 394,613 Items of other comprehensive income: * Unrealised loss on revaluation of leasehold land, net of tax - - - - (989) - - (989) (137) (1,126) * Gain on exchange translation of foreign operations - - - - - 15,100 - 15,100 3,850 18,950 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Total other comprehensive (expense) / income - - - - (989) 15,100 - 14,111 3,713 17,824 Profit for the period - - - - - - 8,044 8,044 2,919 10,963 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- ----------- Total comprehensive (expense) / income for the period - - - - (989) 15,100 8,044 22,155 6,632 28,787 Dividends payable - - - - - - (1,003) (1,003) (2,375) (3,378) Balance at 30 June 2016 after restatement 15,504 (1,171) 23,935 1,087 58,583 (211,874) 456,103 342,167 77,855 420,022 ---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Condensed Consolidated Statement of Cash Flows
2017 2016 2016 6 months 6 months Year to 30 June to 30 June to 31 December (unaudited (unaudited) & restated) (audited) $000 $000 $000 --------------------------------- ------------ ------------- --------------- Cash flows from operating activities Profit before tax 31,631 17,255 60,846 Adjustments for: Biological assets movement 181 (3,288) (3,383) Gain on disposal of property, plant and equipment (7) (2) (13) Depreciation 8,050 7,516 15,677 Retirement benefits provisions 680 502 1,700 Net finance income (1,477) (2,571) (4,138) Unrealised gain in foreign exchange (156) (1,244) (845) Property, plant and equipment written off 88 54 731 Impairment losses 1,596 1,722 2,740 Operating cash flow before changes in working capital 40,586 19,944 73,315 Decrease / (Increase) in inventories 1,044 (1,140) (2,353) Increase in non-current, trade and other receivables (4,597) (3,888) (1,460) Decrease in trade and other payables (734) (3,630) (1,749) --------------------------------- ------------ ------------- --------------- Cash inflow from operations 36,299 11,286 67,753 Interest paid (913) (835) (1,743) Retirement benefits paid (148) - (250) Overseas tax paid (19,350) (15,689) (27,133) --------------------------------- ------------ ------------- --------------- Net cash from / (used in) operations 15,888 (5,238) 38,627 --------------------------------- ------------ ------------- --------------- Investing activities Property, plant and equipment - purchases (11,628) (13,366) (30,484) - sales 81 58 931 Interest received 2,390 3,406 5,881 Net cash used in investing activities (9,157) (9,902) (23,672) --------------------------------- ------------ ------------- --------------- Financing activities Dividends paid by Company - (1,003) (1,003) Dividends paid to non-controlling interests (202) (1,372) (2,375) Drawdown of long term loans - 1,250 1,250 Repayment of existing long term loans (2,844) (250) (1,797) Net cash used in financing activities (3,046) (1,375) (3,925) ------------------------------- -------- --------- ------------ Increase / (Decrease) in cash and cash equivalents 3,685 (16,515) 11,030 Cash and cash equivalents At beginning of period 118,176 104,614 104,614 Foreign exchange 1,180 4,895 2,532 ------------------------------- -------- --------- ------------ At end of period 123,041 92,994 118,176 ------------------------------- -------- --------- ------------ Comprising: Cash at end of period 123,041 92,994 118,176 ------------------------------- -------- --------- ------------
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 2016 Annual Report. The financial information for the half years ended 30 June 2017 and 30 June 2016 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 2016 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2016 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2016 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.
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 period's 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. This was adopted in the prior year interim and annual financial statements for the first time and required retrospective application. The prior year interim financial statements have been restated to reflect the changes made in the annual financial statements which were subject to audit.
The effects of the restatements are summarised as follows:
2016 2015 6 months to Year to 31 30 June December (unaudited (audited & & restated) restated) $000 $000 Impact on condensed consolidated income statement Profit / (Loss) for the period before restatement 14,002 (13,429) ----------------------------- ------------- ----------- Effect of change in restatement: Cost of sales (480) (6,787) Biological assets movement - 63,389 Administration expenses (17) 196 Impairment losses (1,722) (12,470) Tax expense (820) (15,847) ----------------------------- ------------- ----------- (3,039) 28,481 Profit for the period after restatement 10,963 15,052 ----------------------------- ------------- ----------- 2016 2015 6 months to Year to 31 30 June December (unaudited (audited & & restated) restated) Impact on earnings per share Basic EPS before BA movement (4.09)cts (43.50)cts Basic EPS after BA movement (7.09)cts 62.24cts Diluted EPS before BA movement (4.09)cts (43.52)cts Diluted EPS after BA movement (7.09)cts 62.22cts 2016 2015 6 months to Year to 31 30 June December (unaudited (audited & & restated) restated) $000 $000 Impact on condensed consolidated statement of comprehensive income Other comprehensive income / (expense) for the period before restatement 16,696 (50,585) ---------------------------------- ------------- ----------- Effect of change in restatement: Unrealised gain on revaluation of leasehold land 390 - Loss on exchange translation of foreign operations 1,136 8,858 Deferred tax on revaluation (398) (40) ---------------------------------- ------------- ----------- 1,128 8,818 ---------------------------------- ------------- ----------- Other comprehensive income / (expense) for the period after restatement 17,824 (41,767) ---------------------------------- ------------- ----------- Restated Balance balance as reported at 30 June Effect 30 June 2016 of restatement 2016 $000 $000 $000 Impact on condensed consolidated statement of financial position Property, plant and equipment 329,788 25,242 355,030 Deferred tax (16,506) (1,652) (18,158) Revaluation reserves (58,587) 4 (58,583) Exchange reserves 211,615 259 211,874 Retained earnings (433,069) (23,034) (456,103) Non-controlling interests (77,036) (819) (77,855) Restated Balance balance as reported at 31 December Effect 31 December 2015 of restatement 2015 $000 $000 $000 Impact on condensed consolidated statement of financial position Non-current assets - Biological assets 179,010 (179,010) - Property, plant and equipment 219,990 116,454 336,444 Deferred tax (20,911) 1,538 (19,373) Current assets - Biological assets - 3,673 3,673 Revaluation reserves (59,594) 22 (59,572) Exchange reserves 234,490 (7,516) 226,974 Retained earnings (504,892) 55,830 (449,062) Non-controlling interests (82,607) 9,009 (73,598) 3. Foreign exchange 2017 2016 2016 6 months 6 months Year to 30 to 30 June June to 31 December (unaudited) (unaudited) (audited) Average exchange rates Rp : $ 13,331 13,420 13,307 $ : GBP 1.26 1.43 1.35 RM : $ 4.39 4.10 4.14 Closing exchange rates Rp : $ 13,319 13,180 13,436 $ : GBP 1.30 1.34 1.23 RM : $ 4.29 4.03 4.49 4. Finance expense 2017 2016 2016 6 months 6 months Year to 30 to 30 June June to 31 December (unaudited) (unaudited) (audited) $000 $000 $000 Payable 913 835 1,743 ------------ ------------ --------------- 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 2017 (unaudited) Total sales revenue (all external) * CPO, palm kernel and FFB 46,827 51,956 - 25,930 51 18,083 142,847 1,588 - 144,435
* Rubber 745 - - - - - 745 - - 745 * Shell nuts 373 365 2 434 - 8 1,182 - - 1,182 * Biomass products 451 57 - - - - 508 - - 508 Total revenue 48,396 52,378 2 26,364 51 18,091 145,282 1,588 - 146,870 --------- --------- --------- -------- ------- ----------- ---------- --------- ------ -------- Profit / (loss) before tax 10,414 13,319 (1,921) 7,351 (293) 3,237 32,107 288 (583) 31,812 BA movement 131 (17) (41) (167) (1) (62) (157) (24) - (181) --------- --------- --------- -------- ------- ----------- ---------- --------- ------ -------- Profit / (loss) for the period before tax per consolidated income statement 10,545 13,302 (1,962) 7,184 (294) 3,175 31,950 264 (583) 31,631 --------- --------- --------- -------- ------- ----------- ---------- --------- ------ -------- Depreciation (1,959) (2,026) (1,356) (461) (79) (1,875) (7,756) (294) - (8,050) Impairment losses - - 446 - (110) (1,932) (1,596) - - (1,596) Inter-segment transactions 2,559 (1,058) (402) (304) (40) (831) (76) 46 30 - Income tax (4,448) (2,918) 1,906 (2,517) 86 (214) (8,105) (102) (142) (8,349) Total assets 182,406 140,227 57,161 36,290 11,913 107,376 535,373 22,334 5,554 563,261 Non-current assets 104,221 75,796 55,473 20,108 11,699 97,809 365,106 16,717 578 382,401 Non-current assets - additions 3,353 1,171 997 368 222 5,495 11,606 22 - 11,628 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 & restated) Total sales revenue (all external) * CPO, palm kernel and FFB 33,302 30,876 1 11,771 5 7,526 83,481 1,637 - 85,118 * Rubber 441 - - - - - 441 - - 441 * Shell nuts 90 252 - 27 - 9 378 - - 378 * Biomass products 107 - - - - - 107 - - 107 Total revenue 33,940 31,128 1 11,798 5 7,535 84,407 1,637 - 86,044 --------- --------- --------- -------- ------- ----------- ---------- --------- -------- -------- Profit / (loss) before tax 8,205 6,434 (2,730) 2,974 (281) (1,315) 13,287 65 615 13,967 BA movement 1,142 1,533 50 441 - 40 3,206 82 - 3,288 --------- --------- --------- -------- ------- ----------- ---------- --------- -------- -------- Profit / (loss) for the period before tax per consolidated income statement 9,347 7,967 (2,680) 3,415 (281) (1,275) 16,493 147 615 17,255 --------- --------- --------- -------- ------- ----------- ---------- --------- -------- -------- Depreciation (1,951) (1,939) (1,228) (439) (32) (1,597) (7,166) (330) - (7,516) Impairment losses - - 201 - (165) (1,758) (1,722) - - (1,722) Inter-segment transactions 1,683 (1,060) (384) (305) - (637) (703) 673 30 - Income tax (4,101) (1,692) 1,622 (1,397) 25 663 (4,880) (135) (1,277) (6,292) Total assets 163,970 112,878 52,434 38,341 11,720 102,167 481,510 23,277 4,695 509,482 Non-current assets 100,264 73,974 50,706 20,138 11,499 94,255 350,836 18,416 578 369,830 Non-current assets - additions 3,353 1,576 1,228 525 254 6,399 13,335 31 - 13,366 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 2016 (audited) Total sales revenue (all external) * CPO, palm kernel and FFB 88,465 86,564 3 40,169 27 24,342 239,570 3,450 - 243,020 * Rubber 1,149 - - - - - 1,149 - - 1,149 * Shell nuts 628 736 1 205 - 147 1,717 - - 1,717 * Biomass products 324 - - - - - 324 - - 324 Total revenue 90,566 87,300 4 40,374 27 24,489 242,760 3,450 - 246,210 --------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------- Profit / (loss) before tax 23,219 24,785 (4,695) 12,861 (602) 1,623 57,191 296 (24) 57,463 BA movement 628 1,421 144 653 2 431 3,279 104 - 3,383 --------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------- Profit / (loss) for the period before tax per consolidated income statement 23,847 26,206 (4,551) 13,514 (600) 2,054 60,470 400 (24) 60,846 --------- --------- --------- -------- ------- ----------- ---------- --------- -------- --------- Depreciation (4,029) (4,096) (2,505) (898) (85) (3,414) (15,027) (650) - (15,677) Impairment losses - - 693 - (335) (3,098) (2,740) - - (2,740) Inter-segment transactions 3,828 (2,117) (767) (609) - (1,334) (999) 604 395 - Income tax (9,275) (5,744) 3,410 (4,531) 90 644 (15,406) (81) (1,378) (16,865) Total assets 175,332 129,428 54,280 41,887 11,732 103,906 516,565 20,944 3,587 541,096 Non-current assets 101,843 76,048 52,862 20,044 11,520 94,974 357,291 16,263 578 374,132 Non-current assets - additions 7,956 5,544 2,638 857 657 12,771 30,423 61 - 30,484
In the 6 months to 30 June 2017, revenues from 4 customers of the Indonesian segment represent approximately $78.5m (1H 2016: $47.6m) of the Group's total revenues. In the year of 2016, revenues from 4 customers of the Indonesian segment represent approximately $114.1m of the Group's total revenues. An analysis of these revenues is provided below. Although Customer 1 to 2 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 2016.
2017 2016 2016 6 months 6 months Year to 30 June to 30 June to 31 December (unaudited) (unaudited) (audited) $m % $m % $m % Major Customers Customer 1 28.2 19.2 16.9 19.6 39.1 15.9 Customer 2 23.3 15.9 13.6 15.8 27.0 11.0 Customer 3 14.6 9.9 10.7 12.4 24.2 9.9 Customer 4 12.4 8.4 6.4 7.5 23.8 9.7 ------------------ --------- --------- ---------- -------- -------- -------- Total 78.5 53.4 47.6 55.3 114.1 46.5
------------------ --------- --------- ---------- -------- -------- -------- 6. Tax expense 2017 2016 2016 6 months 6 months Year to 30 to 30 June June to 31 December (unaudited (unaudited) & restated) (audited) $000 $000 $000 Foreign corporation tax - current year 11,049 7,963 20,438 Foreign corporation tax - prior year - - (30) Deferred tax adjustment - current year (2,700) (1,671) (3,543) 8,349 6,292 16,865 ------------ ------------- --------------- 7. Dividend
The final and only dividend in respect of 2016, amounting to 3.0p per share, or $1,515,140 was paid on 14 July 2017 (2015: 1.75p per share, or $1,002,785, paid on 11 July 2016). As in previous years no interim dividend has been declared.
8. Earnings per ordinary share (EPS) 2017 2016 2016 6 months 6 months Year to 30 to 30 June June to 31 December (unaudited (unaudited) & restated) (audited) $000 $000 $000 Profit for the year attributable to owners of the Company before BA movement 18,328 5,940 32,563 BA movement (109) 2,104 2,150 ------------ ------------- --------------- Earnings used in basic and diluted EPS 18,219 8,044 34,713 ------------ ------------- --------------- 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 33 - - ------------ ------------- --------------- - used in diluted EPS 39,669 39,636 39,636 ------------ ------------- --------------- Basic EPS before BA movement 46.24cts 14.99cts 82.16cts Basic EPS after BA movement 45.97cts 20.29cts 87.58cts Dilutive EPS before BA movement 46.20cts 14.99cts 82.16cts Dilutive EPS after BA movement 45.93cts 20.29cts 87.58cts 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:
2017 2016 2016 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 578 424 578 424 578 424 Due from cooperatives under Plasma scheme 4,670 4,394 2,987 2,843 3,313 2,973 5,248 4,818 3,565 3,267 3,891 3,397 --------- ------- ------------ ------- --------- ------- Borrowings due after one year Long term loan 24,000 23,349 31,234 31,387 27,875 27,208 --------- ------- ------------ ------- --------- -------
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.
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 lending rate lower the of 6% (1H 2016 fair value and 2016: 6%) Due from Based on cash Discount The higher cooperatives flows discounted rate the discount under Plasma using an estimated rate, the scheme current lending lower the rate of 5.56% fair value (1H 2016: 5.57%, 2016: 5.56%) Borrowings due after one year Long term Based on cash Discount The higher loan flows discounted rate the discount using an estimated rate, the current lending lower the rate of 5.56% fair value (1H 2016: 5.57%, 2016: 5.56%) 10. Report and financial information
Copies of the interim report for the Group for the period ended 30 June 2017 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 LLFLITVIVFID
(END) Dow Jones Newswires
August 23, 2017 12:00 ET (16:00 GMT)
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