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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 | 762.00 | 772.00 | 778.00 | 756.00 | 760.00 | 3,826 | 13:02:40 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Shortng,oils,margarine, Nec | 456.93M | 79.64M | 2.0094 | 3.79 | 302.03M |
From Apr 2019 to Apr 2024
TIDMAEP
RNS Number : 9920Y
Anglo-Eastern Plantations PLC
28 August 2018
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Announcement of interim results for six months ended 30 June 2018
The group comprising Anglo-Eastern Plantations Plc and its subsidiaries (the "Group"), is a major producer of palm oil and rubber with plantations across Indonesia and Malaysia, amounting to some 128,200 hectares, and has today released its results for the six months ended 30 June 2018.
Financial Highlights
Hot Features
Premium
2018 2017 2017
6 months 6 months 12 months
to 30 to 30 to 31 December
June June
$m $m $m
(unaudited) (unaudited) (audited)
Revenue 133.3 146.9 291.9
Profit before tax
- before biological assets
("BA") movement 21.7 31.8 70.0
- after BA movement 22.0 31.6 69.7
Basic Earnings per ordinary
share ("EPS")
- before BA movement 30.37cts 46.24cts 91.80cts
- after BA movement 30.90cts 45.97cts 91.37cts
Total net assets 463.8 470.6 476.9
Enquiries:
Anglo-Eastern Plantations Plc Dato' John Lim Ewe Chuan +44 (0)20 7216 4621 Panmure Gordon (UK) Limited Dominic Morley +44 (0)20 7886 2954
Chairman's Interim Statement
The interim results for the Group for the six months to 30 June 2018 are as follows:
Revenue for the six months to 30 June was $133.3 million, 9% lower than $146.9 million reported for the first six months of 2017. In the same period the Group gross profit decreased to $25.2 million from $34.9 million. Overall the profit before tax for the first half of 2018 decreased by 30% to $22.0 million from $31.6 million for the corresponding period. This was due to the lower Crude Palm Oil ("CPO") and rubber prices.
Fresh Fruit Bunches ("FFB") production for the first half of 2018 was 9% higher at 477,400mt compared to 436,900mt in the same period last year. The increase in production was due to the better performance of plantations in Riau, Bengkulu and Kalimantan. The harvest in Riau was higher by 26% due to good weather conditions. The improvement in the evacuation of crops in Bengkulu together with a 20% increase in matured planted area in Kalimantan contributed to a 9% and 31% increase in regional production respectively. Bought-in crops, however, decreased by 3% to 473,100mt from 486,300mt due to intense competition from old and new mills.
Operational and financial performance
For the six months ended 30 June 2018, the gross profit margin decreased to 19% from 24% as the Group experienced lower palm and rubber prices, higher operational costs due to the increase in matured area mainly from Kalimantan and a decrease in the purchase of external crop.
CPO price ex-Rotterdam averaged $661/mt for the first six months of 2018, 11% lower than $740/mt over the same period in 2017.
Profit after tax for the six months ended 30 June 2018 was $16.2 million, 30% lower than $23.3 million for the first six months of 2017.
The resulting earnings per share for the period decreased by 33% to 30.90cts (1H 2017: 45.97cts).
The Group's balance sheet remains reasonably strong and cash flow remains healthy. Net assets at 30 June 2018 were $463.8 million compared to $476.9 million at 31 December 2017. The decrease in net assets was attributed to a $27.1 million exchange translation loss due to a weaker Indonesian Rupiah which has depreciated by 6% against the US dollar in the first half of 2018.
As at 30 June 2018, the Group's total cash balance was $130.1 million (1H 2017: $123.0 million) with total borrowings of $25.6 million (1H 2017: $31.2 million), giving a net cash position of $104.5 million, compared to $91.8 million as at 30 June 2017.
Operating costs
The operating costs per hectare for the Indonesian operations were higher in the first half of 2018 compared to the same period in 2017 mainly due to the increase in wages, fuel, transportation costs and depreciation. Higher operating costs were also partly attributed to a 3% increase in matured areas.
Production and Sales
2018 2017 2017
6 months 6 months Year
to 30 June to 30 June to 31 December
mt mt mt
Oil palm production
FFB
- all estates 477,400 436,900 929,600
- bought-in or processed for
third parties 473,100 486,300 998,400
Saleable CPO 193,800 187,400 390,600
Saleable palm kernels 46,700 44,900 94,600
Oil palm sales
CPO 195,500 192,900 388,900
Palm kernels 45,000 45,600 96,000
FFB sold outside 14,000 11,000 23,200
Rubber production 291 397 812
The Group's six mills processed a total of 936,500mt in FFB for the first half of 2018, a 3% increase compared to 912,200mt for the same period last year. The higher throughput was due to higher internal crops production.
Overall CPO produced for the first half of 2018 was higher by 3% at 193,800mt from 187,400mt. The oil extraction rate for the first half of 2018 improved marginally to 20.7% from 20.5% in same period last year.
The Group continues to reduce its greenhouse gas ("GHG") emissions by capturing the methane gas released from its effluent treatment plants to produce electricity. The two biogas plants in the Group produced over 7,060 MWh of electricity compared to 2,910 MWh in the same period last year. The third biogas plant located in Kalimantan will likely begin commercial operation by the start of the fourth quarter of 2018 after the installation of about 6.7km of 20kv transmission lines to the national grid is completed.
Commodity prices
The CPO price for first half of 2018 averaged $661/mt, 11% lower than last year (1H 2017: $740/mt). The CPO price has gradually trended downwards from the start of the year at $678/mt to close at $655/mt on 29 June 2018 and has further declined to $542.50/mt as at 22 August 2018. Subdued demand with production projected to rise at a higher pace amid a relatively high inventory will likely depress the CPO price for the remainder of the year.
Rubber price averaged $1,329/mt, 28% lower than 2017 (1H 2017: $1,849/mt).
Development
The Group's planted areas at 30 June 2018 comprised:
Total Mature Immature
ha ha Ha
North Sumatera 19,072 14,093 4,979
Bengkulu 16,996 16,996 -
Riau 4,873 4,873 -
South Sumatera 5,977 5,180 797
Kalimantan 14,440 11,606 2,834
Bangka 884 449 435
Plasma 2,951 1,609 1,342
------- ------- ---------
Indonesia 65,193 54,806 10,387
Malaysia 3,510 3,460 50
------- ------- ---------
Total: 30 June 2018 68,703 58,266 10,437
------- ------- ---------
Total: 31 December 2017 68,310 54,900 13,410
------- ------- ---------
Total: 30 June 2017 67,592 56,529 11,063
------- ------- ---------
The Group's new planting for the first six months of 2018 totalled 427ha compared to 781ha for the same period last year. The slower than anticipated rate of new planting is due to protracted land compensation negotiations. New planting was also slower in Kalimantan as the Group awaits results of the high carbon stock sustainability study which will determine which areas cannot be planted with oil palm due to high conservation and high carbon stock values.
The Group remains optimistic that planting will pick up in the second half of 2018. The Group's total landholding comprises some 128,200ha, of which the planted area stands around 68,703ha (1H 2017: 67,592ha) with the balance of estimated plantable land at 22,700ha.
Significant capital expenditure is expected in the replanting of over 471ha covering old palms and rubber trees in North Sumatera which started in May 2018.
The earthwork for the fourth biogas plant, expected to cost an estimated $3.8 million, in North Sumatera has started and is expected to be completed by the end of first half of 2019. The earthworks for the seventh mill in North Sumatera, expected to cost an estimated $19 million, have been hampered by high rainfall. The mill is scheduled for completion by the end of the third quarter of 2020.
Dividend
As in previous years, no interim dividend has been declared. A final dividend of 4.0 cents per share in respect of the year ended 31 December 2017 was paid on 13 July 2018.
Outlook
The demand for palm oil in India may rebound in the second half of 2018 as India has reportedly raised the import taxes on soft oils from July 2018 making palm oil more competitive again. Also, the higher tariff on the import of soybean from United States into China could lead to an increase in demand for palm oil, being the closest substitute to soybean. This higher tariff would make palm oil more attractive as the price difference between CPO and soybean oil would be widened further.
The Board looks forward to reporting further progress in its next trading update.
Principal risks and uncertainties
It is believed that the potential impact on the Group of Britain's vote to leave the European Union is limited, unless Brexit causes a worldwide recession. 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. The principal risks and uncertainties have broadly remained the same since the publication of the annual report for the year ended 31 December 2017.
A more detailed explanation of the risks relevant to the Group is on pages 19 to 23 and from pages 88 to 92 of the 2017 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
28 August 2018
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 2018 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
28 August 2018
Condensed Consolidated Income Statement
2018 2017 2017
6 months to 30 June 6 months to 30 June Year to 31 December
(unaudited) (unaudited) (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 4 133,331 - 133,331 146,870 - 146,870 291,907 - 291,907
Cost of sales (108,458) 332 (108,126) (111,826) (181) (112,007) (217,543) (297) (217,840)
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ---------- --------- ----------
Gross profit 24,873 332 25,205 35,044 (181) 34,863 74,364 (297) 74,067
Administration
expenses (3,544) - (3,544) (3,269) - (3,269) (8,611) - (8,611)
(Impairment losses)
/ Reversal of
impairment - - - (1,596) - (1,596) 923 - 923
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ---------- --------- ----------
Operating profit 21,329 332 21,661 30,179 (181) 29,998 66,676 (297) 66,379
Exchange (losses)
/ gains (1,222) - (1,222) 156 - 156 (272) - (272)
Finance income 2,374 - 2,374 2,390 - 2,390 5,337 - 5,337
Finance expense 3 (793) - (793) (913) - (913) (1,753) - (1,753)
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ---------- --------- ----------
Profit before tax 21,688 332 22,020 31,812 (181) 31,631 69,988 (297) 69,691
Tax expense 5 (5,739) (83) (5,822) (8,394) 45 (8,349) (23,451) 73 (23,378)
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ---------- --------- ----------
Profit for the
period 15,949 249 16,198 23,418 (136) 23,282 46,537 (224) 46,313
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ---------- --------- ----------
Attributable to:
- Owners of the
parent 12,037 209 12,246 18,328 (109) 18,219 36,386 (172) 36,214
- Non-controlling
interests 3,912 40 3,952 5,090 (27) 5,063 10,151 (52) 10,099
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ---------- --------- ----------
15,949 249 16,198 23,418 (136) 23,282 46,537 (224) 46,313
--------------------- ------ ---------- --------- ---------- ---------- --------- ---------- ---------- --------- ----------
Earnings per share
for profit
attributable
to the owners of
the
parent during the
period
- basic 7 30.90cts 45.97cts 91.37cts
- diluted 7 30.87cts 45.93cts 91.29cts
Condensed Consolidated Statement of Comprehensive Income
2018 2017 2017
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
------------------------------------------------------ ------------ ------------ ---------------
Profit for the period 16,198 23,282 46,313
------------------------------------------------------- ------------ ------------ ---------------
Other comprehensive (expenses) / income:
Items may be reclassified to profit or loss:
(Loss) / Gain on exchange translation of
foreign operations (27,093) 4,606 (1,718)
------------------------------------------------------- ------------ ------------ ---------------
Net other comprehensive (expenses) / income
may be reclassified to profit or loss (27,093) 4,606 (1,718)
------------------------------------------------------- ------------ ------------ ---------------
Items not to be reclassified to profit or
loss:
Unrealised loss on revaluation of leasehold
land, net of tax (531) (795) (9,948)
Remeasurement of retirement benefits plan,
net of tax - - (1,271)
------------------------------------------------------- ------------ ------------ ---------------
Net other comprehensive expenses not being
reclassified to profit or loss (531) (795) (11,219)
------------------------------------------------------- ------------ ------------ ---------------
Total other comprehensive (expenses) / income
for the period, net of tax (27,624) 3,811 (12,937)
Total comprehensive (expenses) / income for
the period (11,426) 27,093 33,376
Attributable to:
- Owners of the parent (10,906) 21,049 23,496
- Non-controlling interests (520) 6,044 9,880
------------------------------------------------------- ------------ ------------ ---------------
(11,426) 27,093 33,376
------------------------------------------------------ ------------ ------------ ---------------
Condensed Consolidated Statement of Financial Position
2018 2017 2017
as at 30 June as at 30 June as at 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
---------------------------------------- ------------ -------------- --------------- -------------------
Non-current assets
Property, plant and equipment 337,719 361,270 353,680
Receivables 8,746 5,248 8,358
Deferred tax assets 10,857 15,883 9,309
---------------------------------------- ------------ -------------- ------------------- ------------------
357,322 382,401 371,347
---------------------------------------- ------------ -------------- ------------------- ------------------
Current assets
Inventories 10,718 8,257 9,398
Tax receivables 34,327 33,664 29,430
Biological assets 6,695 6,995 6,772
Trade and other receivables 6,308 8,903 5,184
Cash and cash equivalents 130,127 123,041 139,489
---------------------------------------- ------------ -------------- ------------------- ------------------
188,175 180,860 190,273
---------------------------------------- ------------ -------------- ------------------- ------------------
Current liabilities
Loans and borrowings (11,844) (7,234) (8,594)
Trade and other payables (20,553) (15,459) (16,805)
Tax liabilities (4,688) (7,500) (8,637)
Dividend payables (1,617) (1,515) -
---------------------------------------- ------------ -------------- ------------------- ------------------
(38,702) (31,708) (34,036)
---------------------------------------- ------------ -------------- ------------------- ------------------
Net current assets 149,473 149,152 156,237
---------------------------------------- ------------ -------------- ------------------- ------------------
Non-current liabilities
Loans and borrowings (13,719) (24,000) (19,281)
Deferred tax liabilities (20,023) (29,688) (22,390)
Retirement benefits - net liabilities (9,246) (7,257) (9,022)
---------------------------------------- ------------ -------------- ------------------- ------------------
(42,988) (60,945) (50,693)
---------------------------------------- ------------ -------------- ------------------- ------------------
Net assets 463,807 470,608 476,891
---------------------------------------- ------------ -------------- ------------------- ------------------
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 50,789 60,322 51,288
Exchange reserves (244,088) (216,024) (221,435)
Retained earnings 526,545 498,992 515,884
---------------------------------------- ------------ -------------- ------------------- ------------------
372,601 382,645 385,092
Non-controlling interests 91,206 87,963 91,799
---------------------------------------- ------------ -------------- ------------------- ------------------
Total equity 463,807 470,608 476,891
---------------------------------------- ------------ -------------- ------------------- ------------------
Condensed Consolidated Statement of Changes in Equity
Attributable to owners of the parent
-----------------------------------------------------------------------------------------------
Capital 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
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 - - - - (9,750) - - (9,750) (198) (9,948)
* Remeasurement of retirement benefits plan, net of
tax - - - - - - (1,103) (1,103) (168) (1,271)
* (Loss) / Gain on exchange translation of foreign
operations - - - - - (1,865) - (1,865) 147 (1,718)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
expenses - - - - (9,750) (1,865) (1,103) (12,718) (219) (12,937)
Profit for the year - - - - - - 36,214 36,214 10,099 46,313
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive (expenses)
/ income for the year - - - - (9,750) (1,865) 35,111 23,496 9,880 33,376
Dividends paid - - - - - - (1,515) (1,515) (231) (1,746)
----------------------------------------------------------
Balance at 31 December
2017 15,504 (1,171) 23,935 1,087 51,288 (221,435) 515,884 385,092 91,799 476,891
--------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Items of other comprehensive
income:
* Unrealised loss on revaluation of leasehold land,
net
of tax - - - - (499) - - (499) (32) (531)
* Loss on exchange translation of foreign operations - - - - - (22,653) - (22,653) (4,440) (27,093)
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
expenses - - - - (499) (22,653) - (23,152) (4,472) (27,624)
Profit for the period - - - - - - 12,246 12,246 3,952 16,198
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive (expenses)
/ income for the period - - - - (499) (22,653) 12,246 (10,906) (520) (11,426)
Dividend payable - - - - - - (1,585) (1,585) (73) (1,658)
Balance at 30 June 2018 15,504 (1,171) 23,935 1,087 50,789 (244,088) 526,545 372,601 91,206 463,807
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Attributable to owners of the parent
--------------------------------------------------------------------------------------------------
Capital 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
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
(expenses) / income - - - - (716) 3,546 - 2,830 981 3,811
Profit for the period - - - - - - 18,219 18,219 5,063 23,282
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------ ---------------- ----------
Total comprehensive (expenses)
/ income for the period - - - - (716) 3,546 18,219 21,049 6,044 27,093
Dividends 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
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------ ---------------- ----------
Condensed Consolidated Statement of Cash Flows
2018 2017 2017
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
----------------------------------- ------------ ------------ ---------------
Cash flows from operating
activities
Profit before tax 22,020 31,631 69,691
Adjustments for:
Biological assets movement (332) 181 297
Gain on disposal of property,
plant and equipment (8) (7) (18)
Depreciation 8,375 8,050 16,284
Retirement benefits provisions 878 680 1,520
Net finance income (1,581) (1,477) (3,584)
Unrealised loss / (gain)
in foreign exchange 1,222 (156) 272
Property, plant and equipment
written off 17 88 585
Impairment losses / (reversal
of impairment) - 1,596 (923)
Operating cash flow before
changes in working capital 30,591 40,586 84,124
(Increase) / Decrease in
inventories (1,877) 1,044 (252)
Increase in non-current,
trade and other receivables (1,062) (4,597) (4,413)
Decrease / (Increase) in
trade and other payables 4,629 (734) 837
----------------------------------- ------------ ------------ ---------------
Cash inflow from operations 32,281 36,299 80,296
Interest paid (793) (913) (1,753)
Retirement benefits paid (83) (148) (774)
Overseas tax paid (19,636) (19,350) (26,412)
----------------------------------- ------------ ------------ ---------------
Net cash from operations 11,769 15,888 51,357
----------------------------------- ------------ ------------ ---------------
Investing activities
Property, plant and equipment
- purchases (13,279) (11,628) (27,192)
- sales 41 81 267
Interest received 2,374 2,390 5,337
Net cash used in investing
activities (10,864) (9,157) (21,588)
----------------------------------- ------------ ------------ ---------------
Financing activities
Dividends paid by Company - - (1,515)
Dividends paid to non-controlling
interests (73) (202) (231)
Repayment of existing long
term loans (2,313) (2,844) (6,197)
Net cash used in financing
activities (2,386) (3,046) (7,943)
----------------------------------- -------- -------- ----------
(Decrease) / Increase in
cash and cash equivalents (1,481) 3,685 21,826
Cash and cash equivalents
At beginning of period 139,489 118,176 118,176
Foreign exchange (7,881) 1,180 (513)
----------------------------------- -------- -------- ----------
At end of period 130,127 123,041 139,489
----------------------------------- -------- -------- ----------
Comprising:
Cash at end of period 130,127 123,041 139,489
----------------------------------- -------- -------- ----------
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 2017 Annual Report. The financial information for the half years ended 30 June 2018 and 30 June 2017 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 2017 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2017 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2017 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 those that relate to new standards and interpretations effective for the first time for periods beginning on 1 January 2018 and will be adopted in the 2018 annual financial statements. The new standard impacting the Group that will be adopted in the annual financial statements for the year ended 31 December 2018, and which has given rise to changes in the Group's accounting policies is IFRS 9 Financial Instruments.
Details of the impact for this standard are given below. Other new and amended standards and Interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to impact the Group as they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies.
IFRS 9 Financial Instruments
IFRS 9 has replaced IAS 39 Financial Instruments: Recognition and Measurement and introduces some new requirements in relation to impairment based on the expected credit loss model. The Group has chosen not to restate comparatives on adoption of IFRS 9 as the impact to the Group is immaterial and, therefore, these changes have been charged into the condensed consolidated income statement for the period of 30 June 2018.
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. Foreign exchange
2018 2017 2017
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Average exchange rates
Rp : $ 13,753 13,331 13,383
$ : GBP 1.38 1.26 1.29
RM : $ 3.94 4.39 4.30
Closing exchange rates
Rp : $ 14,404 13,319 13,548
$ : GBP 1.32 1.30 1.35
RM : $ 4.04 4.29 4.05
3. Finance expense
2018 2017 2017
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Payable 793 913 1,753
------------ ------------ ---------------
4. 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 2018
(unaudited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 43,054 44,177 - 22,318 143 19,597 129,289 1,234 - 130,523
* Rubber 393 - - - - - 393 - - 393
* Shell nut 289 281 - 421 - 12 1,003 - - 1,003
* Biomass products 310 - - - - - 310 - - 310
- Biogas products 226 266 - - - - 492 - - 492
- Others 531 - 10 18 - 51 610 - - 610
--------- --------- --------- -------- ------- ----------- ---------- --------- ---------- ----------
Total revenue 44,803 44,724 10 22,757 143 19,660 132,097 1,234 - 133,331
--------- --------- --------- -------- ------- ----------- ---------- --------- ---------- ----------
Profit / (loss)
before
tax 5,191 10,303 (2,694) 7,208 (226) 3,121 22,903 (57) (1,158) 21,688
BA movement 583 80 (56) (28) (2) (241) 336 (4) - 332
--------- --------- --------- -------- ------- ----------- ---------- --------- ---------- ----------
Profit / (loss) for
the
period before tax
per consolidated
income statement 5,774 10,383 (2,750) 7,180 (228) 2,880 23,239 (61) (1,158) 22,020
--------- --------- --------- -------- ------- ----------- ---------- --------- ---------- ----------
Depreciation (2,008) (2,033) (1,276) (463) (119) (2,215) (8,114) (261) - (8,375)
Reversal of
impairment
/ (impairment
losses) - - - - - - - - - -
Inter-segment
transactions 2,569 (1,051) (364) (301) (49) (880) (76) 46 30 -
Inter-segment
revenue 11,867 568 1,959 - - 194 14,588 - - 14,588
Tax expense (3,613) (2,177) 2,077 (2,802) 133 641 (5,741) (52) (29) (5,822)
Total assets 168,247 147,978 40,952 34,332 11,305 111,967 514,781 24,261 6,455 545,497
Non-current assets 100,619 69,203 39,232 17,973 11,038 98,390 336,455 17,869 2,998 357,322
Non-current assets -
additions 3,786 1,597 1,382 315 677 5,417 13,174 105 - 13,279
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 nut 316 343 - 418 - 8 1,085 - - 1,085
* Biomass products 209 - - - - - 209 - - 209
- Biogas products 242 57 - - - - 299 - - 299
- Others 57 22 2 16 - - 97 - - 97
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ----------
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)
Reversal of
impairment
/ (impairment
losses) - - 446 - (110) (1,932) (1,596) - - (1,596)
Inter-segment
transactions 2,559 (1,058) (402) (304) (40) (831) (76) 46 30 -
Inter-segment
revenue 14,851 533 1,894 - - 143 17,421 - - 17,421
Tax expense (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
Year to 31 December 2017
(audited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 98,290 98,666 - 54,074 147 31,828 283,005 3,159 - 286,164
* Rubber 1,305 - - - - - 1,305 - - 1,305
* Shell nut 729 559 - 897 - 29 2,214 - - 2,214
* Biomass products 644 - - - - - 644 - - 644
- Biogas products 527 338 - - - - 865 - - 865
- Others 632 63 4 - - - 699 - 16 715
--------- --------- --------- -------- ------- ----------- ---------- --------- ---------- -----------
Total revenue 102,127 99,626 4 54,971 147 31,857 288,732 3,159 16 291,907
--------- --------- --------- -------- ------- ----------- ---------- --------- ---------- -----------
Profit / (loss)
before
tax 24,778 28,952 (4,284) 15,795 (317) 6,552 71,476 103 (1,591) 69,988
BA movement (478) (114) (14) (91) 12 472 (213) (84) - (297)
--------- --------- --------- -------- ------- ----------- ---------- --------- ---------- -----------
Profit / (loss) for
the
period before tax
per consolidated
income statement 24,300 28,838 (4,298) 15,704 (305) 7,024 71,263 19 (1,591) 69,691
--------- --------- --------- -------- ------- ----------- ---------- --------- ---------- -----------
Depreciation (3,955) (4,114) (2,730) (940) (159) (3,825) (15,723) (561) - (16,284)
Reversal of
impairment
/ (impairment
losses) - - 1,112 - - (189) 923 - - 923
Inter-segment
transactions 5,083 (2,123) (806) (610) (80) (1,845) (381) 112 269 -
Inter-segment
revenue 31,496 1,469 3,643 - - 721 37,329 - - 37,329
Tax expense (11,210) (6,124) (69) (5,564) 89 (203) (23,081) (155) (142) (23,378)
Total assets 178,841 146,741 40,479 41,544 11,814 110,692 530,111 24,464 7,045 561,620
Non-current assets 105,243 73,888 39,222 19,258 11,587 100,990 350,188 17,986 3,173 371,347
Non-current assets -
additions 8,609 2,959 2,383 554 1,030 11,779 27,314 58 13 27,385
In the 6 months to 30 June 2018, revenues from 4 customers of the Indonesian segment represent approximately $60.1m (1H 2017: $78.5m) of the Group's total revenues. In year 2017, revenues from 4 customers of the Indonesian segment represent approximately $131.0m of the Group's total revenues. An analysis of this revenue 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. Three of the top four customers are the same as in the year to 31 December 2017.
2018 2017 2017
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$m % $m % $m %
Major Customers
Customer 1 18.6 14.0 28.2 19.2 44.9 15.4
Customer 2 15.3 11.5 23.3 15.9 30.5 10.5
Customer 3 14.7 11.0 14.6 9.9 28.6 9.8
Customer 4 11.5 8.6 12.4 8.4 27.0 9.2
------------------ --------- --------- ---------- -------- -------- --------
Total 60.1 45.1 78.5 53.4 131.0 44.9
------------------ --------- --------- ---------- -------- -------- --------
5. Tax expense
2018 2017 2017
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Foreign corporation tax
- current year 9,043 11,049 22,796
Foreign corporation tax
- prior year 6 - 365
Deferred tax adjustment
- origination and reversal
of temporary differences (3,227) (2,700) 217
5,822 8,349 23,378
------------ ------------ ---------------
6. Dividend
The final and only dividend in respect of 2017, amounting to 4.0 cents per share, or $1,585,455 was paid on 13 July 2018 (2016: 3.0p per share, or $1,515,140, paid on 14 July 2017). As in previous years, no interim dividend has been declared.
7. Earnings per ordinary share ("EPS")
2018 2017 2017
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Profit for the year attributable
to owners of the Company before
BA movement 12,037 18,328 36,386
BA movement 209 (109) (172)
------------ ------------ ---------------
Earnings used in basic and
diluted EPS 12,246 18,219 36,214
------------ ------------ ---------------
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 33 33
------------ ------------ ---------------
- used in diluted EPS 39,669 39,669 39,669
------------ ------------ ---------------
Basic EPS before BA movement 30.37cts 46.24cts 91.80cts
Basic EPS after BA movement 30.90cts 45.97cts 91.37cts
Dilutive EPS before BA movement 30.34cts 46.20cts 91.72cts
Dilutive EPS after BA movement 30.87cts 45.93cts 91.29cts
8. 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:
2018 2017 2017
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 2,977 1,837 578 424 3,161 1,882
Due from cooperatives
under Plasma
scheme 5,769 5,495 4,670 4,394 5,197 4,621
8,746 7,332 5,248 4,818 8,358 6,503
--------- ------- --------- ------- --------- -------
Borrowings due
after one year
Long term loan 13,719 13,403 24,000 23,349 19,281 18,661
--------- ------- --------- ------- --------- -------
Financial instruments not measured at fair value include 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 used Inter-relationship
between key unobservable
inputs and fair
value
----------------- ------------------------- ------------ ---------------------------
Non-current receivables
Due from Based on cash flows Discount The higher the
non-controlling discounted using rate discount rate,
interests current lending rate the lower the
of 6% (1H 2017 and fair value
2017: 6%)
Due from Based on cash flows Discount The higher the
cooperatives discounted using rate discount rate,
under Plasma an estimated current the lower the
scheme lending rate of 6.05% fair value
(1H 2017: 5.56%,
2017: 6.05%)
Borrowings due after one year
Long term Based on cash flows Discount The higher the
loan discounted using rate discount rate,
an estimated current the lower the
lending rate of 6.05% fair value
(1H 2017: 5.56%,
2017: 6.05%)
9. Report and financial information
Copies of the interim report for the Group for the period ended 30 June 2018 are available on the AEP website at www.angloeastern.co.uk.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR LIFIATTITFIT
(END) Dow Jones Newswires
August 28, 2018 12:00 ET (16:00 GMT)
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