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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 | 3,276 | 11:52:07 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Shortng,oils,margarine, Nec | 456.93M | 79.64M | 2.0094 | 3.80 | 302.82M |
From Apr 2019 to Apr 2024
TIDMAEP
RNS Number : 2158X
Anglo-Eastern Plantations PLC
26 August 2020
Anglo-Eastern Plantations Plc
("AEP", "Group" or "Company")
Announcement of interim results for the six months ended 30 June 2020
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, has today released its results for the six months ended 30 June 2020.
Financial Highlights
Hot Features
Premium
2020 2019 2019
6 months 6 months 12 months
to 30 June to 30 to 31 December
June
$m $m $m
(unaudited) (unaudited) (audited)
Revenue 123.1 97.9 219.1
Profit / (Loss) before tax
- before biological assets
("BA") movement 17.1 (0.2) 15.6
- after BA movement 16.8 1.6 18.9
Basic Earnings per ordinary
share ("EPS")
- before BA movement 26.83cts (6.72)cts 35.37cts
- after BA movement 26.35cts (3.74)cts 40.61cts
Total net assets 493.2 472.7 495.8
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
There is cautious reprieve from the Coronavirus pandemic as many countries are easing their lockdowns and encouraging their population to return to economic activities but to remain safe. There are expectations of a second wave and in fact some countries are experiencing it. We have gone through more than three months of the COVID-19 outbreak without significant impact to our productions as our plantations and mills have been able to operate close to normal levels. Likewise, the demand for Crude Palm Oil ("CPO") during the pandemic has not been affected, as reflected in the six months results to 30 June 2020.
While the total lockdown in Malaysia and Indonesia due to COVID-19 has been progressively lifted, local movement is still restricted and most international flights have not been restored. The Group continues to practise safety protocols like encouraging employees to wear masks, keep their distance, practise personal hygiene and avoid crowded places to minimize the spread of the virus. The pandemic is far from over as Indonesia reported more confirmed cases of COVID-19 compared to China.
As we are still facing a period of uncertainty, the Board and the management have carried out stress tests to ensure that the Group has adequate financial resources in a reasonable worse case scenario to remain as a going concern for at least twelve months from the date of this report. By the same token we have also carried out assessments of our significant assets to determine whether such assets need to be impaired as a result of the pandemic.
The interim results for the Group for the six months to 30 June 2020 are as follows:
Revenue for the six months to 30 June was $123.1 million, 26% higher than $97.9 million reported for the same period of 2019. The Group's gross profit was $21.8 million compared to $5.3 million for the first six months of 2019. Overall profit before tax for the first half of 2020 increased more than ten fold to $16.8 million (after biological assets movement) against $1.6 million for the corresponding period in 2019. This was attributed mainly to higher CPO prices and production.
Fresh Fruit Bunches ("FFB") production for the first half of 2020 was 9% higher at 511,700mt compared to 470,300mt in the same period last year due to better weather and increased matured area. Bengkulu plantations reported a 20% increase in crop production as the region recovered from the moisture stress. Young matured oil palms in North Sumatera are growing well and reported an 11% better harvest in the same period. Bought-in crops for the first half of 2020 also increased by 6% to 425,400mt from 402,900mt due to an abundance of crops in the Bengkulu region.
Operational and financial performance
For the six months ended 30 June 2020, gross profit margin increased to 17.7% from 5.4% as the Group experienced higher CPO and palm kernel prices.
CPO price ex-Rotterdam averaged $648/mt for the first six months to 30 June 2020, 23% higher than $527/mt over the same period in 2019. Our Group's average ex-mill price for CPO was higher at $551/mt for the same period (1H 2019: $466/mt).
Profit after tax for the six months ended 30 June 2020 was $12.5 million, compared to a profit of $0.3 million for the first six months of 2019, as a result of the increased gross profit margin.
The resulting basic earnings per share for the period was 26.35cts (1H 2019: loss of 3.74cts).
The Group's balance sheet remains strong. Net assets as at 30 June 2020 were $493.2 million compared to $472.7 million as at 30 June 2019 and $495.8 million as at 31 December 2019. The increase in net assets from the last interim report was attributed to higher profit and lower capital expenditure. The Indonesian Rupiah has depreciated by 3% against the US dollar in the first half of 2020.
As at 30 June 2020, the Group had cash and cash equivalents of $91.4 million (1H 2019: $100.1 million) and borrowings of $2.7 million (1H 2019: $16.1 million), giving it a net cash position of $88.7 million, compared to $84.0 million as at 30 June 2019 and $76.6 million as at 31 December 2019.
Operating costs
Operating costs for the Indonesian operations were higher in the first half of 2020 compared to the same period in 2019 mainly due to an increase in bought-in crops from third parties, higher wages due to the annual increase in minimum wage rates and a 5% increase in newly matured areas where the yield remains relatively low.
Production and Sales
2020 2019 2019
6 months 6 months Year
to 30 June to 30 June to 31 December
mt mt mt
Oil palm production
FFB
- all estates 511,700 470,300 1,025,100
- bought-in from third parties 425,400 402,900 907,100
Saleable CPO 189,900 177,500 394,700
Saleable palm kernels 45,300 42,300 93,100
Oil palm sales
CPO 195,900 182,600 397,300
Palm kernels 45,200 41,200 92,900
FFB sold outside 19,000 23,300 62,100
Rubber production 215 202 514
The Group's six mills processed a total of 918,100mt in FFB for the first half of 2020, an 8% increase compared to 849,900mt for the same period last year. T he higher throughput was due to the higher FFB supplied from both own estate s and bought-in from third parties due to reasons explained earlier .
Overall CPO produced for the first half of 2020 was 7% higher at 189,900mt from 177,500mt. The oil extraction rate for the first half of 2020 decreased to 20.7% from 20.9% in the same period last year. External crops, which made up 46% of the crop processed compared to 47% in the first half of 2020, were mainly made up of dura variety which has a thinner mesocarp resulting in lower oil content. The withdrawal of fertiliser for older trees due for replanting may also have contributed to an overall decline in oil extraction rate.
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 three biogas plants in the Group produced over 10,510 MWh of electricity compared to 7,470 MWh in the same period last year. However with the COVID-19 pandemic in Indonesia, many industries remain shut reducing the demand for power. The national grid temporarily suspended the uptake of electricity from one of our biogas plants in June 2020 until the economy recovers. There is a high risk that the authorities may reduce power purchases from biogas plants in North Sumatera despite the lower cost and cleaner energy as other power producers intensified their lobby for their energy to be prioritised for purchase.
Commodity prices
The CPO price ex-Rotterdam for the first half of 2020 averaged $648/mt, 23% higher than last year (1H 2019: $527/mt). The price has gradually trended downwards from the start of the year at $878/mt to close at $576/mt on 30 June 2020 but has since increased to $702/mt as at 19 August 2020. CPO prices are expected to remain volatile and under pressure for the second half of 2020.
Rubber price averaged $1,174/mt, 11% lower than 2019 (1H 2019: $1,315/mt).
Development
The Group's planted areas at 30 June 2020 comprised:
Total Mature Immature
Ha ha Ha
North Sumatera 19,069 16,704 2,365
Bengkulu 16,844 16,844 -
Riau 4,873 4,873 -
South Sumatera 6,355 5,466 889
Kalimantan 15,900 13,441 2,459
Bangka 2,06 2 647 1,415
Plasma 3,885 2,61 2 1,27 3
-------- -------- ---------
Indonesia 68,988 60,58 7 8,40 1
Malaysia 3,453 3,453 -
-------- -------- ---------
Total: 30 June 2020 72,44 1 64,040 8,40 1
-------- -------- ---------
Total: 31 December 2019 71,481 61,151 10,330
-------- -------- ---------
Total: 30 June 2019 70,503 61,183 9,320
-------- -------- ---------
The Group's new planting and replanting for the first six months of 2020 totalled 971ha compared to 481ha for the same period last year . In addition, Plasma planting for the period was 216ha (1H 2019: 242ha).
The Group remains optimistic that it will meet substantially its total planting target of 3,100ha in 2020. The Group's total landholding comprises some 128,200ha, of which the planted area stands at around 72,441ha (1H 2019: 70,503ha) with the balance of estimated plantable land at 18,300ha.
The fourth biogas plant has been completed and work to connect its electricity supply to the national grid is in progress. The progress has however been slow due to the lockdown caused by the COVID-19 pandemic in Indonesia. The state electricity board is also evaluating the need to purchase as power demand has dropped drastically due to the economic lockdown.
Due to the virus pandemic in Indonesia, the Group is evaluating the tenders received for the civil and structural works for the seventh mill in North Sumatera to further reduce the cost of construction. The mill completion is likely to be delayed and is now scheduled for completion by 2022.
Dividend
As in previous years, no interim dividend has been declared. A final dividend of 0.5 cents per share in respect of the year ended 31 December 2019 was paid on 17 July 2020.
Outlook
There are rising concerns of a second wave of the virus pandemic in key importing countries in the second half of 2020 which may cloud market demand. The prolonged uncertainties together with low crude oil prices and higher seasonal crop production may put some downward pressure on CPO prices. Furthermore, it was reported that China may potentially import and crush more soybeans to feed and rebuild its hog population decimated by the swine flu resulting in more supply of rival soy oil in the China market. Palm oil used for biodiesel blending is also likely to suffer as a result of economic lockdown dampening demand and prices.
Principal risks and uncertainties
We believe that the potential impact on the Group, of the United Kingdom ("UK") leaving the European Union is limited, unless Brexit causes a worldwide recession. Other than maintaining its corporate presence and listing in the UK, all plantation and mill operations together with marketing are primarily based in Indonesia. I have previously mentioned in our last Annual Report that the prolonged lockdown arising from the Coronavirus pandemic could lead to a worldwide recession which could in turn have an adverse impact on the consumption and usage of palm oil. In this context, the UK has been reported to be in recession. The principal risks and uncertainties, including the risks due to the Coronavirus pandemic, have broadly remained the same since the publication of the annual report for the year ended 31 December 2019.
A more detailed explanation of the risks relevant to the Group is on pages 23 to 27 and from pages 101 to 106 of the 2019 annual report which is available at https:// 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
26 August 2020
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 interim 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 2020 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
26 August 2020
Condensed Consolidated Income Statement
2020 2019 2019
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 3 123,098 - 123,098 97,863 - 97,863 219,136 - 219,136
Cost of sales (100,989) (298) (101,287) (94,432) 1,845 (92,587) (199,515) 3,255 (196,260)
--------------------- ------ ---------- --------- ---------- --------- --------- ---------- ----------- ----------- ----------
Gross profit 22,109 (298) 21,811 3,431 1,845 5,276 19,621 3,255 22,876
Administration
expenses (3,336) - (3,336) (3,143) - (3,143) (8,068) - (8,068)
(Impairment losses)
/ Reversal of
impairment (2,491) - (2,491) (2,337) - (2,337) 6,590 - 6,590
Provision for
expected
credit loss (313) - (313) (47) - (47) (5,965) - (5,965)
--------------------- ------ ---------- --------- ---------- --------- --------- ---------- ----------- ----------- ----------
Operating profit /
(loss) 15,969 (298) 15,671 (2,096) 1,845 (251) 12,178 3,255 15,433
Exchange (losses)
/ gains (11) - (11) 163 - 163 251 - 251
Finance income 1,376 - 1,376 2,257 - 2,257 4,169 - 4,169
Finance expense 4 (236) - (236) (569) - (569) (980) - (980)
--------------------- ------ ---------- --------- ---------- --------- --------- ---------- ----------- ----------- ----------
Profit / (Loss)
before
tax 5 17,098 (298) 16,800 (245) 1,845 1,600 15,618 3,255 18,873
Tax expense 6 (4,415) 75 (4,340) (804) (461) (1,265) (1,885) (814) (2,699)
--------------------- ------ ---------- --------- ---------- --------- --------- ---------- ----------- ----------- ----------
Profit / (Loss) for
the period 12,683 (223) 12,460 (1,049) 1,384 335 13,733 2,441 16,174
--------------------- ------ ---------- --------- ---------- --------- --------- ---------- ----------- ----------- ----------
Attributable to:
- Owners of the
parent 10,633 (190) 10,443 (2,664) 1,181 (1,483) 14,019 2,077 16,096
- Non-controlling
interests 2,050 (33) 2,017 1,615 203 1,818 (286) 364 78
--------------------- ------ ---------- --------- ---------- --------- --------- ---------- ----------- ----------- ----------
12,683 (223) 12,460 (1,049) 1,384 335 13,733 2,441 16,174
--------------------- ------ ---------- --------- ---------- --------- --------- ---------- ----------- ----------- ----------
Earnings per share
for profit / (loss) attributable to the owners of the parent during the period - basic 8 26.35cts (3.74)cts 40.61cts - diluted 8 26.35cts (3.74)cts 40.61cts
Condensed Consolidated Statement of Comprehensive Income
2020 2019 2019
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
------------------------------------------------------------ ------------ ------------ ---------------
Profit for the period 12,460 335 16,174
------------------------------------------------------------ ------------ ------------ ---------------
Other comprehensive expenses:
Items may be reclassified to profit or loss:
(Loss) / gain on exchange translation of foreign
operations (13,973) 10,523 18,680
------------------------------------------------------------ ------------ ------------ ---------------
Net other comprehensive (expenses) / income may
be reclassified to profit or loss (13,973) 10,523 18,680
------------------------------------------------------------ ------------ ------------ ---------------
Items not to be reclassified to profit or loss:
Unrealised loss on revaluation of leasehold land,
net of tax (932) (1,521) (1,715)
Remeasurement of retirement benefits plan, net
of tax - - (768)
------------------------------------------------------------ ------------ ------------ ---------------
Net other comprehensive expenses not being reclassified
to profit or loss (932) (1,521) (2,483)
------------------------------------------------------------ ------------ ------------ ---------------
Total other comprehensive (expenses) / income
for the period, net of tax (14,905) 9,002 16,197
Total comprehensive (expenses) / income for the
period (2,445) 9,337 32,371
Attributable to:
- Owners of the parent (1,560) 5,475 28,550
- Non-controlling interests (885) 3,862 3,821
------------------------------------------------------------ ------------ ------------ ---------------
(2,445) 9,337 32,371
------------------------------------------------------------ ------------ ------------ ---------------
Condensed Consolidated Statement of Financial Position
2020 2019 2019
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 355,006 350,914 367,891
Receivables 17,895 13,343 16,500
Deferred tax assets 12,470 15,318 11,251
------------------------------------------- -------------- -------------- ------------------
385,371 379,575 395,642
------------------------------------------ -------------- -------------- ------------------
Current assets
Inventories 6,297 10,015 8,752
Tax receivables 50,028 38,521 49,527
Biological assets 7,054 6,041 7,574
Trade and other receivables 6,108 6,159 5,774
Cash and cash equivalents 91,442 100,123 84,846
------------------------------------------- -------------- -------------- ------------------
160,929 160,859 156,473
------------------------------------------ -------------- -------------- ------------------
Current liabilities
Loans and borrowings (2,734) (13,328) (8,203)
Trade and other payables (17,178) (17,452) (16,110)
Tax liabilities (4,667) (4,847) (2,898)
Dividend payables (221) (1,262) (23)
Lease liabilities (221) - (222)
------------------------------------------- -------------- -------------- ------------------
(25,021) (36,889) (27,456)
------------------------------------------ -------------- -------------- ------------------
Net current assets 135,908 123,970 129,017
------------------------------------------- -------------- -------------- ------------------
Non-current liabilities
Loans and borrowings - (2,734) -
Deferred tax liabilities (15,984) (19,032) (17,047)
Retirement benefits - net liabilities (11,792) (9,107) (11,338)
Lease liabilities (328) - (456)
------------------------------------------- -------------- -------------- ------------------
(28,104) (30,873) (28,841)
------------------------------------------ -------------- -------------- ------------------
Net assets 493,175 472,672 495,818
------------------------------------------- -------------- -------------- ------------------
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 47,530 49,864 48,413
Exchange reserves (240,146) (236,768) (229,026)
Retained earnings 552,660 523,815 542,415
------------------------------------------- -------------- -------------- ------------------
399,399 376,266 401,157
Non-controlling interests 93,776 96,406 94,661
------------------------------------------- -------------- -------------- ------------------
Total equity 493,175 472,672 495,818
------------------------------------------- -------------- -------------- ------------------
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
2018 15,504 (1,171) 23,935 1,087 51,308 (245,170) 526,487 371,980 92,601 464,581
Items of other comprehensive
income:
* Unrealised (loss) / gain on revaluation of leasehold
land, net of tax - - - - (3,040) 1,211 - (1,829) 114 (1,715)
* Remeasurement of retirement benefits plan, net of ta
x - - - - - - (650) (650) (118) (768)
* Gain on exchange translation of foreign operations - - - - - 14,933 - 14,933 3,747 18,680
------------------------------------------------------------ --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
(expenses) / income - - - - (3,040) 16,144 (650) 12,454 3,743 16,197
Profit for the year - - - - - - 16,096 16,096 78 16,174
------------------------------------------------------------ --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive (expenses)
/ income for the year - - - - (3,040) 16,144 15,446 28,550 3,821 32,371
Issue of subsidiaries shares
to non-controlling interests - - - - - - - - 512 512
Accretion from change in
stake - - - - 145 - 1,671 1,816 (1,816) -
Dividends paid - - - - - - (1,189) (1,189) (457) (1,646)
------------------------------------------------------------ ---------
Balance at 31 December
2019 15,504 (1,171) 23,935 1,087 48,413 (229,026) 542,415 401,157 94,661 495,818
------------------------------------------------------------ --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Items of other comprehensive
income:
* Unrealised loss on revaluation of leasehold land, ne
t
of tax - - - - (883) - - (883) (49) (932)
* Loss on exchange translation of foreign operations - - - - - (11,120) - (11,120) (2,853) (13,973)
------------------------------------------------------------ --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total other comprehensive
expenses - - - - (883) (11,120) - (12,003) (2,902) (14,905)
Profit for the period - - - - - - 10,443 10,443 2,017 12,460
------------------------------------------------------------ --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
Total comprehensive (expenses)
/ income for the period - - - - (883) (11,120) 10,443 (1,560) (885) (2,445)
Dividends payable - - - - - - (198) (198) - (198)
Balance at 30 June 2020 15,504 (1,171) 23,935 1,087 47,530 (240,146) 552,660 399,399 93,776 493,175
------------------------------------------------------------ --------- ---------- --------- ----------- ------------- ---------- ---------- --------- ---------------- -----------
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
2018 15,504 (1,171) 23,935 1,087 51,308 (245,170) 526,487 371,980 92,601 464,581
Items of other comprehensive
income:
* Unrealised loss on revaluation of leasehold land,
net
of tax - - - - (1,444) - - (1,444) (77) (1,521)
* Gain on exchange translation of foreign operations - - - - - 8,402 - 8,402 2,121 10,523
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- ----------
Total other comprehensive
(expenses) / income - - - - (1,444) 8,402 - 6,958 2,044 9,002
(Loss) / Profit for the
period - - - - - - (1,483) (1,483) 1,818 335
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- ----------
Total comprehensive (expenses)
/ income for the period - - - - (1,444) 8,402 (1,483) 5,475 3,862 9,337
Dividends payable - - - - - - (1,189) (1,189) (57) (1,246)
Balance at 30 June 2019 15,504 (1,171) 23,935 1,087 49,864 (236,768) 523,815 376,266 96,406 472,672
---------------------------------------------------------- --------- ---------- --------- ----------- ------------- ---------- ---------- ------------- ---------------- ----------
Condensed Consolidated Statement of Cash Flows
2020 2019 2019
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 16,800 1,600 18,873
Adjustments for:
Biological assets movement 298 (1,845) (3,255)
Gain / (Loss) on disposal
of property, plant and equipment 26 (21) (83)
Depreciation 8,993 8,511 18,590
Retirement benefit provisions 932 764 2,152
Net finance income (1,140) (1,688) (3,189)
Unrealised loss / (gain)
in foreign exchange 11 (163) (251)
Property, plant and equipment
written off 263 46 261
Impairment losses / (Reversal
of impairment) 2,491 2,337 (6,590)
Provision for expected credit
loss 313 47 5,965
Operating cash flows before
changes in working capital 28,987 9,588 32,473
(Increase) / Decrease in
inventories 2,209 (246) 1,185
Increase in non-current,
trade and other receivables (372) (1,160) (1,586)
Increase / (Decrease) in
trade and other payables 1,786 (2,778) (4,629)
-------------------------------------- ------------ ------------ ---------------
Cash inflows from operations 32,610 5,404 27,443
Interest paid (217) (569) (939)
Retirement benefits paid (175) (103) (475)
Overseas tax paid (6,147) (162) (11,438)
-------------------------------------- ------------ ------------ ---------------
Net cash flows from operating
activities 26,071 4,570 14,591
-------------------------------------- ------------ ------------ ---------------
Investing activities
Property, plant and equipment
- purchases (11,141) (15,992) (33,169)
- sales 50 52 135
Interest received 1,376 2,257 4,169
Increase in receivables
from cooperatives under
plasma scheme (1,792) (2,266) (5,116)
Net cash used in investing
activities (11,507) (15,949) (33,981)
-------------------------------------- ------------ ------------ ---------------
Financing activities
Dividends paid to the holders
of the parent - - (1,240)
Dividends paid to non-controlling
interests - (57) (457)
Issue of subsidiaries shares
to non-controlling interests - - 512
Repayment of existing long-term
loans (5,425) (3,219) (11,078)
Repayment of lease liabilities
- principal (106) - (169)
Repayment of lease liabilities
- interest (19) - (41)
Net cash used in financing
activities (5,550) (3,276) (12,473)
----------------------------------- -------- --------- ---------
Net increase / (decrease)
in cash and cash equivalents 9,014 (14,655) (31,863)
Cash and cash equivalents
At beginning of period 84,846 112,212 112,212
Exchange (losses) / gains (2,418) 2,566 4,497
----------------------------------- -------- --------- ---------
At end of period 91,442 100,123 84,846
----------------------------------- -------- --------- ---------
Comprising:
Cash at end of period 91,442 100,123 84,846
----------------------------------- -------- --------- ---------
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 2019 Annual Report. The financial information for the half years ended 30 June 2020 and 30 June 2019 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 2019 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2019 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements for 2019 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.
The Directors have a reasonable expectation, having made the appropriate enquiries, that the Group has control of the monthly cashflows and that the Group has sufficient cash resources to cover the fixed cashflows for a period of at least 12 months from the date of approval of these interim report, including having to make full repayment of the bank loan. For these reasons, the Directors adopted a going concern basis in the preparation of the interim report. The Directors have made this assessment after consideration of the Group's budgeted cash flows and related assumptions including appropriate stress testing of identified uncertainties, specifically on the potential shut down of the entire operations if all the plantations are infected with Coronavirus as well as the impact on the demand for palm oil due to the Coronavirus pandemic. Stress testing of other identified uncertainties was undertaken on primarily commodity prices and currency exchange rates.
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.
2. Foreign exchange
2020 2019 2019
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
Closing exchange rates
Rp : $ 14,302 14,141 13,901
$ : GBP 1.24 1.27 1.32
RM : $ 4.28 4.13 4.09
Average exchange rates
Rp : $ 14,600 14,197 14,146
$ : GBP 1.26 1.29 1.28
RM : $ 4.25 4.12 4.14
3. Revenue
Disaggregation of Revenue
The Group has disaggregated revenue into various categories in the following table which is intended to:
-- Depict how the nature, amount and uncertainty of revenue and cash flows are affected by timing of revenue recognition; and
-- Enable users to understand the relationship with revenue segment information provided in note 5.
There is no right of return and warranty provided to the customers on the sale of products and services rendered.
CPO, palm
6 months to 30 June kernel Rubber Shell Biomass Biogas Others
2020 and FFB nut products products Total
$000 $000 $000 $000 $000 $000 $000
Contract counterparties
Government - - - - 551 - 551
Non-government
- Wholesalers 120,002 252 1,649 213 - 431 122,547
---------- --------- -------- ---------- ---------- --------- ----------
120,002 252 1,649 213 551 431 123,098
---------- --------- -------- ---------- ---------- --------- ----------
Timing of transfer
of goods
Delivery to customer
premises 2,073 252 - - - - 2,325
Delivery to port of
departure - - - 213 - - 213
Customer collect from
our mills / estates 117,929 - 1,649 - - - 119,578
Upon generation / others - - - - 551 431 982
---------- --------- -------- ---------- ---------- --------- ----------
120,002 252 1,649 213 551 431 123,098
---------- --------- -------- ---------- ---------- --------- ----------
CPO, palm
6 months to 30 June kernel Rubber Shell Biomass Biogas Others
2019 and FFB nut products products Total
$000 $000 $000 $000 $000 $000 $000
Contract counterparties
Government - - - - 384 - 384
Non-government
- Wholesalers 95,999 266 737 303 - 174 97,479
95,999 266 737 303 384 174 97,863
---------- --------- -------- ---------- ---------- --------- ----------
Timing of transfer
of goods
Delivery to customer
premises 2,147 266 - - - - 2,413
Delivery to port of
departure - - - 303 - - 303
Customer collect from
our mills / estates 93,852 - 737 - - - 94,589
Upon generation / others - - - - 384 174 558
95,999 266 737 303 384 174 97,863
---------- --------- -------- ---------- ---------- --------- ----------
CPO, palm
Year to 31 December kernel Rubber Shell Biomass Biogas Others
2019 and FFB nut products products Total
$000 $000 $000 $000 $000 $000 $000
Contract counterparties
Government - - - - 908 - 908
Non-government
- Wholesalers 214,416 653 2,224 733 - 202 218,228
---------- --------- -------- ---------- ---------- --------- ----------
214,416 653 2,224 733 908 202 219,136
---------- --------- -------- ---------- ---------- --------- ----------
Timing of transfer
of goods
Delivery to customer
premises 5,624 653 - - - - 6,277
Delivery to port of
departure - - - 733 - - 733
Customer collect from
our mills / estates 208,792 - 2,224 - - - 211,016
Upon generation / others - - - - 908 202 1,110
---------- --------- -------- ---------- ---------- --------- ----------
214,416 653 2,224 733 908 202 219,136
---------- --------- -------- ---------- ---------- --------- ----------
4. Finance expense
2020 2019 2019
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Interest payable on:
Development loans 217 569 939
Interest expense on lease
liabilities 19 - 41
------------ ------------ ---------------
236 569 980
------------ ------------ ---------------
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 2020
(unaudited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 36,438 42,582 53 20,307 466 19,014 118,860 1,142 - 120,002
* Rubber 252 - - - - - 252 - - 252
* Shell nut 513 335 - 692 - 109 1,649 - - 1,649
* Biomass products 213 - - - - - 213 - - 213
* Biogas products 151 218 - - - 181 550 - - 550
* Others 46 62 92 21 7 204 432 - - 432
Total revenue 37,613 43,197 145 21,020 473 19,508 121,956 1,142 - 123,098
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss)
before
tax 6,244 9,000 (3,592) 5,466 (113) 1,098 18,103 (155) (850) 17,098
BA movement 302 (123) (64) (144) 12 (337) (354) 56 - (298)
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss) for
the
period before tax
per consolidated
income statement 6,546 8,877 (3,656) 5,322 (101) 761 17,749 (99) (850) 16,800
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Interest income 1,028 300 2 14 - 16 1,360 15 1 1,376
Interest expense (13) - - - - (217) (230) (6) - (236)
Depreciation (2,279) (2,102) (1,048) (436) (180) (2,679) (8,724) (269) - (8,993)
Impairment losses - - (23) - - (2,468) (2,491) - - (2,491)
(Provision) /
Reversal
of expected credit
loss (58) - (255) - - (1) (314) - 1 (313)
Inter-segment
transactions 2,546 (981) (370) (282) (97) (975) (159) 71 88 -
Inter-segmental
revenue 12,402 653 1,661 - - 1,394 16,110 - - 16,110
Tax expense (2,501) (1,887) 1,105 (1,257) 43 184 (4,313) (29) 2 (4,340)
Total assets 208,010 104,609 38,880 30,438 15,069 123,131 520,137 20,077 6,086 546,300
Non-current assets 118,109 69,567 37,384 17,481 14,463 108,873 365,877 15,995 3,499 385,371
Non-current assets
- additions 2,610 621 1,173 267 2,048 4,025 10,744 85 - 10,829
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 2019
(unaudited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 34,900 28,837 813 15,902 217 14,474 95,143 854 - 95,997
* Rubber 266 - - - - - 266 - - 266
* Shell nut 189 242 - 290 - 17 738 - - 738
* Biomass products 303 - - - - - 303 - - 303
* Biogas products 33 229 - - - 123 385 - - 385
* Others 34 29 25 - - 28 116 58 - 174
Total revenue 35,725 29,337 838 16,192 217 14,642 96,951 912 - 97,863
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss)
before
tax 701 1,509 (3,533) 3,941 (242) (1,451) 925 (401) (769) (245)
BA movement 805 651 50 (42) 13 348 1,825 20 - 1,845
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Profit / (loss) for
the
period before tax
per consolidated
income statement 1,506 2,160 (3,483) 3,899 (229) (1,103) 2,750 (381) (769) 1,600
--------- --------- --------- -------- ------- ----------- ---------- --------- ------ --------
Interest income 1,012 962 2 180 - 16 2,172 83 2 2,257
Interest expense (33) - - - - (536) (569) - - (569)
Depreciation (2,026) (2,142) (1,205) (447) (135) (2,306) (8,261) (250) - (8,511)
Impairment losses - - (115) - - (2,222) (2,337) - - (2,337)
Provision for
expected
credit loss (3) (1) (7) - (2) (19) (32) (7) (8) (47)
Inter-segment
transactions 2,514 (1,010) (367) (290) (61) (972) (186) 58 128 -
Inter-segmental
revenue 10,314 560 622 - - 624 12,120 - - 12,120
Tax expense (2,730) (59) 2,155 (2,216) 154 1,593 (1,103) (117) (45) (1,265)
Total assets 176,332 120,118 45,785 33,772 12,600 124,385 512,992 21,553 5,889 540,434
Non-current assets 108,550 71,925 43,493 17,975 12,238 105,731 359,912 16,630 3,033 379,575
Non-current assets
- additions 4,377 2,127 1,521 111 1,935 5,540 15,611 95 - 15,706
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 2019 (audited)
Total sales revenue
(all
external)
* CPO, palm kernel
and FFB 75,933 65,102 2,487 36,060 513 32,679 212,774 1,642 - 214,416
* Rubber 653 - - - - - 653 - - 653
* Shell nut 674 582 - 929 - 39 2,224 - - 2,224
* Biomass products 733 - - - - - 733 - - 733
* Biogas products 141 442 - - - 325 908 - - 908
* Others 25 57 32 - - 88 202 - - 202
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Total revenue 78,159 66,183 2,519 36,989 513 33,131 217,494 1,642 - 219,136
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Profit / (loss)
before
tax 6,174 7,727 (8,933) 8,514 244 4,868 18,594 (1,264) (1,712) 15,618
BA movement 927 1,086 108 307 23 806 3,257 (2) - 3,255
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Profit / (loss) for
the
year before tax
per consolidated
income statement 7,101 8,813 (8,825) 8,821 267 5,674 21,851 (1,266) (1,712) 18,873
--------- --------- --------- -------- ------- ----------- ---------- --------- -------- ---------
Interest income 1,921 1,789 3 299 - 29 4,041 124 4 4,169
Interest expense (73) - - - - (901) (974) (6) - (980)
Depreciation (4,791) (4,470) (2,465) (916) (281) (5,146) (18,069) (521) - (18,590)
Reversal of
impairment - - 5,151 - 600 3,117 8,868 - - 8,868
Impairment losses - - (1,595) - - (431) (2,026) (252) - (2,278)
(Provision) /
Reversal
for expected
credit loss (124) 4 (5,998) - 4 163 (5,951) - (14) (5,965)
Inter-segment
transactions (40,471) (2,027) 25,745 (581) 1,198 15,760 (376) 153 223 -
Inter-segmental
revenue 23,395 1,981 1,847 - - 1,274 28,497 - - 28,497
Tax expense 8,851 (995) (3,418) (2,009) (234) (4,884) (2,689) 186 (196) (2,699)
Total assets 206,764 104,756 39,151 31,083 14,667 127,746 524,167 21,678 6,270 552,115
Non-current assets 121,161 73,106 37,553 18,166 13,970 111,159 375,115 16,944 3,583 395,642
Non-current assets
- additions 10,342 3,950 2,919 333 4,265 11,881 33,690 351 - 34,041
In the 6 months to 30 June 2020, revenues from 4 customers of the Indonesian segment represent approximately $63.5m (1H 2019: $57.2m) of the Group's total revenues. In year 2019, revenues from 4 customers of the Indonesian segment represent approximately $113.6m of the Group's total revenues. An analysis of this revenue is provided below. Although Customer 1 to 4 each contribute over 10% of the Group's total revenue, there was no over reliance on these Customers as tenders were performed on a weekly basis. Three of the top four customers were the same as in the year to 31 December 2019.
2020 2019 2019
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$m % $m % $m %
Major Customers
Customer 1 19.5 15.8 21.8 22.3 42.8 19.5
Customer 2 16.0 13.0 16.9 17.2 27.8 12.7
Customer 3 15.1 12.2 10.4 10.6 23.0 10.5
Customer 4 12.9 10.4 8.1 8.3 20.0 9.1
------------------ --------- --------- ---------- -------- -------- --------
Total 63.5 51.4 57.2 58.4 113.6 51.8
------------------ --------- --------- ---------- -------- -------- --------
6. Tax expense
2020 2019 2019
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 6,036 6,087 5,222
Foreign corporation tax
- prior year 50 - 12
Deferred tax adjustment
- origination and reversal
of temporary differences (1,746) (4,822) (2,535)
4,340 1,265 2,699
------------ ------------ ---------------
7. Dividend
The final and only dividend in respect of 2019, amounting to 0.5 cents per share, or $198,182 was paid on 17 July 2020 (2018: 3.0 cents per share, or $1,189,091, paid on 12 July 2019). As in previous years, no interim dividend has been declared.
8. Earnings per ordinary share ("EPS")
2020 2019 2019
6 months 6 months Year
to 30 June to 30 June to 31 December
(unaudited) (unaudited) (audited)
$000 $000 $000
Profit / (Loss) for the period
attributable to owners of the
Company before BA movement 10,633 (2,664) 14,019
BA movement (190) 1,181 2,077
------------ ------------ ---------------
Earnings used in basic and
diluted EPS 10,443 (1,483) 16,096
------------ ------------ ---------------
Number Number Number
'000 '000 '000
Weighted average number of
shares in issue in the period
- used in basic EPS 39,636 39,636 39,636
- dilutive effect of outstanding
share options - - -
------------ ------------ ---------------
- used in diluted EPS 39,636 39,636 39,636
------------ ------------ ---------------
Basic and diluted EPS before
BA movement 26.83cts (6.72)cts 35.37cts
Basic and diluted EPS after
BA movement 26.35cts (3.74)cts 40.61cts
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:
2020 2019 2019
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 3,487 1,974 3,022 1,850 3,571 1,994
Due from cooperatives
under Plasma
scheme 14,408 13,626 10,321 7,407 12,929 11,924
17,895 15,600 13,343 9,257 16,500 13,918
--------- ------- ------------ ------- --------- -------
Borrowings due
after one year
Long-term loan - - 2,734 2,473 - -
--------- ------- ------------ ------- --------- -------
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 assets, non-current receivables and long-term loan are classified as Level 3 in the fair value hierarchy.
Reconciliation - Level 3 recurring fair value measurements:
2020 2019
6 months 6 months
to 30 June to 30 June
(unaudited) (unaudited)
$000 $000
Non-current assets - Land
Opening balance 137,936 131,597
Addition 2,581 2,488
Net unrealized loss recognized during
the period (1,243) (2,028)
Impairment loss (1,338) (460)
Exchange difference (4,131) 2,810
Closing balance 133,805 134,407
------------ ------------
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 2019 and fair value.
2019: 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 6.78% fair value.
(1H 2019: 6.58%,
2019: 6.78%).
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 6.78% fair value.
(1H 2019: 6.58%,
2019: 6.78%).
10. Report and financial information
Copies of the interim report for the Group for the period ended 30 June 2020 are available on the AEP website at https://www.angloeastern.co.uk/.
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END
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